ORLANDO—A seven-property Applebee’s restaurant portfolio has a new owner. Located primarily in Central Florida, the triple net leased retail assets traded for about $18.5 million. The sale price equated to a 6.93% aggregate capitalization rate.
David Sobelman, Calkain’s executive vice president, led the sale and marketing aspects of the portfolio for the seller. Sobelman tells GlobeSt.com the deal was unique in that he found individual buyers for each retail asset rather than selling the portfolio in a single transaction.
“There are certain instances where a true portfolio sale will benefit the seller and allow an investor to attain some critical mass in any one transaction,” Sobelman says. “However, I felt that this portfolio would benefit the seller greatly by allowing individual investors the opportunity to purchase one location within the portfolio for their personal accounts.”
The retail properties featured landlord-friendly leases, strong Florida real estate, a seasoned operator and a favorable yield. Sobelman reports the properties attracted investors from all over the country and hundreds of inquiries and multiple offers were received for each asset.
“It’s a lot more work for us to sell the individual locations, but we know that in certain instances, the benefits to our clients are overwhelmingly positive,” says Sobelman. He estimates the sellers saw about a 200 basis point difference, equal to an additional $4 million, by selling the assets individually.