Yard House NNN Investor Hub | Cap Rate Trends, Credit Rating Trends, Lease Terms & Due Diligence

Yard House

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

Cap Rates NNN
Last Year 5.8%
This Year 6.0%
Change 0.2%
S&P Rating CREDIT
Last Year BBB
This Year BBB
Change No change

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

$1,622,978

BUILDING SIZE

7,391 – 9,100 SF

AVERAGE NOI

$102,259

LAND

0.85 – 1.36 Acres

$/SF RANGE

$176 – $216/SF

LEASE TERM SHOWN

5 years

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 Restaurants

  • Darden Ownership
    Backed by a large, established restaurant company with more than 2,200 restaurants across its portfolio

  • Strong Restaurant Locations
    Yard House restaurants are generally positioned in established retail, entertainment, and high-traffic commercial areas

  • Attractive 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 competition

  • Lease Structure Variability
    Some properties may have NN, modified NNN, or other lease structures with landlord responsibilities

  • Re-Tenanting Challenges
    Large restaurant buildings and specialized improvements can make alternative tenant use more difficult

  • Location Dependency
    Property performance can depend heavily on traffic, visibility, accessibility, and surrounding retail activity

Find out more

Yard House NNN property, Yard House ground lease, Yard House cap rate, Yard House lease term, Yard House tenant credit, Yard House net lease property, 1031 exchange, NNN property, net lease property, ground lease property

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.

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