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$2M Earns 16-Year Sale/Leaseback

GILBERT, AZ-A Santa Barbara, CA, investor, holding deeds to six franchised El Pollo Loco restaurants, finds its first buyer for a 3,004-sf eatery at 2253 E. Baseline Road. The game plan is to continue the sell-off under the same scenario.

By Lee Simmons | Updated on May 21, 2004

GILBERT, AZ-A San Diego-based trust has purchased a 3,004-sf fast-food restaurant for $1.6 million, getting one of six El Pollo Loco franchised locations in the Phoenix market up for sale by a Santa Barbara, CA owner. The sweet spot of the sale/leaseback is a 16-year tenant.

“The fact that cap rates are as impressive as they are, now is the time to take advantage of the market,” Jamie Medress, a senior associate with Marcus & Millichap in Phoenix, tells GlobeSt.com. Wells Fargo Bank, trustee for the Raddatz Trust of San Diego, purchased the quarter-acre property at 2253 E. Baseline Road in an all-cash deal, he says.

The restaurant was marketed 45 days, receiving four bids before settling into a two-week escrow. “Cash and the fact that they were able to move quickly were important,” Medress says of the buyer.

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