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Dairy Queen Absolute NNN

398 Lancaster Dr NE · Salem, OR 97301 · QSR / Restaurant

Asking price
$1,665,000
Cap rate
5.82%
NOI
$96,823

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Lease

Lease typeAbsolute NNN
Term remaining10.7 yrs
Expiration03/2037
Rent bumpsYes
Options2-10 Year
Ground leaseNo
Credit profile
TenancySingle

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Property

Building SF2,409
Price / SF$691
Year built
Lot size
TypeQSR/Fast Food
Days on market270

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Property overview

The Brandon Michaels Group of 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 Hathaway.​

Dairy Queen operates more than 7,700 restaurants in over 20 countries, with most locations

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, Burlington,

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.​

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Asking-market observation aggregated from public listing sources, last observed Sep 18, 2026. Figures are asking price and asking cap rate as published by the listing party, not a verified closed transaction. Lease terms shown where reported by the listing party and not independently verified. Shown for market reference only; this is not an offering. Investment Grade Income Property, LP represents buyers on a cooperating commission basis.