Denny's | 20 Yr. Absolute Net Sale-Leaseback
6.25% Cap Rate | Strong Franchisee Guarantee
Marketing description
The Brown Group of Marcus & Millichap has been selected to exclusively market for sale a high-performing Denny's in Tacoma, WA, secured by a brand-new 20-year absolute net lease to be executed at closing. The lease offers long-term, passive cash flow, zero landlord responsibilities, 10% rent escalations every five years, and a guarantee from Awashington, LLC (15 WA locations, $30M+ in annual sales). The restaurant is operated by The Keshap Group — a multi-brand franchisee with 25+ years of experience, 35 Denny's, 16 Papa John's, 4 Dave's Hot Chicken restaurants, and 1 Gong cha. This Denny's ranks in the top 22% of all restaurants in Washington state (per Placer.ai). The property is strategically located directly off Interstate-5 (167,000+ VPD), offering excellent visibility, prominent signage, and convenient ingress and egress. It benefits from a strong hotel corridor with limited nearby competition, including Holiday Inn Express, Hampton Inn & Suites, Best Western Plus, and several other national brands driving steady customer traffic. The property was extensively renovated in 2022 to Denny's modern prototype standards. The site serves approximately 274,000 residents within 5 miles, with average household incomes exceeding $98,000, in income tax-free Washington state.
Investment highlights
Brand New 20-Year Absolute Net Lease
High-Performing Location | Top 22% in Washington State
Strong Franchisee Guarantee and Experienced Multi-Brand Operator
10% Rent Increases Every 5-Years
High-Visibility Location Adjacent to Interstate-5 (167,000+ VPD)
Strategic Hotel and Apartment Corridor Location with Limited Competition
Extensively Renovated in 2022 Reflecting Denny’s Modern Prototype Design
Strong, Affluent Demographics
Income Tax Free State
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