September 17, 2020 — SRS Real Estate Partners’ National Net Lease Group has announced the $6.8 million sale of a single-tenant retail property occupied by Raising Cane’s located at 40390 Margarita Road in Temecula, CA. The transaction marks a significant sales number for a Raising Cane’s-leased asset with the highest price ever paid on a national basis for the brand ($1,728) per CoStar.
SRS National Net Lease Group’s Managing Principals Patrick Luther and Matthew Mousavi represented the seller, Newport Beach-based Costanzo Investments, LLC. The buyer, a family trust out of Southern California, was represented by Steven Schechter of Marcus & Millichap.
Build in 2019 and situated on 1.87 acres, the 3,935-square-foot property features a two-lane drive-thru. It is located in a shopping center anchored by Lowe’s Home Improvement at the corner of Winchester Road and Margarita Road, one of the busiest intersections in the Inland Empire with approximately 88,960 vehicles passing by daily.
“This is a significant sale for a quick service restaurant (QSR) in California, and specifically within the Inland Empire,” said Mousavi. “The popular tenant brand, essential use category, prime location within Temecula and the fact that Raising Cane’s just signed a new 15-year triple-net lease, were all key selling points that attracted an abundant buyer pool.”
Mousavi added that the sale is also the third highest price per square foot paid for a drive-thru QSR in the state since the pandemic.
Since the COVID-19 crisis began, SRS’ National Net Lease Group (NNLG) has closed 211 transactions valued at $872 million. Additionally, the group has $435 million of assets under LOI or in escrow and $1.75 billion in assets currently listed for sale. In 2019, the NNLG successfully completed more than 400 transactions in 2019, across 35 states nationwide.