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March 19, 2019
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OC Raising Cane’s Sells for $1,222/sf at Just Over 4% Cap Rate


A new single-tenant, Raising Cane’s Chicken Fingers located in La Habra in Orange County sold for $3.96 mil, or $1,222/sf. The 3.2k sf building with drive-thru, newly remodeled in 2017, sits on just under one acre at 1050 S. Beach Blvd, just north of Imperial Hwy.

The corporate-guaranteed, absolute triple-net lease investment has a new 15-year lease term with rental increases during the primary term. The lease also has four five-year options with 10 percent increases. Raising Cane’s is a rapidly-growing Louisiana-based restaurant company known for its ONE LOVE® – quality chicken finger meals.

Jeremy McChesney with Hanley Investment Group Real Estate Advisors represented the seller, Equitas Investments in Hermosa Beach. The buyer, a 1031 exchange buyer also from Hermosa Beach, was repped by Steven Schechter with Marcus & Millichap in Encino. The transaction had a cap rate of 4.04%, an all-time record-low cap rate for a Raising Cane’s in the U.S., according to CoStar.

“We generated seven qualified offers on behalf of the seller and closed escrow 15 days after the store officially opened for business, reducing the developer’s carrying costs,” said McChesney. McChesney also noted that the sale price was an attractive price point compared to similar Raising Cane’s currently listed for sale in California, and closed escrow within one percent of the listed price.

“This is a dense, affluent Orange County location with over 178,000 people residing within three miles with household incomes exceeding $104,000,” said McChesney. “The trade area is expected to grow by 6.37 percent by 2020 and includes a recently completed 335-unit luxury apartment community located directly across the street from Raising Cane’s.”

Nation's Restaurant News magazine ranked Raising Cane's as the #1 Fastest Growing Restaurant Chain (2017). Louisiana Restaurant Association ranked Raising Cane's the Restaurateur of The Year (2016). The Dallas Morning News ranked the chain the Top 10 Places to Work (2011-2016).

Founded by Todd Graves in 1996 and named after his yellow Labrador, Raising Cane, the rapidly growing chain is renowned for its fresh, never-frozen chicken fingers, its secret-recipe Cane’s sauce, crinkle-cut fries, coleslaw, Texas toast, freshly-brewed sweet tea and fresh-squeezed lemonade. Raising Cane’s is continually recognized for its unique business model and customer satisfaction which is to have restaurants all over the world and be the brand for quality chicken finger meals, a great crew, cool culture, and active community involvement. Raising Cane’s has more than 370 restaurants in 24 states, Bahrain, Kuwait, Lebanon, Saudi Arabia and the United Arab Emirates with multiple new restaurants under construction.

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