November 20, 2019– 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 a new-construction, single-tenant Raising Cane’s Chicken Fingers quick-service restaurant in St. Louis, Missouri. Raising Cane’s is the rapidly-growing Louisiana-based restaurant company known for its ONE LOVE® – quality chicken finger meals. The purchase price was $5,025,000, representing $1,725 per square foot for a 2,913-square-foot building with a drive-thru. The cap rate for the sale was 5.97%.
Hanley Investment Group Vice President Jeff Lefko and Executive Vice President Bill Asher, along with Vice President – Brokerage John Shuff of Pace Properties in St. Louis, Missouri, represented the seller, Noles Properties of Creve Coeur, Missouri. The buyer was a private investor based in Newport Beach, California.
The brand-new, single-tenant Raising Cane’s, which opened on August 20, 2019, is located at 805 South Vandeventer Avenue on 0.72 acres at the signalized intersection of Vandeventer Avenue and the on/off-ramp to Interstate 64 freeway with 110,000 cars per day and 23,000 cars per day on Vandeventer Avenue.
Raising Cane’s is situated in The Grove Entertainment District, one of St. Louis’ most popular entertainment destinations. There are approximately 50 local retailers and restaurants; three craft breweries, seven bars, and an improv theatre. The property is also located a half-mile from St. Louis University, a private, four-year university with nearly 20,000 students and faculty. St. Louis University was ranked #2 “Best University in Missouri” by Niche (2019) and ranked among the top third of all national universities by U.S. News & World Report (2019).
“We generated multiple competitive and qualified offers and procured a 1031 exchange buyer from Southern California,” said Lefko. “The property is centrally located just 10 minutes from Downtown St. Louis and has excellent accessibility, identity and visibility along Interstate 64.”
Asher adds, “Interstate 64 is the main east/west thoroughfare in and out of Downtown St. Louis, exposing the property to a high volume of commuters that travel along the Interstate 64. The Raising Cane’s property also benefits from the dense, infill demographics with over 159,000 people within three miles of the restaurant.”
Raising Cane’s is situated in a highly desirable midtown trade area featuring major new development in a one-mile radius including Missouri’s only IKEA, The Cortex District (a 200-acre innovation hub) and five brand-new mixed-use developments. Over 400 new apartments are located within 1.5 miles of the property.
Lefko also notes that there is a lack of competition in the immediate trade area. “This is the only Raising Cane’s location immediately serving Saint Louis University and Downtown St. Louis. The closest competing Raising Cane’s is more than four miles to the west,” Lefko said.
Raising Cane’s is one of the fastest-growing quick-service restaurant chains in the U.S., experiencing a 30.2% sales growth in 2018. The restaurant chain was ranked as #1 “Chain in Sales-per-Unit Growth” and #6 “Fastest Growing Chain” by Restaurant News (2017-2018) and Nation’s Restaurant News magazine recently ranked Raising Cane’s as one of the Fastest Growing Restaurant Chains in the U.S. by systemwide sales. The founder and CEO of Raising Cane’s was recently named one of the top CEOs in the country with an approval rating of 95%, ranking him 28th on the Top 100 list (Glassdoor Employees’ Choice Award 2019). Raising Cane’s has more than 457 restaurants in 27 states, Bahrain, Kuwait, Lebanon, Saudi Arabia, and the United Arab Emirates.
In the last 18 months, Hanley Investment Group has arranged the sale of five Raising Cane’s sales at record pricing including the recent sale of a new construction Raising Cane’s in Anaheim, California. The sale of Raising Cane’s in Anaheim was an absolute triple-net ground lease, which sold for $5 million, representing a 4% cap rate, the lowest cap rate on record for the sale of Raising Cane’s in the U.S.