Hanley Investment Real Estate Advisors announced that the firm has completed the sale of a new construction, single-tenant net-leased retail property occupied by a Portillo’s drive-thru restaurant located in the Phoenix, Arizona metro. The sale price was $7.1 million for the long-term, triple-net ground lease. The sale achieved a cap rate of 4.55%, a record-low cap rate for a Portillo’s in the U.S.
Hanley’s Executive Vice Presidents Bill Asher and Jeff Lefko, along with President Ed Hanley, in association with Lee Csenar of Hanley Investment Real Estate Advisors, Inc., represented the seller, a private investor based in Orange County, California. The buyer, a private investor based in Los Angeles County, was represented by Chuck Wilson and Kenny Patricia of Colliers International in Irvine, California.
Hanley identified an all-cash buyer based in Southern California seeking a single-tenant passive investment to fulfill a 1031 exchange requirement and sourced an off-market opportunity by leveraging an existing relationship with a Southern California-based developer.
“Single-tenant NNN retail investment supply was extremely tight in the last six months of 2021,” said Asher in a statement. “Market conditions promoted more incremental off-market transactions, matching up motivated buyers with properties not formally on the market, putting owners in a unique position capitalize on entertaining unsolicited offers at historic record-breaking prices.”
Portillo’s is located at 17125 N. 79th Avenue in Glendale, Arizona in the Arrowhead Towne Center. The 7,800-square-foot restaurant building, situated on 1.92 acres, has an outdoor patio and a double-lane drive-thru. It is Arizona’s fourth Portillo’s and the Chicago-based chain’s 67th location overall across nine states. The diner-themed restaurant, which opened on April 27, 2021, serves Chicago-style hot dogs, Italian beef sandwiches, char-grilled burgers, fresh salads and chocolate cake.
