Golden Gate Capital has continued to snatch up Red Lobster properties from Phoenix-based VEREIT, paying more than $8.4 million on Dec. 17 for restaurant parcels on International Drive and Waterford Lakes Town Center, which follow four Red Lobsters the company bought in Greater Orlando back in early November for a combined $13 million.
The San Francisco-based private equity firm closed its purchase just before the holiday on the Red Lobster at 9892 I-Drive ($4.2 million), and the Red Lobster at 617 N. Alafaya Trail, located in Waterford Lakes Town Center ($4.2 million).
GrowthSpotter first reported on Nov. 4 that affiliate GGC Real Estate Investments had bought $204 million worth of Red Lobster properties across the country from VEREIT, which sources close to the deal estimated at about 50 properties overall.
That portfolio transaction included two Orlando locations (the Florida Mall, and 7373 W. Colonial Ave.), along with two Kissimmee locations (4010 W. Vine St., and 5690 W. Irlo Bronson Memorial Highway).
Golden Gate Capital owns the Red Lobster brand and its related assets, having paid $2.1 billion in 2014 to buy the chain from Darden Restaurants.
Acquiring the real estate those restaurants sit on was the next step, which Golden Gate put into motion with seller VEREIT in late October.
Following that $204 million in land acquisitions reported in November, the two firms announced a partnership to divest another $400 million in properties through single- or multi-unit sales in the future. The two latest sales are part of that round.
For the Dec. 17 acquisitions, Golden Gate has signed new leases with Red Lobster Hospitality on both the I-Drive and Waterford Lakes Town Center properties through July 2039, with potential extensions through 2059.
Spokespersons for Red Lobster and Golden Gate Capital did not immediately respond to requests for comment Tuesday afternoon on the property acquisitions.
GGC Real Estate Investments had taken out a $133 million mortgage with Wells Fargo to finance the restaurant pool acquisition back in early November. No new mortgage was recorded in Orange County for the two newest purchases.