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Zaxby's
  Zaxby's


Average Property & Lease

Average Sale Price$2,414,733
CAP Rate (12mo avg with 10+ lease term)6.64%
NOI$160,254
$/Square Foot$600 - $700
Building Size3,200 +/- sf
Lot Size0.8 - 1.0 acres
Lease Term15 +/- Years
EscalationsVaries
CREDIT RATING
N/A
S&P
N/A
Moody's
view credit rating chart
View Net Lease Property Listings at CALKAIN.COM Last Updated: September 9, 2016
Net Lease Advisor Overview

Zaxby's has grown exponentially in southern states since being in business for last 25+ years. Most of the stores are franchised. They typically operate under a 20-year, mostly an Absolute-Triple-Net lease with various rental bumps. Some lease includes between 3-5, 5-year options. An average Zaxby's freestanding location range from 3,000 - 3,500 SF that is situated on 0.80 - 1.50+/- acre land with a drive-through. The locations are usually on an outparcel in a dense retail corridor.

Pros

Cons

  • NNN Lease eliminates Landlord responsibilities
  • Located in high traffic suburban locations
  • Private company
  • Must look closely at performance of franchisor across all locations
Tenant Description

Zaxby's founders Zach McLeroy & Tony Townley decided to provide the freshest chicken fingers and Buffalo wings in town. In 1990, they opened the first Zaxby's in Statesboro, GA. The concept, one of the early "quick casual" restaurants, has proven to be very successful. The company is headquartered in Athens, Georgia.

There are about 726 fast-casual Zaxby's chicken restaurants in 16 states: Alabama, Arkansas, Florida, Georgia, Indiana, Kentucky, Louisiana, Mississippi, Missouri, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Utah and Virginia. About 598 locations are franchised, while the rests are company-owned.

Its kitschy, memorabilia-themed restaurants offer creatively named chicken dishes, such as Chicken Fingerz, Zalads, Big Zax Snak Meal, Zappetizers, and Buffalo Fingerz with Zax sauce. The chain also serves chicken with other types of sauces named for their spiciness threshold, from Wimpy to Nuclear to Insane.

In 2015, Zaxby's was the No. 9 fastest-growing chain in the Nation's Restaurant News Top 100 list. Entrepreneur magazine ranked Zaxby's as one of the fastest-growing franchises and as a Top 500 franchise. In Technomic's Consumers' Choice Awards, Zaxby's was named the Most Craveable fast casual restaurant chain (2014), and as the chain with the Most Unique Items You Can't Get Elsewhere (2015).

Zaxby's is on track to open 80 stores in new and existing markets. The company plans to continue this momentum as it introduces the brand to new regions outside its established Southeast footprint.
ZAXBY'S TREND
CAP Rate

2015 avg: 7.10%

2016 avg: 6.99%

RECENT SALES

West Palm Beach, FL

$2,400,000 | 6.66%

Hixson, TN

$2,425,000 | 6.50%

MORE INFO
www.zaxbys.com