Long Term Absolute Triple Net Lease with Zero Landlord Responsibilities
– There are just under 13 years remaining on an original 20-year lease term with three, five-year options to renew.
– The lease features 7% rental increases throughout the initial term and continuing into the option periods, growing NOI and hedging against inflation.
– An investor can enjoy a completely passive ownership structure as the lease features zero landlord responsibilities and the tenant is solely responsible for taxes, insurance, and maintenance.
Strong Guarantee from Largest Dairy Queen Franchisee (240+ Locations)
– Fourteen Foods is Dairy Queen’s largest franchisee and operates over 240 Dairy Queen restaurants in Alabama, Florida, Indiana, Iowa, Kentucky, Louisiana, Minnesota, Mississippi, Nebraska, North Carolina, South Dakota, Tennessee, and Wisconsin.
– Through acquisitions and expansion into new markets, Fourteen Foods has grown over 230 locations since its current CEO took over in 2006.
– Fourteen Foods is continuing their expansion efforts in the Southeast and recently moved their corporate headquarters from Minneapolis to Franklin, TN in January 2024.
Surrounded by Major Economic Drivers
– The subject property is strategically located near traffic drivers that are synergistic to DQ’s business. Some of these include Sioux Falls Convention Center (1.4 Miles), W. H. Lyons Fairgrounds, Great Plains Zoo (0.8 miles), Empire Mall (3 miles), Falls Park (2.8 miles), Sioux Falls Stadium (1.3 miles), Howard Wood Relays (1.6 miles), Terrace Park (1.8 miles), Veterans Memorial Park (1.9 miles), Sherman Park (0.8 miles), and many others.
– The subject property is surrounded by major employers such as Sanford USD Medical Center and Hospital, VA Medical Center, Smithfield Foods, Sioux Falls Regional Airport, etc.
Sioux Falls is a Top Growth Market in the United States
– Sioux Falls is South Dakota’s largest city and is home to more than 30% of the entire state’s population.
– According to U.S. Census Data, Sioux Falls is the fastest-growing city in the Midwest with its population growing by nearly 9% since 2020 to over 213,000 residents.
– In 2023, building permit valuations in Sioux Falls exceeded $1.1 billion, which is their second highest total ever, behind 2022 when total valuations neared $2 billion.
– Sioux Falls has an extremely business-friendly tax environment with no personal or corporate income taxes.
