Purchase Price | $2,307,692 |
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Annual Rental Income | $150,000 |
Cap Rate | 6.5% |
Lease Term | 15 Years |
City | Albany |
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Dollar General stands as a stalwart in the discount retail landscape, operating nearly 20,000 stores nationwide with an investment-grade corporate guarantee and a recession-resilient business model, making it a highly attractive tenant for investors seeking passive income under absolute triple‑net leases—where the tenant assumes all expenses, including taxes, insurance, and maintenance.
In Albany, New York—a historic and economically diverse capital city with a population around 100,000 and a metro area nearing 900,000—Dollar General benefits from a stable and multifaceted economic environment driven by government, healthcare, education, and high-tech industries, part of the “Tech Valley” initiative surrounding the city. Although median household income in the city sits around $60,000, slightly below the metro average, the cost of living remains moderate and housing prices—median home values around $223,000—are fairly affordable . Demographically, Albany is relatively young (median age ~32) and diverse, with nearly 40% of adults possessing a bachelor’s degree , and its daytime population swells to over 160,000 thanks to its role as a government and business hub. The city’s vibrant retail landscape features major centers like Crossgates Commons—anchored by some of the largest retailers in the country—and annual retail sales exceeding $3 billion. Despite some neighborhoods facing higher poverty and crime rates, Dollar General has proven adaptable at serving diverse communities and fulfilling essential needs. A recent store closure in the South End—a location reportedly impacted by security and performance issues—was part of a broader portfolio optimization, underscoring Dollar General’s disciplined approach to site selection and profitability. Moreover, Albany is undergoing residential growth, with rising home prices—median around $308,000—and low inventory fueling competitive housing markets, reflecting strengthening demographics and sustained local demand. With major economic drivers in technology, education, government, and transportation (including the Port of Albany–Rensselaer, which adds nearly $428 million in annual economic output), the city enjoys a diversified foundation that supports retail stability. In this context, a Dollar General store in Albany is strategically positioned to benefit from strong community traffic—including employees, commuters, students, and families—and serve as a dependable source for everyday essentials. All told, the combination of Dollar General’s institutional-level credit strength, absolute triple-net lease structure, and Albany’s broad and resilient economic base makes this location a compelling addition to any net-lease investment portfolio, offering low-maintenance ownership, long-term cash flow predictability, and strong alignment with foundational retail demand. A very strong offering.