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Colliers International Team Negotiates First Ever Sale of Dog Haus Restaurant Site

California Buyer Scores Prime Site Near Middle Tennessee State University

LOS ANGELES and MURFREESBORO, TN – A team of Southern California-based retail investment brokers from Colliers International, faced with an almost zero supply of realistically priced and available in-state properties for exchange buyers, has again reached out of state to negotiate the acquisition of a single-tenant investment property, this time the first-ever sale of a newly opened Dog Haus asset near Middle State University in Murfreesboro, Tennessee. Terms were not disclosed, but the capitalization rate was 6.9%

This is the first Dog Haus Restaurant site, one of the fastest-growing casual-dining chains in the U.S., to be sold in the entire nation.

Executive Vice Presidents Eric Carlton and Jereme Snyder, who are based in the brokerage firm’s Orange County office in Southern California, represented the unidentified California private investor in the IRS-sanctioned 1031 exchange transaction at a recently opened Dog Haus adjacent to the state university campus. The Colliers team also helped facilitate a new loan for the buyer and monitored every step of the escrow process to ensure a timely closing.

“We represent a growing tide of frustrated California investors who can no longer depend on what once had been a reliable, in-state and rationally priced pipeline of single-tenant properties because prices have blown past any affordability index in existence, and owners, fueled by their own hubris and market dynamics that exist only in California, have dug in and reinforced their positions,” said Carlton. “What we have now is a highly specialized market niche unique to California investors, a niche that few other brokers even understand, but one we saw coming in 2008 and have exclusively worked in ever since.”

Highlights of the NNN transaction included a seller that is one of the largest developers of single-tenant, build-to-suit retail properties on the East Coast, a new 20-year lease for the wildly popular casual dining restaurant at this location, and, with a score of backup offers in hand, an escrow that was completed in 35 days.

For this California investor, and the dozens represented by Carlton and Snyder, he couldn’t find a suitable property in his home state to satisfy the IRS’s exchange requirements, let alone his own financial constraints. As a result, he agreed to look outside of his traditional comfort zone, trusting the two brokers to guide him through the maze of opportunities in places like the Southeast and the South.

“His frustration was palpable, especially with the IRS deadline looming, to complete the exchange so it took little convincing to get him to consider going out of state since he’d exhausted his California options,” said Snyder. “But when he did, and saw the difference in values, affordability and availability, he became a true believer and may now want to expand his investment portfolio. California’s loss of another individual investor, is the the rest of the nation’s gain.”

Added Carlton, “Our counsel to him was that he didn’t have to settle for a high-maintenance, second-rate property in California. It was through our own proprietary data base that we found him not just a suitable property, but an outstanding Class A investment property, a coupon clipper, if you will, that he won’t have to worry about for decades.”

Carlton and Snyder closed a similar deal last month in Alpharetta, Georgia, a fast-growing suburb of Atlanta, where they negotiated a 1031 exchange purchase of a still-under-construction Discount Tire store, setting a record in process. The 4.4% cap rate was the lowest in the history of the Discount Tire chain. The buyer was from California.


About Colliers International Group
Colliers International Group Inc. (NASDAQ: CIGI) (TSX: CIGI) is an industry-leading real estate services company with a global brand operating in 69 countries and a workforce of more than 12,000 skilled professionals serving clients in the world’s most important markets. Colliers is the fastest-growing publicly listed global real estate services company, with 2017 corporate revenues of $2.3 billion ($2.7 billion including affiliates). With an enterprising culture and significant employee ownership and control, Colliers professionals provide a full range of services to real estate occupiers, owners and investors worldwide. Services include strategic advice and execution for property sales, leasing and finance; global corporate solutions; property, facility and project management; workplace solutions; appraisal, valuation and tax consulting; customized research; and thought leadership consulting.

Colliers professionals think differently, share great ideas and offer thoughtful and innovative advice that help clients accelerate their success. Colliers has been ranked among the top 100 global outsourcing firms by the International Association of Outsourcing Professionals for 13 consecutive years, more than any other real estate services firm. Colliers has also been ranked the number one property manager in the world by Commercial Property Executive for two years in a row. For the latest news from Colliers, visit or follow us on Twitter: @Colliers and LinkedIn.