| Purchase Price | $1,590,000 |
|---|---|
| Annual Rental Income | $127,200 |
| Cap Rate | 8.00% |
| Lease Term | 8 Years |
| City | Forrest City |
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Dollar Tree – Forrest City, AR
This property is leased to Dollar Tree, a leading national hard-value retailer operating thousands of locations across the United States. Dollar Tree’s proven fixed-price model delivers everyday essentials at affordable prices, driving strong customer traffic and repeat visits. That format, combined with a long-term net lease, creates an ideal low-maintenance investment opportunity for real estate owners.
Product Mix & Retail Model
Dollar Tree’s retail offering spans a comprehensive selection of necessity-based merchandise: household supplies, cleaning products, pantry staples, snacks, health and beauty essentials, frozen/refrigerated groceries, seasonal décor, party goods, crafts, toys, and pet accessories. The fixed-price format simplifies store operations, strengthens customer loyalty, and supports consistent sales across diverse economic conditions.
Net Lease Structure
This Dollar Tree operates under a long-term net lease—typically a triple-net (NNN) or double-net (NN) setup—where the tenant is responsible for property taxes, insurance, and maintenance. The net lease format delivers passive, predictable income for investors by shifting most landlord responsibilities to Dollar Tree. This structure is especially appealing to buyers looking for stable long-term cash flow backed by a nationally recognized tenant.
Forrest City Market & Demographics
Forrest City, located in eastern Arkansas, serves as the county seat of St. Francis County. The city’s population is roughly 14,000, with the wider trade area encompassing neighboring rural communities and small towns. Demographically, the market features a working-class population with a median household income near $42,000 and a significant portion of residents living on fixed or modest incomes. The local population includes families, retirees, service-sector employees, and seasonal workers—many of whom are highly responsive to Dollar Tree’s value proposition.
These demographic characteristics align strongly with Dollar Tree’s target audience. Forrest City’s mix of modest-income households and limited retail options means Dollar Tree serves as a go-to destination for affordable everyday needs. Its appeal spans a range of consumer segments—from budget-conscious families stocking groceries to seniors seeking household essentials.
Operational & Tenant Advantages
Dollar Tree is publicly traded and backed by strong corporate governance. The company has consistently demonstrated recession-resistant performance, partly due to its essential-goods focus. In smaller regional markets like Forrest City, Dollar Tree’s presence fills a retail gap and fosters local loyalty. The brand is also adept at tailoring inventory and promotions to meet local demand while maintaining its national identity and brand consistency.
Strategic Retail Placement
Typically located in accessible retail corridors or community shopping areas, Dollar Tree stores enjoy both planned and impulse visits. In Forrest City, this location likely functions as a retail anchor—drawing consistent traffic that also benefits nearby businesses. Its convenient accessibility and visibility further enhance its value as an essential neighborhood destination.
Investment Rationale