Placentia Sees Record-Breaking Sale of Chick-fil-A Property Near Thousands of Students
A record-breaking $7.9 million ground lease (land ownership) sale of a newly developed Chick-fil-A property in Placentia, Calif., has been completed.
The deal represents the highest-priced quick-service restaurant (QSR) sale in Orange County over the past two years and is the only QSR/fast-food sale during that period to exceed $6 million, according to SRS Capital Markets? Vice President Winston Guest, whose team represented the deal.
?This record-breaking high price point sale is another example of the appeal of credit net lease investments in core Southern California markets like Orange County,? Matthew Mousavi, senior managing principal of SRS, told GlobeSt.com.
?A Chick-fil-A location in a dense, infill location with a large parcel is exactly the fundamentals investors are competing for in today?s market.?
Over the last two years in California, only four QSR properties have exceeded $7.5 million in sale price, including two Raising Cane's and two Chick-fil-A properties.
The 5,525-square-foot property covers two acres and fronts Rose Drive. It has a double-lane drive-thru asset that recently opened and signed a new 15-year, corporate-guaranteed, absolute triple-net lease.
This high-profile transaction, which included multiple bidders with a buyer who was not in a 1031 exchange, demonstrates the continued demand for Class A retail, Mousavi said.
The Chick-fil-A is near California State University, Fullerton, making it less than three miles from more than 41,000 students.
It also has access to crossover traffic from the adjacent Ralphs-anchored retail center, which attracts over two million visitors annually and is at the signalized hard-corner intersection of South Rose Drive and Alta Vista Street. That intersection sees approximately 46,000 vehicles per day.
The deal is also the third-highest QSR sale in all of California over the last 12 months.
The seller was a Southern California-based developer, with the buyer a private investor from the area. Both names were not disclosed.
SRS' Senior Managing Principal, Patrick Luther, was also part of the deal for the property, located at 1200 E Alta Vista Street.
Source: GlobeSt/ALM