AUSTIN—Increasingly, Austin-based Sands Investment Group (SIG), a net lease company, is finding that investors are demanding the product type.

Recently, SIG's Max Freedman represented a Wendy's operator in a $2.97-million sale leaseback of a restaurant in Palmdale, CA, at a 5.75 percent cap rate. According to reps for SIG, the operator had been at the location since 2000, producing more than $2 million in annual sales, making it one of the highest-producing fast food restaurants in the market. The operator was able to use the proceeds to pay off its existing debt obligations and fund the opening of new operations.

Freedman also represented the developer in the $1.5-million transaction for a new construction, build-to-suit Taco Bell located in Cairo, GA. The property provided an outlet for a 1031 exchange buyer to secure investment with an attractive 20-year absolute triple net lease at a 6 percent cap rate.