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33685819
33685844

8614 S Hosmer Street, Tacoma, WA 98444

CB
WA WA 123258, ID SP56979
Marcus & Millichap - Seattle
TL
WA 24007779
Marcus & Millichap - Seattle
Listed by Marcus & Millichap - Seattle
$2,280,000
8 days on market
Updated 8 days ago

Denny's | 20 Yr. Absolute Net Sale-Leaseback

Details
Property Type Retail
Sub Type Restaurant
Square Footage 4,094
Net Rentable (SqFt) 4,094
Cap Rate 6.25%
NOI $142,515
Occupancy 100%
Tenancy Single
Brand/Tenant Denny's
Lease Type Absolute NNN
Lease Term 20
Remaining Term 20
Rent Bumps Yes
Lease Options Four (4) 5-Year Options
Pro-Forma Cap Rate 6.88%
Pro-Forma NOI $156,767
Broker Co-Op True
Class B
Year Built 1975
Year Renovated 2022
Buildings 1
Stories 1
Acreage 0.880
Zoning General Commercial
Investment Type Sale/Leaseback
Tenant Credit Franchisee
Ground Lease No
Ownership Fee Simple
Sale Condition Sale for 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

Listing Contacts

CB
WA WA 123258, ID SP56979
Marcus & Millichap - Seattle
TL
WA 24007779
Marcus & Millichap - Seattle
Listed by Marcus & Millichap - Seattle

Valuation Calculator

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$
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Loan Amount
$0.00
Annual Debt Service
$--
$--
Annual Cash Flow
$142,515.00
$11,876.25/mo

Valuation Metrics

0
DSCR
6.25%
Cap Rate
6.25%
ROI

Map

Zoning

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C2-STGPD OverlayCommercial South Tacoma Groundwater Protection District
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Last updated May 26, 2026 For deeper zoning details, reports are available at Zoneomics

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Property History

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Additional Information

Name
Clayton J. Brown
License
WA 123258
Brokerage Phone
(206) 826-5787
Name
Trevor Lane
License
24007779
Brokerage
Marcus & Millichap
Title
Brokerage Coordinator
Brokerage Address
401 Union Street
*All information is deemed reliable but not guaranteed. Buyer to verify all information.
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