An investor has picked up a ground lease for just shy of an acre of land at 2525 S. Sherwood Forest Blvd., on which a Raising Cane’s restaurant is located, for more than $1.87 million.
The ground lease was sold by Plex Holdings LLC, whose agent is Milton Lavigne III of the Lavigne Oil Company. The buyer is Whitepine LLC, whose manager is Norman Matsushita. Beezie Landry of Stirling Properties, who represented the seller in the deal, says Lavigne has had the land since before Raising Cane’s was developed and that it was home to a shuttered gas station.
“It’s a great time to sell these single tenant-type deals and they were successful in getting Raising Cane’s to renew a few options early, which made it more attractive as an investment,” says Landry.
Raising Cane’s has operated a corporate-owned restaurant on the property since 2007. It’s located at the intersection of South Sherwood and South Harrell’s Ferry Road, just off Interstate 12. The restaurant recently exercised a pair of five-year renewal options for the site, which pushed to about 17 years the guaranteed remaining term, according to the property listing. The lease includes rent increases of 10% in 2022 and 2027.
“Obviously the hope of the buyer is that Raising Cane’s stays there long-term and continues to pay rent,” says Landry. “But if for some reason they would leave, it is a great site at a hard corner on the interstate.”
—Steve Sanoski
