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Denny's 38681 Tanger Dr

3,318 SF Retail Building North Branch, MN 55056 $1,525,000 ($460/SF) 6.50% Cap Rate

Investment Highlights

  • 20-Year Absolute Net Sale Leaseback
  • Healthy Rent to Sales Ratio
  • Experienced Operator - Since 1995
  • Property Scheduled For Major Renovation Within a Few Weeks
  • Inflation Hedge With 7.5% Rent Increases Every 5 Years
  • Additional Buildable Lot Potentially Available

Executive Summary

Marcus & Millichap is pleased to offer this outstanding Denny's location for sale in the form of a 20-year sale-leaseback executed at closing. The lease provides for passive income for the investor with zero landlord responsibilities. In addition, the lease provides for an inflation hedge with 7.5% annual rent bumps every 5 years.
Subject underwent a major renovation in September 2022 including: parking lot resurfacing and restriping; new front entrance doors; and new LED parking lot lighting including repainting the poles. This included extensive cosmetic upgrades to the interior including: new booth seating matching the new color scheme; new tables and chairs; new restroom doors, tile and trim; new interior trim and laminate surfaces; decorative screens for booth partitions; new window shades; and new logo behind the front counter. Since the remodel, sales are up over 20%.
The operator has been a Denny's franchisee since 1995. They are a multi-state operator and have eight locations backing this lease.
The immediate area has strong demographics with a household income average of just under $103,000 within 5 miles of the property. The property also benefits from direct visibility to the 37,000+ cars per day traveling on Interstate 35.
This asset along with the Denny's in Roseville are available together or individually. Sales have been strongly bouncing back from COVID increasing year over year more than 20% from 2022 to 2023.
NOTE: There is an additional adjacent buildable lot potentially available for purchase. Inquire with broker for details.

Data Room Click Here to Access

Property Facts

Sale Type
Investment
Property Type
Retail
Property Subtype
Restaurant
Building Size
3,318 SF
Building Class
B
Year Built/Renovated
1999/2022
Price
$1,525,000
Price Per SF
$460
Cap Rate
6.50%
NOI
$99,125
Tenancy
Single
Building Height
1 Story
Building FAR
0.08
Land Acres
0.97 AC
Zoning
B3
Parking
40 Spaces (12.06 Spaces per 1,000 SF Leased)
Frontage
270 FT on Tanger Dr

Amenities

  • Pylon Sign
  • Signage

PROPERTY TAXES

PROPERTY TAXES

Parcel Number
11-01029-01
Land Assessment
$328,500
Improvements Assessment
$362,400
Total Assessment
$690,900
  • Listing ID: 26557621

  • Date on Market: 9/4/2022

  • Last Updated:

  • Address: 38681 Tanger Dr, North Branch, MN 55056

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