8% Family Dollar Cap Rate Plus Much More

Retail-Commercial for Sale
Catylist Listing ID: 30585704
Property Subtypes: Day Care Facility, Garden Center, Mixed Use, Movie Theatre, Restaurant, Retail-Pad, Street Retail, Tavern/Bar/Nightclub, Other
Building Size (RSF): 24,455 SF
Gross Land Area: 1.46 Acres
Sale Price: $1,400,000
Unit Price: $57.25 PSF
Ceiling: 12 ft.
Property Use Type: Net Leased Investment (NNN), Investment, Vacant/Owner-User, Business
Building Name: Family Dollar & More
Usable Size (USF): 24,455 SF
Sale Terms: Cash to Seller
Cap Rate: 8.0%
Average Occupancy Rate: 50
Last Updated: 3/19/2020

Overview / Comments

8% CAP | Family Dollar + Available Space

Great opportunity for an investor / user to take advantage of a very nice property in the retail district of Hwy 58. The Family Dollar store has about 8 years left on a current 10-year term and has five, 5-year extensions. The rent for the next extension goes up 14%, thereafter 9%. The property has 24,455 square feet. See lease abstract which is included.

In addition to the 9,800/sf Family Dollar space there is a +/- 8,200/sf vacant space to the left of Family Dollar where Aaron's Rent to Own store was located. This suite is a mostly a wide open floor plan that could have many uses. This suite is a retail type use but could be converted to climate controlled storage or office space or many other uses.

In addition to the vacant 8,200/sf on the first floor there is +/- 6,450 sf of second floor space above Family Dollar. The second floor space currently has access via a back stairwell and freight elevator, only.

The valuation of this property has been calculated by taking the current NNN income from Family Dollar which is $72,200 at a Cap Rate of 8% which produced $902,500 of value and by adding the vacant first floor space at $60/sf (8,200 x $60) which is $492,000. Or, if you want to take all of the vacant space which is 14,655 (1st and 2nd floor) then the vacant space is valued at $33.95/SF.

This Hwy 58 retail is within 2-3 miles of the Enterprise South Industrial Park where Volkswagen (VW) and Amazon have production facilities. VW currently has an $850 million dollar expansion under construction. There are about 10,000 employee in the whole park.

Hwy 58 and this locations sees over 41,000 car per day and is one of Chattanooga's most traveled streets. Additional parking could be added on the rear vacant lot.

The Family Dollar lease is a NNN lease.

In addition, this property is shown as a For Lease listing under the same address. Listing number #30576632.

Attached Documents:
1. Floor Plans
2. Lease Abstract
3. Property maps

For Qualified Buyers:
1. Family Dollar Lease
2. 2018 & 2019 P&L's

Attachments & Media

Additional Details

Nearest MSA: Chattanooga
County: Hamilton
Taxing Authority: Hamilton County/Chattanooga City
Tax ID/APN: 033129B D 00600
Retail Clientele: General, Family, Business, Tourist, Recreation, Convention, Other
Property Located Between: Oakwood Dr & Briarwood Dr
Property Visibility: Excellent
Largest Nearby Street: Hwy 58
Feet of Frontage: 180
Traffic/Vehicle Count: 41,062
Highway Access: Hwy 153 is about 1 miles south of the subject via Hwy 58. Then is about 2 miles to I-75.
Airports: Chattanooga Metropoliatan
Site Description: The site is level and at street grade. Has parking lot in front. Both suites have retail glass fronts.
Area Description: Hwy 58 is a growing area. The area is growing partially due to its closeness to the Enterprise South Industrial Park. Both Volkswagen and Amazon are located in this park. About 10,000 employees work within the Park.
Tenancy: Multiple Tenants
Total Number of Buildings: 1
Number of Stories: 2
Typical SF / Floor: 9,800 SF
Property Condition: Good
Year Built: 1969
Year Renovated: 2009
Roof Type: Flat
Construction/Siding: Block
Exterior Description: Retail front. Block building on sides and rear.
Total Parking Spaces: 23
Parking Type: Structure, Surface
Parking Description: Striped parking lot is in the front. Additional parking could be added to the back right of the property. See property maps.
Freight Elevators: 1
Heat Type: Natural Gas
Heat Source: Ceiling Units
Air Conditioning: Engineered System
Interior Description: The vacant suite has an open floor plan with about 6,000/sf of mostly open floor plan and about 2,000 SF behind a back wall. The back room has been used for storage and has restrooms.
Zoning Description: C2, Commercial
Lot Frontage: 180
Water Service: Municipal
Sewer Type: Municipal
Land Ownership: Owned

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Demographic Statistics

Proximity: 1 mile 3 miles 5 miles
Total Population: 8,769 28,507 114,729
Median Age: 40.01 40.18 39.99
Households: 3,816 12,493 47,602


Photograph of Listing Agent

Robert Fisher

KW Commercial Greater Chattanooga REALTORS® Member
Photograph of Listing Agent

Riley Kurtts

KW Commercial Greater Chattanooga REALTORS® Member
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