Hanley Investment Group 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.
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.
