SRS Real Estate Partners’ National Net Lease Group Announces Approximately $3 Billion in Investment Sales at Year End 2022

Investment Trends in QSR, Child Care Centers and Medical Assets Driving Activity Into the New Year

Newport Beach, CA (February 6, 2023) – SRS Real Estate Partners’ National Net Lease Group (NNLG) closed 2022 with $2.9 billion in deal volume comprised of over 760 transactions across 35 states. This high level of activity occurred despite the impact of an unprecedented seven interest rate hikes since March of 2022, challenging the market in the latter half of 2022.

“Despite the change in rates, we were able to transact nearly $3 billion, working with investors both public and private, showing the demand for hard assets and resiliency of the industry, as well as our national reach and capabilities,” said Matthew Mousavi, managing principal, SRS’ NNLG.

“By second quarter of 2023 we should have a clearer picture on the trajectory of interest rates and the capital markets environment. Right now, there is an abundance of capital on the sidelines waiting for valuations to adjust. Given the efficiency of our markets I expect that following stabilization of spreads and valuations, investment activity will resume its robust pace as other fundamentals remain generally sound,” he added.

Patrick Nutt, executive vice president, SRS’ NNLG and market leader, South Florida concured, “Throughout 2022 seasoned brokers overcame a host of transactional challenges.  2023 started with a palpable increase in investor activity compared with the cautionary slowdown of the second half of 2022. This comes as macroeconomic conditions are showing signs of stabilization, inflation cools and the benchmark 10-year US treasury yield retreated 70 basis points from its November 2022 highs.  Leveraged buyers remain challenged but the long term stability and passivity unique to the net lease asset class has outweighed those issues of late.”  

Net lease property and income-producing passive real estate leased to credit tenants has been in more demand over the past five years than ever before. The team’s 2022 activity further supports some of the top trends in the market, expected to continue into 2023.

QSR Chicken Sandwich Dominance – In 2022, the NNLG sold a total of 22 properties occupied by Chick-fil-A valued at $87 million with an average cap rate of 3.77%. This makes up for a 32% market share for all Chick-fil-A-occupied assets sold last year, giving the firm the largest market share among all other brokerage firms, with $46 million of Chick-fil-A properties for sale or currently in escrow. The NNLG confirms 2023 as another strong year for the firm for sales of the country’s most successful chicken sandwich quick service restaurant chain, and further demonstrating the continued hunger for this QSR category.

Child Care Centers: The once-overlooked child care center-occupied triple net leased investment category emerged as a major asset group for STNL investors. 2022 proved to be a banner period for this segment with sales soaring nationally. As an example, in 2022, the NNLG sold 14 single-tenant retail properties occupied by KinderCare Learning Centers in separate transactions totaling $60 million.

Medical Assets: Competition for net lease medical properties increased significantly since the start of the pandemic driven by institutional investors who want assets unaffected by the pandemic or the acceleration of e-commerce. In 2022, the NNLG saw more than 100 basis points of compression in cap rates for these types of assets. To that point, the team completed the portfolio sale of eight single-tenant properties occupied by Fresenius Medical Care, valued at approximately $56.54 million as well as the $50.3 million leasehold ownership sale of a single-tenant office/lab property fully occupied by Clinical Labs of Hawaii (CLH), the largest pathology/laboratory medical company in the Hawaiian Islands. NNLG sees this trend continuing due to continued demographic changes with an aging population, the appeal of medical as an e-commerce resistant product type, and the fact that these operators tend to be well capitalized with strong financial positions.

“Looking ahead, in a shifting market with several variables at play both domestic and globally, the uncertainty on valuations makes it much more difficult for owners and sellers to assess project viability and to model pricing. For this reason, it is critical for sellers to make prudent and realistic decisions, and to factor in the new cost of capital on exits versus looking at historical sales done in a prior market and rate environment,” said Patrick Luther, managing principal, SRS’ NNLG.

About SRS Real Estate Partners

Founded in 1986, SRS Real Estate Partners is building upon its retail foundation to provide extensive commercial real estate solutions to tenants, owners, and investors. Headquartered in Dallas, with more than 25 offices in the U.S., SRS has grown into one of the industry’s most influential and respected leaders. Our commitment to excellence is strengthened by our Guarantee of Value and our success is measured in the achievement of our clients’ objectives, satisfaction, and trust. For more information, please visit

About SRS’ Investment Properties Group (IPG) & National Net Lease Group (NNLG)

SRS’ Investment Properties Group (IPG) & National Net Lease Group (NNLG) is a unified platform of seasoned net lease professionals located and transacting nationally with all underwriting and marketing efforts strategically located in Southern California. From proactive sales to targeted acquisitions and tailored debt and equity solutions, SRS’ National Net Lease Group offers comprehensive services to net lease owners and investors. Superior speed-to-market, world-class marketing materials, a deep investor database and unparalleled retail submarket intelligence from the entire SRS platform allow SRS’ National Net Lease Group to deliver the best possible returns. For more information, please visit