Heartland Income Properties to Add Additional Dollar General Property to Portfolio
Lease Features Corporate Guarantee and Percentage Rent Feature
By: Heartland Income Properties, LLC
SCOTTSDALE, Ariz. - Feb. 3, 2020 - PRLog -- Heartland Income Properties, LLC, a growing real estate investment company focused on acquiring undervalued single-tenant, triple-net commercial properties primarily in the Midwest region of the United States, is pleased to announce that it has entered into a contract with an independent third-party to acquire a 9,014 square foot building in Rockwell City, Iowa currently occupied under lease to Dollar General, the national discount store chain.
The property features an 8% initial capitalization rate. The current lease runs through November 2024 and there is an additional five-year option period at the conclusion of the initial lease term with a 5.88% rent increase over the current base rent. In addition, the lease features a percentage rent provision that is expected to increase the overall capitalization rate to more than 9%.
Under the triple-net model, the tenant is responsible for all costs related to operations including taxes, insurance, snow removal, and maintenance.
Dollar General is the nation's largest small-box discount retailer with more than 16,000 stores in 44 states. Dollar General has guaranteed the Rockwell City lease. Heartland will assume this guarantee.
In announcing the pending acquisition, Heartland Executive Chairman Tim Kopatich said that the property is in excellent condition and since it is already occupied by a major national tenant, will be immediately cash-flowing to Heartland.
An April closing is anticipated.
Heartland is currently evaluating several other properties for potential acquisition in the Midwest.
For additional information please contact Mr. Kopatich at (949) 340-2647 or tim.kopatich@