For More Information
Brian Beggs, CFA
Chief Investment Officer
CONTACT
Phone: 816.932.5568
Email Brian
Case Studies: Applebees
In April 2011, an investment group led by Stephen J. Block purchased a portfolio of three restaurants located in Olathe, Kansas and Harrisonville and Sedalia, Missouri. Each 5,000 square foot restaurant was leased to Applebee's Corporate on a triple-net basis with more than 17 years remaining on the lease term.
Block was able to couple a 60% down payment with a 40% loan from Ohio National Life Insurance Company on attractive terms. Most notably, the loan fully amortizes over a relatively short 13 years, allowing for rapid debt principal pay down while still permitting strong cash flows.
Strong credit, excellent locations and a well-balanced capital structure will allow the Applebee's portfolio to generate exceptional cash flows for years to come.
