Listed by InvestCore Commercial, Inc.
$2,000,000
Dave's Hot Chicken | 3.18% Rent to Sales | 75k+ CPD | NorCal
Details
APN 279-0253-014-0000
Property Type Retail
Sub Type QSR/Fast Food, Restaurant
Square Footage 3,870
Net Rentable (SqFt) 3,870
Units 2
Cap Rate 6.50%
NOI $102,900
Occupancy 74%
Tenancy Single
Lease Type Absolute NNN
Lease Term 10
Lease Expiration 03/31/2032
Remaining Term 6
Rent Bumps Yes
Lease Options Two 5-year options
Pro-Forma Cap Rate 7.23%
Pro-Forma NOI $144,660
Class A
Year Built 2022
Year Renovated 2022
Stories 1
Lot Size (SqFt) 24,002
Zoning Retail / Commercial
Parking Spaces 34 spaces
Parking Per SqFt 8.79
Investment Type Net Lease
Lease Commencement 04/01/2022
Ground Lease No
Sale Condition 1031 exchange
Low Rent to Sales | Immediate Upside | High Traffic | Dense Population
Marketing description
HUGE TRAFFIC COUNTS – 75,000+ AT SIGNALIZED INTERSECTION
- High Traffic:
- Watt Avenue – 51,378 CPD
- Interstate 30 – 27,083 CPD
- Ideally situated along two of the major retail corridors in Sacramento MSA
IDEALLY LOCATED DIRECTLY ACROSS FROM REGIONAL GROCERY ANCHORED CENTER
- Subject property is ideally located directly across the street from a Safeway anchored grocery center. Other Junior Anchors include Dollar Tree, Ross Dress For Less, BevMo!, Office Max and In-Shape Fitness.
SURROUNDED BY THREE SCHOOLS RANGING FROM KINDERGATEN THRU HIGH SCHOOL
- The subject property is surrounded by 3 major K thru 12 schools: Thomas Edison Elementary School, Arden Middle School and St. Ignatius School
- Ideal location between the three schools, each less than a mile from the subject property, creating steady afternoon and evening customers
STRONG DEMOS – DENSELY POPULATED AND HIGH HOUSEHOLD INCOMES
- $131,327average HH incomes
- 361,189 people within a 5-mile radius
- 140,030 households within a 5-mile radius
ADJACENT TO MAJOR HOSPITAL
- Kaiser Permanente is located adjacent to the Subject Property providing a customer influx of both staff and patients.
STRONG RETAIL TRADE AREA SURROUNDED BY SEVERAL NATIONAL TENANTS
- Subject property is ideally located in the major retail corridor for Sacramento MSA surrounded by several national tenants including McDonalds, Chipotle, Dutch Bros, Taco Bell, Dairy Queen, and several others
Investment highlights
EXTREMELY LOW RENT TO SALES – HIGHLY PROFITABLE LOCATION
- This location does very well with above average sales in 2025 at nearly $4m.
- Extremely low rent to sales of 3.18% making this a highly profitable location.
IMMEDIATE UPSIDE UPON 10% RENT BUMP AND VACANCY LEASE UP – MASTER LEASE OPPORTUNITY
- An investor can immediately improve their overall return upon the 10% increase in Dave’s Hot Chicken rent in 2027 and lease up of the 870 SF Shadow Kitchen vacancy.
- Seller will consider a one (1) year Master Lease for the one vacancy for a period up to one (1) year.
INTERNATIONALLY RECOGNIZED AND GROWING TENANT – DAVE’S HOT CHICKEN
- In June 2025, Roark Capital acquired a majority stake in Dave's Hot Chicken at a $1 billion valuation. This backing by the world's premier restaurant private equity firm adds immense corporate stability and institutional infrastructure
- The brand boasts an Average Unit Volume (AUV) of roughly $3 million per location. This provides a highly sustainable rent-to-sales ratio, lowering default risk
- Streamlined, simple menus minimize kitchen infrastructure and labor costs. Locations achieve 20% to 25% cash flow margins, vastly outperforming typical fast-food averages.
STRONG FRANCHISEE ORGANIZATION AND GROWTH STRUCTURE
- Corporate mandates require franchisees to possess a $5 million net worth and experience operating 5+ existing quick-service restaurants. This ensures the tenant paying your rent is an experienced, well-capitalized multi-unit operator
- Named America’s fastest-growing restaurant chain by Technomic, the brand operates hundreds of open stores and holds a pipeline of over 1,000 contracted future locations.
ATTRACTIVE ABSOLUTE NNN LEASE
- Dave’s Hot Chicken features an attractive absolute NNN lease. The landlord enjoys passive income with zero management, maintenance, or tax obligations.
- Favorable 10% rental increases every 5 years. This guarantees compounding yield growth that protects the investor against inflation.
Listing Contacts
Listed by InvestCore Commercial, Inc.
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Loan Amount
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Annual Debt Service
$--
$--
Annual Cash Flow
$102,900.00
$8,575.00/mo
Valuation Metrics
0
DSCR
5.15%
Cap Rate
5.15%
ROI
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