Record-Setting Deal: $7.9 Million Sale of New Chick-fil-A Ground Lease in Orange County

Introduction

In a remarkable transaction, SRS Real Estate Partners has successfully brokered the sale of a newly developed Chick-fil-A property located at 1200 E Alta Vista Street in Placentia, California. This $7.9 million ground lease represents a historic milestone for quick-service restaurant (QSR) sales in Orange County, making it the highest-priced QSR sale in the area over the past two years and the first to exceed the $6 million mark during that period. As the demand for prime retail locations intensifies, this sale underscores the robust investment landscape for QSR properties, especially those with established brands like Chick-fil-A.

Key Details of the Property

This 5,525-square-foot property, built on a two-acre lot, features a double lane drive-thru and is strategically located at a highly trafficked intersection on South Rose Drive. Recently opened, the site is bolstered by a new 15-year, corporate-guaranteed absolute triple-net lease, ensuring a stable and predictable revenue stream for the property owner. The significance of this deal is accentuated by its positioning; the Chick-fil-A is ideally situated within a densely populated area, enhancing its operational viability and market performance.

High Demand for Class A Retail Properties

Patrick Luther, Senior Managing Principal at SRS Capital Markets, noted the competitive nature of this transaction, stating, "Multiple investors were bidding on the property." The robust interest from private investors reflects the ongoing demand for Class A retail properties in Orange County, particularly those associated with high-profile tenants like Chick-fil-A. Matthew Mousavi, another Senior Managing Principal, stressed the importance of this sale, remarking that it highlights the sustained appeal of new construction assets in desirable locations.

Regional Significance and Traffic Counts

The Chick-fil-A in Placentia also benefits significantly from its location near California State University, Fullerton, which is home to over 41,000 students. Such proximity to a large student population presents a considerable customer base and adds to the restaurant’s appeal. Moreover, the property is located adjacent to a Ralphs-anchored retail center that attracts more than two million visitors annually. The site’s positioning at the signalized intersection of South Rose Drive and Alta Vista Street ensures it is exposed to a staggering daily traffic count of around 46,000 vehicles, thereby increasing the potential customer flow.

Broader Market Trends in California QSR Sales

This specific sale is noteworthy not only for Orange County but also statewide. Over the past year, it ranks as the third-highest QSR sale in California, with only four transactions exceeding $7.5 million during the last two years, including properties from Raising Cane’s as well. This trend aligns with the increasing value of QSR properties as investments, particularly in growth markets like Southern California. These statistics illustrate the favorable trajectory for QSR investments and the shifting dynamics in commercial real estate.

Conclusion

SRS Real Estate Partners continues to excel in the realm of commercial real estate, evidenced by their remarkable $3.5 billion deal volume last year, featuring over 900 transactions across the nation. The company, headquartered in Dallas with 29 branch offices, demonstrates an unwavering commitment to providing valuable solutions for tenants, owners, and investors in the retail space. As the market for QSR properties evolves, this $7.9 million Chick-fil-A ground lease symbolizes a significant achievement in commercial real estate and signals more exciting opportunities on the horizon.

For further information about SRS Real Estate Partners and their offerings, please visit srsre.com, and keep an eye on the dynamic landscape of commercial real estate, especially QSR investments.