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400 S 6th StReading, PA 19602
Family Dollar
Asset ClassRetail
Deal Size: $1.87 MCap Rate: 7.25%Access Data Room
Recent Lease Extension | Absolute NNN – Depreciable Asset | Top National Performer (Placer.ai)
overview of deal

Overview

Located in the heart of Reading, PA, this 9,568 SF Family Dollar store is leased on an absolute NNN basis with corporate backing, providing stable and predictable cash flow for investors. Constructed in 2016 on a 0.61-acre parcel, the property features rental increases throughout the lease structure and is positioned within a densely populated urban corridor with consistent consumer traffic. The asset offers a low-management investment opportunity supported by the long-term presence of a nationally recognized discount retailer.

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Investment Highlights

Recent Lease Extension | Long-Term Commitment

  • Family Dollar recently extended its lease, demonstrating long-term commitment to the site
  • Close to 10 years of remaining lease term provide durable cash flow visibility

Built-In NOI Growth

  • Lease includes 10% rental increases every 5 years during the base term
  • Continued 10% increases throughout all remaining 5-year option periods

Strong Site Performance | Top 30% Nationwide Location

  • Property ranks in the top 30% of locations nationally based on annual visits
  • Demonstrates strong and consistent customer traffic levels at the site

Absolute NNN Lease Structure | Passive Investment

  • Tenant is responsible for taxes, insurance, and maintenance

Fee Simple Ownership | Tax Depreciation

  • Tax depreciation benefits enhance investor value
  • Fee simple ownership offers long-term control of the underlying real estate

4th Largest City in PA | Dense Population

  • Positioned along South 6th Street with approximately 13,000 combined vehicles per day
  • Serves nearly 212,000 residents within a 5-mile radius in Allentown

Strong Traffic & Regional Connectivity | Primary Commuter Corridors

  • Direct access to US Route 422 (40K VPD) and US Route 222 (37K VPD)
  • Connecting Reading, Wyomissing, Lancaster, and Allentown

Growth Market | Expected Population Growth

  • Surrounding population projected to continue growing over the next five years
  • Expanding consumer base supports long-term retail demand and tenant performance

Positive Tenant Outlook

  • Family Dollar generated approximately $13 billion in revenue in fiscal year 2025
  • Reported 2.5% comparable sales growth and projects continued positive growth in 2026

Strong Healthcare & Education Presence | Stable Daytime Population Drivers

  • Near Reading Hospital, a 697-bed teaching hospital within the Tower Health network employing 10,000+ employees systemwide
  • Proximity to Alvernia University with approximately 3,000 students
  • Nearby Exeter Township Senior High School enrolls approximately 1,300 students

Established Retail & Entertainment Corridor | Regional Shopping & Event Destinations

  • Located near Downtown Reading and the dominant Wyomissing retail trade area
  • Proximity to Berkshire Mall and the Mt. Penn retail corridor
  • Minutes from Santander Arena, an 8,800-seat venue that has hosted more than 2,800 events driving consistent regional traffic
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400 S 6th StReading, PA 19602
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