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LAS VEGAS—If several recent transactions are indication, at least some quick service restaurant properties are able to find capital in today’s market.

Two corporate-backed Del Taco properties in Las Vegas recently traded hands for a total of $3.75 million, or about $731 per square foot, in a recent all-cash deal. Though the properties were built in 1999 and 2001, they have newly signed long-term triple-net leases, according to Irvine, CA-based Faris Lee Investments.

Faris Lee’s Dennis Vaccaro and Matthew Mousavi represented the sellers, Innovative Property Partners LLC and Visionary Partners LLC. The buyer, an Arizona-based family trust, was represented by Marcus & Millichap Real Estate Investments Services.

“Faris Lee’s marketing strategy was to focus on the proven locations for both Del Taco properties in addition to the newly signed 20-year absolute NNN corporate-backed leases, providing an investor long-term security of income and virtually no management responsibilities,” Vaccaro says in an announcement. “Both properties also benefited from the synergy created by the strong adjacent anchor tenants at each location.” Though the buyer was not pressured by 1031 exchange deadlines, the deal closed quickly with a 20-day escrow, according to Faris Lee.

In another deal, priced at $7.3 million, Rochester, NY-based Broadstone Real Estate LLC announced that Broadstone Net Lease Inc. closed on the sale-leaseback of six properties with Sonic Corp. and affiliates. The properties are located in Oklahoma and Texas. Broadstone Net Lease is a private REIT formed in 2007 that currently owns 43 properties.

Meanwhile, in the restaurant franchisee world, Scottsdale, AZ-based GE Capital, Franchise Finance this week announced that it provided a $4-million credit facility to RDSL for the acquisition and development of seven Jack in the Box franchise restaurants in the greater Dallas market. RDSL was formed by four franchisees and, according to GE Capital, currently owns and operates 19 Jack in the Box units in Dallas and southern Oklahoma.

“I wouldn’t say that they trade easily, because they’re not very easy to finance,” Jonathan Hipp, president and chief executive officer of Reston, VA-based Calkain Cos., says of quick service restaurant properties. Still, he adds, they are trading, albeit at much higher cap rates than just a few years ago. “What was 7 before is now 8.5 to 9.5,” he adds.

What’s more, the market has seen a return of differentiation between corporate and franchisee tenants, a distinction that virtually disappeared when the market was moving fast. “There is definitely a differentiation today, but then, there are very few credit deals out there today,” Hipp says. Recent deals closed by Calkain include a franchisee Wendy’s property in Bowie, MD; in addition, Hipp reports having one four-property casual dining portfolio a few weeks away from closing and another casual dining property under letter of intent.

Without the rare credit backing of, say, a McDonald’s, the real estate, unit sales and the operator’s track record is ultimately how these properties are being valued today. “Part of it is driven by the location of the restaurant, and the sales,” says Hipp, “and then it boils down to what is the strength of the operator.”

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