First Watch Restaurant Sells as Net-Lease Opportunity for $4 Million

TUCSON, AZ (July 23, 2024)—The First Watch Restaurant at 2943 North Campbell Avenue, which opened on January 29, 2024, sold as a net lease investment for $4 million ($960 PSF). The newly renovated, single-tenant property is occupied by First Watch restaurant and features a drive-thru/pick-up window. It is located two miles from the University of Arizona.

The 4,164-square-foot restaurant sits on a 1.02-acre parcel at the signalized intersection of Blacklidge Drive and Campbell Avenue. A new 12-year corporate triple-net lease is in place, with rent increases every six years during the base term and each of the two five-year renewal options.

Headquartered in Bradenton, Florida, First Watch (NASDAQ: FWRG) is a daytime dining concept known for its made-to-order breakfast, brunch, and lunch using fresh ingredients. Two restaurant veterans tired of working late nights launched First Watch in 1983 in Pacific Grove, California. The restaurant is named and positioned according to a nautical timetable of the first work shift aboard a ship. First Watch is open from 7:00 a.m. to 2:30 p.m.

The transaction marks the first sale of a single-tenant First Watch restaurant in the Western United States with a record-low cap rate for 2024 at 5.75% cap.

One of the fastest-growing restaurant chains in the country, it has eight Tucson locations, four of which are ranked among the top 10-20% performing sites out of the 444 total locations tracked.

Bill Asher, Jeff Lefko, and Lee Csenar of Hanley Investment Real Estate Advisors represented the California seller and developer in the transaction. In association with Brian Brockman of Bang Realty and Cory Krupinsky of Brisky Net Lease represented the buyer, a private investor, also from Agoura Hills, California.

Hanley procured an all-cash buyer seeking a secure single-tenant investment to help fulfill a 1031 exchange requirement.

For more information, contact Bill Asher at 949.585.7684.

To learn more, see RED Comp #11391.