Wendy’s Portfolio Trades For $26.5 Million

Nov 17, 2014 No Comments by

Marcus & Millichap announced the sale/leaseback of a portfolio of 12 Wendy’s restaurants located throughout South Florida.

The sales price of $26.5 million represents a 6 percent cap rate.

Adam J. Tiktin, first vice president investments, and Debra Franklin, associate, both in Marcus & Millichap’s Miami office, along with Philip Rosen, Esq., managing partner at Bloomgarden, Goudreau & Rosen, P.A., represented the seller, Starboard Group, a limited liability company from Coral Springs.

The buyer, a Miami Beach-based limited liability company, was represented and secured by Todd Cohen, associate, Drew A. Kristol, vice president investments, and Kirk D. Olson, vice president investments, all also in Marcus & Millichap’s Miami office. Farhan Kabani, associate vice president capital markets with Mark One Capital, arranged financing for the transaction. The 10-year, nonrecourse debt placement amortizes over 30 years and the LTV is 67 percent.

 

“We much appreciated the opportunity to work with a well-respected multi-unit Wendy’s franchisee to sell an option, undervalued as a result of the current favorable market conditions for single-tenant QSR properties,” says Franklin. “We successfully delivered a high-profile real estate portfolio of brand-recognizable restaurants with new long-term lease agreements, zero landlord responsibilities, and rent escalations to a 1031 exchange investor.”

 

“This was a unique opportunity to acquire a portfolio of exceptionally located, well-performing Wendy’s restaurants,” adds Tiktin. “The average annual store sales of each of these locations exceeded the Wendy’s national average annual sales per store.”

 

“The buyer was specifically interested in this portfolio because the transaction parameters fit his 1031 exchange requirements,” notes Cohen. “In addition to the strong cash flow offered along with annual rental increases, the South Florida locations are rare infill sites that all boast strong traffic and high visibility.”

At close of escrow, Starboard Group signed a new 20-year absolute triple-net lease, adding value to the transaction. Starboard currently operates Wendy’s locations in Alabama, Philadelphia, South Florida, Southern New Jersey and Virginia.

The properties’ locations are:

• 831 Yamato Road, Boca Raton
• 4950 Linton Road, Delray Beach
• 15020 Jog Road, Delray Beach
• 1197 South Military Trail, Deerfield Beach
• 10050 West Sample Road, Coral Springs
• 4676 North University Drive, Coral Springs
• 6375 West Sample Road, Coral Springs
• 9960 West Oakland Park Blvd., Sunrise
• 14900 Southwest 31st St., Miramar
• 7560 Northwest 186th St., Hialeah
• 11925 Northwest 27th Place, Miami
• 1515 Northwest 7th St., Miami

 

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