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The recent sales of three International House of Pancakes restaurants in Orlando and Osceola County generated “unprecedented prices and cap rate returns,” according to agents who brokered the deals.

All three properties had leases with corporate guarantees from Sunshine Restaurant Partners, the largest IHOP franchisee in the U.S.

Brian Capo and John Krzyminski, investment specialists in Marcus & Millichap‘s Orlando office, represented both the buyers and sellers for the three IHOP restaurants, which includes the location near the corner of Universal Boulevard and International Drive. It sold last Thursday, but hasn’t been recorded yet with the Orange County Comptroller.

The sale price of $4.3 million and a cap rate of 5.49 percent gave the I-Drive property a price per square foot of nearly $1,400, according to Capo.

The seller, Kissimmee-MFG LLC, also sold its IHOP on Kissimmee’s W192 tourist corridor for $2.5 million to the same buyer’s group, New York-based Gray Associates LLC.

All are examples of Orlando’s “extremely frothy” commercial real estate market, Capo said.

The 6.61 percent capitalization rate in Kissimmee included additional income from a Double-Net hookah lounge, which was included in the sale of the property. Capo told GrowthSpotter the sellers had owned the two restaurants for 40 years and were looking to simplify their estate.

“It was time to divest,” he said.

The buyer was “looking for low-management, income-producing assets with quality tenants,” Capo said. The investor, a 1031 exchange buyer, was willing to pay a high price and receive a lower return for quality investments. IHOP fit the bill.

“It’s an iconic and internationally recognized brand,” Capo said. “Sales at both locations were very strong.”

Capo and Krzyminski also represented the same seller and buyer on the January sale of the IHOP at 4101 13th St. in St. Cloud for $3.74 million.

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