Dollar General and Family Dollar are both dollar store tenants in the net lease listings we track, and their credit now differs. Dollar General’s senior unsecured debt is rated BBB/Baa3 (investment grade). Dollar Tree sold Family Dollar on July 5, 2025 to 1959 Holdings, LLC in the Brigade Capital Management and Macellum Capital Management transaction, and S&P rates Family Dollar Stores LLC B (Stable) (not investment grade).
Head-to-Head
| Dollar General | Family Dollar | |
|---|---|---|
| S&P / Moody’s | BBB/Baa3 | B |
| Investment grade status | Investment Grade | Below Investment Grade |
| Owner | Public company (NYSE: DG) | Private: 1959 Holdings, LLC (Brigade Capital Management and Macellum Capital Management transaction), since July 5, 2025 |
| Stores | 21,148 in 48 states and Mexico (July 31, 2026) | No count verified from a primary source since the sale |
| Headquarters | Goodlettsville, Tennessee | Chesapeake, Virginia |
| Median asking cap rate (listings we track) | 7.00% (520 listings with a stated cap rate) | 8.50% (177 listings with a stated cap rate) |
Dollar General figures from its Form 10-Q for the quarter ended July 31, 2026. Family Dollar ownership from Dollar Tree’s SEC-filed press releases of March 26 and July 7, 2025 and its Form 8-K reporting completion of the sale to 1959 Holdings, LLC on July 5, 2025. Ratings update from our ratings database. Cap rates are live asking cap rates on listings InvestmentGrade.com tracks; asking cap rates are not closed-sale cap rates.
Credit Ratings
Dollar General’s senior unsecured debt is rated BBB/Baa3 in our ratings database (investment grade).
S&P rates Family Dollar Stores LLC B (Stable) (not investment grade); we have not verified a Moody’s rating for it from a primary source. Private ownership does not by itself mean a company is unrated. A below investment grade issuer rating may not meet mandates that require an investment grade tenant, so test the named tenant, any guarantor and the mandate’s own rules. Dollar Tree completed the sale on July 5, 2025 and announced it on July 7, 2025, and its filings state that it still guarantees lease obligations for certain Family Dollar stores, capped at $20 million in the second year after the sale and $10 million in the third (Form 10-Q for the quarter ended August 1, 2026). For each lease, check the tenant entity, whether a Dollar Tree guarantee applies, how much of the cap remains and when it ends.
Family Dollar rating source: S&P Global Ratings B, Stable, as of July 20, 2026. Ratings checked October 8, 2026.
Ratings come from our tenant ratings database. For how the scale works, see the investment grade guide.
Cap Rates
| Tenant | S&P / Moody’s | Median asking cap rate | Middle half of listings | Listings | Median vs. 10-year Treasury |
|---|---|---|---|---|---|
| Dollar General | BBB / Baa3 | 7.00% | 6.60% to 7.76% | 520 | +176 bps |
| Family Dollar | B / n/a | 8.50% | 8.00% to 9.00% | 177 | +326 bps |
Active listings InvestmentGrade.com tracks with an asking cap rate (stated in the listing, or computed from its stated income and price when no rate is stated), listings last observed October 19, 2026. Asking cap rates are not closed-sale cap rates. The middle half is the range from the 25th to the 75th percentile of listings. The 10-year Treasury yield is 5.24% as of October 1, 2026 (FRED series DGS10). Ratings are the agency ratings in our ratings database for the entity shown, which may be a parent company; the rating type (for example issuer, senior unsecured debt, long-term debt or revenue bond ratings) varies by company and is shown on each tenant page. A rating applies to a lease only if the rated entity signs or guarantees it, so confirm the tenant and any guarantor in the lease. n/a means no verified rating is on file.
