Dave's Hot Chicken Drive-Through
For Sale
Contact for pricing
3667 E Grand River Ave, Howell, MI 48843
Absolute NNN lease with two renewal options and 3% annual rent increases.
Property Size4,223 SF
Price / SF$384.80
Days on Market219
Property Features for 3667 E Grand River Ave
General Information
Standard status
Active
Size
4,223 SF
Property subtype
Retail
Occupancy
100%
Lease Type
Absolute Net
Investment Type
Net Lease
Net Operating Income
$100,000
Building Details
Year Built
1992
Buildings
1
Stories
1
Tenancy
Single
Listing Agency:
Encore Real Estate Investment Services
(248) 702-0299
Listed By:
Deno Bistolarides · License #6502378067
Source:
Crexi
Added: Jan 23
Changed: Aug 30
Last Checked: Aug 30 at 5:15AM
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 Encore Real Estate Investment Services
Investment Insights
Based on property information with market context.
This Dave's Hot Chicken drive-through restaurant occupies a 4,223 SF building on 1.82 acres at 3667 E Grand River Ave in Howell, Michigan. Constructed in 1992, the property is configured as a quick-service restaurant with drive-through service.
Hot North Chicken LLC, a Dave's Hot Chicken franchisee, leases the property under an absolute NNN structure. The tenant is responsible for taxes, CAM, and insurance, while the lease includes a ten-year term, two renewal options, and 3% annual rent increases. The tenant is backed by Roark Capital Group. The site is positioned near other retailers and restaurants in Howell.
Hot North Chicken LLC, a Dave's Hot Chicken franchisee, leases the property under an absolute NNN structure. The tenant is responsible for taxes, CAM, and insurance, while the lease includes a ten-year term, two renewal options, and 3% annual rent increases. The tenant is backed by Roark Capital Group. The site is positioned near other retailers and restaurants in Howell.
Key Highlights
- 4,223 SF drive‑through restaurant building on 1.82 acres
- Absolute NNN lease structure with tenant‑paid taxes, CAM, and insurance
- Ten‑year lease term with two renewal options
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
$46,274
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
2.85%
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%
$925,480
$925.5K
Cap Rate 7%
$661,057
$661.1K
Cap Rate 9%
$514,156
$514.2K
Market Conditions
NOI Build-Up for 4,223 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
$63.3K $15.00/SF
− Vacancy
−$1.6K −$0.39/SF
EGI
$61.7K $14.61/SF
− OpEx
−$15.4K −$3.65/SF
NOI
$46.3K $10.96/SF
Area
Livingston County, MI
Vacancy
2.60%
Lease Rate
$15.00 /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%
$925,480
Cap Rate 7%
$661,057
Cap Rate 9%
$514,156
Alternative Uses
Best Use
Specialty Retail
$661.1K
$578.4K – $771.2K
NOI $46,274 @ 7.0% cap · market cap 2.85%
Second Best
—
—
no second resolved use
Theoretical Best
Healthcare Medical
$672.7K
$588.6K – $784.8K
NOI $47,086 @ 7.0% cap · market cap 2.90%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
395
Businesses Nearby
428k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 31%
Superstores 23%
Groceries 20%
Home Improvements & Furnishings 12%
Walmart
Superstores
96,390 visits/mo
0.5 miles
Meijer
Groceries
84,391 visits/mo
0.3 miles
The Home Depot
Home Improvements & Furnishings
30,952 visits/mo
0.3 miles
McDonald's
Dining
30,494 visits/mo
0.3 miles
Speedway
Shops & Services
25,632 visits/mo
0.2 miles
Demographics for 48843, MI
47,704
Population
19,001
Households
2.5
Avg Household Size
41
Median Age
37%
College-Educated
95%
High-School Grad
89.6 sq mi
ZIP Area
532
Density / Sq Mi
$91,620
Median Household Income
$48,613
Median Earnings
$1,221
Median Rent
$323,100
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Drive through restaurant - Absolute NNN lease with two renewal options and 3% annual rent increases.
Where is this drive through restaurant located?
The property is located at 3667 E Grand River Ave Howell, MI.
What is the asking price?
The asking price for this property is $1,625,000.
What are key features of this property?
This property features: 4,223 SF drive‑through restaurant building on 1.82 acres; Absolute NNN lease structure with tenant‑paid taxes, CAM, and insurance; Ten‑year lease term with two renewal options
