SRS Real Estate Partners’ National Net Lease Group (NNLG) announced it has completed the $8.2 million ground lease (land ownership) sale of a 3,957-square-foot (sf) single-tenant property occupied by Raising Cane’s Chicken Fingers located at 1300 E. Valley Boulevard in Alhambra, CA (Los Angeles County). At a 3.75% cap rate, the sale broke a record for the lowest cap rate for a Raising Cane’s-occupied property sold in California this year, per CoStar records.
SRS NNLG’s Managing Principals Matthew Mousavi and Patrick Luther represented the seller, Los Angeles-based SBH Real Estate Group. The buyer, a Southern California-based private investor, was represented by Voit. Additionally, Ben Townsend and Matt Marlin of SRS’ Debt and Equity Group procured the financing on the buyer’s behalf.
Situated on 1.39 acres, the newly developed property features Raising Cane’s latest prototype design and opened for business in June 2022. It features a double drive-thru and includes a 704-sf outdoor patio area.
“This asset provides the buyer with zero landlord responsibilities and a long-term corporate-guaranteed lease with one of the nation’s most popular chicken specialty restaurants,” said Mousavi in a statement. “Selling at a record low cap rate and at a price per sf of $2,072, this transaction is testimony to buyer demand for well-located, single-tenant net leased asset opportunities despite elevating interest rates.”
“By selecting SRS to aggressively market this asset and by utilizing the strategy of selling Raising Cane’s once it opened its doors allowed all potential buyers to see the tremendous volumes of ‘Caniacs’ waiting with excitement for their fresh tenders. The long lines easily justify the rent and long-term value,” said Eric Silverman with SBH Real Estate Group.
The property is highly visible, includes a large pylon sign, is well-located at a signalized intersection of Valley Blvd. and S. New Ave., and benefits from off/on ramp access to Interstate 10. Combined, there are approximately one million residents and employees within a five-mile radius of the property.
In 2021, SRS’ Investment Properties Group (IPG) and National Net Lease Group (NNLG) completed more than $3.1 billion in deal volume comprised of 899 transactions in 49 states. SRS and currently has more than $2.5 billion in property on the market, with more than 590 properties sold year-to-date valued in excess of $2.3 billion.