Vacant QSR - Former Taco John's - University Location

Highlights:

• HIGH TRAFFIC COUNTS - Strategically located along a bustling major thoroughfare with excellent visibility and access, the site benefits from exposure to over 8,000+ vehicles per day. Less than 2 miles away, U.S. Route 59 intersects with Highway 23, together seeing over 20,000 vehicles per day. Highway 23 stretches from southwestern to northeastern Minnesota and is the second longest state route after Highway 1.
• NEIGHBORING NATIONAL TENANTS - This property is positioned in a prime retail corridor surrounded by well-established national tenants. Located near major retailers such as Walmart, Menards, and Runnings, the site is also in proximity to popular dining options including McDonald's, Taco Bell, Subway, and Dairy Queen. Other notable neighbors include Starbucks, Caribou Coffee, Domino's Pizza, Hardee's, and Culver's. This thriving commercial area ensures strong foot traffic and visibility, making it an ideal location for any business.
• UNIVERSITY LOCATION - The site is right next to 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.
• 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 the opportunity to acquire a ±1,150-square-foot former Taco John’s with drive-thru, located in the heart of Marshall, Minnesota’s main retail corridor. Positioned directly next to Taco Bell, across from Burger King and adjacent to Southwest Minnesota State University (SMSU), the property offers an exceptional repositioning opportunity in a high-traffic, university-adjacent location.

The site benefits from strong visibility along a major thoroughfare, with exposure to over 8,000 vehicles per day, and sits just minutes from the intersection of U.S. Route 59 (10,516 VPD) and Highway 23 (9,723 VPD)—a key state route connecting regional hubs 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. The property is surrounded by a dense mix of national retailers including Walmart, Menards, McDonald’s, Dairy Queen, Starbucks, and Culver’s, ensuring strong foot traffic and brand synergy.

With an existing drive-thru and built-out restaurant infrastructure, the site presents a cost-efficient redevelopment opportunity ideal for quick-service restaurants, coffee concepts, or other retail users seeking to minimize upfront costs.

Located steps from SMSU’s 2,800+ student campus, near Avera Marshall Regional Medical Center, and in close proximity to Schwan’s Company’s 1,500-employee headquarters, this property offers significant upside for operators, developers, or investors looking to establish a presence in one of southwest Minnesota’s most dynamic markets.

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.

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