Four Corners Property Trust (NYSE:FCPT announced the acquisition of a corporate-operated Chili’s restaurant through a sale-leaseback transaction with certain subsidiaries of Brinker International, Inc. (NYSE: EAT) for a purchase price of $2.15 million on initial annual cash rent of approximately $137,000.
The lease has 15 years of initial term, rent increases of 10% every five years during the initial term and a corporate guarantee from Brinker International, Inc. FCPT believes that rent is well-supported with conservative EBITDAR coverage of 3.9x. The property is in a well-located retail corridor in Colorado with high traffic and attractive demographics. This transaction is a follow on to the three property transaction that closed on September 14, 2018.
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, on a net basis, for use in the restaurant and related food services industry.