SRS Real Estate Partners announced today it has completed the $3.735 million ground lease sale of a newly developed Chick-fil-A property located at 3502 W. Camp Wisdom Road in Dallas, TX. Built in 2023, the 4,680-square-foot (sf) 1.525-acre property has 14 years remaining on its corporate-guaranteed absolute triple net lease.
SRS Capital Markets Managing Principals Matthew Mousavi and Patrick Luther represented the seller, a Dallas-based developer. The buyer was a Dallas-based private investor who was in a 1031 exchange. The closing cap rate was 4.15%.
The property is an outparcel to The Shops at Redbird, a 720,000-sf shopping center that is currently undergoing a major redevelopment. The property is surrounded by other major retailers including Ross, Sam’s Club, Walmart, Target, and Foot Locker, among others. Additionally, the property has more than 253,000 residents and 77,000 employees within a five-mile radius.
“SRS Capital Markets has executed in excess of 12 properties occupied by Chick-fil-A over the past 12 months,” said Luther. “Like this Dallas property, they provide a passive income with little to zero landlord responsibilities. Given the strength and success of the brand, we continue to receive considerable interest from buyers which translates into competitive pricing and low cap rates.”
According to Technomic Ignite, since 2018 Chick-fil-A has doubled its total sales volume. Last year the chain generated $21.58 billion in sales which is a 14.7% increase over the previous year’s $18.81 billion and over 43% over 2021’s $15 billion. This brand has also continued to gain market share over its biggest competitors in the Quick Service Restaurant (QSR) chicken sandwich category – Popeyes and KFC. Further, Chick-fil-A released its latest Franchisee Disclosure last month which showed that the average unit volume (AUV) for non-mall locations in 2023 reached a record $9.3 million, an 8.1% increase over the previous record of $8.67 million in 2022.
Year to date, SRS Capital Markets has completed approximately $1 billion in deal volume comprised of 240 transactions in 45 states. SRS currently has in excess of 659 properties actively on the market with a market value surpassing $3.2 billion.
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 28 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 srsre.com.