HIXSON, Tenn. - RealSource Group, a national commercial real estate brokerage company specializing in investment sales, sale-leasebacks and tenant representation, announced the pre-sale of a new construction Chick-fil-A Drive-Thru in Hixson, Tennessee. The property, secured by a long-term corporate ground lease, sold for $2.77 million at a 4.15% cap rate. According to CoStar, this transaction represents the lowest cap rate achieved for a single-tenant Chick-fil-A Drive-Thru in Tennessee all-time.
RealSource Group's Jonathan Schiffer, Senior Associate, CCIM, and Austin Blodgett, Senior Vice President of Investment Sales, in association with ParaSell, Inc., represented the buyer, a high-net-worth investor based in Florida. The seller, a Tennessee-based private developer, was represented by Don McMinn and Andrew Koriwchak of Marcus & Millichap in Atlanta.
The Chick-fil-A is a new 6,008-square-foot relocation store situated on 1.74 acres at 5979 TN-153 in Hixson, Tennessee, along one of Chattanooga's busiest retail corridors. The store features a double drive-thru and replaces an existing Chick-fil-A at Oak Park Town Center, a move that demonstrates the company's long-term investment in the Hixson trade area. The property is under construction, with rent commencement scheduled for September 2026.
The asset is backed by a 15-year corporate triple-net absolute ground lease, shorter than the typical 20-year Chick-fil-A term, with 10% rent increases every five years and 10 five-year renewal options.
"Securing a pre-sale on a Chick-fil-A that is still under construction says a great deal about the strength of the brand," said Schiffer. "Closing well ahead of rent commencement makes clear the buyer's confidence in the tenant, the location and the long-term outlook for this trade area."
He added: "Investors continue to focus on markets like Hixson where demographic growth, retail density and tenant expansion support durable long‑term fundamentals. This transaction offers a clear view into how private capital is approaching the market in 2026 — disciplined, selective and highly responsive to best-in-class operators."
"This deal shows just how competitive the market has become for best-in-class QSR assets," said Blodgett. "Achieving a 4.15% cap rate — the lowest for a single-tenant Chick-fil-A Drive-Thru in Tennessee, according to CoStar — reflects both the scarcity of new construction opportunities and the enduring strength of Chick‑fil‑A as a credit tenant."
Hixson has emerged as one of the Chattanooga metro's most resilient and supply-constrained retail submarkets. The area is an affluent suburb located about 15 minutes east of downtown Chattanooga and is expected to grow 3.69% over the next four years. These demographic fundamentals continue to support sustained retail demand and long-term tenant performance throughout the submarket.
The Chick-fil-A is positioned along Highway 153, which sees about 35,000 vehicles per day and is anchored by national retailers including Walmart, Target, Lowe's, Home Depot, ALDI and Academy Sports + Outdoors. The property is an outparcel to Academy and Kohl's and is surrounded by new residential communities, including Hawthorne at Hixson (200 units) and a high-end senior living development. Together, these retail and residential drivers make affluent suburbs like Hixson a preferred target for investors seeking long-term stability and predictable performance in new-construction net-lease retail.
About RealSource Group
RealSource Group, founded in 1991, is a national commercial real estate brokerage company specializing in tenant representation, investment sales and sale-leaseback transactions. Leveraging its sales and leasing experience, extensive broker network, technology, unique processes and national reach, RealSource delivers consistent production, exceptional service and measurable results for clients across the country. Having completed more than 1,000 commercial real estate deals nationwide, RealSource has perfected its platform through proven execution over the past 34 years.
For more information, visit: realsource.com.
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Company Name: RealSource Group
Contact Person: Jonathan Schiffer, Senior Associate, CCIM
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Phone: 949.688.1280
Address:12 Corporate Plaza Suite 150
City: Newport Beach
State: California
Country: United States
Website: https://realsource.com/