The live table above shows median asking cap rates for both tenants in the listings we track; asking cap rates are not closed-sale cap rates. Differences can reflect credit, the ownership change, remaining lease term, building age and location, and the table does not isolate any one factor. Dual-brand Dollar Tree and Family Dollar combination stores can appear in the Family Dollar figures, so confirm the tenant entity on each lease.
Lease Structure and Real Estate
Building age and lease terms vary for both tenants, so compare the specific property rather than the brand. In a store portfolio review begun in late fiscal 2023, Dollar Tree identified approximately 970 underperforming Family Dollar stores to close (Dollar Tree Form 10-K for fiscal 2024), so confirm that a Family Dollar store is open and operated by the named tenant, and for dual-brand Dollar Tree and Family Dollar combination stores, confirm which entity signed the lease. For any Family Dollar property, review the tenant entity, guarantee, remaining term, store performance where available and the building’s re-use potential.
Bonds vs. Real Estate
Dollar General has senior unsecured notes rated BBB/Baa3; see Dollar General bonds vs. NNN. The 10-year Treasury is 5.24% and the ICE BofA US Corporate Index (investment grade) yields 5.99% as of October 1, 2026. See the bond-to-NNN spread table.
Which Fits Your Mandate
- Dollar General may suit buyers whose mandate requires an investment grade rated tenant; its senior unsecured debt is rated investment grade in our ratings database.
- Family Dollar may suit buyers who accept a privately owned tenant that S&P rates B (not investment grade), provided the location, rent level, building, lease guarantor and asking cap rate support the risk.
See the Dollar General and Family Dollar tenant pages and Dollar General vs. Dollar Tree.
Comparing Dollar Store Net Lease Properties?
We can compare specific Dollar General and Family Dollar offerings against current listings and recent sales, and help owners weigh holding or selling Family Dollar properties. On the majority of transactions, there is no separate fee to you as the buyer; the listing broker pays a cooperating commission. Investment Grade Capital, a service of Investment Grade LLC, can match you with lenders.
Request a buyer consultation or email team@investmentgrade.com.
Frequently Asked Questions
Is Family Dollar investment grade?
No. S&P rates Family Dollar Stores LLC B (Stable) (not investment grade). Whether a particular lease meets a mandate that requires an investment grade tenant depends on the named tenant, any guarantor, any remaining capped Dollar Tree guarantee and the mandate’s own rules.
Who owns Family Dollar?
Dollar Tree sold Family Dollar on July 5, 2025 to 1959 Holdings, LLC, the buyer under a March 25, 2025 purchase agreement, in the transaction Dollar Tree announced as a sale to Brigade Capital Management and Macellum Capital Management.
Do Family Dollar leases still have a Dollar Tree guarantee?
Some do, for a limited time. Dollar Tree’s filings state that it still guarantees lease obligations for certain Family Dollar stores, capped at $20 million in the second year after the July 5, 2025 sale and $10 million in the third (Form 10-Q for the quarter ended August 1, 2026). Whether a guarantee applies to a particular lease, how much of the cap remains and when it ends depend on the lease and guaranty documents, so review them for each property.
How do Family Dollar and Dollar General asking cap rates compare?
The live table on this page shows current median asking cap rates for both tenants in the listings we track; asking cap rates are not closed-sale cap rates. Differences can reflect credit, the ownership change, remaining lease term, building age and location, so compare the lease, guarantor, remaining term and location of each property.
Sources: Dollar General Form 10-Q for the quarter ended July 31, 2026; Dollar Tree press releases filed with the SEC on March 26 and July 7, 2025.
Educational content only. InvestmentGrade.com is a commercial real estate brokerage and educational publisher. We do not sell, broker, underwrite, or solicit any bonds, securities, or investment products. Yields, ratings, and prices referenced fluctuate continuously and are sourced from public market data as of the date noted. Nothing on this page constitutes investment advice, an offer to sell, or a solicitation to buy any security. Consult a licensed broker-dealer, registered investment advisor, or tax professional before making any investment decision. For SEC investor education, visit investor.gov.
