The Real Deal Miami

12 Wendy’s eateries sell for $26.5M

Marcus & Millichap handles sale/leaseback of restaurant portfolio

November 18, 2014 12:45PM

7560 Northwest 186th Street

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.

“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.