SRS Real Estate Partners Closes $5.66 Million First Watch Restaurant Sale 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 long-term stability 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, a New Mexico-based private investor, utilized a 1031 exchange for the transaction, which closed at a 5.5% cap rate and $998 per square foot.

Patrick Luther emphasized the property's appeal, noting it is one of the highest-performing First Watch restaurants for the chain. The asset offers minimal landlord responsibilities and serves as a passive investment in an income tax-free state for the new ownership. Its 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 sale represents the first single-tenant net leased freestanding First Watch asset sold in Texas, underscoring its significance in the commercial real estate market. SRS is currently marketing six First Watch restaurant properties, accounting for 55% of the total market share, indicating robust activity in this segment.

The property benefits from its proximity to a 58,000-square-foot Whole Foods Market and a dense retail corridor featuring major retailers such as Walmart Supercenter, Kroger, Tom Thumb, Trader Joe’s, Target, Raising Cane’s, Chick-Fil-A, and Chipotle. Its high visibility near the on/off ramps to North Dallas Tollway further enhances its value.

First Watch, an American restaurant chain based in Bradenton, Florida, operates over 584 locations across 31 states, demonstrating its strong brand presence. The transaction reflects continued investor confidence in well-located, credit-tenanted properties amid evolving market conditions.

SRS Capital Markets has completed more than $1.5 billion in deal volume this year, comprising over 350 transactions nationwide. The firm currently has over 845 properties actively on the market with a total value exceeding $3.7 billion, highlighting its extensive reach and influence in the commercial real estate sector.