The sale/leaseback deal gives Buffets funds to refinance 24 of its 100 restaurants in 12 states and increases CNL's restaurant portfolio to 674 locations. Rents, occupancies, sales and seating capacities at the acquired properties weren't disclosed.
For CNL Franchise, the deal was its largest since June 2000 when the company was created as part of CNL American Properties Fund Inc. Bank of America is CNL Franchise's partner. CNL Financial Group Inc. of Orlando is the parent of all the CNL funds and companies.
In South Florida, Buffets has Hometown Buffet restaurants in Davie and Hallandale. Buffets' other brands are Old Country Buffet and Tahoe Joe's Steakhouse.
The Buffets acquisition comes after CNL American Properties reported a fiscal 2001 loss of $24.4 million or a loss of 56 cents per share. CNL blamed the loss largely on three properties operating under the CNL Restaurant Properties Inc. umbrella. They are Phoenix Restaurant Group Inc., Roadhouse Grill Inc. and Houlihan's Restaurant Group, all in Chapter 11.
CNL Financial Group founder James M. Seneff pumped $12.4 million into CNL American to cover part of the deficit, as GlobeSt.com reported April 8. CNL American Properties is comprised of CNL Franchise Network LP and CNL Restaurant Properties Inc.
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