Investment Overview

Marcus & Millichap, as Exclusive Advisor, is pleased to present 398 Lancaster Dr NE, a 2,409 SF single tenant absolute NNN Dairy Queen on a long-term lease situated on 0.54 acres (23,522 SF) positioned on a corner along Lancaster Dr NE less than 0.5 miles from the Willamette Town Center in heart of Salem, OR. Dairy Queen is a fast-food and soft-serve ice cream chain headquartered in Bloomington, Minnesota. Founded in 1940 in Joliet, Illinois, the company is a subsidiary of Berkshire Hatha-way. Dairy Queen operates more than 7,700 restaurants in over 20 countries, with most loca-tions franchised. The brand is best known for its signature Blizzards, cones, and grill-and-chill menu offerings. Dairy Queen at 398 Lancaster Dr NE is on a twenty (20) year lease expiring 3/31/2037, or approximately 11.6 years remaining. The tenant pays $8,068.58 per month ($3.35/SF) on an absolute NNN lease. The rent includes the current base rent of $7,447.92/month as well as an additional $620.66/month deferred rent obligation paid over twenty-four (24) months from 3/1/2025 through 2/28/2027. The lease includes 10% increases every 5 years with the next increase on 4/1/2027 to $8,192.71 per month. While the term of the lease expires 3/31/2037, the tenant holds two (2) additional options to extend the term ten (10) years. 398 Lancaster Dr NE, Salem, OR 97301 is well positioned on the corner of Lancaster Dr NE and Monroe Ave. Lancaster Dr NE is a major north/south corridor with traffic counts exceeding 30,000 VPD. The site is situated beside the 5 Freeway, a major interstate freeway connecting Washington to California through Oregon with access to an offramp less than 1.5 miles away via Market St NE. Most importantly, the site is less than 0.5 miles from the Willamette Town Center, a more than 500,000 SF regional shopping center anchored by Best Buy, Burling-ton, HomeGoods, TJ Maxx, Regal Cinemas, Hobby Lobby, Petco, as well as a Target across the street. Dairy Queen enjoys the synergistic traffic from these influences and is more than equipped to handle the traffic with multiple points of egress and ingress as well as 32 parking spaces, a ratio of 13.28 spaces per 1,000 SF.