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ODESSA, TX-In an off-market deal, Romulus Inc. has sold the first IHOPs from a five-asset portfolio in West Texas that it bought earlier this year. The IHOPs in Odessa and San Angelo brought a combined $5.1 million, with the entire portfolio valued at $12 million to $14 million.

HMB Investments LLC of Woodland Hills, CA came away with the 4,694-sf restaurant at 2971 John Ben Sheppard Pkwy. in Odessa and 5,525-sf IHOP at 4302 College Hills Blvd. in San Angelo. “This was a rare situation in which one buyer wanted two properties,” says Jamie Medress, senior investment associate with Marcus & Millichap Real Estate Investment Services in Phoenix. “They came to us before the properties hit the market and we figured it was a good fit.”

Medress adds that the buyer acquired the restaurants with 1031 exchange proceeds from an industrial property sale in California. Andrew Perris of Panorex Commercial, also Woodland Hills, represented the buyer.

Medress says two other buyers are negotiating for IHOP restaurants in Midland at 2507 W. Loop 250 N and 301 E. Interstate 20. The deals are anticipated to close in 90 to 120 days. The remaining asset is a 4,666-sf IHOP at 3750 S. Clack St. in Abilene, which is being marketed for $2.87 million. “The seller’s goal is to have the entire portfolio sold by the end of the year,” Medress says.

Medress tells GlobeSt.com that Phoenix-based Romulus Inc. acquired the portfolio earlier in the year from the original West Texas franchisee, with the intent of a very short-term hold. “They restructured the deals a little then put them back on the market,” he says.

The restaurants are a little more than 10 years old. Medress says the franchisee leases average 15 years. The base rents range from $43 per sf to $46 per sf.

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