Four Corners Buys Chili's Restaurant Portfolio for $29M

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MILL VALLEY, CA—Four Corners Property Trust has acquired seven corporate-operated Chili's restaurant properties for $28.7 million. The properties are located in Colorado, Louisiana, Mississippi, Oklahoma, and Texas, and are occupied under triple-net leases with approximately 14 years of term remaining and annual rent increases of 1.5%.

The leases are guaranteed by Brinker International, Inc. The transaction was priced at a 6.3% going-in cash capitalization rate.

The net-lease REIT has been on an acquisition spree of late, picking up multiple portfolios. It recently closed the first tranche of its $67.9 million deal with Seritage Growth Properties, in which it is buying 23 outparcel properties.  In November it signed a definitive agreement to buy 14 outparcel properties from PREIT for $29.9 million. Earlier in the year, it signed a definitive agreement for the purchase of 20 additional outparcel properties from Washington Prime Group for $37.8 million. This transaction marked Four Corners' first investment outside of restaurant net lease as part of a diversification strategy.