Faris Lee Investments Orchestrates Over $7.4M in Multiple Transactions for Dutch Bros and Chick-Fil-A, Highlighting the Thriving Quick Service Restaurant (QSR) Market

Irvine, CA – February 7, 2024 - Faris Lee Investments, a leading real estate brokerage and advisory firm, announces the successful completion of three strategic Quick Service Restaurant (QSR) transactions, totaling $7,433,000. Senior Managing Director Scott DeYoung, Managing Principal Jeff Conover, and Director Greg Lukosky at Faris Lee Investments played pivotal roles in representing the sellers and procuring buyers for these transactions.

The Dutch Bros in The Colony, TX (Dallas MSA) had a closing price of $2,100,000 with a 5.24% cap rate. The location opened on November 17, 2023, and sold in record time on December 6, 2023. Faris Lee Investments secured a 1031 buyer prior to official marketing commencement with a client procured through their proprietary 1031 buyer database. The established, Long Term 15-Year Absolute NNN Ground Lease created enhanced stability for the investor. Despite challenges that included over 30 existing Single-Tenant Net Lease (STNL) Dutch Bros for sale in the State of Texas, the project's success was attributed to a targeted marketing strategy, direct campaigns to 1031 exchange buyers, and leveraging existing client relationships. The Southern California based 1031 Buyer was represented by Chris DePierro with Faris Lee Investments.

The Dutch Bros in McAllen, TX, closed at $1,960,000 with a 5.36% cap rate. Faris Lee Investments strategically went to market on 9/14/23 and obtained a Buyer Letter of Intent within seven days. The property, a brand-new 2023 Dutch Bros with a 15-Year, Absolute NNN Ground Lease, faced challenges associated with the property being under construction during marketing and escrow. Despite these challenges, Faris Lee Investments' targeted approach to 1031 Buyers, active marketing, and strategic client engagement resulted in closing the transaction within 60 days and obtaining over 93% of the list price.

Chick-fil-A in Louisville, KY, closed at $3.373 million with a 4.15% cap rate. The property featured a corporately executed lease, a brand-new Long Term 20-Year NNN Ground Lease, and new prototypical double drive-thru lanes. The challenge lay in aggressive pricing below a 4% cap rate in a rising interest rate environment, compounded by competition from other Chick-fil-A listings, and a pre-sale opportunity with the initial marketing campaign that commenced prior to start of construction. Faris Lee Investments addressed these challenges through marketing to their 1031 database, emphasizing the long-term investment opportunity with corporately executed lease by the highest average unit volume QSR brand. The result were multiple offers, a 17-day escrow with a California 1031 investor and closing the sale shortly after the store opened for business. Listing team for the sale consists of Senior Managing Director Scott DeYoung, Managing Principal Jeff Conover, Director Hunter Steffien, and Director Greg Lukosky.

“Today, investing in the QSR sector proves to be a lucrative endeavor with an extremely deep and diverse buyer pool. The demand for convenient and quick dining options, coupled with the resilience of well-established brands positions QSR properties as attractive investments. In addition, QSR drive-thru buildings have intrinsic real estate value attracting a large bench of tenants looking to backfill 2nd generation drive-thru buildings. With changing consumer preferences and the adaptability of QSR chains to evolving market trends especially with the unprecedented increase in interest rates over the past 2 years, investors can benefit from the stability and growth potential offered by these sought-after assets,” says Scott DeYoung.

About Faris Lee Investments:
Faris Lee Investments is a retail brokerage advisory firm founded in 1996 and is based in Irvine, California. The firm specializes in commercial real estate investment sales, brokerage, and advisory services. In addition, the firm provides a national marketing platform of properties for sale, asset appraisal, property valuation, debt structuring, negotiation, market research, and analysis services. Faris Lee combines underwriting and research that exceeds industry standards with a marketing strategy to transform investment potential, enhance value and provide their clients the competitive advantage needed when making investment decisions. The firm also serves as institutional advisors in the areas of acquisitions and dispositions, merchant banking, distressed asset disposition, private equity, and corporate sale-leaseback. For more information, visit www.farislee.com

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