4249 Hwy 12, Starks, LA

Retail for Sale - $490,000 - 8,125 Sq. Ft.

Bull Realty, Inc.

Print   |   Report Error   |   Email Listing

Agent Info

NameMichael Bull, CCIM
CompanyBull Realty, Inc.

Property Info

CIMLS #969297
Location4249 Hwy 12
Starks LA 70661
Last UpdatedJanuary 17th, 2018
Building8,125 Sq. Ft.

Attached Documents


Property Description

This Dollar General, built in 2003, is a proven and value priced net lease offering. This NN lease is currently in its first 5-year option period. Dollar General exercised their second renewal option early, thereby extending the lease term through April 2023 with one 5-year option remaining. The lease contains a percentage rent clause, and stores sales have consistently exceeded the threshold level required to pay percentage rent. Percentage rent payments have averaged almost $9,000 annually for the past 5 years. Base rent for 2018 will be $36,776. Coupled with a conservative estimate of $8,000 for annual percentage rent, the projected cap rate is over 9.1%!

Landlord responsibilities under the NN lease include roof, structure, parking lot, and repairs over $750 per occurrence. The parking lot was re-striped in July 2017. The store is on Dollar General's National Insurance Program and Dollar General fully reimburses the Landlord for property taxes. Dollar General contributes $200 per month towards parking lot maintenance.

Location Description:

Starks is an unincorporated community and census-designated place in Calcasieu Parish, Louisiana, and is part of the Lake Charles MSA. The subject property is located on a corner lot on LA Highway 12, and approximately 30 miles northwest of Lake Charles and about 5 miles from the Texas and Louisiana border. Beaumont, TX is located about 35 miles west of Starks. Starks is known for its annual Mayhaw Festival to celebrate the fruit that grows in the bayous along the Texas/Louisiana border.


>> Low entry price for strong performing store, consistently achieving percentage rent

>> 2018 average cap rate with conservative percentage rent included is over 9.1%*

>> NN lease through April 2023

>> 7.77% rent increase in May 2018 and an 8% rent increase in May 2023, the next option period

>> No dollar store competition within 16 miles

>> Well located corner location between Lake Charles LA and Beaumont TX

>> 50%* Projected cash on cash return, based upon conservative percentage rent estimates through the extended term

>> Offered for sale at $490,000 or a 7.5% cap rate (2018 base rent without percentage rent)

Location & Street View