NNN Leased Investment
For Sale
Contact for pricing
3409 Arden Way, Sacramento, CA
NNN leased investment with long-term ground lease and rent increases.
Property Size3,670 SF
Lot Size0.56 Acres
Price / SF$544.96
Days on Market257
Property Features for 3409 Arden Way
General Information
Standard status
Active
Size
3,670 SF
Lot size
0.56 Acres
Property subtype
RETAIL
Listing Agency:
InvestCore Commercial, Inc.
(619) 546-0121
Listed By:
Ed Colson, Jr. CCIM · License #01848080
Source:
Moodyscre
Added: Nov 24, 2025
Changed: Aug 8
Last Checked: May 20 at 9:09PM
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 InvestCore Commercial, Inc.
Investment Insights
Based on property information with market context.
This property presents a NNN leased investment opportunity with a landlord-friendly, long-term lease structure that minimizes landlord obligations. The property benefits from an upcoming rent increase, projected to add 10% to the net income payable. Situated in a prime location, the site experiences high traffic volume, with 44,000 average daily traffic on Arden Way and 38,000 average daily traffic on Watt Avenue. The tenant, a Dave’s Hot Chicken franchisee, is the exclusive operator in the Sacramento MSA, with multiple locations. Dave’s Hot Chicken is recognized as one of the fastest-growing fast-casual restaurant brands nationally and was recently acquired by Roark Capital, a $37 billion private equity asset manager. The location benefits from strong demographics, including a daytime population exceeding 90,000. The property has approximately 40 years remaining on a 100-year ground lease, expiring in July 2065, with the option to extend. The current annual ground rent is $31,500 through August 2026. The property size is 3,670 square feet.
Key Highlights
- Long‑term NNN lease with minimal landlord obligations.
- Upcoming 10% rent increase for Dave's, boosting net income.
- High‑traffic location** with 44,000 ADT on Arden Way and 38,000 ADT on Watt Ave.
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
3.45%
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 3.45%
Second Best
Retail
$813.1K
$711.5K – $948.6K
NOI $56,918 @ 7.0% cap · market cap 2.85%
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
243
Businesses Nearby
56k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Groceries 53%
Dining 26%
Shops & Services 21%
Raley's
Groceries
29,728 visits/mo
0.4 miles
McDonald's
Dining
13,359 visits/mo
0.3 miles
Shell
Shops & Services
8,798 visits/mo
0.4 miles
The UPS Store
Shops & Services
3,094 visits/mo
0.3 miles
Jersey Mike's Subs
Dining
1,054 visits/mo
0.3 miles
Market
Vacancy Rate% for Retail in Sacramento, CA
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Drive through restaurant - NNN leased investment with long-term ground lease and rent increases.
Where is this drive through restaurant located?
The property is located at 3409 Arden Way Sacramento, CA.
What is the asking price?
The asking price for this property is $2,000,000.
What are key features of this property?
This property features: Long‑term NNN lease with minimal landlord obligations.; Upcoming **10% rent increase** for Dave's, boosting net income.; High‑traffic location** with 44,000 ADT on Arden Way and 38,000 ADT on Watt Ave.
