Curated News
By: NewsRamp Editorial Staff
August 21, 2025
SRS Closes $5.66M First Watch Sale in Dallas with Record Cap Rate
TLDR
- SRS Real Estate Partners secured a $5.66 million sale with a 5.5% cap rate, offering investors a passive income stream in a tax-free state with minimal landlord responsibilities.
- SRS closed the sale of a 5,672-square-foot First Watch property on 1.1 acres with a new 12-year corporate-guaranteed lease at $998 per square foot.
- This investment supports a high-performing restaurant that serves a community with over 4.8 million annual visitors, enhancing local dining and economic activity.
- This is the first single-tenant net-leased First Watch property sold in Texas, located near major retailers and benefiting from high traffic visibility.
Impact - Why it Matters
This transaction signals strong investor confidence in single-tenant net lease restaurant properties, particularly in high-traffic retail corridors. For commercial real estate investors, it demonstrates the continued appeal of corporate-guaranteed leases with national brands in prime locations. The 5.5% cap rate sets a benchmark for similar properties in the Texas market, while the use of a 1031 exchange highlights tax-efficient investment strategies. The property's proximity to major retailers and high visitor traffic patterns provides valuable insights for restaurant chains and commercial developers considering expansion in growing suburban markets.
Summary
SRS Real Estate Partners has successfully closed a $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, making it an attractive investment. The transaction was facilitated by SRS Capital Markets Senior Managing Principals Matthew Mousavi and Patrick Luther, who 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 deal closing at a 5.5% cap rate and $998 per square foot.
According to Patrick Luther, this property stands out as one of the highest performing First Watch restaurants in the chain, offering minimal landlord responsibilities and serving as a passive investment in an income tax-free state for the new ownership. The asset's prime location adjacent to Village on the Parkway, a shopping center attracting over 4.8 million visitors annually, creates strong tenant synergy and promotes crossover exposure for the restaurant. This marks the first sale of a single-tenant net leased freestanding First Watch asset in Texas, with SRS currently marketing six First Watch properties, representing 55% of the total market share. The property benefits from proximity to major retailers including Whole Foods Market, Walmart Supercenter, and Trader Joe's, along with excellent visibility near the North Dallas Tollway on/off ramps.
First Watch, an American restaurant chain based in Bradenton, Florida, operates more than 584 locations across 31 states. SRS Real Estate Partners, founded in 1986 and headquartered in Dallas, has completed over $1.5 billion in deal volume this year through more than 350 transactions nationwide. The firm currently has over 845 properties actively on the market with a total value exceeding $3.7 billion, solidifying its position as one of the industry's most influential leaders. For more information about their commercial real estate solutions, visit srsre.com.
Source Statement
This curated news summary relied on content disributed by citybiz. Read the original source here, SRS Closes $5.66M First Watch Sale in Dallas with Record Cap Rate
