Chick-fil-A NNN Investment
For Sale
Contact for pricing
5409 Indian River Rd, Virginia Beach, VA 23464
NNN leased Chick-fil-A for sale in Virginia Beach.
Property Size4,817 SF
Price / SF$498.24
Days on Market144
Property Features for 5409 Indian River Rd
General Information
Standard status
Active
Size
4,817 SF
Property subtype
Retail
Zoning
B-2
Lease Type
NNN
Building Details
Year Built
1998
Tenancy
Single
Listing Agency:
Cushman & Wakefield Thalhimer - Norfolk/Virginia Beach, Virginia
Listed By:
Matt Lafler · License #0225061682
Source:
Crexi
Added: Mar 21
Changed: Aug 9
Last Checked: Aug 11 at 6:53PM
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 Cushman & Wakefield Thalhimer - Norfolk/Virginia Beach, Virginia
Investment Insights
Based on property information with market context.
This offering features a 1998-built Chick-fil-A located at the intersection of Indian River Road and Kempsville Road, directly across from the KempsRiver Crossing shopping center. The property is in its third renewal option period, with four remaining five-year option terms, each including a 10% rent increase. The location benefits from high traffic volume, with over 66,000 vehicles per day. This NNN leased investment opportunity features zero landlord obligations and rental increases.
Key Highlights
- Chick‑fil‑A ground lease with four (4) remaining five (5) year option terms.
- 10% rent increases in each option term.
- Located near the intersection of Indian River Road and Kempsville Road with high traffic counts (66,000+ vehicles per day).
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
$70,388
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
2.93%
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%
$1,407,760
$1.4M
Cap Rate 7%
$1,005,543
$1.0M
Cap Rate 9%
$782,089
$782.1K
Market Conditions
NOI Build-Up for 4,817 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
$94.8K $19.68/SF
− Vacancy
−$948 −$0.20/SF
EGI
$93.9K $19.48/SF
− OpEx
−$23.5K −$4.87/SF
NOI
$70.4K $14.61/SF
Area
ZIP 23464
Vacancy
1.00%
Lease Rate
$19.68 /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%
$1,407,760
Cap Rate 7%
$1,005,543
Cap Rate 9%
$782,089
Alternative Uses
Best Use
Specialty Retail
$1.01M
$879.9K – $1.17M
NOI $70,388 @ 7.0% cap · market cap 2.93%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.51M
$1.32M – $1.76M
NOI $105,527 @ 7.0% cap · market cap 4.40%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
869
Businesses Nearby
346k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 63%
Shops & Services 28%
Groceries 5%
Beauty & Spa 2%
Chick-fil-A
Dining
45,033 visits/mo
0.1 miles
Dollar Tree
Shops & Services
30,996 visits/mo
0.2 miles
McDonald's
Dining
20,534 visits/mo
0.1 miles
Aldi
Groceries
18,959 visits/mo
0.4 miles
Outback Steakhouse
Dining
18,625 visits/mo
0.3 miles
Demographics for 23464, VA
75,118
Population
29,267
Households
2.6
Avg Household Size
38
Median Age
38%
College-Educated
94%
High-School Grad
16.7 sq mi
ZIP Area
4,498
Density / Sq Mi
$89,790
Median Household Income
$49,794
Median Earnings
$1,644
Median Rent
$339,300
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Drive through restaurant - NNN leased Chick-fil-A for sale in Virginia Beach.
Where is this drive through restaurant located?
The property is located at 5409 Indian River Rd Virginia Beach, VA.
What is the asking price?
The asking price for this property is $2,400,000.
What are key features of this property?
This property features: Chick‑fil‑A ground lease with four (4) remaining five (5) year option terms.; 10% rent increases in each option term.; Located near the intersection of Indian River Road and Kempsville Road with high traffic counts (66,000+ vehicles per day).
