Chick-fil-A: NNN Ground Lease Investment
Chick-fil-A: NNN Ground Lease Investment Opportunity
Marketing description
Exceptional ground lease investment opportunity with Chick-fil-A, Inc. in Sioux Falls, South Dakota. This 2021-built prototype store features dual drive-thru lanes and a corporate-guaranteed 20-year NNN ground lease with approximately 15.3 years remaining and 10% rent increases every five years.
Located within Empire Place, a new retail development featuring a strong mix of national co-tenants. The property sits directly adjacent to The Empire Mall, a true destination that welcomes over 8 million visitors annually from across a four-state region. The property benefits from exceptional exposure along 41st Street (36,000+ VPD) and Louise Avenue (23,900+ VPD). This intersection is the most heavily trafficked corridor in the state and the center of Sioux Falls' dominant retail center.
Investment highlights
- Corporate-guaranteed NNN ground lease with Chick-fil-A
- ~15.3 years remaining on the additional 20-year term (expires 8/2041)
- 10% rent increase every 5 years with five 5-year renewal options
- Chick-fil-A maintains all property expenses with the following exception:
- Potential LL responsibility: within a larger shopping center that shares common areas such as the mutual easement areas and landscaping. Tenant, Chick-fil-A, is responsible to contribute $2,500/year towards these costs. The LL, at times, may be responsible for any costs that could exceed the $2,500 in any given year. Contact Broker for details.
- Newly constructed 2021 Chick-fil-A prototype with dual drive-thru lanes
- Prime hard-corner site within the Empire Place development, with 41st Street frontage
- Top performing CFA location ranking #43 nationwide in sales (top 2%)
- Co-tenants within Empire Place include Chipotle, Chase Bank, Verizon, Nautical Bowls, Face Foundrie, Buff City Soap, Smoothie King, drybar, Crumbl Cookies, Hallmark, Flyboy Donuts, Rocket Fizz, The Good Feet Store, Snooze Mattress Factory, Glamour Nails, and Pizza Shop
- Surrounded by major retailers including Target, Ulta Beauty, Hy-Vee, Barnes and Noble, Sam's Club, Kohl's, and much more
- South Dakota has no personal or corporate income tax
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