Four Corners Property Trust expands with $4.3M Applebee’s deal

Four Corners Property Trust (NYSE:FCPT) has closed the acquisition of an Applebee’s restaurant property in California for $4.3 million, continuing its aggressive pursuit of high-quality, net-leased retail assets.

The property, situated within a high-performing retail corridor, is currently operated by the Flynn Group—one of the largest franchise operators in the United States.

The deal is structured as a triple net lease, a favored arrangement for REITs that shifts the burden of taxes, insurance, and maintenance to the tenant, with approximately seven years of term remaining on the existing agreement.

The financial metrics of the deal reflect the stable yield typical of the casual dining sector.

The transaction was priced at a 6.2% cap rate based on base rent.

However, the yield climbs to a 7.4% cap rate when factoring in estimated percentage rent—a common feature in restaurant leases where the landlord receives a portion of the venue's gross sales.

These figures are calculated as of the closing date and exclude transaction costs.

For Four Corners, a REIT originally spun off from Darden Restaurants, the acquisition underscores a commitment to diversifying its portfolio with "e-commerce resistant" tenants in prime geographic locations.

By partnering with a robust operator like Flynn Group, FCPT maintains its strategy of securing reliable cash flows from established brands in the restaurant space.