NNN Restaurant
For Sale
Contact for pricing
3409 Arden Way, Sacramento, CA 95825
Long-term NNN ground lease with minimal landlord obligations and an established fast-casual restaurant operator.
Property Size3,670 SF
Price / SF$606.37
Days on Market959
Property Features for 3409 Arden Way
General Information
Standard status
Active
Size
3,670 SF
Property subtype
RETAIL
Listing Agency:
Newmark | Sacramento
(916) 218-5498
Listed By:
Carter Lear · License #01848080
(916) 218-5498
Source:
Moodyscre
Added: Dec 21, 2023
Changed: Jul 31
Last Checked: Aug 6 at 11:56AM
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 Newmark | Sacramento
Investment Insights
Based on property information with market context.
This 3,670-square-foot restaurant property at 3409 Arden Way is subject to a long-term NNN ground lease with minimal landlord obligations. The ground lease has approximately 40 years remaining, expires in July 2065, and is extendable. Dave’s Hot Chicken operates at the site, with an upcoming 10% rent increase scheduled to add to the net income payable.
The property is positioned along Arden Way and Watt Avenue, which carry reported traffic volumes of 44,000 ADT and 38,000 ADT, respectively. The site also benefits from a reported daytime population exceeding 90,000. The offering combines a restaurant-occupied property with a long-term ground lease structure and a recognizable fast-casual brand.
The property is positioned along Arden Way and Watt Avenue, which carry reported traffic volumes of 44,000 ADT and 38,000 ADT, respectively. The site also benefits from a reported daytime population exceeding 90,000. The offering combines a restaurant-occupied property with a long-term ground lease structure and a recognizable fast-casual brand.
Key Highlights
- 3,670‑square‑foot restaurant property at 3409 Arden Way, Sacramento, CA 95825
- Long‑term NNN ground lease with minimal landlord obligations
- Approximately 40 years remaining; lease expires July 2065 and is extendable
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
$69,033
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
3.10%
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%
$1,380,660
$1.4M
Cap Rate 7%
$986,186
$986.2K
Cap Rate 9%
$767,033
$767.0K
Market Conditions
NOI Build-Up for 3,670 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
$96.9K $26.40/SF
− Vacancy
−$4.8K −$1.32/SF
EGI
$92.0K $25.08/SF
− OpEx
−$23.0K −$6.27/SF
NOI
$69.0K $18.81/SF
Area
Sacramento, CA
Vacancy
5.00%
Lease Rate
$26.40 /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%
$1,380,660
Cap Rate 7%
$986,186
Cap Rate 9%
$767,033
Alternative Uses
Best Use
Specialty Retail
$986.2K
$862.9K – $1.15M
NOI $69,033 @ 7.0% cap · market cap 3.10%
Second Best
—
—
no second resolved use
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
2,759
Businesses Nearby
298k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 30%
Groceries 27%
Dining 23%
Apparel 13%
Safeway
Groceries
65,506 visits/mo
0.3 miles
Quick Quack Car Wash
Shops & Services
23,369 visits/mo
0.4 miles
McDonald's
Dining
20,522 visits/mo
0.3 miles
Ross Dress for Less
Apparel
19,748 visits/mo
0.3 miles
BevMo!
Groceries
15,933 visits/mo
0.1 miles
Demographics for 95825, CA
36,081
Population
16,803
Households
2.1
Avg Household Size
34
Median Age
33%
College-Educated
87%
High-School Grad
4.7 sq mi
ZIP Area
7,677
Density / Sq Mi
$64,264
Median Household Income
$35,994
Median Earnings
$1,582
Median Rent
$433,500
Median Home Value
Market
Vacancy Rate% for Retail in Sacramento, CA
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
NNN property - Long-term NNN ground lease with minimal landlord obligations and an established fast-casual restaurant operator.
Where is this nnn property located?
The property is located at 3409 Arden Way Sacramento, CA.
What is the asking price?
The asking price for this property is $2,225,384.
What are key features of this property?
This property features: 3,670‑square‑foot restaurant property at 3409 Arden Way, Sacramento, CA 95825; Long‑term NNN ground lease with minimal landlord obligations; Approximately 40 years remaining; lease expires July 2065 and is extendable
