CBRE Facilitates $6.024 Million Sale of Chick-fil-A Ground Lease in Tempe

CBRE has arranged the $6.024 million sale (4.15% cap rate) of a single-tenant ground lease property located at 1160 East University Drive in Tempe, Ariz., to a repeat, all-cash, Arizona-based investor. This investment opportunity features a brand-new 15-year corporate absolute triple-net (NNN) ground lease with Chick-fil-A.

CBRE’s Benjamin Farthing and Owen Littrell represented the seller, Launch Development Group, in the transaction.

“This transaction highlights the strength of the Arizona market, specifically Tempe, and the enduring appeal of net leased assets backed by top tier tenants like Chick-fil-A,” said Farthing. “The property’s trophy infill location at the heart of Arizona State University’s Tempe campus, the absolute triple-net (NNN) lease structure, and the tenant profile made this a highly attractive investment opportunity and a very competitive marketing process.”

“Launch Development Group is excited to play a role in bringing Chick-fil-A to the eastern end of the ASU campus. We identified the site formerly occupied by Chompie's as a strategic location in Tempe. Seeing this deal through after formally opening Launch Development Group in January of this year is an important milestone for the company and has been a catalyst in helping Launch purchase 10 additional vacant restaurant buildings for redevelopment in metro Phoenix," said Andrew Fosberg, Co-Founder and Managing Partner of Launch Development Group.

Situated within walking distance from Arizona State University, the building features Chick-fil-A’s new double drive-thru prototype with walk-up windows. The property benefits from excellent visibility and frontage on University Dr and is surrounded by major student housing and mixed-use developments.