SRS Real Estate Partners closed the $6.84-million ground lease sale of a Raising Cane’s property located at 4100 Central Ave. in Riverside. Situated on 1.29 acres, the 3,267-square-foot restaurant property was built in 2024 and has a corporate-guaranteed, absolute triple net 15-year ground lease in place.

SRS Capital Markets senior managing principals Patrick Luther and Matthew Mousavi represented the seller, a Southern California-based developer. The 1031 exchange buyer, a private investor from Washington, was represented by Brian Quinn and Bryan Cunningham of JLL. The closing cap rate was 4.75%.

“Acquiring this Inland Empire Raising Cane’s property provided the passive buyer with a strategic investment opportunity due to its prime location, strong brand presence, and consistent consumer demand,” said Mousavi. “Situated in a high-traffic area with excellent visibility and accessibility, the property benefits from the fast-casual dining sector’s resilience and growth.”

SRS Real Estate Partners has completed the $8.61 million sale of a Lowe’s Home Improvement property located at 2888 Brice Road in Columbus, Ohio.

Situated on 12.8 acres, the 125,357-square-foot property has a corporate-guaranteed lease that was recently extended for ten more years. SRS Capital Markets Managing Principals Matthew Mousavi and Patrick Luther represented the seller. The buyer was a West Coast-based private investor. The closing cap rate was 6.4%.

“This offering attracted strong buyer interest and we identified an all-cash buyer who we have exclusively represented over the past five years on seven acquisitions. Additionally, this wasn’t a 1031 exchange transaction which is typical for this type of single-tenant asset,” said Luther.

The property is adjacent to Brice Park, a 158,000-sf shopping center with big box tenants. It is also located in the center of a primary retail corridor with other nearby brands including Kroger, Big Lots!, Walgreens, and Planet Fitness.

SRS Real Estate Partners Capital Markets said that over the past 18 months, the firm has sold a total of 50 drive-thru properties occupied by single-tenant, net-leased coffee shops including Starbucks, 7 Brew, Caribou Coffee, Dunkin’, Dutch Bros Coffee and Scooters Coffee House. All told, the transactions are valued at $135 million with an average closing cap rate of 5.52%. Additionally, SRS has 45 active coffee shop listings or in escrow with a total value of $124 million.

“While the investor favorite from a brand and credit perspective remains Starbucks, developers and property owners now have a much wider and growing pool of coffee users to consider when offering a coffee shop amenity to their property,” said Patrick Luther, principal & managing director with SRS. “Investors have been clamoring for these cash-flowing, low maintenance single-tenant assets especially with brands that are aggressively expanding and seeking more U.S. locations to capture a growing market share.”

The majority of SRS’ recently completed deals and those in escrow are new construction assets with fee simple ownership, ground lease (land ownership) and sale-leaseback scenarios. Due to the nature of the asset, they are overwhelmingly located in busy retail corridors and are usually a part of a larger retail center, creating strong crossover traffic and a dense customer population.

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The Newport Beach-based SRS Real Estate Partners Capital Markets team has sold a total of 33 7-Eleven-occupied properties over the past 18 months, valued at $242 million with an average cap rate of 5.27%.

Additionally, SRS has 24 7-Eleven assets currently in escrow or on the market with a combined value of approximately $160 million. All the assets are single-tenant properties with 12 or more years remaining on the lease term.

“Over the past 12 months or so, we have observed that cap rates for 7-Eleven stores are holding steady despite the higher interest rate environment,” said Patrick Luther, SRS EVP and managing principal. “Additionally, the absorption of 7-Eleven assets outpaces comparable credit tenants such as drug store and coffee brands and we have not seen values erode or cap rates rise as much for this brand. Investors are benefitting from the long-term stability, high traffic locations and strong credit rating of this internationally recognized chain.”

Over the past 18 months, SRS has sold 7-Eleven assets in California, Colorado, Connecticut Florida, Nevada, New York, New Jersey, North Carolina, South Carolina, Oklahoma, Tennessee and Texas. The company has properties on the market in California, Florida, New Jersey, North Carolina, South Carolina, Tennessee and Texas.

SRS Real Estate Partners Capital Markets, based in Newport Beach, said that over the past 12 months, the firm has sold a total of 10 properties occupied by Chick-fil-A valued at $48 million with an average cap rate of 4.2%. The company said this figure gives it a 30% market share for all Chick-fil-A-occupied assets sold over the same period, the largest among all other brokerage firms nationwide.

“SRS has built a reputation for its national network of experienced single-tenant net lease brokers that have connections with a diverse buyer pool interested in building their portfolios with stabilized, cash-flowing real estate inclusive of our Chick-fil-A leased assets,” said Patrick Luther, a managing principal with SRS Capital Markets. “As an investment, Chick-fil-A leased properties provide triple net buyers an opportunity to own a best-in-class asset with the strongest credit and highest average store sales of any brand in the drive-thru fast-food space.”

He added that SRS currently has 15 Chick-fil-A assets on the market valued at $85.5 million, including two in escrow. This also represents 30% market share of all Chick-fil-A stores up for sale.