Hanley Investment Group Real Estate Advisors completed the sale of two new construction retail pad investment properties, each with a drive-thru, at the signalized entrance to Riverdale Commons, a Target- and Home Depot-anchored shopping center in Coon Rapids, Minnesota, a suburb of Minneapolis. The sale price was $8.18 million.
The transaction included a 3,893-square-foot single-tenant Café Zupas with a double drive-thru and a 6,297-square-foot two-tenant pad building featuring a 2,797-square-foot Dave’s Hot Chicken with a double drive-thru and a 3,500-square-foot Chapter Aesthetic Studio.
Hanley Investment Group’s Executive Vice President and Partner Jeff Lefko and Executive Vice President Bill Asher, in association with Robert Wise and Jeff Jiovanazzo of CBRE in Minneapolis, represented the seller, TOLD Development Company, in Maple Grove, Minnesota. The buyer was Curbline Properties, based in New York.
Positioned on 2.49 acres at 3574-3582 Main Street NW and Round Lake Boulevard, the newly constructed retail pads are part of Riverdale Commons, a major shopping destination anchored by Target and Home Depot, with additional national tenants such as Sprouts, Michaels, HomeGoods, Petco, Total Wine & More, and Five Below. The surrounding retail corridor also includes Costco, Kohl’s, Old Navy, TJ Maxx, PetSmart, Ulta Beauty, Dick’s Sporting Goods, Best Buy, and TGI Friday’s.
Café Zupas, which occupies the standalone 3,893-square-foot building, operates under a 10-year corporate triple-net lease with 10% rent increases every five years. The fast-casual brand has grown to more than 70 locations in eight states since its founding in 2004 and continues its expansion with 10 new locations opened in 2024 and more planned for 2025.
The adjacent two-tenant building totals 6,297 square feet and includes Dave’s Hot Chicken and Chapter Aesthetic Studio, both of which signed 10-year leases. Dave’s Hot Chicken features 2% annual rent increases, while Chapter Aesthetic Studio has 10% increases every five years. Chapter Aesthetic Studio’s lease is guaranteed by its parent company, Aspen Dental Management, Inc., the second-largest private dental company in the U.S. with over 1,000 locations.
