This is why you pay so much for these Chick-Fil-A deals! Is it worth it?
Chick-Fil-A has gobbled up all the best real estate in the country and their push into every market from their humble beginnings is a testament to a one of the best real estate departments in retail. They have gone head-to-head with the top tier fast-food companies in virtually every market. Caines, In N out, Mc Donalds, Panda Express, have all had to deal with this company “eating their lunch” (pardon the pun).
This exceptional site in the bay area of northern California will never become problematic after the tenant has exercised all of their options to extend over the coming decades and will most likely remain a fast-food location in the future. The real concern (if any) is the price point on these deals. This location needs to be vetted for sales only. The rent versus sales ratio needs to be understood to justify the investment. If for some odd reason this location has a high ratio then there is a possibility the company will not exercise the options to extend and could ultimately abandon the location after 13 years and the land value will not be what was paid originally.
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