At 3.85 percent average, the cap rate is one of the lowest for Chick-fil-A in the Southeast and the state of New Mexico.
IRVINE, Calif., November 10, 2021 – Faris Lee Investments, a leading retail advisory and investment sales firm, has completed the $13.989 million sale of 4 ground leases and built-to-suits Chick-fil-As in the Southeast (Louisiana & Georgia) and the state of New Mexico. The 4 separate transactions' average cap rate of 3.85% is one of the lowest for single-tenant Chick-fil-A-occupied properties in those regions per CoStar records.
Jeff Conover, Senior Managing Director, and Scott DeYoung, Managing Director at Faris Lee Investments represented the sellers, local developers from both the Southeast & Southwest regions of the US. The all-cash buyers procured by Faris Lee Investments were generated from the West Coast, Southwest, and Northeast regions, and were in 1031 exchanges.
Located in Albuquerque, New Mexico; Conyers, Georgia; Mandeville, and Marrero, Louisiana; all 4 Chick-fil-A properties averaged 15-year lease terms. All 4 freestanding restaurants include a double drive-thru and are situated in highly visible and highly accessible dynamic trade areas.
“These single-tenant QSR assets sold at very aggressive prices and record-breaking low cap rates in 2021 because it offered the investor all the fundamentals for secure and stable investment with a credit, essential tenant. All four properties have long-term leases, strong trade area locations & demographics, and newer construction. This is the ideal scenario for 1031 buyers at this current time,” said Conover.
“Another very important component to the transactions is that both the ground leases & the build-to-suits provided rental growth throughout the lease term creating additional security and hedging against inflation for the investors,” DeYoung added.
Faris Lee targeted 1031 exchange buyers across the US, generated multiple offers, and closed under 60 days at an average 97% of the list price.
In the News: https://shoppingcenterbusiness.com/faris-lee-arranges-13-9-million-sale-of-four-chick-fil-a-properties-across-southeast-new-mexico/?oly_enc_id=2804C2473478H0W
About Faris Lee Investments: Faris Lee Investments is a national leading retail advisory and investment sales firm. The company’s high-level retail investment advisors develop forward-thinking strategies for all retail acquisitions and dispositions and guide clients through complex transactions. Through its recent strategic affiliation with X-Team Retail Advisors, a nationwide partnership of seasoned retail leasing experts, Faris Lee offers a fully integrated platform with disciplined expertise in landlord leasing, tenant representation, and investment sales to maximize value for clients.