For Sale
$3,045,000

398 16Th StMerced, CA 95340

High-traffic Family Dollar, strong NOI.

Overview

Added:
Dec 11, 2024
Days on market:
114
This exceptional investment opportunity presents a fee-simple interest in a 9,180 square foot Family Dollar building situated on a 0.93-acre lot in Merced, CA. The property boasts a highly desirable location on West 16th Street, a major thoroughfare with 22,300 cars passing daily, and enjoys close proximity to other high-volume retailers such as In-N-Out Burger and Starbucks. Built in 2013, this single-tenant NNN-leased property features a long-term lease with Family Dollar, Inc., extending until June 30, 2028, with three 5-year renewal options and 10% rent bumps every five years. The current lease commenced March 21, 2013, and the property enjoys 100% occupancy, generating a substantial net operating income (NOI) of $213,162, representing a 7.00% cap rate. The asking price is $3,045,000, or $331.70 per square foot. The property's strong performance is underscored by Family Dollar's national ranking in the 98th percentile for pedestrian traffic. The location benefits from a robust demographic profile, with an average household income of $76,000 within a 5-mile radius and a population of 110,000 within the same area. The property is zoned for commercial use and has the APN 031-360-078-000. This investment offers a compelling combination of strong tenant performance, a secure lease structure, and a prime location in a thriving retail corridor.

Highlights

  • Investment-grade tenant, Dollar Tree/Family Dollar (DLTR: NASDAQ), boasting over $28B in annual revenue (2023).
  • NNN lease structure for ease of management.
  • Long-term occupancy with a recently exercised lease extension.
  • 10% rental increase provides a growing income stream.
  • Excellent location adjacent to In-N-Out Burger and Starbucks.
  • High-traffic Family Dollar store, nationally top-ranked for traffic.

Property Details for 398 16Th St

Property type
Retail properties, Retail space
Square Feet
9,180 SF
Year Built
2013
Lot Size (sq. ft)
40,511 SF

Location Insight

City
Merced
County
Merced
State
California
Latitude
37.2992977
Longitude
-120.4821596
398 16Th St, Merced, California

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398 16Th St
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