Purchase Price: $2,399,000
Cap Rate: 6.01%
Gross Annual Rent: $176,160
Ground Lease Paying: $31,510
Annually through 2065 w/fmv adjustments every 10 years
Building Size: +/-3,670 SF – Land Size .54 Acres
Restaurant Investment Opportunity
Dave’s Hot Chicken is on a long term 10-year NNN lease with 10% rent escalations every 5 years. The property is ground zero for dense retail in the Arden-Arcade corridor. The subject property sits across the street from an 800+ student middle school with 60,000 VPD near the site. Dave’s Hot Chicken Operator is a strong Guarantee with a 40-unit store operator and growing. The building is in dense and affluent Sacramento with over 350,000 residents in a five-mile radius and an avg income of $97,000. The building is centrally located in Sacramento, which is served by an air cargo airport, an international airport, a deep-water shipping port, two major interstate freeways, and freight and passenger rail lines. Sacramento is closer to Lake Tahoe than any other California metropolitan area with exceptional proximity to the Napa Valley wine country.
Sacramento has a highly diversified economy and has seen growth in the technology and healthcare sectors. The largest employers in the metro include Kaiser Permanente, Sutter Health, Dignity Health, Intel Corp, Raley’s Inc., Blue Diamond Growers, Aerojet Rocketdyne, and Teichert, among others. The region is served by several interstate highways – I-80, I-5, and California State Highway 99 – connecting to other major metros throughout the U.S. Sacramento is an important center for the California healthcare industry as the seat of Sutter Health, the world-renowned UC Davis Medical Center, and the UC Davis School of Medicine. Over 192,000 students are enrolled in higher education. As a major educational hub, the city is home to Sacramento State University and University of California, Davis. Greater Sacramento offers a rich network for various industries, including advanced manufacturing, agriculture, automotive, and energy. As California’s state capital, Sacramento is a growing metropolitan region with the seventh largest world economy. The city is a prime location and compelling choice for business with its qualified workforce, lower cost of living, access to education, quality of life, amenities, and culture. The region welcomes over 4.3 million visitors annually.
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