New building ownership won't change operations at Pittsfield Dollar General
PITTSFIELD — Dollar General has sold its Pittsfield store on West Housatonic Street to an affiliate of a publicly traded real estate investment trust in San Diego, according to documents on file at the Middle Berkshire Registry of Deeds.
MDC Coast 2 LLC, affiliated with Realty Income Corp. of San Diego, purchased the property for $1.6 million, according to the deed.
MDC Manager Michael R. Pfeiffer is also executive vice president, general counsel and secretary of Realty Income Corp., according to that company's website.
Real Estate Investment Trusts, also known as REITs, are companies that own, and often operate, income-producing commercial real estate properties such as office and apartment buildings, shopping centers and hotels. The Berkshire Mall is owned by a REIT based in Dallas.
It's common for expanding companies like Dollar General to develop a site then sell it to another firm that holds it, according to a person with knowledge of commercial real estate. Dollar General expanded into Berkshire County in 2014.
The change in the property's ownership will not affect the way the Pittsfield store conducts its business operations, said company spokeswoman Crystal Ghassemi.
Unlike some discount chains, Dollar General does not franchise its locations to local owners.
"In the majority of our stores, the property itself is leased," Ghassemi said.
Dollar General also has Berkshire County outlets in Adams, Lanesborough, Sheffield and Williamstown. Of those four, only the Lanesborough location is owned by a local entity, according to property tax records.
The Adams store is owned by an LLC affiliated with a property tax advisor in Atlanta; the Sheffield store is owned by a North Carolina-based development firm; and the Williamstown store is owned by Mainwell Associates of Boston.
It could not be determined if MDC Coast 2 LC is interested in purchasing Dollar General's other Berkshire outlets, or if the company is actively shopping them.
Realty Income spokesman Jonathan Pong said his company does not comment on acquisitions, but said Dollar General is Realty Income's third-largest tenant.
Realty Income owns 502 Dollar Generals across the country, more units than any of its other top 20 tenants, according to the company's website.
The San Diego-based firm also owns 456 Family Dollar/Dollar Trees, 176 Walgreens shops; 58 Rite Aids; 23 Regal Cinemas; 19 Walmart/Sam's Club locations; and 15 BJ's Wholesale Clubs. It owns 81 properties in Massachusetts.
Since its 1994 listing on the New York Stock Exchange, Realty Income Corp. has increased its portfolio from 630 to 4,473 properties in 49 states and Puerto Rico. The firm's real estate assets have risen from $451 million to $12.1 billion.
Contact Tony Dobrowolski at 413-496-6224.
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