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Denny's - Tacoma 8614 S Hosmer St 4,094 SF Retail Building Tacoma, WA 98444 $3,289,351 CAD ($803.46 CAD/SF) 6% Cap Rate

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Investment Highlights

Brand New 20-Year Absolute Net Lease
Strong Franchisee Guarantee and Experienced Multi-Brand Operator
High-Visibility Location Adjacent to Interstate-5 (167,000+ VPD)

High-Performing Location | Top 22% in Washington State
10% Rent Increases Every 5-Years
Strategic Hotel and Apartment Corridor Location with Limited Competition

Executive Summary

Marcus & Millichap's Brown Retail Group has been selected to exclusively market for sale a high-performing Denny's in Tacoma, WA, secured by a brand-new 20-year absolute net lease to be executed at closing. The lease offers long-term, passive cash flow, zero landlord responsibilities, 10% rent escalations every five years, and a guarantee from Awashington, LLC (16 WA locations, $30M+ in annual sales). The restaurant is operated by The Keshap Group — a multi-brand franchisee with 25+ years of experience, 40 Denny's, 20 Papa John's, and four Dave's Hot Chicken restaurants. This Denny's ranks in the top 22% of all restaurants in Washington state (per Placer.ai). The property is strategically located directly off Interstate-5 (167,000+ VPD), offering excellent visibility, prominent signage, and convenient ingress and egress. It benefits from a strong hotel corridor with limited nearby competition, including Holiday Inn Express, Hampton Inn & Suites, Best Western Plus, and several other national brands driving steady customer traffic. The property was extensively renovated in 2022 to Denny's modern prototype standards. The site serves approximately 274,000 residents within 5 miles, with average household incomes exceeding $98,000, in income tax-free Washington state.

Denny's Tacoma, WA - OM

Property Facts

Sale Type

Investment NNN

Sale Condition

Sale Leaseback

Property Type

Retail

Property Subtype

Restaurant

Building Size

4,094 SF

Building Class

Year Built/Renovated

1975/2022

Price

$3,289,351 CAD

Price Per SF

$803.46 CAD

Cap Rate

NOI

$197,382 CAD

Tenancy

Single

Building Height

1 Story

Building FAR

0.11

Lot Size

0.88 AC

Zoning

Commercial

Frontage

40’ on Hosmer St

Freeway Visibility

Signage

Major Tenants

Accommodation and Food Services
4,094 SF
$48.21 CAD
Full Service
-

For over 70 years, Denny’s has been a welcoming place where people can connect over great food. They're always open, always serving your favorites, and they're proud to be America's diner. They’re more than just customers or consumers. They’re their guests, and they invite them into their homes with open arms. They’re the very reason why they're in business, and they put them at the center of everything they do. Their Denny's family is their most important asset. They trust, support and respect each other and work together for the greater good. They recognize the contributions of all. They are the classic American diner and proud of everything that means. Since 1953, they've served quality food and healthy portions at a fair price. No matter where they are, their light is always on, inviting guests around the world into a place where everyone is welcome. At Denny’s, they're constantly looking ahead. They're always moving, striving for more, hungry for greatness.