KFC Drive-Thru Restaurant
For Sale
Contact for pricing
2838 Jefferson Davis Hwy, Stafford, VA 22554
Profitable KFC property with long-term lease in Stafford, VA.
Property Size3,588 SF
Lot Size1.03 Acres
Price / SF$627.09
Days on Market143
Property Features for 2838 Jefferson Davis Hwy
General Information
Standard status
Active
Size
3,588 SF
Class
A
Lot size
1.03 Acres
Property subtype
Retail
Zoning
B-2
Occupancy
100%
Lease Type
Absolute Net
Investment Type
Redevelopment
Net Operating Income
$135,555
Building Details
Year Built
1989
Year Renovated
2004
Buildings
1
Stories
1
Units
1
Tenancy
Single
Listing Agency:
Net Leased Real Properties
(760) 473-0520
Listed By:
Brent Hensley · License #CA 01361112
Source:
Crexi
Added: Mar 23
Changed: Aug 8
Last Checked: Aug 11 at 6:05AM
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 Net Leased Real Properties
Investment Insights
Based on property information with market context.
This KFC property, situated on 1.029 acres along Jefferson Davis Highway near Interstate 95 in Stafford, VA, presents a commercial real estate investment opportunity. The property is for sale at $2,250,000, boasting a Cap Rate of 6.0% and a Net Operating Income of $135,555. The tenant, Tasty Chick’n Southeast, LLC, operates under an Absolute NNN lease that began in 2011 and extends through 2031, featuring rental increases every five years. The location benefits from high visibility and strong traffic flow. Its proximity to major employers such as Marine Corps Base Quantico enhances its appeal. The 3,588 square foot property is located in a busy retail area, surrounded by national tenants and convenient amenities. This property is suitable for investors seeking steady income and long-term growth potential in the Stafford County commercial market.
Key Highlights
- Absolute NNN lease with Tasty Chick’n Southeast, LLC, providing a passive income stream.
- Cap Rate of 6.0% and Net Operating Income of $135,555.**
- Lease runs through 2031 with rental increases every five years, ensuring long‑term income growth.
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
$139,501
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
6.20%
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%
$2,790,020
$2.8M
Cap Rate 7%
$1,992,871
$2.0M
Cap Rate 9%
$1,550,011
$1.6M
Market Conditions
NOI Build-Up for 3,588 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
$193.8K $54.00/SF
− Vacancy
−$7.8K −$2.16/SF
EGI
$186.0K $51.84/SF
− OpEx
−$46.5K −$12.96/SF
NOI
$139.5K $38.88/SF
Area
Stafford County, VA
Vacancy
4.00%
Lease Rate
$54.00 /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%
$2,790,020
Cap Rate 7%
$1,992,871
Cap Rate 9%
$1,550,011
Alternative Uses
Best Use
Specialty Retail
$1.99M
$1.74M – $2.33M
NOI $139,501 @ 7.0% cap · market cap 6.20%
Second Best
—
—
no second resolved use
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
354
Businesses Nearby
4k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 100%
Sunoco
Shops & Services
3,514 visits/mo
0.5 miles
Demographics for 22554, VA
64,354
Population
20,861
Households
3.1
Avg Household Size
34
Median Age
45%
College-Educated
93%
High-School Grad
64.1 sq mi
ZIP Area
1,004
Density / Sq Mi
$148,268
Median Household Income
$65,672
Median Earnings
$2,000
Median Rent
$482,600
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Drive through restaurant - Profitable KFC property with long-term lease in Stafford, VA.
Where is this drive through restaurant located?
The property is located at 2838 Jefferson Davis Hwy Stafford, VA.
What is the asking price?
The asking price for this property is $2,250,000.
What are key features of this property?
This property features: Absolute NNN lease with Tasty Chick’n Southeast, LLC, providing a passive income stream.; Cap Rate of 6.0% and Net Operating Income of $135,555.**; Lease runs through 2031 with rental increases every five years, ensuring long‑term income growth.
