Overview

Description

SRS National Net Lease Group is pleased to offer the opportunity to acquire the fee simple interest (land & building ownership) in an absolute NNN, corporate guaranteed, drive-thru equipped, Arby’s investment property located in Oak Park Heights, Minnesota (Minneapolis-St. Paul MSA). The tenant, Franchise Associates LLC, has 8 years years remaining in their initial lease term with 2 (5-year) options to extend. The lease features a 5% rental increase in August 2026 and 8% increases at the beginning of each option period, growing NOI and hedging against inflation. The lease is corporate guaranteed by RTM, Inc., a subsidiary of Arby’s Restaurant Group, Inc., and is absolute NNN with zero landlord responsibilities, making it an ideal, management-free investment opportunity for a passive investor. Arby’s is the second-largest sandwich restaurant brand in the world with more than 3,400 restaurants in eight countries.

Arby’s is strategically located just off State Highway 36 (40,500 VPD), a major commuter highway leading directly into the heart of the Minneapolis metropolitan area. The building is equipped with a drive-thru, providing ease and convenience for customers. On average, stores with drive-thrus experience higher sales than those without. Additionally, the property is ideally situated with close proximity to both Walmart Supercenter and Target, two premium big-box tenants that significantly increase consumer draw to the immediate trade area and promote crossover store exposure for Arby’s. Other nearby national/credit tenants include Lowe’s Home Improvement, Planet Fitness, T.J. Maxx, Kohl’s, Planet Fitness, Ace Hardware, and more. Moreover, the property is surrounded by multiple housing communities including Oak Park Senior Living (150 units), Orleans Homes (124 units), and Curve Crest Villas (90 units), providing a direct residential consumer base to draw from. The 5-mile trade area is supported by more than 142,000 residents and 24,000 daytime employees with an affluent average household income of $142,211.

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