Yard House NNN Investor Hub | Cap Rate Trends, Credit Rating Trends, Lease Terms & Due Diligence
Last Year Cap
5.8%
This Year Cap
6.0%
Cap Change
0.2%
Last Year Rating
BBB
This Year Rating
BBB
Rating Change
No change
Yard House – NNN Cap Rate Trend
Cap Rate Trends
| wdt_ID | wdt_created_by | wdt_created_at | wdt_last_edited_by | wdt_last_edited_at | Tenant | Year | Cap Rate |
|---|---|---|---|---|---|---|---|
| 5779 | admin2 | 2026 04:17 AM | admin2 | 2026 04:17 AM | 7 Brew | 2,020 | 6.5 |
| 5780 | admin2 | 2026 04:17 AM | admin2 | 2026 04:17 AM | 7 Brew | 2,021 | 6.3 |
| 5781 | admin2 | 2026 04:17 AM | admin2 | 2026 04:17 AM | 7 Brew | 2,022 | 6.0 |
| 5782 | admin2 | 2026 04:17 AM | admin2 | 2026 04:17 AM | 7 Brew | 2,023 | 6.3 |
| 5783 | admin2 | 2026 04:17 AM | admin2 | 2026 04:17 AM | 7 Brew | 2,024 | 6.6 |
| 5784 | admin2 | 2026 04:17 AM | admin2 | 2026 04:17 AM | 7 Brew | 2,025 | 6.6 |
| Tenant | Year | Cap Rate |
Credit (what net-lease buyers care about)
Credit Snapshot
Yard House
Yard House Net Lease: Secure, Essential Investment
Yard House is a well-established full-service restaurant brand owned and operated by Darden Restaurants, Inc. This guide reviews cap rates, lease terms, tenant credit, and key due diligence considerations for buyers and sellers.
For 1031 exchange buyers, Yard House Ground Lease Properties are important to compare against fee simple Yard House assets, as lease structure can materially impact pricing, financing, and long-term resale value.
Investors often target Yard House assets for:
- Established Restaurant Brand
- Darden Ownership
- Strong Market Presence
- Attractive 1031 Exchange Compatibility
Yard House Ground Lease Properties require close comparison of rent escalations, remaining lease term, extension options, and residual land value versus fee simple ownership.
Yard House Ground Lease Properties for 1031 Exchange Buyers
Yard House Ground Lease Properties often trade differently than fee simple Yard House assets. Buyers should carefully evaluate lease structure, remaining term, renewal options, landlord responsibilities, tenant obligations, and reversion rights to understand long-term risk and return.
Yard House – Credit Trend (S&P vs Moody’s)
Tenant_Rating_Trend
| wdt_ID | wdt_created_by | wdt_created_at | wdt_last_edited_by | wdt_last_edited_at | TenantKey | Tenant | Year | Moody | SP | Moody_Grade | SP_Grade | Moody_GradeRank | SP_GradeRank |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 | admin2 | 2025 03:43 PM | admin2 | 2025 03:43 PM | 7eleveninc | 7-Eleven, Inc. | 2022 | Baa2 | A | Lower Medium Grade | Upper Medium Grade | 5 | 6 |
| 2 | admin2 | 2025 03:43 PM | admin2 | 2025 03:43 PM | 7eleveninc | 7-Eleven, Inc. | 2023 | Baa2 | A | Lower Medium Grade | Upper Medium Grade | 5 | 6 |
| 3 | admin2 | 2025 03:43 PM | admin2 | 2025 03:43 PM | 7eleveninc | 7-Eleven, Inc. | 2024 | Baa2 | A | Lower Medium Grade | Upper Medium Grade | 5 | 6 |
| 4 | admin2 | 2025 03:43 PM | admin2 | 2025 03:43 PM | 7eleveninc | 7-Eleven, Inc. | 2025 | Baa2 | A | Lower Medium Grade | Upper Medium Grade | 5 | 6 |
| 5 | admin2 | 2025 03:43 PM | admin2 | 2025 03:43 PM | 99centsonlystoresllc | 99 Cents Only Stores, LLC | 2022 | Caa2 | CCC+ | Substantial Risk | Substantial Risk | 2 | 2 |
| TenantKey | Tenant | Year | Moody | SP | Moody_Grade | SP_Grade | Moody_GradeRank | SP_GradeRank |
Darden Restaurants Stock Price (NYSE: DRI)
Yard House Investment Market Statistics
AVERAGE SALE PRICE
BUILDING SIZE
AVERAGE NOI
LAND
$/SF RANGE
LEASE TERM SHOWN
Yard House Investor Snapshot (Quick Facts)
Origins & Growth (Past)
• Founded in 1996 in Long Beach, California
• Began as a modern American beer-and-food concept
• Expanded through company-owned restaurant growth
• Developed a broad U.S. restaurant footprint
• Became part of Darden Restaurants in 2012
• Built a nationally recognized full-service restaurant brand
Where Yard House Stands Today
• Established U.S. restaurant footprint
• Owned by Darden Restaurants
• Company-operated restaurant model
• Broad full-service dining presence
• Focus on food and beverage innovation
• Continued brand development and expansion
Where Yard House Stands Today
• Expanding Restaurant Footprint
• Darden-Owned Brand
• Company-Operated Locations
• Strong Full-Service Presence
• Focus on Guest Experience
• Continued Brand Development
• Benefiting from Dining Demand Trends
Why investors buy Yard House NNN Properties or Yard House ground Lease Properties?
