12 Wendy’s eateries sell for $26.5M
A portfolio of 12 Wendy’s restaurants in South Florida sold for $26.5 million in a deal handled by Marcus & Millichap. The sale price represents a 6 percent cap rate and the agreement involves a long-term leaseback agreement.
Adam J. Tiktin, first vice president investments, and associate Debra Franklin, both in Marcus & Millichap’s Miami office, along with Philip Rosen, managing partner at Bloomgarden, Goudreau & Rosen represented seller Starboard Group, a limited liability company from Coral Springs.
The buyer, a Miami Beach-based limited liability company, was represented by Todd Cohen, associate; Drew A. Kristol, vice president investments and Kirk D. Olson, vice president investments, also in Marcus & Millichap’s Miami office. Farhan Kabani, associate vice president capital markets with Mark One Capital, arranged financing for the transaction.
“We much appreciated the opportunity to work with a well-respected multi-unit Wendy’s franchisee to sell an option, undervalued as a result of the current favorable market conditions for single-tenant [quick service restaurant] properties,” said Franklin. “We successfully delivered a high-profile real estate portfolio of brand-recognizable restaurants with new long-term lease agreements, zero landlord responsibilities, and rent escalations to a 1031 exchange investor.”
“This was a unique opportunity to acquire a portfolio of exceptionally located, well-performing Wendy’s restaurants,” said Tiktin. “The average annual store sales of each of these locations exceeded the Wendy’s national average annual sales per store.”
At close of escrow, Starboard Group signed a new 20-year absolute triple-net lease, adding value to the transaction. Starboard currently operates Wendy’s locations in Alabama, Philadelphia, South Florida, Southern New Jersey and Virginia.
The properties’ locations are: 831 Yamato Road, Boca Raton; 4950 Linton Road and 15020 Jog Road in Delray Beach; 1197 South Military Trail, Deerfield Beach; 10050 West Sample Road, 4676 North University Drive and 6375 West Sample Road in Coral Springs; 9960 West Oakland Park Boulevard, Sunrise; 14900 Southwest 31st Street, Miramar; 7560 Northwest 186th Street, Hialeah; 11925 Northwest 27th Place and 1515 Northwest 7th Street in Miami. – Jennifer White Karp