The owner of a new Chick-fil-A is wasting no time putting the fast-food restaurant on the sales block, testing the value of a busy location.
The popular chicken sandwich chain opened its 5,200-square-foot outlet this week in Atlanta's Buckhead district, only a day after Coro Realty Advisors listed the property for sale on LoopNet for $12.15 million.
It's located at 3234 Peachtree Road at one of Atlanta's most prominent and heavily trafficked intersections at Peachtree and Piedmont roads. The intersection carries an average of 80,000 vehicles per day, according to CBRE, the listing brokerage.
"The price is high because of the location," Robert Fransen, president and managing partner of Coro Realty, told CoStar News. "The land is incredibly valuable."
City of Atlanta zoning laws forbid restaurants from including drive-thru lanes at locations with high levels of traffic. To compensate for the lack of drive-thru lanes, the location has extra parking, including spaces designated for pick-up orders and drivers for delivery services like DoorDash.
The new Chick-fil-A is located on the site of a former David's Bridal store within Buckhead Place, a shopping center owned by Coro Realty. Coro Realty is redeveloping the Buckhead Place site with 150,000 square feet of retail and a Hyatt Place hotel.
Chick-fil-A's triple-net ground lease on the property includes 10% rent increases every five years through the initial lease term, according to the LoopNet listing. Each additional renewal option also includes the automatic 10% rent increase.
If Coro Realty and CBRE obtain the asking price, it will be higher than most Chick-fil-A sales of late, according to CoStar data. Brazos Contractors & Development last month sold a Chick-fil-A in Brenham, Texas, for nearly $6.2 million, the highest price over the past year for a Chick-fil-A that wasn't part of a portfolio sale.
For the record
Christopher Bosworth, Brian Pfohl, Thomas Carr, Leah Lindell and Ty Grenier at CBRE are representing Coro Realty. Dana Newby at Coro Realty leads the leasing efforts for her firm at Buckhead Place.