Listed by ParaSell Inc, Sands Investment Group Los Angeles
$1,466,667
Pizza Hut - Rochester, MN
Details
Property Type Retail
Sub Type QSR/Fast Food, Restaurant
Square Footage 2,925
Cap Rate 6%
NOI $88,000
Occupancy 100%
Tenancy Single
Brand/Tenant Pizza Hut
Lease Type Absolute NNN
Lease Term 19.9
Lease Expiration 03/31/2039
Remaining Term 12.7
Rent Bumps Yes
Lease Options 4 x 5 Year Options
Price per SqFt $501
Year Built 1986
Acreage 0.580
Investment Type Net Lease
Tenant Credit Franchisee
Lease Commencement 05/10/2019
~7% Rent to Sales | Massive Operator | Growing MSA
Marketing description
We are pleased to exclusively offer for sale the 2,925 SF Pizza Hut located at 2001 West Highway 52 in Rochester, MN. The deal includes a long-term Absolute Triple Net (NNN) Lease with ~13 years remaining on the primary term, along with 4 additional 5-year renewal options, providing extended income stability and zero landlord responsibilities. The lease features built-in 10% rent escalations every 5 years throughout the primary term and option periods, ensuring consistent and predictable NOI growth over time. The tenant is backed by Ayvaz Pizza, one of the largest Pizza Hut franchisees in the United States, offering strong credit and operational experience.
Investment highlights
- Absolute Triple Net (NNN) Lease With 13 Years Remaining: Leased to Pizza Hut on a 20-year Absolute Triple Net (NNN) Lease with ~13 years remaining on the primary term, plus 4 additional 5-year options that auto-exercise unless the tenant opts out, providing a potential total lease term of 34 years with zero landlord responsibility for taxes, insurance, or maintenance.
- Backed by the Second-Largest Pizza Hut Franchisee in the U.S.: The lease is guaranteed by Ayvaz Pizza, the second-largest Pizza Hut franchisee in America, operating 380+ locations across 10 states with over 6,500 employees. Ayvaz is a subsidiary of the Dhanani Group, one of the most prolific QSR franchise operators in the country, providing institutional-grade tenant credit behind this investment.
- Proven Unit-Level Performance | ~7% Rent-to-Sales Ratio: At the current rent of $88,000, the ~7% rent-to-sales ratio implies roughly 29% above the Pizza Hut national mature franchise AUV of ~$973,000. This significantly outperforms both the system average and the typical QSR rent-to-sales benchmark of 8-10%, signaling strong unit economics and low occupancy cost risk. The tenant's commitment to this market is further evidenced by Ayvaz Pizza's continued investment in the Rochester location, underscoring the store's profitability within its 380+ unit portfolio and its strategic importance as a top-performing market driven by Mayo Clinic's massive employee and patient base.
- New Ownership Signals Brand Reinvestment | $2.7 Billion LongRange Capital Acquisition: Pizza Hut is entering a new chapter following LongRange Capital's $1.5 billion acquisition of the brand (excluding Mainland China) from Yum! Brands were announced in June 2026 and are expected to close in Q3 2026. The deal, one of the largest restaurant PE transactions of the year, positions the iconic 15,500+ unit, $10 billion system-sales brand under dedicated, operationally oriented ownership laser- focused on revitalizing the Pizza Hut system. For net lease investors, the transition from a multi-brand public conglomerate to a single-brand PE owner with a turnaround mandate often translates to accelerated capital investment, franchisee support, and renewed brand marketing, all of which strengthen the underlying real estate position.
- High-Visibility Highway 52 Frontage: Positioned directly on US Highway 52, the primary arterial connecting Rochester to Minneapolis–St. Paul (the 16th largest MSA in the U.S.). Highway 52 is one of the most heavily trafficked corridors in southeast Minnesota and has been the focus of MnDOT's $232 million ROC52 reconstruction, the largest single highway project in state history, further enhancing access and traffic flow past the property.
- Dense, Affluent Trade Area: The property draws from a 3-mile population of over 72,900 residents with an average household income of over $112,700. The immediate trade area benefits from significant daytime population driven by Mayo Clinic's workforce and the approximately 1.4 million patients treated annually, many traveling from out of town and seeking convenient dining options.
- Rochester, MN | Home to the World's #1 Hospital: The property is located in Rochester, Minnesota's third-largest city (215,000+ metro population), anchored by the Mayo Clinic, ranked the #1 hospital in the nation for seven consecutive years by U.S. News & World Report. Mayo Clinic employs over 42,500 people in Rochester alone and generated $21.5 billion in total revenue in 2025, creating a massive and recession- resistant demand driver for the local economy.
- $5.6 Billion Destination Medical Center Fueling Unprecedented Growth: Rochester is the beneficiary of the Destination Medical Center (DMC), the largest public-private economic development initiative in Minnesota history, targeting $5.6 billion in investment through 2035. Combined with Mayo Clinic's own multi-billion-dollar campus expansion, Rochester's population surged 41% from 2000 to 2020, with continued job creation projected to add 30,000+ new positions by 2035.
Listing Contacts
Listed by ParaSell Inc, Sands Investment Group Los Angeles
Valuation Calculator
Login or Sign up to see Valuation Metrics
Sign up for Crexi to see valuation metrics for this property
Loan Amount
$0.00
Annual Debt Service
$--
$--
Annual Cash Flow
$88,000.00
$7,333.33/mo
Valuation Metrics
0
DSCR
6%
Cap Rate
6%
ROI
Broker Selected Comps View More Comps
Property History
Similar Properties
Additional Information
Name
License
Brokerage
Title
Brokerage Address
Name
License
Brokerage Phone
Is there information that looks off?
