Steve9460r - 8/6/2020 13:50

All correct. I know a guy real well who owns a Dollar General Building and he knows a guy who owns 12 others. Dollar General built a new building in our hometown at the beginning of last year and i looked at what it would take to purchase it. It was built by a company out of Kansas City (3 hours east of where I am located) and they own the building after construction until they sell it to an investor. Dollar General commissions them to build a new building and it is up to them to make it work and do the details of the project. The builder makes their money when they sell the building to an investor at a marked up rate for whatever it cost them to build it. Higher they can sell it for, the more they profit - just like most home builders in the suburbs. Dollar General doesn't care how much it sells for, they pay rent based on the buildings size. This specific company had built like 80 different dollar stores throughout the Midwest in the past 15 years if I remember right. Once construction is done, Dollar General pays monthly rent to the owner. First 10 years is fixed rate, renegotiate rents every five years after that. The leases are triple net leases and the owner just has to maintain the building. Our local building was bought buy a couple out in California for what I assume is a diversified investment portfolio. I have looked at other dollar stores in surrounding towns and most of them are titled to people out of state and many of them are put under specific LLCs for that location only.