Four Corners Property Trust (NYSE:FCPT) announced that it has signed a definitive agreement for the purchase of 24 outparcel properties from Brookfield Properties, for a purchase price of approximately $46.4 million. This transaction was priced at a capitalization rate consistent with our investment thresholds and past transactions. The portfolio includes 14 restaurant properties as well as 10 properties operating in other retail sectors.
The 24 outparcels span 11 restaurant brands, including three which are new to FCPT’s portfolio. The restaurant brands are BJ’s Restaurant, Black Angus (new brand), Bonefish Grill (new brand), Chili’s, IHOP, LongHorn Steakhouse (2), Olive Garden (2), Outback Steakhouse, Red Lobster, Red Robin (2, new brand) and Wendy’s. The portfolio also includes 10 non-restaurant brands, comprised of five banks, two car wash / tire center properties, a hotel and a business services / shipping store. Seven of the non-restaurant operators are investment grade rated and nine are with nationally known brands. The non-restaurant properties share similar qualities as FCPT’s restaurant assets: nearly identical locations, comparable building sizes and acreage, predictable growing rental streams, similar net-lease structures, and strong tenancy with credit-worthy operators. Of the 24 properties, 21 are operated by or leased to the brand’s corporate entity. Further, each property has a separate individual lease and the leases have a current weighted average remaining term of approximately seven years.
The retail outparcels are located within highly trafficked corridors in Colorado, Idaho, Iowa, Michigan, Minnesota, Missouri, North Carolina, Oklahoma and Washington.
“Brookfield has been a fantastic partner for FCPT in the past as we’ve worked on smaller transactions and we look forward to focusing our attention on this new portfolio,” said Bill Lenehan, CEO of FCPT. “This portfolio is consistent with our outparcel strategy of acquiring diverse brands in the restaurant and retail sectors with strong operators and low rent levels.”
Brookfield Properties is a global real estate services company, managing, leasing and re-envisioning one of the largest retail portfolios in the United States. Its regional shopping centers are located in key markets throughout the country, encompassing 170+ locations across 43 states and representing over 146 million square feet of leasable space.
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 retail industries.