Burger King Titusville

SRS's National Net Lease Group completed the sale of three Burger Kings with drive-through properties on Florida's eastern coast totaling $6.87 million in what they called a record-setting sale. One of the burger chain's outlets is in Titusville and two are on Merritt Island.

“SRS NNLG received premium pricing on these Burger King properties due to our national marketing efforts, and targeting out of state investors. All of the respective buyers were located outside of Florida,” SRS National Net Lease Group Managing Principal Matthew Mousavi tells GlobeSt.com. ”Also, these properties featured new 15-year terms, and were backed by a large operator. For these reasons, coupled with the quality of the sites themselves, we received multiple offers from a national buyer pool.”

SRS' National Net Lease Group Managing Principals Matthew Mousavi and Patrick Luther represented the seller, a Texas-based investment company. The buyers were three separate out-of-state private investors. The cap rates, which were in the low 4 percent range, represented the lowest caps rate ever for Burger King-occupied properties in the state of Florida and the lowest cap rate for any Burger King sold in the last 18 months, according to SRS.

Wide Range of Buyer Offers

“The Florida Burger King portfolio is one of several assignments our SRS National Net Lease Group is executing nationally on behalf of larger portfolio owners,” said Mousavi. “In this case, these assets were part of a multi-state, multi-brand portfolio, and received significant interest and a wide range of offers. At a blended cap rate in the 4 percent range, and an average price of $2.29 million, we were able to achieve premium pricing for these franchisee-guaranteed quick service restaurants.”