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  Chick-fil-A


Average Property & Lease

Average Sale Price$3,096,769
CAP Rate (12mo avg with 10+ lease term)4.15%
NOI$126,631
$/Square Foot$450 - $650
Building Size4,500 +/- sf
Lot Size1 - 2 acres
Lease Term15 +/- Years
Escalations10% Every 5 Years & Options
CREDIT RATING
N/A
S&P
N/A
Moody's
view credit rating chart
View Net Lease Property Listings at CALKAIN.COM Last Updated: December 12, 2016
Net Lease Advisor Overview

Chick-fil-A, Inc. is the largest quick-service chicken restaurant chain in the United States, based on domestic annual sales of more than 2,000 locations in 46 states and Washington, D.C. Supported by a strong brand and award-winning restaurant designs and architecture, the family-owned, privately-held company is strategically expanding and uniquely positioned for continued future growth.
 

Pros

Cons

  • Corporate guaranteed
  • Ground leases
  • Increases in primary term
  • Private company
  • Low cap rates
Tenant Description

Truett Cathy invented the sandwich that has become as synonymous with Atlanta as Coca-Cola: a hand-breaded chicken breast stuffed in a soft buttered bun and garnished with a couple of pickle chips. He sold it for less than a buck at his Dwarf House in Hapeville, a place so small it had only 10 stools and four tables. The first Chick-fil-A restaurant arrived in 1967, and today the College Park-based fast-chicken giant boasts more than 2,000 locations in 46 states and Washington, D.C.

Chick-fil-A is notorious for having strong franchised restaurant operators, proven by the fact that Chick-fil-A maintains a franchisee turnover rate of less than 5% per year. The company only accepts about 0.4% of the applicants who apply every year. For net lease investors, it is reassuring to know that Chick-fil-A triple net leases have a corporate guarantee by Chick-fil-A, Inc.

When purchasing a Chick-fil-A ground-leased property, investors are buying the real estate upon which the Chick-fil-A restaurant sits. These ground-leased properties provide additional investment security given the nature of the real estate investment made by Chick-fil-A's real estate team, which generally pays for the design, construction, and equipment for all new stores. Finally, from a real estate fundamentals perspective, knowing that store locations and developments are chosen based on corporate goals for target markets; it is not surprising that new stores are typically located in high-traffic areas and are often found as out-parcel/pad sites at major shopping centers.
CHICK-FIL-A TREND
CAP Rate

2015 avg: 4.57%

2016 avg: 4.15%

RECENT SALES

League City, TX I 4.00%

Cincinnati, OH | 4.15%

MORE INFO
www.chick-fil-a.com