Phoenix loves its food, a characteristic that’s growing the local restaurant industry and building a strong investment story for restaurant real estate. This strength is evidenced by JLL’s recent $4.7 million Dos Gringos, Inc. restaurant portfolio sale, a multi-building deal spanning three active retail markets.
JLL’s Tyson Switzenberg, John Reva, Trask Switzenberg and Matthew Berres completed the sale on behalf of Arizona-based Dos Gringos and the portfolio buyer, STORE Capital.
The Dos Gringos portfolio totals 14,695 square feet in three single-tenant, freestanding restaurants in three active retail submarkets: Chandler, South Tempe and Scottsdale. All three buildings are 100 percent leased to the award-winning Dos Gringos restaurant chain.
According to JLL research, Phoenix’s retail market is emerging from the ashes of the recession, fueled by the resurgence of the residential market and an influx of quality employers created by the growing tech scene. This has helped to deliver three straight years of positive net absorption greater than 1.5 million square feet and vacancy rates that have finally dropped below 10 percent for the first time since 2008. Economists are expected to stay high on Phoenix as continued job and population growth drive down vacancies and raise rents. In turn, the market is receiving more demand from all types of investors.
The Dos Gringos portfolio locations deliver prime locations in busy retail corridors and a dense population base. Within three miles of each Dos Gringo portfolio location, the average population exceeds 110,000 and average household incomes are nearly $74,000.