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  Dairy Queen


Average Property & Lease

Average Sale Price$1,950,926
CAP Rate (12mo avg with 10+ lease term)6.38%
NOI$123,339
$/Square Foot$377.39
Building Size2,800 sf
Lot Size0.6 - 1.5 acres
Lease Term20 +/- Years
Escalations1.5-2% annually or 8-10% every 5 years
CREDIT RATING
AA
S&P
Aa2
Moody's
view credit rating chart
View Net Lease Property Listings at CALKAIN.COM Last Updated: December 12, 2016
Net Lease Advisor Overview

DQ® system is one of the largest fast food systems in the world, with more than 6,000 restaurants in the United States. There is great demand for their free-standing stores as net lease investments. Dairy Queen has locations in all major markets and are one of the most recognized QSR chains in the world. Dairy Queens are operated by franchisees as opposed to corporately owned.

Pros

Cons

  • Corporate guaranteed
  • NNN leases
  • Proximity to hospitals and medical offices
  • Some NN leases holds landlord responsible for roof and structure
  • Expensive to re-lease should the tenant leave
Tenant Description

Dairy Queen dates back to John F. MCullough, his son Bradley and their soft-serve ice cream formula in 1938. They opened an ice cream store with a friend and customer, Sherb Noble, in Kankakee, Ill., and then their first Dairy Queen in Joliet, Ill., in 1940. American Dairy Queen Corporation is a subsidiary of Berkshire Hathaway, Inc.

Back then, food franchising was all but unheard of, but the new product's potential made it a natural for such a system. When the United States entered World War II in December 1941, there were fewer than 10 Dairy Queen stores. However, shortly after the war, the system took off at a pace virtually unrivaled before or since. With only 100 stores in 1947, it grew to 1,446 in 1950 and then to 2,600 in 1955. Today, the DQ® system is one of the largest fast food systems in the world, with more than 6,000 restaurants in the United States.
DAIRY QUEEN TREND
CAP Rate

2015 avg: 6.42%

2016 avg: 6.38%

RECENT SALES

Chickasha, OK | 7.01%

Corbin, KY | 6.00%

MORE INFO
www.dairyqueen.com