Marcus & Millichap Miami Team Tapped To Market Wendy's Portfolio For $48 Million

Marcus & Millichap has obtained the exclusive listing for a portfolio of 19 Wendy’s restaurants, 18 of which are located throughout North Carolina and one in Virginia. The portfolio is listed for $48,019,876. The properties may be purchased together or separately.
Ronnie Issenberg, a vice president investments, Gabriel Britti, an associate vice president investments, and Roee Ben-Moshe, an associate, all in Marcus & Millichap’s Miami office, are marketing the portfolio on behalf of the seller, a private company from Memphis, Tenn.
Marcus & Millichap’s brokers of record are James Allen Smith in North Carolina and Payton Banks in Virginia.
 

“The number of quick service restaurants sold doubled last year and the asset class continues to be very popular with investors,” says Issenberg.

 

“Due to the popularity of quick service restaurants, cap rates for this investment class are at generationally low levels,” adds Britti. “We are also seeing a trend wherein franchise-guaranteed properties are beginning to rival corporate-backed properties.”

The Wendy’s properties are guaranteed by NPC International, which is the largest franchisee in the United States and is currently operating more than 1,250 Pizza Hut units in 28 states and over 140 Wendy’s units in five states. All of the Wendy’s locations in this portfolio have brand-new 20-year leases that include 10 percent rent increases every five years with four five year options. The leases are absolute-net in nature, with no landlord responsibilities.

“Whereas private investors and 1031 exchange investors look for individual restaurants with long-term leases and rental escalations because they are relatively safe investments, institutional investors and REITs seek larger portfolios to obtain economies of scale,” notes Ben-Moshe.

The 19 Wendy’s restaurants are located in North Carolina and Virginia.

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