2222 Watt Ave - Fast Food FOR SALE


Sacramento, CA 95825- Del Paso Manor
$3,790,000 USD
415-413-3005
2222 Watt Ave, Sacramento, CA for Sale
$3,790,000 USD
Fast Food - FOR SALE
1/6
null | 4.75% Cap Rate

2222 Watt Ave
Sacramento, CA 95825
Del Paso Manor


HIGHLIGHTS

  • Starbucks Corporation signed a 15-year net lease commencing October 2025, offering a stable income stream through October 2040
  • 10% rental increases every five years boost NOI from $180,000 (4.50% cap) to $318,881 (7.97% cap) by year 15, enhancing returns.
  • Tenant handles all taxes, insurance, and maintenance (excluding roof, structure, and parking lot), minimizing landlord responsibilities
  • Starbucks, a Fortune 500 company, operates over 16,000 U.S. locations, ensuring a creditworthy tenant.
  • Positioned on Watt Ave with 49,354 AADT, just 0.14 miles from Cottage Way, driving high visibility.
  • Brand-new 2,200 SF building on a 0.84-acre parcel, built to Starbucks’ latest prototype standards.

OVERVIEW

Situated on Watt Ave, this property benefits from 49,354 daily vehicles and proximity to Costco (0.5 miles). The site lies along a bustling corridor with major retailers like Target and Home Depot within one mile. Its visibility and accessibility make it a standout investment in Sacramento’s retail landscape. Starbucks Corporation’s 15-year net lease, starting June 2025, shifts all taxes, insurance, and maintenance (except roof, structure, and parking lot) to the tenant. This structure delivers a hassle-free $180,000 NOI at a 4.50% cap rate for the landlord. Rental escalations of 10% every five years project NOI to $318,881 by 2040, enhancing long-term yield. The property serves 379,580 residents within five miles, with a median household income of $75,476, rising to $85,500 by 2029. Average household income within one mile reaches $109,086, the highest among the radii, signaling strong consumer spending potential. Population growth of 13% since 2010 underscores the area’s expanding demand base. Completed in 2025, this 2,200 SF building on a 0.84-acre lot features Starbucks’ latest design with a high-efficiency drive-thru. The construction quality minimizes future capital expenditures for the landlord, aligning with the net lease terms. Its compact footprint maximizes land use efficiency in a high-traffic zone. Watt Ave’s 49,354 AADT (0.14 miles away) and El Camino Ave’s 16,110–21,191 AADT (0.31–0.34 miles) ensure consistent exposure. The site’s signalized intersection proximity enhances ingress/egress for drive-thru customers. This connectivity supports Starbucks’ 22.5% visitation rate within five miles. Priced at $4,000,000 with a 4.50% cap rate, the property offers immediate cash flow and growth potential via scheduled rent bumps. Starbucks’ credit strength and the site’s location near a Costco Business Center bolster its stability. The five mile radius’s 267,596 fast-food visitors in six months reinforce its revenue

FOR SALE DETAILS

PRICE

$3,790,000 USD

PRICE/SF

$1,723 USD /SF

CAP RATE

4.75%

% LEASED

-

TENANCY

Single

SALE TYPE

Investment

BUILDING DETAILS

PROPERTY NAME

Starbucks | 15-Year Lease

PROPERTY TYPE

Retail

PROPERTY SUBTYPE

Fast Food

ADD'L SUBTYPES

Restaurant, Storefront, Storefront Retail/Office

TOTAL BUILDING SIZE

-

STORIES

1

YEAR BUILT

2025

SPRINKLERS

-

PARKING SPACES

21

LAND DETAILS

LAND ACRES

0.82 AC

LAND SF

35,925 SF

ZONING

BP

APN/PARCEL ID

281-0101-021

ASK ABOUT THIS PROPERTY

Ryan ForsythCushman & WakefieldMore Info
415-413-3005

By clicking the button, you agree to Showcase's Terms of Use and Privacy Policy.

Ryan ForsythCushman & WakefieldMore Info
415-413-3005

By clicking the button, you agree to Showcase's Terms of Use and Privacy Policy.