October 24, 2019—SRS Real Estate Partners National Net Lease Group has announced the sale of two Chick-Fil-A properties. One of the sales is a ground lease for a 5,051-square-foot Chick-fil-A located at 8700 University Exec Park Drive in Charlotte, NC. The second transaction is a ground lease for a 5,058-square-foot Chick-Fil-A located at the northwest corner of Halsted St. and 175th St. in Homewood, IL.
SRS National Net Lease Group Managing Principals Matthew Mousavi and Patrick Luther represented a West Coast-based institutional investor in the $4 million transaction at a 4.13 % cap rate for the Charlotte property to a private, California-based 1031 exchange investor. The SRS team also represented a Midwest-based merchant developer in the $3.3 million transaction at a 4.09 % cap rate to a separate California-based 1031 exchange investor.
The brand new state-of-the-art Charlotte drive-thru Chick-Fil-A opened in September 2019. The tenant recently executed a 20-year lease with four option periods to extend. The property is ideally located in University City, an area adjacent to the University of North Carolina. University City is Charlotte’s second largest employment center and is supported by a large student population.
The Homewood Chick-Fil-A also recently celebrated a September grand opening. The tenant has a 20-year ground lease with seven options to extend. The property’s location benefits from 43,800 vehicles passing by daily as well as being across from a Walmart Supercenter and Kohl’s.
“SRS continues to see robust demand from West Coast-based exchange buyers in it’s Chick-Fil-A inventory. The continued brand growth, with total company sales exceeding $10 billion, has driven investor interest. Brand awareness, not only nationally, but globally, allows us to source investors from across the country, and to gain their interest in investments in Chick Fil A, even in smaller, tertiary markets. SRS represents several merchant developers and owners with a steady pipeline of Chick Fil A stores,” said Luther.