Consolidated-Tomoka Lands $15M Retail Portfolio
The four-building, triple-net lease portfolio was acquired as part of a 1031 exchange.
by Csilla Borsos
Outback Steakhouse in Charlotte, N.C.
Daytona Beach, Fla.—Florida-based Consolidated-Tomoka Land Co. has recently announced the purchase of four single-tenant, triple-net lease properties in a leaseback transaction with Bloomin’ Brands Inc. The assets traded for a total of approximately $15 million.
The portfolio consists of three Outback Steakhouse restaurants located in Austin, Texas, Charlotte, N.C., and Charlottesville, Va., as well as another property in Austin, called Carabba’s Italian Grill.
The assets are triple-net-leased with an initial term of 15 years, including a corporate guaranty and annual rent increases. The purchase was part of a 1031 exchange, making use of the remaining proceeds from Consolidated Tomoka’s recent disposition of a property in Lexington, N.C., which was leased to Lowe’s. This property is also expected to be part of the 1031 like-kind exchange, utilizing proceeds from the recent sale of 14 properties, including nine Bank of America financial centers in Orange County, Calif.
“Although the initial yield is below our cap rate guidance, this portfolio represents strong performing units in both attractive demographic areas and major retail corridors,” said John Albright, president & CEO of Consolidated Tomoka, in prepared remarks.
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