Net-Lease tenant transactions include Wal-Mart, K-Mart, Walgreens, CVS, Fed Ex, US Post Offices, and a wide spectrum of national and regional retail and restaurant properties, such as Taco Bell, KFC, Burger King, Popeye’s Chicken, Chili’s, Houlihan’s, and Go Roma Italian Kitchen.
Acquisition & Disposition 21 Net-Leased Properties, Birmingham/Huntsville, AL
Acquisition: $21,045,000 • Disposition: $25,500,000
HCA, through an affiliated investment partnership, acquired 21 KFC/Taco Bell properties as part of a larger M&A transaction between two of YUM Brands’ largest KFC franchisees. At the time, financing for this real estate asset class was difficult to secure, creating the opportunity to achieve a pricing discount for the properties. HCA worked closely with one of its long standing mortgage banking relationships to assemble a syndication of credit unions for 75% loan-to-cost, non-recourse debt, achieving an exceptional cash flow during its 5-year hold of the properties. With the real estate market recovery, HCA sold three of the properties to private investors, and the remaining 18 to a publicly traded REIT. Overall Investor returns exceeded 25% IRR and 3X Multiplier.