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  Red Lobster


Average Property & Lease

Average Sale Price$4,855,685
CAP Rate (12mo avg with 10+ lease term)5.65%
NOI$272,388
$/Square Foot$400 - $600
Building Size6,500 - 7,500 sf
Lot Size1 - 2 acres
Lease Term20 - 25 Years
Escalations2% Annually
CREDIT RATING
N/A
S&P
B3
Moody's
view credit rating chart
View Net Lease Property Listings at CALKAIN.COM Last Updated: September 9, 2016
Net Lease Advisor Overview

In 2014, Darden Restaurants Inc. sold Red Lobster to consortium made of Golden Gate Capital, a private-equity group and VEREIT to purchase operations and real estate. Golden Gate Capital then spun off and kept the real estate portion of Red Lobster.

Many Red Lobster listings are currently hitting the market and have 23 years remaining. Most recent Red Lobster sales have been in early 2016. The lease terms are generally 20 - 25 year leases, on an absolute NNN basis. Rental increases varies, but most leases offer a 2% annual rent bumps along with four, five-year options.

Pros

Cons

  • Absolute NNN leases
  • Annual increases
  • No franchisee
  • Newly formed private company
  • Low comparable data
Tenant Description

Red Lobster, a casual-dining seafood restaurant was found in 1968 by Bill Darden. The first store was in landlocked Lakeland, Florida. Red Lobster then was backed by General Mills, which helped the restaurants rapidly multiply from coast to coast. In 2014, Darden Restaurants, Inc. sold Red Lobster turning it into a private company.

In early days, Red Lobster only served lobster, snow crab and jumbo shrimp. Today, they serve Cheddar Bay Biscuits, wild-caught seafood, fresh fish and fresh Maine lobster prepared by certified grill masters on their signature wood-fire grills.

As of 2015, there are 678 Red Lobster stores throughout the country.
RED LOBSTER TREND
CAP Rate

2015 avg: 5.87%

2016 avg: 5.80%

RECENT SALES

Columbus, OH

$4,051,000 | 5.96%

Orem, UT

$4,830,129 | 5.35%

MORE INFO
www.redlobster.com