3851 32Nd AveGrand Forks, ND 58201

For Sale
$2,645,000

Grand Forks, ND Arby's: Strong ROI

Overview

Added:
Dec 11, 2024
Days on market:
96
This exceptional investment opportunity presents a 3,210 square foot Arby's restaurant in Grand Forks, North Dakota, situated on a 0.99-acre lot. The property boasts a new 20-year absolute triple-net (NNN) lease, commencing December 1, 2024, and expiring December 1, 2044, with four 5-year renewal options. The lease includes a 10% rent increase every five years, ensuring consistent growth in rental income. The current annual net operating income (NOI) is $145,485, yielding a 5.50% cap rate. The franchisee, a significant and expanding Arby's operator with a long history in the system, operates this location. The property's strategic location is a key advantage, positioned on a signalized corner pad site adjacent to Grand Forks Marketplace, a high-traffic retail center anchored by Target and Lowe's, and easily accessible from I-29. The surrounding area features a dense concentration of retail establishments and hotels, further enhancing the property's value and potential for strong returns. The property was built in 2004 and achieved gross sales of $1,939,802 in 2023, indicating a healthy rent-to-sales ratio of 7.50%. This is a turnkey investment with minimal landlord responsibilities, offering a compelling combination of strong tenant, favorable lease terms, and prime location. The asking price is $2,645,000.

Highlights

  • Brand new 20-year absolute triple-net (NNN) sale-leaseback with zero landlord responsibilities.
  • 10% rental increases every five years.
  • Four five-year renewal options. 7.5% rent-to-sales ratio based on $1,939,802 in 2023 gross sales.
  • Operated by AES Restaurants, the third largest and expanding Arby's franchisee, with franchisee John Wade, current chairman of the Arby's Franchise Association, since 1993.
  • Signalized corner pad site at Grand Forks Marketplace, a top-performing retail center anchored by Target and Lowe's, with numerous national retailers nearby.
  • High-visibility location at I-29 exit, within one mile of 2.5 million square feet of retail space (44% of Grand Forks' total retail), including Scheel's, Walmart, Sam's Club, Kohl's, and Menards, and 798 hotel rooms. First quick-service restaurant accessible from the highway exit.

Property Details for 3851 32Nd Ave

Property type
Other retail properties, Restaurants
Square Feet
3,210 SF
Year Built
2004
Lot Size (sq. ft)
43,124 SF

Location Insight

City
Grand Forks
County
Grand Forks
State
North Dakota
Latitude
47.888806
Longitude
-97.0833514
3851 32Nd Ave, Grand Forks, North Dakota

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3851 32Nd Ave
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