Four Corners Property Trust (FCPT), a real estate investment trust primarily engaged in the ownership and acquisition of high-quality, net-leased restaurant and retail properties, has signed a definitive agreement to acquire up to 14 Darden restaurant properties (13 Cheddar’s Scratch Kitchen properties and one Olive Garden property) for a purchase price of up to $85.0 million on initial cash rent of up to approximately $5.35 million.
The properties are located in strong retail corridors with high traffic counts and attractive demographics. The geography is spread across Tennessee (seven), Indiana (three), Kentucky (three) and Ohio (1). Each property is subject to an individual triple net lease with a Darden corporate guaranty and annual rent increases of 1.5%. The portfolio has a weighted average term of 13 years remaining.
“This transaction represents an opportunity for FCPT to build out our portfolio at scale with the acquisition of very high-quality real estate subject to strong long-term triple net leases,” said Bill Lenehan, CEO of FCPT. “Darden is an investment grade tenant with whom we are very familiar, and Cheddar’s as a brand will add to our ongoing retail brand diversification efforts. This portfolio reflects our commitment to sourcing opportunities that match our high-quality underwriting threshold.”
The transaction is expected to close in the third quarter of 2023.
