Raising Cane’s 4.3% Cap Rate is Lowest for a Barstow QSR

A ground lease of a 3,288-square-foot retail property recently sold at 2620 Fisher Blvd. in Barstow. The property is occupied by Raising Cane’s restaurant. At a cap rate of 4.3 percent, this $5.49 million sale marks the lowest cap rate and highest price paid for a single-tenant quick service restaurant (QSR) ever in Barstow, according to CoStar.

SRS’ Matthew Mousavi and Patrick Luther represented the seller, Starboard Realty Advisors. The buyer, a Los Angeles-based private investor in a 1031-Exchange, was represented by Pablo Rodriguez of Newmark.

Situated on 1.25 acres, the 2020-built property opened for business in May 2021 and includes a double drive-thru. The asset has a new 15-year corporate-guaranteed ground lease in place, providing the buyer with a stabilized investment and no landlord responsibilities.

“This offering was well received by the market as it had all the fundamentals single-tenant investors are looking for in a QSR asset. As a result of an extensive marketing program, SRS negotiated and secured a record-breaking cap rate and high sale price for a property located in Barstow with an ideal 1031-Exchange buyer,” said Mousavi.