City BBQ Ground Lease
Closed1498 GA-124, Snellville, GA 30078
Property type
Retail
Unit / Space count
1
Price
$2,823,000
Building size
3,500 sf
Rentable area
3,500 SF
Year built
2023
Year renovated
Occupancy
Zoning code
Lot size
0.96 Acres
Sold/status
Sold · Date unknown
Sale price
$2823000
CAP
6.20%
Net Operating Income
$175,000
Property description
Franklin Street is pleased to present this new construction City Barbeque location in Snellville, Georgia. Snellville is a dense affluent northeast suburb of the Atlanta metropolitan. Headquartered in Columbus, Ohio, City Barbeque is a high-growth, fast-casual restaurant company focused on authentic, "smoker-to-table" barbeque. City Barbeque has signed a new 12-year ground lease with an average investment of over $2M into their building, which makes this investment have strong intrinsic value between the value of the building and land. City Barbeque's growth strategy is to become the Chipotle of barbeque space, and their CEO recently announced a path to 875 stores across the country. The chain's systemwide AUV is $3.3 million and $3.7 million on stores with a drive-thru like this location. Stores in Raleigh and Atlanta exceed that average by more than 15 percent. In the months prior to the pandemic the company launched online ordering through their website and app. Because of the chain's foresight, digital sales rose 22 percent pre-COVID to 40 percent at the start of 2023. From 2011-2022, City Barbeque has averaged 6 percent same store sales growth. The location is in one of the strong retail corridors in the Atlanta suburbs with little to no available retail developable sites remaining. The development will have strong cross access amongst the parcels and excellent visibility off Scenic Highway. The location is truly the bullseye of the market with every major big box retailer located within a mile on the retail corridor.
Property highlights
- New Construction City Barbeque Corporate Ground Lease With a 12-Year Lease in Atlanta MSA
- Excellent Visibility on Major Retail Corridor: 47,900 VPD on Scenic Hwy
- Strong Average Unit Volumes: $3.7M with a drive-thru making this store a low expected rent-to-sales ratio
- Growing Brand: 67 locations with expectations to open 10-12 units in 2023
- Dense Atlanta Suburb: 195,000+ residents within 5 miles of the property
- Affluent Submarket: $135K average household incomes surrounding the site
- Part of Cohesive New Development Scenic Pointe: Miller's Ale House, Whataburger, Raising Canes, and two other national tenants with LOIs
- Dominant Retail Corridor East of I-85: Target, Walmart, Lowe's, Sprouts, Publix, Home Depot, and Sam's Club all within 1 mile