| Purchase Price | $1,760,000 |
|---|---|
| Annual Rental Income | $132,000 |
| Cap Rate | 7.50% |
| Lease Term | 10 Years |
| City | Chattanooga MSA |
Dollar General Net Lease Investment Opportunity
Chattanooga MSA, Tennessee
This offering presents an attractive opportunity to acquire a Dollar General property located in the Chattanooga Metropolitan Statistical Area. With fee simple ownership, a firm 7-year lease, and a corporate guarantee from one of the nation’s largest and most reliable discount retailers, this investment provides stable cash flow with minimal management obligations. Situated in a strong trade area with excellent visibility, this property is an ideal choice for investors seeking dependable income from a creditworthy tenant in a growing Southeast market.
Location and Market Overview
The property is strategically positioned within the Chattanooga MSA, near key transportation corridors including Interstate 24, U.S. Route 27, and State Route 153. Daily traffic counts in front of the site exceed 19,000 vehicles, offering strong visibility and accessibility for local and regional shoppers.
Chattanooga, known as the “Scenic City,” is home to more than 560,000 residents in the metro area and continues to experience steady population and employment growth. The city’s economy is anchored by manufacturing, logistics, healthcare, tourism, and advanced technology, with major employers such as Volkswagen, Amazon, and BlueCross BlueShield of Tennessee supporting a diverse and stable workforce.
Demographics
The surrounding trade area provides strong support for a Dollar General location. Within a five-mile radius, the population exceeds 42,000 residents with average household incomes of approximately $71,000. Expanding to a 10-mile radius, the population surpasses 115,000 residents with average household incomes over $74,000. These demographics align well with Dollar General’s core customer base, ensuring consistent store traffic and revenue.
Property Details
The property occupies approximately 1.2 acres and includes a modern, freestanding 9,100-square-foot Dollar General store. Built to the tenant’s latest prototype specifications, the building features ample parking, a functional store layout, and easy ingress and egress from the main roadway. The site is located along a busy retail corridor with complementary national and regional tenants.
Ownership is fee simple, granting the investor full rights to both land and improvements without the restrictions of a ground lease.
Lease Structure and Tenant Guarantee
The property is leased to Dollar General Corporation under a double net (NN) lease structure, with the tenant responsible for taxes, insurance, and store maintenance. Landlord responsibilities are minimal, typically limited to roof and structure.
The lease term is a firm 7 years, offering a secure income stream for the investor. Rental increases of 10% are scheduled at each option period, enhancing long-term returns.
Dollar General is one of the largest discount retailers in the U.S., operating more than 19,000 stores nationwide. As a Fortune 500 company with investment-grade credit, Dollar General provides investors with a highly reliable income source backed by strong corporate financials.
Tax Benefits
Ownership of a freestanding retail asset such as this allows for standard depreciation deductions. Investors may also benefit from bonus depreciation or accelerated cost segregation studies depending on their tax strategy.
Surrounding Area and Trade Drivers
The Chattanooga MSA benefits from a combination of steady population growth, affordable housing, and an expanding employment base. The property is located near residential communities and daily needs retailers, ensuring consistent customer traffic. Chattanooga’s growing logistics sector, strong tourism economy, and proximity to Atlanta and Nashville continue to attract both businesses and residents, further enhancing retail demand.
Investment Highlights
Buyer Profile and Financing
This investment is well-suited for 1031 exchange buyers, private investors, REITs, and family offices seeking stable cash flow with minimal management requirements. With its corporate-backed lease, fee simple ownership, and solid location, this Dollar General property is an attractive option for both seasoned net lease investors and those seeking to diversify into necessity-based retail.
Conclusion
This Dollar General in the Chattanooga MSA offers an outstanding net lease investment opportunity. With a 7-year firm lease, minimal landlord responsibilities, corporate guarantee, and a prime location in a growing Southeast market, the property delivers a stable, inflation-resistant income stream from a top-performing national retailer.
Qualified investors are encouraged to request the full offering memorandum, lease abstract, and financial details.