4590 S Dupont Hwy
Dover, DE 19901

Marcus & Millichap, on behalf of ownership, is pleased to exclusively offer for sale this Cheddar’s Scratch Kitchen in Camden, Delaware, part of the Dover MSA. The Tenant, Cheddar’s Casual Café, Inc., is subject to a corporately guaranteed NNN ground lease with desirable 10% rental increases every five years. The next rental increase will occur in April 2023 and will boost the buyer’s yield to 5.63% at asking price. Cheddar’s is a leading casual dining restaurant chain known for its scratch-made recipes at compelling prices in a casual atmosphere. Founded in 1979, the privately held company was jointly purchased by private equity firms Oak Investment Partners and Catterton Partners in August 2006. The expanding chain now operates 160 company-owned and franchise locations across 23 states in the eastern half of the United States. Cheddar’s unique concept has been well-received by consumers evidenced by top rankings by both Zagat and Consumer Reports. In 2012, Zagat ranked Cheddar’s as the nation’s number 1 full-service restaurant chain as well as Top Overall American Cuisine, the Top-Rated Food and Top Rated Decor and Facilities. Cheddar’s occupies a large 8,100 square-foot building constructed by the Tenant at its sole cost. The Tenant’s current rental rate is below market at $14 PSF compared to inline spaces within the town center which are leasing for more than $20 PSF. The Tenant reports strong store sales of $4.19M in 2015. Sales have trended upwards year-over-year since 2013 and are nearing the lease’s breakpoint of $5M. The property is situated within the greater Camden Town Center, which is anchored by Lowe’s and Walmart Supercenter. It features 95,718 square-feet of inline retail and nine pads fronting Dupont Highway. The town center’s tenant lineup includes several notable national retailers including Dollar Tree, McDonald’s, Chickfil-A, Bob Evans, Applebee’s and a newly constructed Aldi grocery store. The Property is exceptionally well located along Dupont Highway, a dense regional retail corridor which averages more than 35,000 vehicles per day. Cheddar’s occupies a highly visible 2.1-acre pad at one of two signaled entrances to the overall Town Center. It is positioned in front of Lowe’s and is cross-eased with a newly constructed strip with national retailers AT&T and Mattress Warehouse. Camden is located in Kent County and part of the Dover, Delaware MSA. Dover is the capital and second largest city in the state, and notably one of the fastest growing areas due in large part to the relatively low cost of living. Dover is home to Dover Air Force Base, which is a significant employer along with Kraft Food, Procter & Gamble, and the state and county governments.