“Placer improves traditional due diligence using data that was previously unavailable. You get inside knowledge - a remarkably accurate estimate of sales, how the property ranks against competitors, whether performance is trending up or down, and much more.”

-- Brad Dessy, Vice President, Hanley Investment Group

‍The Challenge

Hanley investment seeks to earn the business of a high net worth client doing a 1031 exchange

Hanley Investment Group is a nationally recognized real estate brokerage and advisory services company that specializes in the sale of retail properties nationwide and has an $11 billion transaction track record.

Brad Dessy, Vice President at Hanley Investment Group, had a high net worth individual he had sought to do business with. The opportunity finally came as the client turned to Hanley Investment Group for help with a 1031 exchange, describing their requirements as: an ideal location, long term triple net lease (as close to 10 years as possible), and nothing in automotive or drugstores.

How could he find an validate an investment opportunity, prove the property’s strength, and successfully pitch the client on the deal?

‍The Solution‍

A winning combo: ideal location, >75th percentile ranking in the state, and attractive lease terms

Casting a broad net, Brad knew he could use Placer to zoom in on promising properties. A fast casual wing concept caught his eye. Situated right across from a casino and located near a convention center, the fast casual wing joint had access to a strong daytime population. Using the Market Landscape report, Brad also discovered a lack of strong, direct competitors. In addition, the property was located near the intersection of two major highways and saw over 8,000 cars each day.

Learn more about Market Landscape

Next, Brad looked at the Rankings report in Placer. The fast casual wing concept ranked in the >75th percentile in the fast food & QSR category for the state and locally (within 15 miles). In addition, it performed at the 68th percentile nationwide, a solid ranking and proof of good performance.

Learn more about Ranking Overview

Learn more about Retail Sales Trend

Finally, using Retail Sales, Brad found that sales for the location trended above the national average for Fast Food & QSR category, in some months generating more than 60% higher sales ($387 vs. $189k in monthly sales). As part of the lease relied on percentage sales, Brad knew a strong tenant would benefit his client and healthy sales numbers like this was a good sign. The upwards trend of sales and healthy customer traffic further confirmed the property as a strong choice for the client.

‍The Outcome

SUCCESS: client selects 5,000 SF fast casual wing joint in $2M 1031 exchange deal

Brad presented his findings to the client, showing how the property met the client’s requirements. Using Placer’s data on category rankings, nearby competition, vehicle traffic, and retail sales, he helped the client see the strength of the property. Impressed with all the factors put together, the client and their bank liked the deal and move forward with the $2M purchase and 1031 exchange.