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Four Corners Property Trust Announces $32.5 million Outparcel Portfolio with PREIT

Four Corners Property Trust (NYSE:FCPT), a real estate investment trust engaged in the ownership of high-quality, net-leased restaurant properties ("FCPT" or the "Company"), is pleased to announce

Benzinga · 06/09/2022 16:10

Four Corners Property Trust (NYSE:FCPT), a real estate investment trust engaged in the ownership of high-quality, net-leased restaurant properties ("FCPT" or the "Company"), is pleased to announce that it has signed a definitive agreement for the purchase of 11 outparcel properties from PREIT (NYSE:PEI) for $32.5 million. The transaction is priced at a 6.5% going-in cash cap rate, exclusive of transaction costs. The portfolio includes 8 single tenant restaurant properties and three non-restaurant retail properties. FCPT expects to acquire a majority of the portfolio in the second and third quarters of 2022, subject to customary closing conditions, seller's board approval, and regulatory approvals.

Bill Lenehan, CEO of Four Corners Property Trust, stated: "We have previously executed multiple outparcel transactions with the PREIT team and they have been an exceptional partner for us. We are excited to announce this 11-property outparcel portfolio and to continue our strategy of identifying low-rent outparcel properties leased to strong credit operators."

The properties share similar qualities with FCPT's existing outparcel assets and have contractual rent stream growth, net-lease structures, and strong tenancy with credit-worthy operators. The retail outparcels are located within highly trafficked and populated corridors in Maryland, Massachusetts, Pennsylvania, and South Carolina. Each property has a separate, individual lease and the leases have a current weighted average remaining term of approximately eight years.