Can Marcus & Millichap Get An Investor To Eat Mor Chikin In Midtown?
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Will Poncey-Highland eat mor chikin? Only if Marcus & Millichap's Don McMinn can find a buyer for the Dugans wingery site before there's even a firm deal to bring the popular Southern eatery there.
In one of the most unusual moves in Atlanta real estate this year, unnamed owners of 777 Ponce de Leon Ave have tapped Marcus & Millichap to market the site to investors as a location for Chick-fil-A's first along Ponce de Leon in Midtown. But the firm is also trying to sell it as a Chick-fil-A months before the restaurant chain would be able to deliver a new store.
And Don says if the owners of the site—where Dugans has been for some 20 years—can't get the number it wants, then the deal with Chick-fil-A may not happen. Chick-fil-A has signed an LOI for a 20-year ground lease that would pay $216k/year with 10% bumps every five years, one of the highest ground rents the chain has paid so far in the Southeast, Don says.
For the restaurant, it's a trophy site—a chicken strut from Ponce City Market and in the heart of arguably one of Atlanta's hottest submarkets.