Four Corners Property Trust, a real estate investment trust engaged in the ownership of high-quality, net-leased restaurant properties, announced the acquisition of six Red Lobster restaurant properties in Delaware, Indiana, Kentucky, Minnesota, Mississippi, and North Dakota for $25.9 million. The six newly acquired properties are under a single, triple-net master lease, which includes two other Red Lobster properties previously acquired by FCPT in November 2017. The 8-unit master lease has approximately 21 years of term remaining and annual rent escalations of 2 percent.
The transaction was priced at a similar going-in cash capitalization rate as previously announced transactions. Red Lobster operates over 700 restaurants across the country and is the largest casual dining seafood brand in the U.S.
Bill Lenehan, CEO of FCPT, stated, “This transaction marks over $510 million in closed deals since our investment platform launched in July 2016. To date, FCPT has closed $449 million of acquisitions across 197 properties and sold seven Darden-leased properties for $63 million.”