Stan Johnson Company Brokers Sale of New Velvet Taco Location at a 3.75 Percent Cap Rate, a Record Low for Nashville, Tennessee in 2021

Velvet-Taco-Nashville

Stan Johnson Company, one of commercial real estate’s leading investment sales brokerage firms, has completed the sale of a single-tenant restaurant located at 1911 Broadway Street in Nashville, TN. The 3,643-square-foot property is leased to Velvet Taco, a growing fast-casual dining concept based out of Plano, Texas. Blaise Bennett of Stan Johnson Company represented the seller, a local developer. The 1031 exchange buyer was an entity based out of Glen Allen, Virginia. The asset traded for approximately $7.3 million reflecting a 3.75 percent cap rate.

“Nashville continues to be one of the most sought after commercial real estate markets in the country, and this transaction illustrated that demand with an incredible amount of interest in the property,” said Bennett, Associate Director in Stan Johnson Company’s Chicago, Illinois office. “Furthermore, we were able to achieve record-setting pricing due to its infill location and long-term passive net lease structure with annual rent growth.”

Located in the up-and-coming neighborhood of Midtown, the newly built property is surrounded by vibrant nightlife destinations, restaurants, hotels and apartments. The Midtown area attracts tourists, residents and students alike, with its close proximity to Vanderbilt University. The Nashville sale represents the lowest reported cap rate for any Velvet Taco sale in history, in addition to the lowest single-tenant retail cap rate reported in the Nashville metro area during 2021. This is the second Velvet Taco sale brokered by Stan Johnson Company in recent months.

“Velvet Taco is a brand investors will want to watch,” added Bennett. “They’ve expanded very rapidly in recent years and are reporting annual sales more than double the average in this segment of the industry. They have plans to open an additional 10 locations in 2022, and I expect investor demand will be very strong for their new locations.”

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About Stan Johnson Company:

Stan Johnson Company is one of the nation’s leading commercial real estate brokerage and advisory firms that focuses on investment sales transactions involving retail, office, industrial, healthcare, and specialty properties. The firm and its affiliates provide acquisition, disposition, sale leaseback, capital markets, and advisory services for institutions, developers, investment funds, corporate occupiers, and private investors across the United States. With a historic focus in the single-tenant net lease sector, Stan Johnson Company is now in its fourth decade of operation and has expanded its service platform in order to better serve its valued clients. The firm has completed more than $45 billion in transactions nationwide and continues to be regarded as the Net Lease Authority® as it focuses on continued growth and expansion into other industry sectors and services.