MILL VALLEY, Calif.--(BUSINESS WIRE)--
Four Corners Property Trust (NYSE:FCPT), a real estate investment trust engaged in the ownership of high-quality, net-leased restaurant properties (“FCPT” or the “Company”), is pleased to announce the acquisition of four restaurant properties consisting of three restaurant concepts (two Burger Kings, one Steak ‘n Shake, one Taco Bell) across four states (Alabama, Indiana, New York, Tennessee) for $5.8 million. The restaurants are occupied under triple-net leases with a weighted average 12 years of remaining term, and the transaction closed at an effective going-in cap rate of 6.6%, exclusive of transaction costs. The operators at these properties are a mix of corporate tenants and strong franchisees, including Carrols Restaurant Group (the largest operator of Burger King restaurants) and Tacala, LLC (the largest operator of Taco Bell restaurants).
This is a follow-up to the Operating Partnership unit (“OP unit”) transaction FCPT completed with U.S. Restaurant Properties Inc. (“USRP”) in November 2016. FCPT funded the acquisition with 174,576 OP units based on a value per unit of $20.13 (consistent with the November 2016 OP unit transaction) and $2.3 million in cash. USRP is an experienced private, net-lease REIT, and its principals led the formerly publicly-traded REIT of the same name.
Bill Lenehan, with FCPT, commented, “We are excited to announce both the finalization of our OP unit deal with USRP, and the acquisition of these well-located properties with strong credit from both corporate and large franchisee tenants. The collaboration between USRP and FCPT continues to provide new opportunities for both companies.”
About FCPT
FCPT, headquartered in Mill Valley, CA, is a real estate investment trust primarily engaged in the acquisition and leasing of restaurant properties. The Company will seek to grow its portfolio by acquiring additional real estate to lease, on a triple-net basis, for use in the restaurant and related food services industry. Additional information about FCPT can be found on the website at http://www.fcpt.com/.
About USRP
USRP was founded in 1994 as one of the first REITs dedicated to restaurant properties. USRP traded on the NYSE, and was ultimately acquired by GE Capital in 2007 with an enterprise value of $2.8 billion. In its current form, USRP is now a Dallas-based private company focused on restaurant and related properties.
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