FCPT Pays $66M for 19 Bloomin' Restaurants with 'High Traffic'
Most of the properties are in the Sunbelt.
Four Corners Property Trust is adding 19 restaurants of Bloomin’ Brands to its real estate portfolio for $66.4 million.
Most of the acquired properties are located in Sunbelt states – with the lone exception being Pennsylvania. The others are in Arizona, Florida, Georgia, Kentucky, Louisiana, North Carolina, South Carolina, Tennessee, and Nevada.
Before the sale, Bloomin’ Brands owned 10 Outback Steakhouses and 10 Carrabba’s Italian Grill restaurants. It’s unclear if Four Corners will take full equity in all of Bloomin’s Carrabba’s or all Outback eateries – since it acquired all but one.
“The sites are in strong retail corridors with high traffic and attractive demographics,” Four Corners said in a statement.
“The properties are under two long-term master leases of ten restaurants each and leased to corporate Bloomin’ Brands entities. The transaction was priced at cap rate in range with previous FCPT transactions.”
The move makes Bloomin’ Four Corners’ third largest tenant and represents just over three percent of the real estate trust’s rent. It will now get less than half of its total rent payments from Darden Restaurants, which operates major brands including Olive Garden, and Long Horn.
“FCPT continues to find opportunities that accretively grow our portfolio while adhering to our high-quality underwriting,” said Bill Lenehan, president and CEO of the company.
“We’re particularly glad to see another large public company operator rise to our #3 tenant behind Darden and Brinker as this transaction furthers our diversification efforts while maintaining the strength of our portfolio.”
According to the Mill Valley, California-based firm, it has more than 1,000 properties scattered across 47 states. Primarily, it focuses on transactions in the restaurant and retail space.
In retail, some of the key fundamentals have endured turbulence in 2024. Transactions in the first half were down 22.9 percent year-over-year, according to a report from Green Street. Sales were down 6% from the first quarter. Strip centers had the smallest drop, being only -7%. Net-lease trades plunged 22% and mall deals fell by 46%. That came despite the vacancy rate hitting a 20-year low in the second quarter, according to Cushman & Wakefield.