Pros (what buyers like)
Established Restaurant Brand
Nationally recognized full-service restaurant brand owned by Darden RestaurantsDarden Ownership
Backed by a large, established restaurant company with more than 2,200 restaurants across its portfolioStrong Restaurant Locations
Yard House restaurants are generally positioned in established retail, entertainment, and high-traffic commercial areasAttractive Lease Structures
NNN or ground lease structures can reduce landlord operating responsibilities and appeal to passive and 1031 exchange buyers
Cons (what can bite you)
Restaurant Demand Risk
Restaurant performance can be affected by changing consumer spending and local competitionLease Structure Variability
Some properties may have NN, modified NNN, or other lease structures with landlord responsibilitiesRe-Tenanting Challenges
Large restaurant buildings and specialized improvements can make alternative tenant use more difficultLocation Dependency
Property performance can depend heavily on traffic, visibility, accessibility, and surrounding retail activity
Investor Decision Framework (Buy / Hold / Sell)
✓ Strong “Buy Box” for a Yard House Net Lease
• 10–15+ years term remaining (or shorter term with strong renewal options) • Absolute NNN or clean NNN lease structure • High-visibility location with strong traffic and accessibility • Established restaurant site in a strong retail or entertainment corridor • Rent aligned with market supporting resale and potential re-tenanting
02
⚠ Yellow Flags (Price Accordingly)
• NN Lease Structure with landlord responsibility for roof or structure • Flat Rent with limited or no rent escalations • Outdated Restaurant Format that may be difficult to re-tenant • Non-Prime Location with weak visibility, access, or traffic • Short Lease Term with limited renewal options
Find out more
Yard House Background & History
Yard House is a nationally recognized full-service restaurant brand known for its extensive beer selection and contemporary American food offerings. Founded in 1996 in Long Beach, California, Yard House grew from a single restaurant concept into a multi-state brand and became part of Darden Restaurants in 2012.
Over time, the brand expanded its restaurant footprint across major U.S. markets, with locations generally positioned in established retail, entertainment, and high-traffic commercial areas. Today, Yard House operates as a company-owned brand within Darden Restaurants, serving customers through full-service dining locations.
As consumer preferences and the restaurant industry have evolved, Yard House has continued to focus on menu innovation, guest experience, restaurant operations, and maintaining locations that support its full-service dining model.
Why Yard House Matters to NNN Investors
Yard House can be relevant to NNN investors because its restaurants are generally located in established commercial areas with strong visibility, accessibility, and surrounding retail or entertainment activity. As a Darden-owned brand, Yard House benefits from the operating platform and resources of a large U.S. restaurant company.
Many Yard House locations are situated in high-traffic areas that can benefit from nearby shopping centers, entertainment venues, hotels, and other complementary businesses. These location characteristics can be important when evaluating the long-term real estate value of a single-tenant restaurant property.
For investors, the appeal of a Yard House NNN property or ground lease is typically tied to the combination of an established restaurant brand, quality real estate, lease structure, and remaining lease term. However, investors should evaluate the specific lease and property rather than relying solely on the Yard House brand.
What Buyers and Sellers Should Evaluate
For investors evaluating Yard House NNN properties, a Yard House net lease, or a Yard House ground lease, the investment thesis is typically centered on property quality, lease economics, tenant obligations, and the strength of the underlying location. Buyers should place particular emphasis on lease structure, remaining term, rent escalations, renewal options, and landlord responsibilities.
Common searches include Yard House real estate, Yard House cap rate, Yard House lease term, Yard House tenant credit, and Yard House NNN properties. Ultimately, Yard House net lease value is driven by site-specific factors, lease economics, property condition, and the long-term viability of the location.
Investors should evaluate each property individually, including ingress and egress, visibility, traffic patterns, surrounding population density, nearby restaurants, retail activity, and the overall strength of the trade area. Restaurant-specific factors such as sales performance, occupancy costs, and operating trends can also provide important context when assessing lease durability.
In addition, investors should consider long-term cash-flow durability, lease rollover risk, potential changes in consumer dining patterns, and how the property could perform under different hold periods and exit strategies. For ground lease investments, buyers should also review the lease’s reversion provisions, land ownership rights, and responsibilities for improvements and site maintenance.
our team of experts are here for you
Our team helps investors evaluate NNN properties with practical, market-based guidance. In addition, we support buyers and sellers with lease review, pricing analysis, and due diligence strategy.
Whether you are comparing Yard House ground lease properties or fee simple Yard House assets, we can help you review the details that affect risk and long-term value. As a result, clients can make more confident decisions based on lease structure, location quality, and investment goals.