ITHACA, NY – 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 arranged the sale of a single-tenant net-leased property occupied by Texas Roadhouse restaurant in Ithaca, New York. The sale price was $2,410,000 for the absolute triple-net ground lease. The sale marks the third recent Texas Roadhouse transaction that Hanley Investment Group has sold.
Hanley Investment Group’s Executive Vice Presidents Jeff Lefko and Bill Asher, in association with ParaSell, Inc., represented the buyer, a private investor based in San Jose, California. Dalton Barnes, partner and managing broker with Alpha Real Estate Advisors in Dallas, Texas, represented the seller, Dubin Singer Phillips PC in Chicago, Illinois.
“We procured and represented a California-based 1031 California-based 1031 exchange buyer in the purchase of the Texas Roadhouse ground lease with approximately nine years remaining on its original lease term,” said Lefko. “We liked this location because the rent per square foot was highly replaceable, and the building was built in a manner conducive for future re-use.”
Built in 2015, the 7,500-square-foot Texas Roadhouse-occupied building is located on 1.39 acres at 719-25 South Meadow Street in Ithaca, a city on Cayuga Lake, in New York’s Finger Lakes region. The property is ideally situated along the main arterial thoroughfare with premium frontage. Ithaca is home to Cornell University and its I.M. Pei–designed Herbert F. Johnson Museum of Art. The sprawling Cornell Botanic Gardens includes an arboretum and multi-tiered Cascadilla Falls. Other waterfalls in the area include Ithaca Falls, near downtown. Southwest, Buttermilk Falls and Robert H. Treman state parks offer wooded gorges and natural pools.
Known as a legendary steak restaurant serving American cuisine, from the best steaks and ribs to made-from-scratch sides and fresh-baked rolls, Texas Roadhouse first opened in 1993 and today has grown to 670 restaurants system-wide in 49 states and 10 foreign countries. Texas Roadhouse, Inc. also operates Bubba’s 33, a casual-dining concept that includes burgers, hand-tossed pizza, mouth-watering wings, “delish” dinners and so much more… all made from scratch.
According to a Texas Roadhouse, Inc. recent news release, comparable restaurant sales at company restaurants for the first five weeks of the second quarter of fiscal 2022 increased 9.3% compared to the prior year.
“Texas Roadhouse has proven to be one of the gems of the sit-down dining sector,” said Lefko. “One of the factors that make Texas Roadhouse attractive to prospective investors is that the company normally pays market rent or below-market rent as most of their leases are ground leases, where the tenant is making a huge capital improvement on the property.”
Texas Roadhouse expects to open 25 company-owned Texas Roadhouse and Bubba’s 33 units this year and franchisees are expected to open seven Roadhouse locations. The company hopes to open even more restaurants in 2023.
“There is still plenty of capital chasing well-located, net-leased retail investments occupied by national credit tenants, which has helped keep cap rates for single-tenant net-leased ground leases low,” noted Lefko. “We expect cap rates for ground leases occupied by these best-in-class retailers and restaurants to continue into the near future as investors seek a safe haven from the volatility of the stock market.”
About Hanley Investment Group
Hanley Investment Group Real Estate Advisors is a real estate brokerage and advisory services company with over a $9.2 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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