Single-Tenant Drive-Through
For Sale
$2,343,000
10733 Kenai Spur Hwy, Kenai, AK 99611
The property is leased under an absolute NNN structure with a new 20-year term.
Property Size3,376 SF
Price / SF$694.02
Days on Market18
Property Features for 10733 Kenai Spur Hwy
General Information
Standard status
Active
Size
3,376 SF
Net Operating Income
$150,000
Additional Details
Cap Rate
6.4%
Building Details
Tenancy
Single
Listing Agency:
Colliers International
(907) 561-5155
Listed By:
Cason Martin
(907) 561-5155
Source:
Exprealty
Added: Aug 6
Changed: Aug 20
Last Checked: Aug 23 at 3:23AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Colliers International
Investment Insights
Based on property information with market context.
This single-tenant Arby’s restaurant comprises 3,376 SF and is operated under an absolute NNN lease. The current lease has a new 20-year term, with contractual 8% rent increases scheduled every five years. Diversified Restaurant Group, an operator with 365 locations, is identified as the tenant.
The property is positioned along Kenai Spur Hwy in Kenai’s busiest retail corridor. Walmart, Safeway, Home Depot, and other national retailers are located nearby, placing the restaurant within an established commercial retail setting. The asset’s drive-through restaurant format and long-term lease structure define its primary commercial characteristics.
The property is positioned along Kenai Spur Hwy in Kenai’s busiest retail corridor. Walmart, Safeway, Home Depot, and other national retailers are located nearby, placing the restaurant within an established commercial retail setting. The asset’s drive-through restaurant format and long-term lease structure define its primary commercial characteristics.
Key Highlights
- 3,376 SF single‑tenant Arby’s restaurant
- Absolute NNN lease structure with a new 20‑year term
- 8% rent increases every five years
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$67,259
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
2.87%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$1,345,180
$1.3M
Cap Rate 7%
$960,843
$960.8K
Cap Rate 9%
$747,322
$747.3K
Market Conditions
NOI Build-Up for 3,376 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$94.8K $28.08/SF
− Vacancy
−$5.1K −$1.52/SF
EGI
$89.7K $26.56/SF
− OpEx
−$22.4K −$6.64/SF
NOI
$67.3K $19.92/SF
Area
Kenai Peninsula County, AK
Vacancy
5.40%
Lease Rate
$28.08 /SF/Yr
Expense Ratio
25.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$1,345,180
Cap Rate 7%
$960,843
Cap Rate 9%
$747,322
Alternative Uses
Best Use
Specialty Retail
$960.8K
$840.7K – $1.12M
NOI $67,259 @ 7.0% cap · market cap 2.87%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$23.41M
$20.49M – $27.32M
NOI $1,639,008 @ 7.0% cap · market cap 69.95%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Single-tenant
Tenancy
Location Intelligence
Demographics for 99611, AK
15,827
Population
7,130
Households
2.2
Avg Household Size
38
Median Age
24%
College-Educated
94%
High-School Grad
526.8 sq mi
ZIP Area
30
Density / Sq Mi
$69,816
Median Household Income
$47,259
Median Earnings
$1,108
Median Rent
$279,800
Median Home Value
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Drive through restaurant - The property is leased under an absolute NNN structure with a new 20-year term.
Where is this drive through restaurant located?
The property is located at 10733 Kenai Spur Hwy Kenai, AK.
What is the asking price?
The asking price for this property is $2,343,000.
What are key features of this property?
This property features: 3,376 SF single‑tenant Arby’s restaurant; Absolute NNN lease structure with a new 20‑year term; 8% rent increases every five years
