Pollo Campero Ground Lease in Lake Elsinore Sets Near Four-Year Low Cap Rate Benchmark

Hanley Investment Group arranges $2.9M sale as investor demand surges for new-construction triple-net retail assets

Hanley Investment Group Real Estate Advisors, a nationally recognized real estate brokerage and advisory firm specializing in retail property sales, announced today that the firm has arranged the sale of a newly constructed, single-tenant Pollo Campero ground lease in Lake Elsinore, California, for $2,925,000. The closing cap rate represents the lowest Pollo Campero cap rate recorded nationwide in nearly four years.

Hanley Investment Group’s Executive Vice President Bill Asher and Executive Vice President and Partner Jeff Lefko represented the seller and developer, Evergreen Devco, a leader in retail, multifamily and industrial real estate development.

The buyer, a private investor based in San Bernardino County, California, was represented by Greg Bedell and Lance Mordachini of Progressive Real Estate Partners.

“We generated multiple qualified offers and procured an all-cash 1031 exchange buyer through an existing broker relationship,” said Asher. “The property sold prior to the anchor tenant, Stater Bros., commencing construction and opening for business, which underscores the strength of the location and tenant.”

“This transaction was a great example of how strong relationships can create real execution certainty,” said Greg Bedell, senior vice president and managing director at Progressive Real Estate Partners. “Our prior experience working with both Evergreen Devco and Hanley Investment Group gave our client a high level of confidence early in the process, which allowed us to move quickly and decisively. The combination of a high‑quality development, a growing trade area and a long‑term absolute triple‑net ground lease made this a compelling acquisition for our client.”

The newly constructed 3,000‑square‑foot building sits on 1.10 acres and features a 15‑year absolute triple‑net corporate ground lease with 10% rental increases every five years during the primary term and each of the option periods. The lease includes minimal landlord responsibilities.

The property is located at 29160 Central Avenue (Highway 74) in Lake Elsinore at the signalized intersection of Central Avenue and Cambern Avenue. It is a pad to a new Stater Bros.-anchored retail development positioned within the trade area’s dominant regional retail corridor, which sees 13 million combined annual visits (according to Placer.ai). Stater Bros. is expected to open between the fourth quarter of 2026 and the first quarter of 2027. Other co-tenants include 7‑Eleven (now open), Dutch Bros Coffee (projected to open in the fourth quarter of 2026) and Super Star Car Wash (scheduled to open in April 2026).

The property benefits from excellent visibility along Highway 74/Central Avenue (28,000 cars per day) and immediate access to Interstate 15 (127,000 cars per day). The surrounding trade area includes Costco, Lowe’s, Target, Walmart Supercenter, The Home Depot, Aldi, LA Fitness, PetSmart and other national retailers.

“This corridor continues to attract best-in-class retailers due to strong population growth, high traffic counts and outstanding regional draw at the intersection,” said Asher. “The expansion of this new Stater Bros. location is a testament to the chain’s tremendous historical success in other areas within the city of Lake Elsinore, one of the fastest-growing areas in California.”

Hanley Investment Group is currently marketing the Super Star Car Wash outparcel for sale, offering investors an opportunity to acquire another new‑construction, long‑term, absolute triple-net ground lease with minimal landlord responsibilities within the same development.

“Investor demand for new‑construction, absolute triple-net ground leases with long‑term corporate guarantees remains exceptionally strong,” Asher added. “This sale reflects the continued appetite for high‑quality, service‑oriented retail in growing Southern California markets.”