Marcus & Millichap Real Estate Investment Services associateCharles M. Lucenay says the Glendale, CA seller owns 54 Burger Kinglocations throughout Texas and California. The seller has also beena Burger King franchisee for close to four decades.

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"They like to own, whenever possible. In this case, they'llstill own and operate the restaurants, they're just selling theland and the buildings," says Lucenay, who has the portfoliomarketing assignment with Marcus & Millichap associate EdwardA. Benton. Both brokers are with the company's Houston office.

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Benton tells GlobeSt.com the portfolio is up for sale so theowners can tap into its equity in its first ever sale-leasebackmove. "There are some concepts Burger King is going to try inSouthern California, and the franchisee wants to investigate theseconcepts to promote some growth out there," Benton adds.

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The restaurants were built in the mid-1990s, and all have20-year, triple-net leases with base rents ranging from the mid-20sto the upper-30s per square foot. The brokers say they'll entertainone-off bids or offers for the entire portfolio and there is nodeadline on call for offers.

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"We see a lot of 1031 guys coming into something like this,"Lucenay remarks. "They're coming from multifamily properties thatare a lot more management-intense. The single-tenant transactionsare often a much better option for them."

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In Houston proper, the restaurants are at 3715 Little York Rd.;6220 E. Freeway; 7802 State Hwy. 6 North and 4676 Bellfort Ave.Also included are Houston-area restaurants at 907 W. Davis St. inConroe; 24571 FM1314 in Porter and 1525 W. Church St. inLivingston.

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