Posted by OhioBill on February 04, 2010 at 22:16:57:
In Reply to: Re: Dollar General Stores posted by ray@lcorn on February 04, 2010 at 08:46:39:
Ray I read your article and Ouch these towns are 5,000, 11,000 and 7,000 in population so in my mind that doesnt leave much use for a 7,200 s.f. building.
I am not even sure if that would be big enough for a body shop. If I ammortized the whole $900,000 after 5 years the balance would be $810,000 or 270,000 per store, $37.50 per square foot, that to me is pretty high for a vacant property. The NOI would be $105,019 minus $76,332 mortgage or cash flow of $28,687 per year after 5 years $143,435
DG's ave store is 1.1.mil these are doing 1.275mil, 1.64mil, 1.45 mil The population has been growing and is predicted to grow in each town except for 1 which is prediciting a minus 3% over the next 5 years it also has a $33,000 median hh income which is under the US average of $53,684
On paper it can look good, but that risk of going dark is awful scarey. Warehouse space wouldnt even begin to pay the mortgage, any suggestions?
- Re: Dollar General Stores ray@lcorn 12:32:21 02/05/10 (1)
- Re: Dollar General Stores OhioBill 14:58:25 02/05/10 (0)