The Boulder Group is pleased to exclusively market for sale a single tenant net leased Arby’s ground lease property located within the St. Louis MSA. The property is located within a strong retail corridor along Manchester Road, a primary east-west thoroughfare. There are over ten years remaining on the Arby’s ground lease that expires on November 14, 2024. The lease features 10% rental escalations every five years. The lease is guaranteed by the largest Arby’s franchisee, US Beef Corporation, which operates over 320 locations.
The 43,562 square foot Arby’s property is located along Manchester Road, a primary east-west thoroughfare that experiences traffic counts in excess of 20,000 vehicles per day. Manchester Road runs parallel with Interstate 64 connecting the city of St. Louis with its’ western suburbs. The surrounding area is densely concentrated with commercial buildings providing high barriers to entry. Additionally, the property is located less than one and one-half miles from the intersection of Interstate 64 and Interstate 170, which experiences traffic counts in excess of 300,000 vehicles per day. The surrounding area is densely populated with over 107,000 people living within a three mile radius earning average annual household incomes in excess of $93,000. The Arby’s is an outparcel to an Office Depot and Ace Hardware anchored center. The property is located approximately one and one-half miles from the Saint Louis Galleria, a 1.2 million square foot mall that is anchored by Apple, Nordstrom, Macy’s, and Dillard’s. Additional retailers located nearby include Whole Foods, Target, Walmart Supercenter, Sam’s Club, Lowe’s, Home Depot and Schnucks.
The Arby’s ground lease has over ten years remaining and features 10% rental escalations every five years. There are four 5-year renewal option periods. The lease is guaranteed by US Beef Corporation, the largest Arby’s franchisee with over 320 locations.