1220 9Th AveWatertown, SD 57201

This exceptional investment opportunity presents a 3,500 square foot Arby's restaurant located at 1220 9th Ave SE in Watertown, South Dakota. The property sits on a 0.66-acre lot and boasts a strong, long-term Absolute NNN lease with a corporate guarantee from a franchisee of DRM, Inc., a large Arby's operator with plans for significant future expansion. The lease commenced October 2, 2023, and extends to October 29, 2043, providing a remaining term of 19 years with 4 or 5-year renewal options. The property features a 5.50% cap rate and a Net Operating Income (NOI) of $141,300, with an asking price of $2,569,000 ($734 per square foot). Built in 1990 and renovated in 2009, this Arby's location generated over $2 million in sales in 2023, significantly exceeding the average for the brand. Sales have shown consistent growth averaging 5.13% annually over the past four years, further enhancing the investment's potential. The lease includes percentage rent based on gross sales, offering substantial upside potential. The property enjoys a prime location at the entrance to Watertown's largest shopping center, benefiting from high traffic volume on US Highway 212, a major east-west thoroughfare and retail corridor, and proximity to Interstate 29. The surrounding area features a concentration of national retailers, ensuring consistent customer traffic. This is a truly passive, hands-off investment with exceptional long-term stability and growth prospects. The 100% occupancy and strong tenant history make this a compelling opportunity for a 1031 exchange.