
Daves Hot Chicken
3409 Arden Way
Sacramento, CA 95825
Price: $2,000,000Cap Rate: 7.23%*NOI: $144,660*Building SF: 3,870 SFLot Size: 24,002 SFYear Built: 2022Status: Available
INVESTMENT HIGHLIGHTS:
EXTREMELY LOW RENT TO SALES – HIGHLY PROFITABLE LOCATION
- This location does very well with above average sales in 2025 at nearly $4m.
- Extremely low rent to sales of 3.18% making this a highly profitable location.
IMMEDIATE UPSIDE UPON 10% RENT BUMP AND VACANCY LEASE UP – MASTER LEASE OPPORTUNITY
- An investor can immediately improve their overall return upon the 10% increase in Dave’s Hot Chicken rent in 2027 and lease up of the 870 SF Shadow Kitchen vacancy.
- Seller will consider a one (1) year Master Lease for the one vacancy for a period up to one (1) year.
INTERNATIONALLY RECOGNIZED AND GROWING TENANT – DAVE’S HOT CHICKEN
- In June 2025, Roark Capital acquired a majority stake in Dave’s Hot Chicken at a $1 billion valuation. This backing by the world’s premier restaurant private equity firm adds immense corporate stability and institutional infrastructure
- The brand boasts an Average Unit Volume (AUV) of roughly $3 million per location. This provides a highly sustainable rent-to-sales ratio, lowering default risk
- Streamlined, simple menus minimize kitchen infrastructure and labor costs. Locations achieve 20% to 25% cash flow margins, vastly outperforming typical fast-food averages.
STRONG FRANCHISEE ORGANIZATION AND GROWTH STRUCTURE
- Corporate mandates require franchisees to possess a $5 million net worth and experience operating 5+ existing quick-service restaurants. This ensures the tenant paying your rent is an experienced, well-capitalized multi-unit operator
- Named America’s fastest-growing restaurant chain by Technomic, the brand operates hundreds of open stores and holds a pipeline of over 1,000 contracted future locations.
ATTRACTIVE ABSOLUTE NNN LEASE
- Dave’s Hot Chicken features an attractive absolute NNN lease. The landlord enjoys passive income with zero management, maintenance, or tax obligations.
- Favorable 10% rental increases every 5 years. This guarantees compounding yield growth that protects the investor against inflation
HUGE TRAFFIC COUNTS – 75,000+ AT SIGNALIZED INTERSECTION
- High Traffic:
- Watt Avenue – 51,378 CPD
- Interstate 30 – 27,083 CPD
- Ideally situated along two of the major retail corridors in Sacramento MSA
IDEALLY LOCATED DIRECTLY ACROSS FROM REGIONAL GROCERY ANCHORED CENTER
- Subject property is ideally located directly across the street from a Safeway anchored grocery center. Other Junior Anchors include Dollar Tree, Ross Dress For Less, BevMo!, Office Max and In-Shape Fitness.
SURROUNDED BY THREE SCHOOLS RANGING FROM KINDERGATEN THRU HIGH SCHOOL
- The subject property is surrounded by 3 major K thru 12 schools: Thomas Edison Elementary School, Arden Middle School and St. Ignatius School
- Ideal location between the three schools, each less than a mile from the subject property, creating steady afternoon and evening customers
STRONG DEMOS – DENSELY POPULATED AND HIGH HOUSEHOLD INCOMES
- $131,327average HH incomes
- 361,189 people within a 5-mile radius
- 140,030 households within a 5-mile radius
ADJACENT TO MAJOR HOSPITAL
- Kaiser Permanente is located adjacent to the Subject Property providing a customer influx of both staff and patients.
STRONG RETAIL TRADE AREA SURROUNDED BY SEVERAL NATIONAL TENANTS
- Subject property is ideally located in the major retail corridor for Sacramento MSA surrounded by several national tenants including McDonalds, Chipotle, Dutch Bros, Taco Bell, Dairy Queen, and several others
