Hanley Investment Group Arranges Sales of New Construction Circle K and Starbucks Drive-Thru in Cathedral City, Calif. for $8 Million

Hanley Investment Group Real Estate Advisors, a nationally recognized real estate brokerage and advisory firm, has arranged the sales of two newly constructed, single-tenant retail properties at Cathedral Cove Center in downtown Cathedral City, Calif. The properties, occupied by Circle K and Starbucks, were sold in separate transactions to individual private buyers for a combined total of approximately $8 million. The sales demonstrate the strong demand for new-construction, net-leased retail properties with corporate tenancy and strong fundamentals, particularly in infill Southern California markets.

Key Takeaways:

• The sales of the Circle K and Starbucks properties at Cathedral Cove Center in Cathedral City, Calif. were handled by Hanley Investment Group Real Estate Advisors, resulting in a combined total sale price of approximately $8 million.
• The Circle K property, leased for 20 years with 10% rental increases every five years, sold for over $4.19 million to a private 1031 exchange investor from Ventura, Calif.
• The Starbucks property, also leased for 10 years with 10% rental increases every five years, sold for $3.7 million to a private investor in a 1031 exchange from Roseville, Calif.
• The properties were sold prior to the tenants opening for business, with Circle K slated to open in fall 2025 and Starbucks having already received a five-star rating on the location.
• The Cathedral Cove Center is located in an Opportunity Zone at the signalized intersection of East Palm Canyon Drive/Highway 111 and Date Palm Drive, with over 55,000 cars per day.
• The center is directly across from the 125,000-square-foot Agua Caliente Casino Cathedral City, ranked in the top 2% of U.S. casinos based on consumer traffic, according to Placer.ai.
• The sales demonstrate the strong demand for best-in-class, daily-needs retail with corporate tenancy and strong fundamentals, particularly in infill Southern California markets.

Statistics:

• The combined sale price of the Circle K and Starbucks properties was approximately $8 million.
• The Circle K property sold for over $4.19 million.
• The Starbucks property sold for $3.7 million.
• The Circle K property has a 20-year absolute triple-net ground lease with 10% rental increases every five years.
• The Starbucks property has a 10-year triple-net lease with 10% rental increases every five years and four five-year renewal options.
• According to Bill Asher, Executive Vice President of Hanley Investment Group, drive-thru locations account for 60% to 70% of quick-service restaurant sales, and Starbucks stores with drive-thrus average 50% higher sales than non-drive-thru locations.

Sources:

• "Hanley Investment Group Arranges Sales of New Construction Circle K and Starbucks Drive-Thru in Cathedral City, Calif. for $8 Million" - M2 PressWIRE-July 9, 2025-
• Hanley Investment Group Real Estate Advisors - www.hanleyinvestment.com
• M2 PressWIRE - www.m2.co.uk