Sioux Falls, SD - Caribou Coffee

Description:

SRS Real Estate Partners, LLC in collaboration with Bender Commercial are pleased to offer the opportunity to acquire the fee simple interest (land & building ownership) in a NN leased, Caribou Coffee investment property located in Sioux Falls, South Dakota. The tenant currently has 7 years remaining on their initial lease with 3 (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 NN with limited landlord responsibilities making it an ideal, low-management investment opportunity for a passive investor. Caribou Coffee has 335 company-owned, 140 non-traditional, and 361 franchise coffeehouses in 11 countries as of Dec. 31, 2024, they are focused on smart growth, while staying true to their purpose.

The subject property is located along E. 10th St that averages 21,200 vehicles passing by daily. The site benefits from nearby direct on/off ramp access to Interstate 229, a major thoroughfare that averages 15,900 VPD. The asset is located in a dense retail corridor, with numerous nearby national/credit tenants including Taco Bell, Walmart Supercenter, Target, Aldi, Starbucks, Kohl’s, PetSmart, Culver’s, and many more. Strong tenant synergy increases consumer draw to the immediate trade area and promotes crossover store exposure to the site. Furthermore, the Caribou Coffee is in close proximity to University of Sioux Falls (1,600 students), Sanford USD Medical Center (545 beds), and Terry Redlin Elementary School (437 students), further increasing consumer traffic to the immediate trade area. The 5-mile trade area is supported by a population of over 304,000 and 242,000 employees, providing a direct consumer base from which to draw. Residents within a 5-mile trade area have an average household income of $84,410.