Sale demonstrates the continued demand for well-located, new construction, single-tenant retail properties with a new corporate, long-term lease
ST. CLOUD, Minn. – RealEstateRama – 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 has completed the sale of 2635 W. Division Street in St. Cloud, Minnesota. The new construction, single-tenant property was ground leased to Raising Cane’s and sold for $3,540,000.
Hanley Investment Group’s Executive Vice Presidents Jeff Lefko and Bill Asher, in association with CBRE Vice President Rob Wise based in Minneapolis, Minnesota, represented the seller, TOLD Development Company of Minneapolis, Minnesota. The buyer was Caravella Properties of San Jose, California and was represented by Chris Rodriguez of Pacific Commercial Investments, Inc. of Santa Ana, California.
“We procured a 1031 exchange buyer with experience purchasing Raising Cane’s properties and negotiated a 14-day due diligence period,” said Lefko.
Built in 2021, the 3,493-square-foot Raising Cane’s building is situated on approximately 1.13 acres on Division Street (30,000 cars per day), the primary commercial corridor through the City of St. Cloud. The tenant operates on a long-term, absolute triple-net, corporate-guaranteed lease. The property is located one mile from Crossroads Center, an 890,000-square-foot regional mall anchored by Target, JCPenney, Macy’s and Scheels. Other tenants in the immediate area include Costco, Kohl’s, Home Depot, Walmart Supercenter, Best Buy, Burlington, Lunds & Byerlys, Planet Fitness and T.J. Maxx.
With more than 289,000 people, the greater St. Cloud region is among the fastest growing in the state of Minnesota and is the largest population center in the central region of the state. The area enjoys a significant concentration of higher education including St. Cloud State University, Minnesota’s third-largest public university with over 16,000 students, which is located two miles from Raising Cane’s; also, Saint John’s University and the College of Saint Benedict, two, private higher education institutions that have a shared curriculum, and collectively carry a total enrollment of 3,600 students.
Raising Cane’s has 560 locations in 31 states and is one of the fastest-growing quick-service restaurant chains in the U.S. Systemwide sales were $1.722 billion in 2020. According to a Nation’s Restaurant News article in June 2021, Raising Cane’s has “aspirations to build about another 85 new restaurants and enter about 15 to 20 new markets in the next 12 months.” In mid-June, Raising Cane’s entered its 31st state (Wisconsin).
According to Lefko, “The demand for single-tenant net-leased retail investments has been unprecedented, especially in the last six months, which has put pressure on cap rates. We expect this to continue well into 2022.”
Hanley Investment Group has completed the sale of 177 retail properties in the Midwest valued at more than $675 million in the previous 48 months.
About Hanley Investment Group
Hanley Investment Group Real Estate Advisors is a real estate brokerage and advisory services company with a $9 billion transaction track record that specializes in the sale of retail properties nationwide. Our expertise, proven track record, and unwavering dedication to putting clients’ needs first set us apart in the industry. Hanley Investment Group creates value by delivering exceptional results through the use of property-specific marketing strategies, cutting-edge technology, and local market knowledge. Our nationwide relationships with investors, developers, institutions, franchisees, brokers, and 1031 exchange buyers are unparalleled in the industry, translating into maximum exposure and pricing for each property. With unmatched service, Hanley Investment Group has redefined the experience of selling retail investment properties. For more information, visit www.hanleyinvestment.com.
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