Absolute NNN Restaurant with Shadow
For Sale
Contact for pricing
3409 Arden Way, Sacramento, CA 95825
Absolute NNN restaurant leased to Dave’s Hot Chicken plus an additional Shadow Kitchen vacancy space.
Property Size3,870 SF
Price / SF$516.80
Days on Market68
Property Features for 3409 Arden Way
General Information
Standard status
Active
Size
3,870 SF
Property subtype
RETAIL
Building Details
Tenancy
Multi
Listing Agency:
InvestCore Commercial, Inc.
(619) 546-0121
Listed By:
Ed Colson, Jr. CCIM
Source:
Moodyscre
Added: Jul 10
Changed: Sep 12
Last Checked: Sep 14 at 6:34AM
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 for-sale commercial property includes a restaurant space operated by Dave’s Hot Chicken under an absolute NNN lease structure. The total building size is approximately 3,870 square feet, and the offering also references an additional Shadow Kitchen space with an identified vacancy of approximately 870 square feet.
The seller notes favorable rental increases of 10% every five years and indicates that the investor may improve overall return through a planned 10% increase in Dave’s Hot Chicken rent in 2027. For the Shadow Kitchen vacancy, the seller will consider a one-year master lease for up to one year (as described in the remarks). The seller’s remarks further highlight that the lease is intended to provide passive income, with zero management, maintenance, or tax obligations attributed to the landlord in the offering materials.
The property is located at 3409 Arden Way in Sacramento, California.
The seller notes favorable rental increases of 10% every five years and indicates that the investor may improve overall return through a planned 10% increase in Dave’s Hot Chicken rent in 2027. For the Shadow Kitchen vacancy, the seller will consider a one-year master lease for up to one year (as described in the remarks). The seller’s remarks further highlight that the lease is intended to provide passive income, with zero management, maintenance, or tax obligations attributed to the landlord in the offering materials.
The property is located at 3409 Arden Way in Sacramento, California.
Key Highlights
- Absolute NNN restaurant leased to Dave’s Hot Chicken with zero management, maintenance, or tax obligations stated for the landlord
- Includes an additional Shadow Kitchen vacancy space (870 SF) plus the option for the seller to consider a 1‑year master lease for up to 1 year
- Rent to sales ratio listed as extremely low at 3.18%
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
$72,795
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
3.64%
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%
$1,455,900
$1.5M
Cap Rate 7%
$1,039,929
$1.0M
Cap Rate 9%
$808,833
$808.8K
Market Conditions
NOI Build-Up for 3,870 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
$102.2K $26.40/SF
− Vacancy
−$5.1K −$1.32/SF
EGI
$97.1K $25.08/SF
− OpEx
−$24.3K −$6.27/SF
NOI
$72.8K $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%
$1,455,900
Cap Rate 7%
$1,039,929
Cap Rate 9%
$808,833
Alternative Uses
Best Use
Specialty Retail
$1.04M
$909.9K – $1.21M
NOI $72,795 @ 7.0% cap · market cap 3.64%
Second Best
—
—
no second resolved use
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
1,993
Businesses Nearby
329k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 33%
Groceries 31%
Dining 20%
Apparel 11%
Safeway
Groceries
65,506 visits/mo
0.2 miles
Quick Quack Car Wash
Shops & Services
23,369 visits/mo
0.1 miles
PetSmart
Shops & Services
21,545 visits/mo
0.2 miles
McDonald's
Dining
20,522 visits/mo
0.0 miles
Smart & Final
Groceries
19,850 visits/mo
0.2 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
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Retail in Sacramento, CA
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Frequently Asked Questions
What type of property is this?
NNN property - Absolute NNN restaurant leased to Dave’s Hot Chicken plus an additional Shadow Kitchen vacancy space.
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 $2,000,000.
What are key features of this property?
This property features: Absolute NNN restaurant leased to Dave’s Hot Chicken with zero management, maintenance, or tax obligations stated for the landlord; Includes an additional Shadow Kitchen vacancy space (870 SF) plus the option for the seller to consider a 1‑year master lease for up to 1 year; Rent to sales ratio listed as extremely low at 3.18%
