CHESTERFIELD TOWNSHIP, Mich. - 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 an absolute triple-net ground lease for a newly constructed, single-tenant Olive Garden Italian Restaurant in the Detroit metro area. The purchase price was $2,363,000.
Hanley Investment Group's Executive Vice Presidents Jeff Lefko and Bill Asher, in conjunction with ParaSell, Inc., represented the buyer, a private exchange buyer based in Southern California. The seller, a local investor from Detroit, was represented by Phil Sambazis of Marcus & Millichap in San Diego, California.
The new 7,757-square-foot restaurant, which recently opened in the fall of 2020, is one of Olive Garden's latest prototypes. Olive Garden is located on 1.88 acres at 27169 23 Mile Road in Chesterfield Township, approximately 30 miles north of Detroit, Michigan's largest city.
Olive Garden is situated on an outparcel directly in front of Meijer supermarket and near a bevy of retailers including The Home Depot, PetSmart, Michaels, Target, Staples, Dunham’s Sports and Harbor Freight Tools. Olive Garden is also conveniently located near Interstate 94 (E. Edsel Ford Freeway) and by Waterside Marketplace, a regional shopping center anchored by TJ Maxx, Best Buy, Dick's Sporting Goods, Bed Bath & Beyond, Old Navy, DSW, JOANN Fabrics, ULTA Beauty, and others, and Trader Joe's-anchored Chesterfield Crossing Shopping Center.
"Despite the many operational challenges that sit-down restaurants like Olive Garden have had to overcome due to COVID-19 capacity limitation requirements, the ground lease nature of the property created below-market rent that will provide long-term stability to the buyer," said Lefko. "Certain sit-down restaurant cap rates have increased by as much as 75 to 100 basis points due to the pandemic and smart buyers are taking advantage of this increase especially in locations with below-market or replaceable rents. In this case, the buyer recognized the opportunity to acquire a high-quality, net lease asset located on an outparcel to a Mejier supermarket-anchored shopping center surrounded by strong retail tenants and attractive household income and population density."
Lefko continues, "We negotiated a quick 21-day due diligence period in order to fulfill the buyer's 1031 exchange requirement. The buyer was trading out of multi-tenant retail and wanted to acquire a high-quality net lease asset that would require relatively little to no management."
The Darden family of restaurants features some of the most recognizable and successful brands in full-service dining: Olive Garden, LongHorn Steakhouse, Cheddar's Scratch Kitchen, Yard House, The Capital Grille, Seasons 52, Bahama Breeze and Eddie V's. The company employs more than 175,000 team members in more than 1,800 restaurants.
About Hanley Investment Group
Hanley Investment Group Real Estate Advisors is a real estate brokerage and advisory services company with a $7.7 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, sets 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.
Company Name: Hanley Investment Group Real Estate Advisors
Contact Person: Jeff Lefko, Executive Vice President
Email: Send Email
Address:3500 East Coast Highway, Suite 100
City: Corona del Mar
Country: United States