Case Study: Showing Range to Find a Small-Town Opportunity
‘Feet on the Street’ Research Identifies Ideal Buyer
In addition to leveraging the latest high tech tools on behalf of their clients, there are times when a broker needs to pound the pavement to do some old-fashioned, “boots-on–the-ground” research. That was the case when one of the country’s largest developers of Dollar General stores engaged Bull Realty to market two new-construction stores located in small-town Alabama.
Because of the rural location of these new properties, the listing brokers determined that the stores were of greater value to a local investor than a regional buyer. Brokers typically use their computer databases and municipal tax records to find buyers. However, rural Alabama didn’t have any online resources to identify possible local prospects for these new Dollar General listings.
In their marketing efforts, Bull Realty VPs Nancy Miller and Sheree Strome visited the markets and spoke to the local tax assessor. Much to their delight, they were able to get the tax assessor to provide the names and phone numbers of key real estate owners in the area.
That day, the Bull Realty marketing team called these local investors. One of the investors quickly determined that one of the listings, a Dollar General store in New Brockton, AL, would be an excellent investment because of its long-term income potential and the discount retail sector’s strong overall performance in recent years. In fact, he had previously purchased other dollar stores.
In the transaction with Bull Realty, he made an all-cash purchase of a double-net Dollar General with a new, 15-year lease at an 8.9% cap rate. His only disappointment was that he also wanted to buy the brokers’ other Dollar General listing, but someone had already beat him to it.