FCPT President and CEO William Lenehan
MILL VALLEY, CA—Locally-based Four Corners Property Trust, which ended 2018 with a flurry of acquisitions, has begun the new year with the purchase of eight net-leased restaurant properties in Colorado from Washington Prime Group Inc.
The $9.4-million deal involves five corporate-leased Buffalo Wild Wings, IHOP, McDonald's, Olive Garden, and Red Lobster restaurants and three franchisee-leased Outback Steakhouse, Taco Bell, and Wendy's restaurants, all located in Colorado.
The leases for the eight properties have a current weighted average remaining term of approximately 8.5 years.
This is the sixth closing of the acquisition previously announced in September 2017 with 28 properties now closed for approximately $42 million. The deal between FCPT and Columbus, OH-based Washington Prime Group announced on Sept. 20, 2017 called for the purchase of 41 restaurant properties from Washington Prime Group for a total purchase price of approximately $67.2 million cash.
The latest deal with Washington Prime Group follows a very busy December for FCPT. On the last day of 2018, the company reported it had acquired a corporate-operated Buffalo Wild Wings restaurant property in Virginia for $2.5 million. The property is occupied under a double-net lease with approximately nine years of term remaining. The transaction was priced at a 6.65% going-in cash cap rate, exclusive of transaction costs.
Three days earlier, FCPT reported the acquisition of a corporate-operated BJ's Restaurant and Brewhouse property in Michigan for $4.2 million. The property is occupied under a triple-net lease by BJ's Restaurants, Inc. with approximately 13 years of term remaining and 10% rent escalations every five years beginning in April 2022. The transaction was priced at a 6.5% going-in cash cap rate, exclusive of transaction costs.
On Dec.17, the real estate investment trust reported it purchased six Red Lobster restaurant properties in Delaware, Indiana, Kentucky, Minnesota, Mississippi and North Dakota for $25.9 million. The six properties are under a single, triple-net master lease, which includes two other Red Lobster properties previously acquired by FCPT in November 2017. The eight-unit master lease has approximately 21 years of term remaining and annual rent escalations of 2.0%.
FCPT announced on Dec. 14 it had sold an Olive Garden restaurant in Augusta, GA to Darden Restaurants, Inc. for $5.5 million. The property was leased to Darden Restaurants, Inc. under a triple-net lease with 14 years of term remaining.
FCPT anticipated redeploying the proceeds from this transaction through a Section 1031 like-kind exchange.
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John Jordan
John Jordan is a veteran journalist with 36 years of print and digital media experience.
