SRS Real Estate Partners Closes $4.72 Million Chick-fil-A Ground Lease Sale in Clovis, California
SRS Real Estate Partners has closed the $4.72 million sale of a new-construction Chick-fil-A ground lease at 560 W. Shaw Avenue in Clovis, California, the firm announced Sept. 23. The transaction involved a 4,847-square-foot restaurant on 2.19 acres secured by a 15-year absolute triple-net ground lease.
Deal Details and Parties
Alexander Moore, a senior vice president with SRS Capital Markets, represented the seller, a Bay Area-based investor. The buyer, a Central Valley-based private investor, acquired the property as part of a 1031 exchange. The property, located within the Fresno metropolitan statistical area, was developed in 2026 and was fully occupied at the time of sale.
The transaction implies a price of approximately $974 per square foot based on the building's 4,847-square-foot footprint. Because the investment is structured as a ground lease — in which the buyer acquires ownership of the land rather than the building — the price-per-square-foot metric is less central to underwriting than the contractual ground rent and lease escalations.
"This sale is testament to both a strong demand for Central Valley investment as well as Chick-fil-A properties," Moore said. "Chick-fil-A continues to be one of the most popular quick-service-restaurant brands in the country with a growing 3,400 locations and annual Average Unit Volume of $9.3 million."
Property and Trade-Area Context
The Clovis restaurant offers dine-in, drive-thru, carryout and third-party delivery service and operates Monday through Saturday from 6:30 a.m. to 11 p.m. The building features a double-lane drive-thru and represents the third Chick-fil-A location in the Fresno area.
Shaw Avenue is a retail corridor in the Clovis/Fresno market that includes major national retailers and two malls. California State University, Fresno is approximately three minutes from the property. SRS reported roughly 375,000 residents and 145,000 employees within a five-mile radius of the site.
Chick-fil-A Ground Lease Demand and Pricing Context
The Clovis transaction reflects sustained investor appetite for Chick-fil-A net-lease assets. Chick-fil-A ground leases have traded at asking cap rates averaging in the mid-4% range in 2026, well below the broader retail net-lease average of approximately 6.60% and the wider quick-service restaurant average of around 5.85%. Fifteen-year Chick-fil-A ground leases have carried indicative cap rates in a 4.15% to 4.45% range in recent quarters.
Several factors contributed to investor interest in the Clovis asset. An absolute NNN ground lease transfers property taxes, insurance and maintenance obligations to the tenant, limiting the landlord's operating responsibilities. New construction reduces near-term capital expenditure risk relative to older restaurant buildings. The buyer's 1031 exchange requirement also illustrates continued demand from private investors seeking passive net-lease income while deferring taxable gains.
Moore noted that SRS has captured a 48% market share of all Chick-fil-A properties sold nationally in 2026, with 16 Chick-fil-A properties currently listed for sale totaling $68 million. Other California Chick-fil-A closings by SRS this year have included locations in Indio and Chico.
SRS Capital Markets Activity
SRS Real Estate Partners reported that its capital markets platform has completed more than $2 billion in deal volume across more than 525 transactions in 2026. The firm currently has more than 900 properties listed for sale with a combined market value exceeding $4.3 billion.
Founded in 1986 and headquartered in Dallas, SRS Real Estate Partners operates 30 offices nationwide and provides services across retail, industrial and capital markets.