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”), closed on the purchase of ten restaurant properties today from Washington Prime Group Inc. (“WPG”). 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. Additional information about FCPT can be found on the website at www.fcpt.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include all statements that are not historical statements of fact and those regarding FCPT’s intent, belief or expectations, including, but not limited to, statements regarding: the proposed transactions, the anticipated consequences and benefits of the transactions and the targeted close date for the transactions, and other future events and their potential effects on FCPT, including, but not limited to, statements relating to anticipated financial and operating results, the company’s plans, objectives, expectations and intentions, cost savings and other statements. Words such as “anticipate(s),” “expect(s),” “intend(s),” “plan(s),” “believe(s),” “may,” “will,” “would,” “could,” “should,” “seek(s)” and similar expressions, or the negative of these terms, are intended to identify such forward-looking statements. Forward-looking statements speak only as of the date on which such statements are made and, except in the normal course of FCPT’s public disclosure obligations, FCPT expressly disclaims any obligation to publicly release any updates or revisions to any forward-looking statements to reflect any change in FCPT’s expectations or any change in events, conditions or circumstances on which any statement is based. Forward-looking statements are based on management’s current expectations and beliefs and FCPT can give no assurance that its expectations or the events described will occur as described. For a further discussion of these and other factors that could cause FCPT’s future results to differ materially from any forward-looking statements, see the section entitled “Risk Factors” in FCPT’s most recent annual report on Form 10-K, and other risks described in documents subsequently filed by FCPT from time to time with the Securities and Exchange Commission.