Mill Valley, Calif. — Four Corners Property Trust (FCPT), a real estate investment trust that owns and acquires high-quality, net-leased restaurant and retail properties, has acquired 19 Bloomin’ Brands restaurant properties comprising 20 total restaurants (10 Outback Steakhouse restaurants and 10 Carrabba’s Italian Grill restaurants, including one dual-tenant property with both concepts) for $66.4 million.
The 19 properties are located across 10 states: Arizona, Florida, Georgia, Kentucky, Louisiana, North Carolina, Nevada, Pennsylvania, South Carolina and Tennessee. The sites are in strong retail corridors with high traffic and attractive demographics. The properties are under two long term master leases of 10 restaurants each and leased to corporate Bloomin’ Brands entities. The transaction was priced at cap rate in range with previous FCPT transactions.
As of the closing date, Bloomin’ Brands is now FCPT’s third largest tenant, comprising approximately 3.3% of the company’s cash rent. In addition, Outback Steakhouse and Carrabba’s Italian Grill restaurants are FCPT’s sixth and 13th largest brands by cash rent, respectively. Lastly, as a result of this transaction, Darden Restaurants will now comprise less than 50% of the company’s cash rent.
“We are very pleased with the large addition of Bloomin’ Brands restaurants to our portfolio,” says Bill Lenehan, CEO of FCPT. “FCPT continues to find opportunities that accretively grow our portfolio while adhering to our high-quality underwriting. 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.”
FCPT, headquartered in Mill Valley, Calif., is a real estate investment trust primarily engaged in the ownership, acquisition and leasing of restaurant and retail properties. The company seeks to grow its portfolio by acquiring additional real estate to lease, on a net basis, for use in the restaurant and retail industries. For more information, visit www.fcpt.com.
SOURCE: Four Corners Property Trust (FCPT)