Meanwhile, in the restaurant franchisee world, Scottsdale, AZ-based GE Capital, Franchise Finance this week announced that it provided a $4-million credit facility to RDSL for the acquisition and development of seven Jack in the Box franchise restaurants in the greater Dallas market. RDSL was formed by four franchisees and, according to GE Capital, currently owns and operates 19 Jack in the Box units in Dallas and southern Oklahoma.

"I wouldn't say that they trade easily, because they're not very easy to finance," Jonathan Hipp, president and chief executive officer of Reston, VA-based Calkain Cos., says of quick service restaurant properties. Still, he adds, they are trading, albeit at much higher cap rates than just a few years ago. "What was 7 before is now 8.5 to 9.5," he adds.

What's more, the market has seen a return of differentiation between corporate and franchisee tenants, a distinction that virtually disappeared when the market was moving fast. "There is definitely a differentiation today, but then, there are very few credit deals out there today," Hipp says. Recent deals closed by Calkain include a franchisee Wendy's property in Bowie, MD; in addition, Hipp reports having one four-property casual dining portfolio a few weeks away from closing and another casual dining property under letter of intent.

Without the rare credit backing of, say, a McDonald's, the real estate, unit sales and the operator's track record is ultimately how these properties are being valued today. "Part of it is driven by the location of the restaurant, and the sales," says Hipp, "and then it boils down to what is the strength of the operator."