Buffalo, MN - Jersey Mike's

Description:

SRS National Net Lease is pleased to offer the opportunity to acquire the fee simple interest (land & building ownership) in an absolute NNN, Jersey Mike’s investment property located in Buffalo, Minnesota. Jersey Mike’s, will sign a brand new 10 year sale-leaseback with 2 (5-year) options to extend, demonstrating their commitment to the site. The lease features 10% rental increases every 5 years throughout the initial term and at the beginning of each option period, steadily growing NOI and hedging against inflation. The lease is absolute NNN with zero landlord responsibilities making it an ideal, management free investment opportunity for a passive investor. The newly-remodeled building features a state-of-the-art design with high-quality materials. The store had its grand opening in August 2024 and is projecting $1.6M sales performance, which would put rent to sales around a low 5%. The tenant, Team 551 Management Group is an experienced and growing multi-brand QSR operator, they operate over 150+ locations across Taco Bell, Dunkin’, and Jersey Mike’s. They currently have 7 Jersey Mike’s locations open with 5+ sites in the pipeline. Tenant expects to have 11 stores open by Q1 2026. Jersey Mike’s, a fast-casual sub sandwich franchise nearly 2,500 locations open and under development nationwide, believes that making a sub sandwich and making a difference can be one and the same.

The Jersey Mike’s is located near the intersection of State Highway 25 and State Highway 55 which average a combined 40,900 vehicles passing by daily. The subject property is located in a dense retail corridor, with numerous nearby national/credit tenants including Walmart Supercenter, Starbucks, Chipotle, Dollar Tree, O’Reilly Auto Parts, Dunkin’, Walgreens, GoodYear, Anytime Fitness, and many more. Strong tenant synergy increases consumer draw to the immediate trade area and promotes crossover store exposure to the site. In addition, the asset is located in close proximity to Buffalo Community Middle School (1,176 students) and Tatanka Elementary School (530 students), further increasing consumer traffic to the site. The 5-mile trade area is supported by over 21,000 residents and 13,000 employees. Residents within the 5-mile trade area boast an affluent average household income of $114,938.