Hanley Investment Group is arranging the sale of a single-tenant Texas Roadhouse in Ithaca, New York, to a California buyer for $2.4 million
ITHACA, NY – Hanley Investment Group Real Estate Advisors, a nationally recognized real estate brokerage and advisory firm specializing in the sale of commercial properties, today announced that the company has arranged the sale of an occupied single-tenant property by the Texas Roadhouse restaurant in Ithaca, New York. The selling price was $2,410,000 for the absolute triple net ground lease. The sale marks the third recent Texas Roadhouse transaction that Hanley Investment Group has sold.
Hanley Investment Group executive vice presidents Jeff Lefko and Bill Asher, in association with ParaSell, Inc., represented the buyer, a private investor based in San Jose, Calif. Dalton Barnes, partner and chief broker at Alpha Real Estate Advisors in Dallas, Texas, represented the seller, Dubin Singer Phillips PC in Chicago, Illinois.
“We purchased and represented a California-based 1031 exchange buyer in the purchase of the Texas Roadhouse ground lease with approximately nine years remaining on its original lease term,” Lefko said. “We liked this location because the rent per square foot was highly replaceable and the building was constructed in a way to allow for future reuse.”
Built in 2015, the 7,500 square foot building occupied by Texas Roadhouse is located on 1.39 acres at 719-25 South Meadow Street in Ithaca, a town on Cayuga Lake in New York’s Finger Lakes region. The property is conveniently located along the main thoroughfare with an upscale frontage. Ithaca is home to Cornell University and its Herbert F. Johnson Art Museum designed by IM Pei. The extensive Cornell Botanical Gardens include an arboretum and tiered Cascadilla Falls. Other waterfalls in the area include Ithaca Falls, near downtown. To the southwest, Buttermilk Falls and Robert H. Treman State Parks offer wooded gorges and rock pools.
Known as a legendary steakhouse serving American cuisine, from the finest steaks and ribs to made-from-scratch sides and fresh rolls, Texas Roadhouse opened in 1993 and boasts 670 system-wide restaurants in 49 states and 10 foreign countries. countries. Texas Roadhouse, Inc. also operates Bubba’s 33, a casual dining concept that features burgers, hand-made pizzas, mouth-watering wings, “delicious” dinners and more…all made from scratch.
According to a recent press release from Texas Roadhouse, Inc., comparable restaurant sales at company restaurants for the first five weeks of the second quarter of fiscal 2022 increased 9.3% year-over-year. former.
“Texas Roadhouse has proven to be one of the gems of the sit-down restaurant industry,” Lefko said. “One of the factors that makes Texas Roadhouse attractive to potential investors is that the company normally pays market rent or below-market rent because most of their leases are land leases, where the tenant makes a huge improvement capital on the property.”
Texas Roadhouse plans to open 25 company-owned Texas Roadhouse and Bubba’s 33 units this year and franchisees are expected to open seven Roadhouse locations. The company hopes to open even more restaurants in 2023.
“There is still plenty of capital seeking well-located, net leased commercial investment occupied by national credit tenants, which has helped keep single-tenant net lease land cap rates low,” said noted Lefko. “We expect the cap rates on land leases occupied by these best-in-class retailers and restaurants to hold steady for the near future as investors seek a safe haven from stock market volatility.”
About Hanley Investment Group
Hanley Investment Group Real Estate Advisors is a real estate brokerage and advisory services firm with a transaction history of over $9.1 billion that specializes in the sale of commercial properties nationwide. Our expertise, proven track record and unwavering dedication to putting customer 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, resulting in maximum exposure and price for every property. With unparalleled service, Hanley Investment Group has redefined the retail investment property experience. For more information, visit www.hanleyinvestment.com.
Company Name: Hanley Investment Group Real Estate Advisors
Contact person: Jeff Lefko, Executive Vice President
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