This transaction marks the first sale of a single-tenant First Watch restaurant in the Western United States and achieved a record-low cap rate nationwide for 2024.

TUCSON, Ariz. - Hanley Investment Real Estate Advisors, a nationally recognized real estate brokerage and advisory firm specializing in retail property sales, announced today that the firm has completed the sale of a newly renovated, single-tenant property occupied by First Watch restaurant, which features a drive-thru/pick-up window. The property, located in Tucson, near The University of Arizona, sold for $4 million. This transaction marks the first sale of a single-tenant First Watch restaurant in the Western United States and achieved a record-low cap rate nationwide for 2024.

Hanley’s Executive Vice Presidents Bill Asher and Jeff Lefko, in association with Lee Csenar of Hanley Investment Real Estate Advisors, Inc., represented the seller and developer, a private investor based in Orange County, California. The buyer, a private investor based in Los Angeles County, was represented by Cory Krupinksy at Brisky Net Lease in association with Brian Brockman at Bang Realty.

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

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. First Watch opened at 2943 North Campbell Avenue at the end of January 2024.

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.

A recipient of hundreds of local "Best Breakfast" and "Best Brunch" accolades, First Watch's chef-driven menu includes elevated executions of classic favorites along with specialties such as the Quinoa Power Bowl®, Farm Stand Breakfast Tacos, Avocado Toast, Chickichanga, Morning Meditation, Spiked Lavender Lemonade, and its signature Million Dollar Bacon.

In 2023, First Watch was named the top restaurant brand in Yelp’s inaugural list of the 50 most loved brands in the U.S. It was also recognized as a Top 100 Most Loved Workplace® in Newsweek by the Best Practice Institute in both 2023 and 2022. With over 530 locations across 29 states, First Watch is one of the fastest-growing restaurant chains in the U.S. The restaurant concept is majority-owned by Advent International, one of the world's largest private-equity firms.

The First Watch at 2943 North Campbell Avenue is strategically situated within one of the brand’s top-performing markets. Among the eight existing Tucson locations, four rank among the top 10% to 20% performing sites out of 444 locations tracked by Placer.ai.

The property is close to retail, office, and medical facilities, including the 649-bed Banner University Medical Center situated just 1.5 miles away. Notable tenants nearby include Flower Child (the #1 performing location nationwide, according to Placer.ai) and Dough Bird across the street, in addition to Albertsons, Ross Dress for Less, World Gym, and Ace Hardware.

First Watch is located two miles from the nationally ranked University of Arizona’s main campus. With 40,533 students and 16,699 employees, the university ranks among the top 25 largest public research universities. According to U.S. News & Report, the University of Arizona is recognized as one of the “Best National Universities” and “Best Public Universities” in 2024.

High-density demographics and a significant daytime population surround the property. Within a five-mile radius, there are 278,762 people and 157,648 employees. Tucson, Arizona’s second-largest city, is situated in the Tucson Metropolitan Statistical Area, which boasts a population exceeding one million.

Media Contact
Company Name: Hanley Investment Real Estate Advisors
Contact Person: Bill Asher, Executive Vice President
Email: Send Email
Phone: 949.585.7684
Address:3500 East Coast Highway, Suite 100
City: Corona del Mar
State: California
Country: United States
Website: https://hanleyinvestmentgroup.com/