(For more retail coverage, click GlobeSt.com/RETAIL.)

PHILADELPHIA-Two rapidly expanding restaurant chains--Chili's Grill & Bar and Texas Roadhouse--have taken ground leases in Central Pennsylvania locations, and both plan more in the area. Chili's typically builds units of about 6,000 sf, while the typical Texas Roadhouse footprint is 7,000 sf, according to Rick Schuch of Conshohocken-based Fameco Real Estate, who negotiated the ground leases for both chains and represents both exclusively in this area.The Chili's sites are freestanding pads at the following centers: Granite Run Square in Lancaster, which is owned by Lancaster-based Horst Realty; Home Depot Shopping Center in Hanover, a 190,000-sf former Kmart center, owned by Gettysburg-based Monahan Properties; York Town Center, a proposed 300,000-sf center in East York being developed by Chattanooga, TN-based CBL & Associates; High Point Commons, a 310,000-sf center currently under construction in East Harrisburg by CBL, and Delco Market Place, a 370,000-sf shopping center being redeveloped by Philadelphia-based WP Properties.Schuch tells GlobeSt.com that these agreements follow a just-opened Chili's at the Home Depot Shopping Center in Carlisle. Another four ground leases are currently under negotiation for Chili's in this area, Schuch says. Chili's now operates approximately 1,130 units and is the largest of Dallas, TX-based Brinker International's several restaurant chains.In an unrelated transaction, Louisville, KY-based Texas Roadhouse signs a ground lease for a pad site in a small restaurant park, owned by Monahan at Eisenhower Drive and Wilson Ave. in Hanover. The co-tenant is Ruby Tuesday. Schuch says he is currently negotiating five additional sites for Texas Roadhouse, including one in the Philadelphia CBD.He declined to disclose the rent rate for ground leases. On condition of anonymity, a retail specialist tells GlobeSt.com that rents for the Central Pennsylvania ones "probably each average about $110,000 a year."

NOT FOR REPRINT

© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.