Four Corners Property Trust (NYSE:FCPT closed on the purchase of ten restaurant properties today from Washington Prime Group Inc. This is the first of two tranches in the forty-one property acquisition announced in September 2017. Closing of the thirty-one remaining properties in the second tranche is expected to be completed by the end of the second quarter of 2018, subject to remaining due diligence and customary closing conditions.
The purchase price for the first tranche was approximately $13.8 million and represents a capitalization rate consistent with our investment thresholds and past transactions. The leases have a current weighted average remaining term of approximately 7.5 years. Four of the ten properties are ground leases (i.e., the tenant built its own building with ownership reverting to the landlord upon lease expiry).
The first tranche restaurant properties consist entirely of outparcels to WPG properties and are well located within highly trafficked retail corridors in Florida, Illinois, Iowa and Ohio. All ten properties are on out-lots to either open air or WPG’s “Tier One Enclosed” properties. None of the ten restaurant properties or the adjacent WPG properties are currently encumbered by property-level debt.
The ten properties represent ten different restaurant brands: Arby’s, BJ’s Restaurant, Buffalo Wild Wings, Chick-Fil-A, Chili’s, McDonald’s, Olive Garden, Panda Express, Red Lobster, and Starbucks. Of the ten leases, eight are with corporate operators and two are with franchisees.
Additional detail on all properties acquired from WPG will be disclosed upon the closing of the second tranche.
FCPT, headquartered in Mill Valley, CA, is a real estate investment trust primarily engaged in the acquisition and leasing of restaurant properties. The Company seeks to grow its portfolio by acquiring additional real estate to lease for use in the restaurant and related food services industry.
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