Hanley Investment Group Arranges Sale-Leaseback of Single-Tenant Dairy Queen in South Texas at Record-Low Cap Rate

ALICE, Texas - Hanley Investment Group, a nationally recognized real estate brokerage and advisory firm specializing in retail property sales, announced today that the firm arranged the sale of a single-tenant net-leased property occupied by a Dairy Queen Drive-Thru in Alice, Texas. The sale price could not be disclosed. The sale achieved a 5.98% cap rate, a record-low cap rate for the sale of a single-tenant Dairy Queen in Texas in 2025.

Hanley Investment Group's Vice President Garrett Wood represented the seller, R&L Lozano Leasing, LTD (dba F&P Development) - the real estate development arm of the F&P Group - in association with Priority CRE, LLC DBA Hanley Investment Group. F&P Development is affiliated with F&P Brands, the group's management company that operates 34 Dairy Queen restaurants and four Schlotzsky's/Cinnabon units across South Texas and the Corpus Christi area. The transaction was coordinated closely with David Lozano of F&P Development, who managed the process on behalf of the ownership group and worked alongside Hanley throughout the deal's execution, including structuring, diligence, and closing. The buyer, Susan Caratan 2011 Trust, a private investor based in California, was represented by David Bynum of Bynum, Inc.

"This transaction represents the strongest Dairy Queen cap rate in Texas for 2025, according to CoStar data," said Wood. "We successfully represented a 30+ unit Dairy Queen franchisee in structuring a new 20-year absolute triple-net sale-leaseback and advised the seller on marketable terms for the new lease agreement. We then secured a 1031 exchange buyer from California and satisfied the seller's objectives, closing within 45 days from the beginning of escrow."

F&P Brands' proven operational strength - with over 35 years of franchise experience and a dedicated leadership team - has established the F&P Group as a market leader in the region. Their portfolio performance and long-term commitment to the communities they serve continue to attract investor confidence.

Wood added, "Selling at an aggressive, sub-6% cap rate in a tertiary market with franchisee credit underscores the continued demand for high-quality, net-leased retail assets. In particular, net-leased assets that have a strong guarantor behind the lease, as was the case in this transaction, are highly sought after. This was also a high-performing Dairy Queen location based on sales data, with a healthy rent-to-sales ratio."

Wood also noted that "Well-capitalized buyers are shaping the retail investment landscape, aggressively pursuing acquisitions with all-cash offers. While interest rates remain a factor, they are less of a deterrent for serious investors.'

The 2,608-square-foot freestanding fast-food restaurant, built in 1983 and renovated in 2015, is equipped with a drive-thru and leased to Dairy Queen. Situated on a 0.61-acre parcel at 1179 E. Main Street, the property benefits from a bustling commercial corridor providing traffic counts of approximately 20,000 vehicles per day. The location is conveniently near the city's largest employers, including Dixie Iron Works, Forbes Energy, Christus Spohn Hospital, and several local schools.

According to Wood, the new 20-year absolute triple-net initial lease term includes four five-year options and 2.0% annual rent increases every five years, guaranteed by the parent company of the franchisee. This particular Dairy Queen location is a 30+-year-old establishment with above-average sales volume, demonstrating the tenant's long-standing success.

The Alice, Texas, market continues to show positive trends, with the number of residents within a three-mile radius growing by 12.8% from 2020 to 2024, supporting the long-term viability of the investment.

"The single-tenant net-leased market has nearly doubled in inventory since 2021, but transaction volume has dwindled," Wood noted. "Investors are sharpening their focus on credit quality - especially in the food-service sector, where rising labor and input costs continue to squeeze margins. This deal highlights the enduring value of strong tenant credit and well-structured leases.

"Texas offers a unique combination of economic stability, population growth, and a favorable business climate, making it an ideal location for retail investment," highlighted Wood. "The state's diverse markets, strong infrastructure, and absence of state income taxes provide investors with numerous opportunities for long-term success."

Over the past 48 months, Hanley Investment Group has facilitated the sale of $534 million worth of retail properties in the Texas market, including the recent sale of a single-tenant 7-Eleven convenience store in McAllen, South Texas, in association with ParaSell, Inc., to a northern California-based all-cash buyer.

Wood, a native Texan with roots tracing back seven generations, has a deep understanding of the state's diverse market landscape. He assists clients nationwide in buying and selling retail properties in Texas. Garrett's successful 10-year career in retail investment sales is attributed to his "Boots on the Ground" work ethic and capital connections on the West Coast. Based in the Austin metro area, he leads Hanley Investment Group's Texas office.

About F&P Group

F&P Group is a family-owned enterprise consisting of F&P Development, which oversees real estate strategy and development, and F&P Brands, which manages operations for 34 Dairy Queen restaurants and four Schlotzsky's/Cinnabon units across South Texas and the Corpus Christi area. The group's integrated structure is further supported by F&P Media, their in-house media team , which leads local brand engagement, storytelling, and digital strategy. Known for its commitment to operational excellence, community impact, and smart growth, the F&P Group represents a vertically integrated platform focused on long-term value and brand stewardship. To learn more, visit www.foodandpeople.com [http://www.foodandpeople.com/].

About Hanley Investment Group

Celebrating 20 years, Hanley Investment Group Real Estate Advisors is a real estate brokerage and advisory services company with an over $11.7 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 set 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 [http://www.hanleyinvestment.com/].

Media Contact
Company Name: Hanley Investment Group Real Estate Advisors
Contact Person: Garrett Wood, Vice President
Email:Send Email [https://www.abnewswire.com/email_contact_us.php?pr=hanley-investment-group-arranges-saleleaseback-of-singletenant-dairy-queen-in-south-texas-at-recordlow-cap-rate]
Phone: 512.712.3657
Address:3500 East Coast Highway, Suite 100
City: Corona del Mar
State: California
Country: United States
Website: https://hanleyinvestmentgroup.com/

Legal Disclaimer: Information contained on this page is provided by an independent third-party content provider. ABNewswire makes no warranties or responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you are affiliated with this article or have any complaints or copyright issues related to this article and would like it to be removed, please contact retract@swscontact.com



This release was published on openPR.