Tenant Description

Chick-fil-A, Inc. is the largest fast food chicken chain in the United States, based on domestic annual sales. Characterizred by award-winning restaurant designs and architecture, the family-owned, privately-held company is strategically expanding and uniquely positioned for continued future growth. Chick-fil-A is nationally recognized as having strong franchised restaurant operators as demonstrated by a franchisee turnover rate of less than 5% per year and a franchissee acceptance rate of less than 0.4% per year. Chick-fil-A NNN leases have a corporate guarantee by Chick-fil-A, Inc; making them highlhy desirable to net lease investors nationally. When purchasing a Chick-fil-A ground-leased property, investors are buying the real estate upon which the Chick-fil-A restaurant is located. These ground-leased properties provide significant investment security given the nature of the real estate investment diligence conducted by Chick-fil-A’s real estate team, which generally pays for the design, construction, and equipment for all new stores. 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 community epicenters and are often found as outparcel/pad sites at major shopping centers. The first Chick-fil-A restaurant opened in 1967 and now boasts over 2,100 locations in 46 states and Washington, DC.

  • Industry-leading investment-grade credit
  • Compressed cap rates due to high investor demand
  • Rental escalations in base term
  • Generally high rental rates PSF that could prove hard to replace in the event 7-Eleven vacates
  • Low price point relative to similarly strong investment-grade tenants
  • Investor unable to depreciate improvements in ground-leased locations
  • Predominantly Absolute to Modified NNN ground leases with zero to limited landlord responsibilities
  • Widely considered "recession proof"
    and "Amazon proof"
  • Industry-leading market share and track record of profitability
  • Predominantly corner locations in urban markets with excellent demographics and population density
  • One of the lowest relocation rates in the net lease industry

  • Average Cap Rate
    National 12-mo avg.
    (Source: CoStar & proprietary comp data -
    updated every fiscal quarter)
    Credit Rating
    Standard & Poor's
    Company Snapshot
    Company Name
    (Intl. Holding Co.)

    Seven & i Holdings Co., Ltd.

    Ownership Type
    (Intl. Holding Co.)


    Stock Symbol
    (Intl. Holding Co.)


    (Intl. Holding Co.)

    Nibancho, Chiyoda, Tokyo, Japan

    Company Name
    (U.S. Subsidiary)


    Ownership Type
    (U.S. Subsidiary)


    (U.S. Subsidiary)

    Irving, TX

    Locations Worldwide


    Locations in the U.S.




    Average Property & Lease
    Sales Price


    Annual Base Rent


    Annual Rent PSF


    Building SF


    Price PSF


    Lot Size

    1.15 Acres

    Ownership Interest

    Fee Simple Land
    (Ground Lease)

    Lease Structure

    Absolute NNN

    Lease Term

    20 Years


    10% Every 5 Years


    McDonald's Corp.

    National 12-mo avg.
    (Source: CoStar & proprietary comp data -
    updated quarterly)