SRS Real Estate Partners Closes $5.66 Million Sale of First Watch Restaurant Property in Dallas Submarket

SRS Real Estate Partners announced the $5.66 million sale of a newly renovated First Watch restaurant property located at 5353 Belt Line Road in Addison, Texas, within the Dallas submarket. The 5,672-square-foot single-tenant property sits on 1.1 acres and features a new 12-year corporate-guaranteed lease, providing stable long-term income for the investor.

Matthew Mousavi and Patrick Luther, Senior Managing Principals at SRS Capital Markets, represented the seller, Dallas-based real estate private equity firm 90Ten. The buyer was a New Mexico-based private investor utilizing a 1031 exchange, with the transaction closing at a 5.5% cap rate and $998 per square foot. Luther emphasized the property's strong performance within the First Watch chain and its appeal as a passive investment with minimal landlord responsibilities in an income tax-free state for the new ownership.

The property's strategic location adjacent to Village on the Parkway shopping center, which attracts over 4.8 million visitors annually, creates significant tenant synergy and promotes crossover exposure for the restaurant. This transaction represents the first sale of a single-tenant net leased freestanding First Watch asset in Texas, according to Luther. SRS is currently marketing six First Watch restaurant properties, accounting for 55% of the total market share.

The asset benefits from its proximity to major retail anchors including a 58,000-square-foot Whole Foods Market and other prominent retailers such as Walmart Supercenter, Kroger, Tom Thumb, Trader Joe's, Target, Raising Cane's, Chick-Fil-A, and Chipotle. The property's high visibility is enhanced by its location near the on/off ramps to North Dallas Tollway, ensuring strong traffic flow and exposure. First Watch, an American restaurant chain based in Bradenton, Florida, operates more than 584 locations across 31 states, providing brand stability and recognition.

This transaction contributes to SRS Capital Markets' significant deal volume in 2024, which has exceeded $1.5 billion through more than 350 transactions nationwide. The firm currently has over 845 properties actively on the market with a total market value surpassing $3.7 billion, demonstrating its substantial presence in the commercial real estate sector. The sale underscores continued investor confidence in well-located retail properties with strong corporate tenants and long-term lease agreements.