| Purchase Price | $1,440,000 |
|---|---|
| Annual Rental Income | $129,600 |
| Cap Rate | 9.00% |
| Lease Term | 7 Years |
| City | Somerset |
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Family Dollar – Somerset, KY
This Family Dollar property located in Somerset, Kentucky is backed by a long-term net lease with one of the nation’s largest discount retailers. The asset provides passive, stable cash flow secured by a nationally recognized tenant with a necessity-based retail model that performs well in small to mid-sized markets.
Tenant Overview
Family Dollar, a subsidiary of Dollar Tree Inc., operates over 8,000 locations across the U.S. The brand is known for delivering affordable everyday essentials in a convenient, neighborhood store format. Product offerings include groceries, household cleaning supplies, health and beauty items, baby care products, seasonal goods, small apparel accessories, school supplies, toys, and pet items—targeted specifically to serve value-conscious consumers.
Net Lease Structure
The property is under a long-term net lease, typically structured as double-net (NN) or triple-net (NNN), where the tenant is responsible for real estate taxes, insurance, and potentially maintenance. This structure ensures predictable cash flow with minimal landlord obligations, making the investment highly attractive to buyers seeking passive, long-term income from a creditworthy tenant.
Somerset Market Overview
Somerset is the county seat of Pulaski County and serves as the primary commercial hub for south-central Kentucky. With a population of approximately 12,000 and a regional trade area exceeding 60,000 residents, Somerset benefits from a diverse local economy that includes healthcare, education, manufacturing, and tourism. The area draws visitors year-round due to its proximity to Lake Cumberland, one of the largest recreational lakes in the region.
Demographics & Consumer Demand
The median household income in Somerset is in the $40,000–$45,000 range, with a significant portion of the population comprised of working-class families and retirees. Many households rely on budget-friendly retail options for their daily needs. Family Dollar’s value-focused product offering and convenient store layout align well with this demographic profile, ensuring a steady stream of local demand.
Retail Relevance & Consumer Role
Family Dollar plays a vital role in the community by offering accessible, affordable everyday goods in a single-stop format. The store appeals to a broad range of shoppers, including families, seniors, and essential workers. Its high-utility retail model, combined with consistent foot traffic and brand loyalty, positions it as a dependable anchor within the local retail landscape.
Tenant Reliability
Family Dollar is a well-capitalized, publicly traded company known for its operating strength in secondary and rural markets. The tenant has a history of stable performance and long-term lease renewals, offering investors a high level of confidence in continued occupancy and reliable rental income.
Investment Highlights