Raising Canes - Santa Maria, CA

Hanley Investment Group Sells Two New Single-Tenant Raising Cane’s Drive-Thrus in California for $10.8 Million

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Hanley Investment Group Real Estate Advisors, a nationally recognized real estate brokerage and advisory firm specializing in retail property sales, announced today that the firm arranged the sale of a brand-new construction, single-tenant property occupied by a Raising Cane’s Chicken Fingers Drive-Thru restaurant in Imperial Beach, California, in an off-market transaction. The sale price was $5.7 million.

Hanley Investment Group’s Executive Vice Presidents Bill Asher and Jeff Lefko represented the developer and seller, Palm Avenue 111 Partners, LLC of Encinitas, California. The buyer, a family trust based in Northern California, was represented by Scott Ketchum in Newport Beach, California.

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

Raising Cane’s 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. Retailers at or near the intersection include CVS Pharmacy, Grocery Outlet, Dollar Tree, Chipotle Mexican Grill, Jack in the Box, Starbucks and Five Guys.

At the end of November, Hanley Investment Group arranged the sale of a new single-tenant Raising Cane’s within Santa Maria, California’s premier retail destination, Enos Ranch, for $5.1 million. Hanley Investment Group procured a direct all-cash investor with short due diligence and closing time frames who owned multiple Raising Cane’s restaurants in California and was not in a 1031 exchange.

Additionally, 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 highlights, “Although increased interest rates have softened overall pricing and raised cap rates the last 12 to 18 months, single-tenant [quick-service] 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.”

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