BUYER: Schmechel - Tampa LLC (principals: Michael and Christine Schmechel), Billings, Mont.
SELLER: Palmetto Tampa I LLC
PROPERTY: 6508 S. Dale Mabry Highway, Tampa
PRICE: $1.71 million
PREVIOUS PRICE: $525,000, October 2011
LAW FIRM ON DEED: Bush Dee LaVia & Wright PA, Tallahassee
PLANS, DESCRIPTION: An investment group led by Michael and Christine Schmechel of Billings, Mont., purchased a new 9,100-square-foot Dollar General store for $1.71 million.
The price equated to $188 per square foot.
The sellers, Daniel Land Co. Inc. and Houghton Family Entities LLC, purchased and redeveloped the former Church's Chicken lot. Construction on the new store began in April and Dollar General Corp. opened last month.
The property was purchased for its passive income. Much like CVS and Walgreens, Dollar General is highly prized as a tenant, because of its creditworthiness.
The retailer has agreed to a 15-year lease with multiple extension options through at least August 2027. As part of the lease, Dollar General is responsible for all property taxes, insurance and general maintenance including the building's roof, structure and parking lot.
The purchase price equates to a pay off ratio based on current annual income (capitalization ratio) of 7.25%.
The purchase entity Schmechel - Tampa LLC mortgaged the property to U.S. Bank NA for $965,000.