REAL ESTATE NEWS

SRS Real Estate Partners has been active with Chick-fil-A stores to start the year. For the first quarter alone, the company announced that its Capital Markets group brokered the sale of 14 recently developed properties in the Sun Belt, representing a volume of $78.5 million.

The sales involved assets that provide a mix of ground leases and fee simple ownership. Most of the private buyers who engaged in the transactions used a 1031 exchange.

The Chick-fil-A stores are located in five states: Arkansas, Oklahoma, Georgia, Texas and Florida.

The strong first quarter adds to SRS' Chick-fil-A deals over the past year. In total, the New York-based firm completed the sale of 23 of these fast-food chain brand locations across the U.S. for a total of $120 million in volume over that period.

"For investors, Chick-fil-A assets present a rare opportunity to acquire a best-in-class investment, supported by exceptional credit quality, with average unit volumes that rank among the highest in the drive-thru fast-food sector," Parker Walter, a senior associate with SRS, said in a statement.

SRS attributes the success it's seen with Chick-fil-A to what it calls a "streamlined menu," as well as strong both customer service and per-store sales, which lead the industry. Additionally, brand expansion has been key, which has occurred not only in the U.S., but in Canada too.

A recent B+E report found that QSR cap rates at the end of 2025 held steady year-over-year at 5.68%. However, the average remaining lease term remained at 13.4 years, implying that investors have largely maintained pricing discipline. Chick-fil-A's properties at the time were trading at an average cap rate of 4.29%, a $5.71 million price point, with a 13.8-year term and an average rent of $53.25 per square foot.

In the total QSR sector, 1,041 net-lease properties were on the market in December, down from the 1,117 posted in the same month a year ago, according to the B+E report.

Currently, SRS is marketing 13 Chick-fil-A stores located in Georgia, Texas, Florida, California, Alabama and Connecticut.

Source: GlobeSt/ALM