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, is pleased to announce the acquisition of ten restaurant properties consisting of seven restaurant concepts (two Arby’s, two Wendy’s, two Steak ‘n Shake, one Burger King, one Denny’s, one Zaxby’s, and one Fazoli’s) across 8 states for $15.6 million. The restaurants are occupied under triple-net leases with a weighted average 10 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.
FCPT funded the acquisition with 274,744 Operating Partnership units (“OP units”) at $20.13 per unit and $10.1 million in cash drawn from its revolving line of credit. The seller, US Restaurant Properties Inc. (“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 our first OP unit transaction and to acquire this diverse, high-quality portfolio from USRP. The team at USRP has assembled a very strong portfolio and we are honored that they have become significant personal investors in FCPT. We look forward to continue working with their team and have already benefited from their collaboration and depth of experience.”
Robert Stetson, the founder and CEO at USRP, stated “The team at USRP is enthused about both this partnership transaction and the prospect of assisting FCPT in its future growth. At USRP, we have been focused on buying net-lease, restaurant properties for over 20 years and have purchased more than 1,000 restaurant properties over that time. The FCPT portfolio is by far the best large scale portfolio we have encountered and is a key reason we are investing significant personal capital in FCPT. Like FCPT, we started USRP with a single tenant and focused on a diversification strategy that over time generated outsized returns for our shareholders.”
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.fourcornerspropertytrust.com/.
About US Restaurant Properties
Mr. Stetson is a founder of one of the first REITs dedicated to restaurant properties, U.S. Restaurant Properties Inc. ("USRP"). Prior to USRP, Mr. Stetson served as the former President of Burger King Corp.--Restaurant Division and Chief Financial Officer of several brands, including Pizza Hut Inc. USRP was founded in 1994, 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 upon restaurant and related properties.