Church's Chicken - Portfolio of 3 - MO & IL
Retail | 4,141 SqFt
Marketing description
Northmarq is pleased to exclusively offer a portfolio of three Church's Chicken locations in the St. Louis metropolitan area. This corporate-guaranteed investment features Church's Chicken operating under a master NNN lease with 6.4 years remaining and a 10-year renewal option. The portfolio spans three established locations across Missouri and Illinois, totaling 4,141 square feet on 1.39 acres with a combined annual NOI of $200,000.
The portfolio benefits from corporate backing by Church's Texas Chicken, a globally recognized QSR brand with over 1,500 locations worldwide and system-wide sales exceeding $1.66 billion. The lease features stepped rent increases to $230,000 in 2027 and $264,500 in 2032, with 1.5% annual increases during the option period. The average rent of $66,667 per unit runs approximately 47% below both state and national QSR averages, providing strong rent coverage well below replacement cost.
St. Louis is the 23rd largest metro in the United States with a population of over 2.8 million. The metro economy is diversified across logistics, advanced manufacturing, financial services, bioscience, aerospace and defense, education, and healthcare. The region is home to seven Fortune 500 headquarters, including Boeing's Defense, Space & Security headquarters and Centene, which leads the metro with over $194 billion in revenue. Six major projects totaling nearly $15 billion in capital are reshaping the metro, including Boeing's $1.8 billion North County expansion, the $1.75 billion NGA West campus, and a proposed $3 billion Lambert International Airport consolidation.
Investment highlights
- A single corporate guaranty stands behind all three locations. The master lease is guaranteed jointly and severally by the Church's Texas Chicken corporate parent. Corporate credit backs the full portfolio's income, rather than a single-store operator.
- At $66,667 per unit, the portfolio's average rent runs roughly 47% below the St. Louis QSR average of $125,652, the same against the Missouri and national averages near $130,000, keeping rent coverage strong and the income protected well below replacement cost.
- St. Louis is the 23rd largest metro in the United States with an MSA population home to over 2.8M, the largest in Missouri and the second largest in Illinois.
- The St. Louis metro economy is unusually diversified, spanning logistics, advanced manufacturing, financial services, bioscience, aerospace and defense, education, and health care. Twenty-two companies on the Fortune 1000, Forbes Global 2000, and Forbes' largest private companies list are headquartered here, including seven Fortune 500 firms.
- St. Louis supports three major-league franchises whose seasons span the calendar. The Cardinals (MLB), Blues (NHL), and CITY SC (MLS), all play downtown just minutes from Forest Park, home to five major institutions including the free Saint Louis Zoo, Art Museum, Science Center, and History Museum.
- Six major investments are reshaping the metro with nearly $15 billion in capital. Boeing's $1.8 billion North County expansion to build the Air Force's F-47 fighter; the $1.75 billion NGA West campus, the new geospatial intelligence agency headquarters and the largest federal investment in the region's history; a proposed $3 billion consolidation of Lambert International Airport into a single terminal; a $670 million mixed-use redevelopment of the Millennium site by the Gateway Arch; the $1.5 billion Riverpointe riverfront district in St. Charles; and the regional Freightway's $8.9 billion highway, bridge, and freight pipeline.
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