ORLANDO—Two Arby’s properties in the Tampa, FL area just traded hands in a sale-leaseback deal. The total sales price: $3 million. Driven by the strong historical performance of both Arby’s locations and the demand from investors for single-tenant triple-net leased properties, the combined value of the transaction ended up nearly matching the asking price.
Franklin Street director Jonathan Graber and investment associate Joe Morrow, who specialize in retail properties throughout West and Central Florida, represented the seller of both Arby’s properties, a Georgia-based Arby’s franchisee. The properties were purchased as part of 1031 tax exchanges. Both deals included a brand new 20-year triple net lease signed by the seller.
“The demand for long-term triple net leases is as strong as ever, especially opportunities with 20 year leases that are above a 5% cap rate,” Graber tells GlobeSt.com. “Both offerings commanded multiple offers and were under contract within five weeks. We were able to provide our buyers security since both stores were going thru a major remodel and they had strong sales histories with their rent/sales ratio at healthy levels.”
One of the deals features an Arby’s at 12915 Cortez Boulevard in Brooksville. It changed hands for $1.5 million, or about $508 per square foot. The 2,955-square-foot restaurant was built in 1994 and is set to be remodeled this year.
The second Arby’s property, located at 7125 State Road 54 in New Port Richey, sold for $1.46 million, or about $417 per square foot. The 3,500-square-foot restaurant was constructed in 1990. It underwent a complete remodeling that was completed in November 2015.
“In today’s market, single-tenant assets are highly sought after – especially with a limited supply of such assets available for sale,” says Graber. “This allows sellers to push the envelope on what pricing they believe the market will command. The retail investment sector is particularly advantageous to both buyers and sellers, compared with other sectors that are so volatile.”
