Drive-Thru Restaurant and Retail
For Sale
Contact for pricing
3820 W 41st Street, Sioux Falls, SD 57106
Two leased retail buildings anchored by a drive-thru Arby’s plus a second street-level tenant on 1.03 acres.
Property Size5,261 SF
Lot Size1.03 Acres
Price / SF$437.18
Days on Market64
Property Features for 3820 W 41st Street
General Information
Standard status
Active
Size
5,261 SF
Class
A
Lot size
1.03 Acres
Property subtype
Retail
Zoning
C-4
Occupancy
100%
Lease Type
Absolute Net
Investment Type
Stabilized
Additional Details
Cap Rate
6.17%
Building Details
Buildings
2
Tenancy
Multi
Listing Agency:
Lloyd Companies
(605) 231-1654
Listed By:
Jordan Rieffenberger, CCIM · License #SD 14932
Source:
Crexi
Added: Jun 9
Changed: Aug 8
Last Checked: Aug 10 at 7:17AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Lloyd Companies
Investment Insights
Based on property information with market context.
This two-building retail investment features a drive-thru Arby’s operated by DRM, Inc., along with an additional retail building occupied by Blazin Aces Smoke & Vape. The offering totals approximately 5,261 SF +/- of leased space across 1.03 acres +/-. The property is presented with established tenancy and long-term lease control tied to the Arby’s operator, providing an income-producing retail setup designed around both restaurant and general retail demand.
The buildings are positioned in one of Sioux Falls’ proven retail corridors, with a highly visible location near the Empire Shopping District. The combination of a drive-thru restaurant and a complementary retail tenant supports day-to-day convenience for surrounding shoppers.
For investors or buyers seeking in-place income, the current annual base income is $141,910, and the stated cap rate is 6.17%. The Arby’s lease also provides a structure that includes the potential for percentage rent, offering an additional lever beyond base rent while maintaining occupied, functioning retail operations through the existing tenants.
The buildings are positioned in one of Sioux Falls’ proven retail corridors, with a highly visible location near the Empire Shopping District. The combination of a drive-thru restaurant and a complementary retail tenant supports day-to-day convenience for surrounding shoppers.
For investors or buyers seeking in-place income, the current annual base income is $141,910, and the stated cap rate is 6.17%. The Arby’s lease also provides a structure that includes the potential for percentage rent, offering an additional lever beyond base rent while maintaining occupied, functioning retail operations through the existing tenants.
Key Highlights
- Two‑building retail investment with established tenancy and long‑term lease control from the Arby’s operator
- Drive‑thru Arby’s operated by DRM, Inc. plus a second retail building occupied by Blazin Aces Smoke & Vape
- Total 5,261 SF +/- of leased space across 1.03 acres +/-
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$70,077
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
3.05%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$1,401,540
$1.4M
Cap Rate 7%
$1,001,100
$1.0M
Cap Rate 9%
$778,633
$778.6K
Market Conditions
NOI Build-Up for 5,261 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$101.0K $19.20/SF
− Vacancy
−$7.6K −$1.44/SF
EGI
$93.4K $17.76/SF
− OpEx
−$23.4K −$4.44/SF
NOI
$70.1K $13.32/SF
Area
Sioux Falls, SD
Vacancy
7.50%
Lease Rate
$19.20 /SF/Yr
Expense Ratio
25.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$1,401,540
Cap Rate 7%
$1,001,100
Cap Rate 9%
$778,633
Alternative Uses
Best Use
Specialty Retail
$1.00M
$876.0K – $1.17M
NOI $70,077 @ 7.0% cap · market cap 3.05%
Second Best
Retail
$871.2K
$762.3K – $1.02M
NOI $60,986 @ 7.0% cap · market cap 2.65%
Theoretical Best
Office A
$1.43M
$1.25M – $1.67M
NOI $100,001 @ 7.0% cap · market cap 4.35%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,207
Businesses Nearby
1.1M
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 28%
Apparel 26%
Superstores 14%
Shops & Services 11%
Target
Superstores
154,055 visits/mo
0.3 miles
Hy-Vee
Groceries
71,948 visits/mo
0.5 miles
Chick-fil-A
Dining
66,896 visits/mo
0.1 miles
Menards
Home Improvements & Furnishings
64,847 visits/mo
0.4 miles
Kohl's
Apparel
63,760 visits/mo
0.4 miles
Demographics for 57106, SD
47,877
Population
21,722
Households
2.2
Avg Household Size
35
Median Age
35%
College-Educated
93%
High-School Grad
30.3 sq mi
ZIP Area
1,580
Density / Sq Mi
$77,070
Median Household Income
$47,554
Median Earnings
$996
Median Rent
$268,800
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Drive through restaurant - Two leased retail buildings anchored by a drive-thru Arby’s plus a second street-level tenant on 1.03 acres.
Where is this drive through restaurant located?
The property is located at 3820 W 41st Street Sioux Falls, SD.
What is the asking price?
The asking price for this property is $2,300,000.
What are key features of this property?
This property features: Two‑building retail investment with established tenancy and long‑term lease control from the Arby’s operator; Drive‑thru Arby’s operated by DRM, Inc. plus a second retail building occupied by Blazin Aces Smoke & Vape; Total 5,261 SF +/- of leased space across 1.03 acres +/-
