CBRE Capital Markets
Listed by CBRE Atlanta, CBRE - Atlanta, CBRE - Jackson, CBRE - Midtown Manhattan, CBRE Capital Markets
$1,373,500
±11.0-Year Absolute NNN Dairy Queen Grill & Chill
Details
Property Type Retail
Sub Type QSR/Fast Food, Restaurant
Square Footage 2,766
Cap Rate 7.25%
NOI $99,573
Occupancy 100%
Tenancy Single
Lease Type Absolute NNN
Lease Term 11
Lease Expiration 05/30/2037
Rent Bumps Yes
Year Built 2017
Acreage 1.060
Parking Spaces 43 spaces
Parking Per SqFt 15.55
Investment Type Net Lease
Lease Commencement 05/08/2017
1101 Louisville Street, Starkville, MS 39759
Investment highlights
- Fourteen Foods, LLC | Tenant: Largest Dairy Queen franchisee in the U.S., Fourteen Foods operates 250+ DQ Grill & Chill® locations across 13 states. Founded in 2002, the company has grown from one store to over 9,000 employees under CEO Matthew Frauenshuh.
- Absolute NNN Lease with Guaranty: Dairy Queen's absolute NNN Lease features ±11.0 years of primary term remaining with a 10% rent increase in 2032 during the initial term and in each of the four, 5-year renewal options. Additionally, the lease is backed by the guaranty of The Frauenshuh Hospitality Group of KY/IN, LLC.
- Excellent Access & Visibility: Dairy Queen features direct frontage along Louisville Street (8,000 VPD), a prominent North-South commercial and commuter artery in Starkville. Located approximately 700 feet south of Highway 12 (31,000 VPD), the city's primary retail thoroughfare, the site is equipped with a dedicated drive-thru lane and multiple points of ingress/egress to accommodate local traffic patterns.
- Strategic Location: The subject property serves as an infill retail location situated within a highly concentrated commercial and residential hub. The property is surrounded by national brands including Kroger, ALDI, Marshalls, Vowell's Marketplace, Citi Trends, and OCH Regional Medical Center (96 beds), driving steady retail and service-oriented consumer traffic to the immediate trade area. In total, there are 2.4 MSF of retail, 1.5 MSF of industrial and 5,129 multifamily units within a 3-mile radius of the site.
- Proximate to Mississippi State University & Starkville Academy: Dairy Queen is situated approximately 2 miles west of the Mississippi State University campus, which serves a student population of over 23,000 and provides a consistent nearby driver of daytime consumer and economic activity. Additionally, the site is immediately adjacent to Starkville Academy (657 students).
- Dynamic Demographics | Built-In Customer Base: Dairy Queen benefits from dynamic demographics with a population of 30,865 and an average household income of $71,116 within a 3-mile radius. Additionally, there are over 4,000 households within a 1-mile radius of the site, placing a substantial consumer base within walking distance.
- Starkville, MS Micropolitan Statistical Area Advantage: The Starkville, Mississippi Micropolitan Statistical Area (Population: 61,650+), is comprised of Oktibbeha County and Webster County, MS. The area is defined by the strong economic and cultural influence of Mississippi State University. Higher education drives employment, population stability and innovation in the area, supporting related sectors such as research, healthcare, retail and hospitality. Starkville functions as a regional service and employment hub for surrounding rural communities.
Listing Contacts
CBRE Capital Markets
Listed by CBRE Atlanta, CBRE - Atlanta, CBRE - Jackson, CBRE - Midtown Manhattan, CBRE Capital Markets
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Loan Amount
$0.00
Annual Debt Service
$--
$--
Annual Cash Flow
$99,573.00
$8,297.75/mo
Valuation Metrics
0
DSCR
7.25%
Cap Rate
7.25%
ROI
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