A newly built Chipotle in Lutz was acquired as part of a $9 million, two-property deal involving commercial sites leased to major restaurant chains in Florida and Texas.
Marcus & Millichap’s Levin Johnston team said it represented a single private investor in the purchases, which included a Chipotle in Lutz and a Chick-fil-A in Austin.
The Chipotle property is a 2,493-square-foot building at 10301 Cross Creek Blvd. in Lutz. The Chick-fil-A property is a 4,944-square-foot building at 7300 McKinney Falls Parkway in Austin.
A 1031 exchange out of California
The acquisitions were completed through a 1031 exchange, according to Levin Johnston.
The exchange began with the sale of a 24-unit apartment community in Redwood City, California. The property sold for $9.3 million, the brokerage team said.
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The buyer used proceeds from that sale to reinvest into the two net-leased restaurant properties.
A 20-year Chipotle lease in Lutz
The Lutz property was marketed as a long-term, passive investment backed by an absolute triple-net lease.
“The Florida property is in the Tampa area’s largest retail corridor and presented an incredibly rare opportunity in which Chipotle signed a 20-year lease with increases every five years,” said Robert Johnston, executive managing director of Levin Johnston.
The firm said the property is newly built.
Chick-fil-A expands in Southeast Austin
The second acquisition was a Chick-fil-A in Austin, Texas.
Johnston said the location is Southeast Austin’s first Chick-fil-A and was developed by the corporation.
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“The Chick-fil-A location, which is southeast Austin’s first, was developed by the corporation and will serve a strong demand for many years to come,” Johnston said.
Investor interest in net-lease deals
Levin Johnston said the deal reflects continued investor demand for commercial real estate leased to national tenants under long-term agreements.
“These transactions represent increasing investor interest in commercial properties that require no landlord responsibilities and offer geographic diversification within tax-friendly states,” said Adam Levin, executive managing director of Levin Johnston.
Levin Johnston is part of Marcus & Millichap’s Palo Alto office.
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