Vacant QSR - Former KFC Drive Thru

Highlights:

• HIGH TRAFFIC COUNTS - Located on a busy major thoroughfare with upwards of 20,000+ Vehicles Per Day with excellent visibility and access to 10,516 vehicles from U.S. Route 59 and 9,723 vehicles from Highway 23. Highway 23 stretches from southwestern to northeastern Minnesota and is the second longest state route after Highway 1.
• NEIGHBORING NATIONAL TENANTS - This site is located right next to Culver's and Cold Stone Creamery on an outparcel of Harbor Freight, Runnings and Walmart. The property is surrounded with local and major national tenants including McDonald's, Hardee's, Caribou Coffee, Arby's, Subway, Dairy Queen, Domino's Pizza, Taco Bell, Dollar Tree, Starbucks, Sears, Menards, and many others.
• ATTRACTIVE LOCATION - Marshall is the headquarters of the Schwan Food Company and the home of Southwest Minnesota State University (SMSU). Schwan employs about 1,500 people in Marshall. The site is 2 miles away from SMSU with a 2,800+ student population. SMSU continues to be the fastest-growing in the Minnesota State system. The city is 150 km (93 mi) northeast of Sioux Falls, South Dakota, and 238 km (148 mi) southwest of Minneapolis.
• REDEVELOPMENT OPPORTUNITY - Excellent chance for a new tenant to take advantage of cost savings with an already existing restaurant. Redevelopment often requires fewer resources and expenses compared to new construction, as the basic structure and infrastructure already exist. This can result in lower overall project costs, including materials, labor, and permitting fees.
• EXISTING DRIVE THRU - Drive-thrus provide a quick and convenient option for customers to order and pick up food without leaving their vehicles, catering to busy individuals or those with limited time. Drive-thrus offer flexibility for businesses to pivot their operations in response to changing market conditions or consumer preferences, such as offering curbside pickup or mobile ordering.
• RECENT RENOVATIONS - Owner recently invested nearly $50,000 into a new HVAC system for the property, providing a new owner peace of mind for the next several years.
• BOOMING REGIONAL GROWTH - Marshall, MN saw a record $36.9M in building permits in 2024, driven by $32M in commercial projects including new retail, multifamily, and industrial developments—solidifying its position as a growing regional economic hub.

Description:

Prime Net Lease is pleased to present a unique redevelopment opportunity located at the signalized intersection of U.S. Route 59 and Highway 23 in Marshall, Minnesota. This ±4,014 SF former KFC | A&W Restaurant, currently operating as D’s Thai, is situated on a highly visible outparcel adjacent to Culver’s, Cold Stone Creamery, Harbor Freight, and Walmart, in one of the city’s most active retail corridors.

The site offers outstanding visibility and access to over 20,000 vehicles per day, drawing from both U.S. Route 59 (10,516 VPD) and Highway 23 (9,723 VPD)—a critical regional connector running diagonally across Minnesota from Sioux Falls to Duluth. Highway 23, the second-longest state route in Minnesota, connects major cities including St. Cloud, Willmar, and Duluth—further enhancing regional accessibility. Surrounded by an array of major national tenants, including McDonald’s, Starbucks, Taco Bell, Menards, Dollar Tree, and Caribou Coffee, the property sits in a prime location within Marshall’s retail and business core.

This offering presents an ideal opportunity for restaurant operators, franchisees, or developers to take advantage of the existing drive-thru infrastructure, offering cost savings over ground-up development. The structure has also benefited from nearly $50,000 in recent HVAC upgrades, reducing near-term capital expenditures for a future occupant.

Marshall serves as the regional economic and educational hub of southwest Minnesota. It is home to Schwan’s Company—one of the largest frozen food producers in the U.S.—as well as Southwest Minnesota State University (SMSU), which has seen a 14% enrollment increase—the largest in a decade. The city boasts a young median age of 33, a daytime population nearing 25,000, and a 5-mile household income averaging over $78,000. The city's diversified economy includes higher education, healthcare, corporate headquarters, and sustainable energy.

Marshall, MN – A Regional Hub in Southwestern Minnesota

Marshall, Minnesota, serves as a key economic and cultural center in the southwestern part of the state. Known for its strong agricultural roots, growing industrial base, and community-focused development, Marshall offers a stable environment for both residents and businesses. Its regional influence, combined with affordable living and strategic positioning, makes it a vital hub for commerce, education, and healthcare.

Prime Location & Regional Connectivity
Situated along U.S. Highways 59 and 23, Marshall is well-connected to surrounding towns and larger metro areas, including Sioux Falls, SD and Minneapolis-St. Paul. The city’s access to regional transportation corridors supports local manufacturing, agricultural processing, and retail industries, while providing efficient connectivity for workforce commuting and freight logistics.

Educated Workforce & Institutional Presence
Marshall is home to Southwest Minnesota State University (SMSU), a key driver of the area’s talent pipeline. The presence of SMSU brings a steady flow of educated graduates, cultural programming, and research partnerships to the local economy. The town’s labor force is supported by both academic institutions and a range of vocational and technical training programs throughout the region.

Economic Diversity & Business Climate
Marshall’s economy is bolstered by a mix of agriculture, food processing, manufacturing, and retail. Major employers include Schwan’s Company (headquartered in Marshall), Archer Daniels Midland (ADM), and Avera Health. This diverse economic base has helped sustain job growth and reduce dependency on any single industry. Local government and economic development groups actively support business expansion and entrepreneurship with favorable tax policies and infrastructure investment.

Retail & Residential Growth
With a trade area population that extends well beyond city limits, Marshall serves as a retail and service center for neighboring rural communities. Continued residential development, combined with its growing healthcare and education sectors, has created strong demand for retail, dining, and professional services. New commercial developments and redevelopments are revitalizing key corridors and creating additional opportunities for national and regional tenants.

Conclusion
Marshall stands out as a vibrant, self-sustaining community with a solid economic foundation, educational resources, and strong regional connectivity. Its blend of affordability, workforce quality, and expanding infrastructure positions it as a compelling market for investors, developers, and growing businesses seeking long-term stability and growth.

Documents: