In addition to Olive Garden, Outback, Starbucks and Texas Roadhouse, the restaurant brands also include Wendy & # 39; s.
MILL VALLEY, CA – Four Corners Property Trust has signed a definitive agreement to purchase 20 additional outparcel properties from Washington Prime Group for $ 37.8 million. This pricing reflects a 6% capitalization rate on operating income.
The transaction is Four Corners' first investment outside of the net restaurant lease and part of a broader diversification strategy.
The deal includes 12 restaurant properties as well as eight properties operating in other retail sectors. These outparcels are located in Colorado, Connecticut, Florida, Illinois, Indiana, Iowa, Kentucky, Maryland, New Jersey, Ohio, Pennsylvania, Texas, and Virginia. The 20 additional Outparcels will include 17 brands, nine of which will be new to Four Corners' portfolio, including six non-restaurant brands. Restaurant brands include Buffalo Wild Wings, Chick-Fil-A, Chili (two), Chipotle, Olive Garden, Outback Steakhouse, Raising Cane, Slim Chickens, Starbucks, Texas Roadhouse, and Wendy. Non-restaurant brands include Citibank, Firestone, Jared Jewelry (two), JPMorgan Chase, PNC, and Wells Fargo.
Initially, Four Corners' diversification efforts focused on acquiring assets across the restaurant sector. Four Corners' holdings outside of the Darden concepts rose from 0% of rental income at the beginning to around 25% at the end of the second quarter of 2019.
The transaction was first announced in September 2017 when Four Corners announced the acquisition of 41 restaurant outparcels from Washington Prime Group. Since that announcement, 33 properties have been closed for $ 50 million, one property has been removed during due diligence and four have been added to the portfolio to bring the total business size to 44 properties for approximately $ 70 million.
Closing for the remaining 11 properties as of the September 2017 announcement and for the 20 properties in the new transaction is expected to take place in rolling tranches as soon as the properties become available for transfer, subject to due diligence and customary closing conditions. Four Corners closed outparcels valued at $ 32.7 million in 2018 and had outparcel sales valued at $ 17.3 million in the first half of 2019.
