Corporate Arby's
5.85% Cap - 48,000 VPD Combined - Across Kroger Supermarket - Low Rent
Marketing description
This offering presents a rare opportunity to acquire a corporate-operated Arby’s property located in one of Roanoke, Virginia’s most established retail corridors. The asset is secured by a long-term absolute triple-net (NNN) lease, providing investors with stable, passive income backed by a corporate guarantee. Strategically positioned just off the signalized intersection of Brambleton Avenue and Electric Road, the property benefits from excellent visibility and access within a high-traffic corridor exceeding 48,000 vehicles per day. The surrounding area is characterized by a strong mix of national retailers, including Kroger, as well as dense and affluent residential neighborhoods that support consistent consumer demand. The property features a full drive-thru, a critical component of quick-service restaurant performance and an increasingly scarce entitlement due to zoning and traffic restrictions. This enhances both the operational success of the tenant and the long-term value of the real estate. Originally developed as an Arby’s location, the site was acquired by corporate in 2018, at which time a new 15-year lease was executed, underscoring the strategic importance and proven performance of the location. Arby’s, a leading national QSR brand with over 3,400 locations and approximately $4.2 billion in systemwide sales, provides strong brand recognition and operational stability.
With built-in rental increases of 10% every five years, the investment offers predictable income growth and an effective hedge against inflation. Combined with the absolute NNN lease structure, fee simple ownership, and minimal landlord responsibilities, this asset represents an attractive opportunity for investors seeking durable cash flow in a high-quality retail location.
Investment highlights
Inspire Brands, parent company of Arby’s, recently confidentially filed for an IPO and is reportedly seeking an approximate $20 billion valuation, further reinforcing the long-term strength and scale of the platform behind the brand.
True Absolute Triple-Net (NNN) Lease
The property is subject to a 15-year absolute NNN lease, with approximately 7 years remaining on the base term. The tenant is responsible for all maintenance, repairs, and operating expenses, providing a truly passive, management-free investment.
Corporate Guarantee, Corporate-Operated Store
The lease is backed by a corporate guarantee from RTM Operating Company, LLC, an Arby’s corporate affiliate. The location is operated at the corporate level, aligning tenant performance with corporate oversight.
High-Traffic Retail Corridor
Strategically located just off the signalized intersection of Brambleton Avenue and Electric Road, with combined traffic counts exceeding 48,000 vehicles per day, offering strong visibility and consistent consumer exposure.
Leading National QSR Brand
Arby’s is one of the largest quick-service sandwich chains in the United States, with more than 3,400 locations nationwide and approximately $4.2 billion in annual systemwide sales. The brand has demonstrated consistent performance and long-term market presence.
Built-In Rent Growth, Inflation Hedge
The lease features 10% rental increases every five years throughout the base term and option periods, providing predictable income growth and long-term protection against inflation.
Drive-Thru Location
The property includes a full drive-thru, a critical component of QSR performance. Drive-thru entitlements are increasingly restrictive, and existing locations benefit from grandfathered zoning, enhancing long-term value.
Proven Location with Corporate Commitment
Originally developed and operated by an experienced franchisee, the site was acquired by Arby’s corporate in 2018, at which time a new 15-year lease was executed, reinforcing the location’s strategic importance.
Established Retail Node
Positioned within the Cave Spring retail corridor, the property is surrounded by national and regional retailers, including Kroger, and benefits from strong co-tenancy and consumer draw.
Affluent Residential Base
The surrounding area features stable population density and solid household incomes, supporting long-term retail demand and tenant performance.
Excellent Access and Visibility
The site offers convenient ingress and egress with proximity to a signalized intersection, enhancing accessibility and traffic flow.
Fee Simple Ownership, Tax Advantages
The offering includes fee simple ownership of both land and improvements. Investors may benefit from depreciation of improvements, potentially reducing taxable income. Buyers should consult their tax advisors regarding specific tax implications.
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