FCPT Announces Acquisition of a Chili’s Restaurant Property for $3.2 million

Rhea-AI Summary

Four Corners Property Trust (NYSE:FCPT) has acquired a Chili’s restaurant property in Georgia for $3.2 million. The property will be leased to a franchisee operator under a triple net lease, featuring a 20-year term with 1.5% annual rent increases. This transaction reflects a 6.5% cash capitalization rate and is situated in a strong retail corridor, enhancing FCPT's portfolio focused on high-quality, net-leased restaurant properties.

Positive

• Acquisition of a high-quality Chili's property for $3.2 million.
• Long-term lease secured with 20 years remaining and annual rent increases.
• Transaction priced at a favorable 6.5% cash capitalization rate.

Negative

• None.

Four Corners Property Trust (NYSE:FCPT), a real estate investment trust primarily engaged in the ownership of high-quality, net-leased restaurant properties (“FCPT” or the “Company”), is pleased to announce the acquisition of a Chili’s restaurant property for $3.2 million. The property is located in a strong retail corridor in Georgia and will be occupied under a new triple net lease by a franchisee operator with 20 years of term remaining and with annual rent increases of 1.5%. The transaction was priced at a 6.5% going-in cash capitalization rate, exclusive of transaction costs.

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210301006064/en/

FAQ

What property did FCPT acquire?

FCPT acquired a Chili’s restaurant property located in Georgia.

How much did FCPT pay for the Chili's property?

FCPT paid $3.2 million for the Chili's restaurant property.

What are the lease terms for the Chili’s property?

The property will be leased under a triple net lease with 20 years remaining and annual rent increases of 1.5%.

What is the cash capitalization rate for the transaction?

The transaction was priced at a 6.5% cash capitalization rate.

What is the significance of this acquisition for FCPT?

This acquisition strengthens FCPT’s portfolio in a robust retail corridor and enhances potential revenue growth.