| Purchase Price | $1,280,000 |
|---|---|
| Annual Rental Income | $115,200 |
| Cap Rate | 9% |
| Lease Term | 9 Years |
| City | Raton |
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Family Dollar – Raton, NM
This Family Dollar property located in Raton, New Mexico, is secured by a long-term net lease with one of the nation’s leading discount retailers. The investment offers stable, passive income with minimal landlord responsibility and is backed by a corporate tenant operating in a rural market well-aligned with value-focused retail demand.
Tenant Overview
Family Dollar, a subsidiary of Dollar Tree Inc., operates over 8,000 stores nationwide. The company is recognized for its efficient store model and affordable product offerings, including food and beverages, cleaning supplies, health and beauty items, apparel basics, toys, seasonal goods, and pet products. These stores are a consistent and essential part of daily life for cost-conscious shoppers in small towns and underserved communities.
Lease Structure
The property is subject to a long-term net lease, generally structured as double-net (NN) or triple-net (NNN), where the tenant is responsible for property taxes, insurance, and often maintenance. This creates a reliable income stream with low operational burden, making the asset ideal for investors seeking hands-off ownership of essential service retail.
Raton Market Overview
Raton is the county seat of Colfax County and serves as a small but important commercial center in northeastern New Mexico. Positioned near the Colorado border along I-25, the city supports local retail and services for residents and travelers alike. The economy is driven by tourism, healthcare, education, and regional government services.
Demographics & Consumer Demand
Raton has a population of approximately 6,000 residents, with a broader trade area covering neighboring rural communities. Median household incomes are below the national average, reflecting a community that values affordability and access to essential goods. Family Dollar fits well within this environment, catering to households seeking low-cost shopping alternatives.
Community Importance & Store Traffic
As one of the limited discount retailers in the market, Family Dollar plays a key role in the daily lives of local residents. Its convenient location, efficient store size, and broad product mix generate frequent foot traffic. Shoppers rely on the store for everyday basics, supporting repeat visits and consistent in-store performance.
Tenant Stability & Investment Security
Family Dollar is a credit-backed, nationally scaled tenant with strong brand recognition and operational durability. The company performs well in rural and lower-income markets, offering long-term lease security for property owners. Its focus on essential retail further supports consistent occupancy and income throughout varying economic cycles.
Investment Highlights