Investment vehicles managed by banks and REITs across the country paid a combined $39.371 million for 10 Chili's restaurants in the Greater Orlando over the past two weeks, part of a larger sale-leaseback agreement with Chili's owner Brinker International.
Dallas-based Brinker filed an SEC form on Aug. 1 outlining an agreement to sell 50 Chili's restaurants to SunTrust Equity Funding, the investment arm of SunTrust Banks. The aggregate sales price was $158.6 million.
The six Orlando-area restaurants that were part of the SunTrust Equity deal on Aug. 8 were at 5340 W. Irlo Bronson Memorial Highway, Kissimmee; 8002 Golden Sky Lane, Orlando (fronting The Florida Mall); 1634 W. Orange Blossom Trail, Apopka; 12181 E. Colonial Drive, Orlando; 12172 S. Apopka Vineland Road, Orlando; and 7385 W. Colonial Drive, Orlando.
On Aug. 9, with deeds recorded Aug. 14, Brinker separately sold three Chili's restaurant sites totaling $13.016 million to an affiliate of San Diego-based Realty Income. Those locations were 2425 E. Semoran Blvd. in Apopka, 6949 S. Semoran in Orlando, and one in Orange City.
Another was sold on Aug. 8 for $4.529 million in Lady Lake to California-based Four Corners Property Trust, part of a separate deal to sell up to 48 restaurants to FCPT for a total sales price of $155.7 million, according to the disclosure form.
FCPT owns 506 restaurants nationwide with 20 brands, including Olive Garden and Longhorn Steakhouse. According to a company press release, FCPT closed on the purchase of 46 of the Chili's restaurants on Aug. 1 for $149.8 million, with the option to buy two others which would reach that total sales price.
Pursuant to the sales agreements, Brinker and FCPT will enter into lease agreements with the buyers for each of the properties with initial terms of 15 years, according to the disclosure form. The leases will include options for five-year renewals, with the total number of options varying by property.
Brinker International is a casual dining restaurant company whose brands include Chili's Grill & Bar and Maggiano's Little Italy. Founded in 1975, the company owns, operates or franchises more than 1,600 restaurants in 31 countries and two territories, according to its website.
The company moved into a new 216,300-square-foot, custom-built headquarters building in Dallas this year, leaving behind a low-rise building in the city it had occupied since the mid-1980s, reported The Dallas Morning News.
Representatives of Brinker International and SunTrust Equity Funding declined to comment on Aug. 9.