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 that it has signed an amendment to the deal originally announced on October 30, 2019, for the purchase of nine additional single tenant outparcel properties from Seritage Growth Properties (NYSE: SRG) for $27.3 million. The transaction is priced at a cap rate in a range consistent with past FCPT transactions. The transaction is expected to close in various tranches with the majority closing in 2020 and the remainder in 2021, subject to customary closing conditions and regulatory approvals.
The nine outparcels span four restaurant brands, three bank branches and two retail brands. The portfolio’s restaurant brands are Arby’s, BJ’s Restaurant and Brewhouse, Popeyes, and Portillo’s. The portfolio’s non-restaurant tenants are three bank branches (operated by Bank of America, Chase and Truist Bank), a Recreational Equipment, Inc. (“REI”), and an auto services center operated by American Automobile Association (“AAA”). Four of the brands (AAA, Bank of America, Chase and Truist Bank) are new to FCPT’s portfolio. The properties in this transaction have contractual rent growth, net-lease structures and strong tenancy with credit-worthy operators.
The retail outparcels are located within highly trafficked and populated corridors in California, Louisiana, Maryland, Michigan, South Carolina, Utah, Wisconsin and Virginia (2). Of the nine leases, eight are with the brand’s corporate entities and one is with a franchisee (Popeyes). Each property has a separate individual lease and the leases have a weighted average remaining term of approximately 9 years.
The aggregate portfolios between FCPT and Seritage Growth Properties totaled $96 million / 32 properties, of which $45 million / 14 properties have closed to date. After adjusting for certain properties that have been removed from the first portfolio, FCPT currently has $36 million / 13 properties remaining under contract to acquire from Seritage Growth Properties.
Bill Lenehan, CEO of Four Corners Property Trust, stated: “Over the past year we have been encouraged by the cooperation between FCPT and Seritage and are excited we will continue to partner together to drive value for both companies’ shareholders. This portfolio reflects strong credit and real estate consistent with FCPT’s commitment to only acquire high-quality properties.”
About FCPT
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. Additional information about FCPT can be found on the website at www.fcpt.com.
