Hanley Investment Group has arranged the sale of two newly built single-tenant properties occupied by Raising Cane’s Chicken Fingers Drive-Thru restaurants in Imperial Beach and Santa Maria, California.

Group Executive Vice Presidents Bill Asher and Jeff Lefko represented the developer as well as the seller, Palm Avenue 111 Partners, LLC of Encinitas, California in the first transaction. The buyer, a family trust located Northern California, was represented by Scott Ketchum in Newport Beach, California. The sale price was US $5.7 million.

Asher comments: “We procured an all-cash, California-based 1031 exchange buyer specifically seeking an absolute triple-net quick serve drive-thru investment in California within their exchange identification period, opened escrow shortly after Raising Cane’s opened for business and closed the transaction in 40 days.”  

The Raising Cane’s restaurant is located on a 0.69-acre pad at the hard corner, signalized intersection of Palm Avenue (State Route 75) and 9th Street, at 900 Palm Avenue in Imperial Beach. Retailers at or near the intersection include CVS Pharmacy, Grocery Outlet, Dollar Tree, Chipotle Mexican Grill, Jack in the Box, Starbucks and Five Guys.

Hanley Investment Group had previously arranged the sale of a new single-tenant Raising Cane’s within Santa Maria’s premier retail destination, Enos Ranch for US $5.1 million in a transaction that was not part of a 1031 exchange with Group Vice Presidents Alexander Moore and Sean Cox, along with Executive Vice President Kevin Fryman, represented the seller, College West Partners, L.P. of Tustin, California as well as the buyer, a private investor based in Los Angeles. 

Built in 2022 on a 0.80-acre pad, Raising Cane’s 3,172-square-foot freestanding restaurant is located at 485 Betteravia Road, within Enos Ranch, at the signalized intersection of Betteravia Road and College Drive (49,000 cars per day) in Santa Maria. This intersection provides direct freeway ramp access to U.S. Route 101 (69,000 cars per day).

Enos Ranch is a Class-A, 99% leased, 110-acre mixed-use development that attracts 6.5 million annual visitors. Enos Ranch features Costco, Lowe’s, multiple car dealerships, apartments, an elementary school, park and cultural center, Coast Hills Credit Union’s three-story campus, and best-in-class retailers and restaurants. Junior box anchor tenants include Aldi, Boot Barn, Guitar Center, Petco, Dick’s Sporting Goods, Old Navy, ULTA Beauty, HomeGoods, among others. Pad tenants include Chick-fil-A, Chipotle, Dutch Bros, Habit Burger, Juice It Up!, Firehouse Subs, Nick the Greek, Crumbl Cookies, Nothing Bundt Cakes, Urbane Café, Jack in the Box, Buffalo Wild Wings, Cracker Barrel and others.

At the end of June, Hanley Investment Group, in association with ParaSell, Inc., arranged the sale of the first Raising Cane’s Drive-Thru to open and sell as a leased investment in Albuquerque, New Mexico. Hanley Investment Group generated multiple competitive offers and procured an all-cash exchange buyer from Southern California. Hanley Investment Group implemented a pre-sale marketing strategy and secured the buyer while the property was under construction and closed escrow after Raising Cane’s opened for business.

Asher says: “Although increased interest rates have softened overall pricing and raised cap rates the last 12 to 18 months, single-tenant QSR drive-thrus leased to national corporate tenants continue to experience the highest demand from net-leased investors in today’s market. Buyers are still willing to pay a premium for well-located, corporate-leased retail investments, and our success in facilitating the sales of all three Raising Cane’s demonstrates this.”

Visit www.hanleyinvestment.com.