CAPITOL HEIGHTS, MD—Two Wendy's properties, one located in Capitol Heights and the other Leonardtown, MD, have traded to a single buyer at 96% of their original asking price. The deal illustrates, of course, the near-insatiable demand for net lease properties in good locations under national brands. But it also shows how other factors important to buyers, such as the strength of the actual franchisee, can make a difference in a sale as well.

The two properties traded for a combined $5.1 million. Nathan Pealer, senior associate in Marcus & Millichap's Washington, D.C. office, marketed the properties on behalf of the seller, DavCo Restaurants, one of the world's largest Wendy's franchisees, which owns 152 restaurants in the Washington DC-Baltimore area. The buyer was a private investor that acquired the properties via limited liabilities companies. Pealer represented the buyer as well.

The properties were sold subject to brand-new 20-year net leases with several options for the tenant to extend the leases.

This transaction was a little unusual because normally net lease buildings sell through a 1031 exchange, Pealer tells GlobeSt.com. The seller did indeed receive multiple 1031 offers but it opted for this particular bid because the buyer was interested in both locations.

There was high demand for the properties for the usual reasons net lease buildings are pursued, Pealer says. In this case, though, having a large franchisee as the tenant provided an extra measure of comfort. "This is a privately-owned, very well capitalized operator who has been in the market for years."