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27769709
27769708

3509 S Minnesota Ave, Sioux Falls, SD 57105

SL
OR OR 201206413
Colliers - Portland, Oregon
Listed by Colliers - Portland, Oregon
$1,675,000
227 days on market
Updated 111 days ago

Arby's Restaurant

Details
Property Type Retail
Sub Type QSR/Fast Food
Square Footage 3,444
Net Rentable (SqFt) 3,444
Cap Rate 6.01%
NOI $100,652
Occupancy 100%
Tenancy Single
Brand/Tenant Arby's
Lease Type Absolute NNN
Lease Term 20.1
Lease Expiration 10/31/2043
Remaining Term 17.4
Rent Bumps Yes
Lease Options Four, 5-Year Options
Price per SqFt $486
Broker Co-Op Yes
Year Built 2011
Acreage 0.900
Investment Type Net Lease
Lease Commencement 10/03/2023
Ground Lease No
Ownership Fee Simple
Sale Condition 1031 exchange

Absolute NNN Investment | 18 Years Remaining Term

Marketing description

Colliers International is proud to present the Arby’s restaurant site on Minnesota Avenue in Sioux Falls, South Dakota. Arby’s has been at this location since its construction in 2011 and currently operates under a 20-year lease with approximately 18 years remaining term. This is an absolute net-leased property (Absolute NNN) with no landlord responsibilities for property taxes, utilities, maintenance or roof/structure. Rental income is set at a base amount, with percentage rent being applied above a specified gross sales figure as an efficient hedge against inflation. The franchisee on-site is DRM, Inc., one of the largest Arby’s operators in the country with over 110 locations nationwide.

Arby’s has a long and successful track record at this site since 2011. It benefits greatly from its strategic location along the on and off ramps of Interstate 229, along with its positioning on Minnesota Avenue which has the highest traffic counts among North/South Avenues in south Sioux Falls. The immediate area is home to numerous national retailers including Costco, HyVee Grocery, Hardee’s, McDonalds, At Home Furniture, Planet Fitness, and more.

Investment highlights

  • Income Tax-Free State

  • Excellent Rent/Sales Ratio

  • Absolute NNN | Zero Landlord Responsibilities

  • Long Remaining Term | 18 Years

  • Strong Franchisee | Over 110 Units Under Management

  • Highly Visible Site on a Primary Retail Thoroughfare

  • Positioned Directly at I-229 On/Off Ramps

  • Percentage Rent Above Break-Point | Inflation Hedge

  • Annual Visits in the Top 30% Nation Wide for Arby’s Locations (Placer.ai data)

Listing Contacts

SL
OR OR 201206413
Colliers - Portland, Oregon
Listed by Colliers - Portland, Oregon

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Loan Amount
$0.00
Annual Debt Service
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Annual Cash Flow
$100,652.00
$8,387.67/mo

Valuation Metrics

0
DSCR
6.01%
Cap Rate
6.01%
ROI

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