Atlanta, GA (May 28, 2015) – Sands Investment Group has announced the net lease sale of 12 Kings Family Restaurants. Andrew Ackerman, managing director, Sands Investment Group’s Atlanta office, represented the buyer, a CA-based private equity group, in the transaction and provided $17 million in acquisition sale-leaseback financing.
Kings Family Restaurants had been looking for the right buyer for some time. Ackerman represented the buyer and provided the acquisition sale leaseback financing necessary to close. To finance the transactions, Ackerman completed a sale leaseback of the 12 restaurants to Store Capital, an AZ-based REIT. In this way, the buyer was able to sell the real estate while simultaneously entering into a long-term lease, providing an opportunity to reinvest the capital into the operations.
“The Kings Family Restaurants are well-regarded in Pennsylvania but the time had come to put some value back into the chain. The buyer recognized that these assets were under-utilized and that there was a greater opportunity to increase cash flow with the right operational changes,” said Ackerman. “The acquisition sale-leaseback formula was a win-win for all parties in that it created the necessary capital to finance the long-term plans for the restaurants.”
“This transaction demonstrates the increasing investment strength of regional brands. In this case, rather than look to a national brand, the greater opportunity was in focusing on a turnaround strategy with a well-known regional operator,” added Ackerman.
Chris Sands, founder, Sands Investment Group, noted that the creative strategy employed in this deal differentiates the firm’s niche. “By focusing on net lease, we have broader access to the right buyers and can better match investment goals. These types of transactions are more than a simple investment strategy as this is a longer-term strategy to add value to a portfolio.”
Sands Investment Group is a commercial real estate brokerage firm that specializes in the buying and selling of net lease properties for private investors and institutions across the United States. Since its founding in 2010, SIG has closed over 625 transactions worth more than $2.15 Billion in 45 states. Advisors with the company currently have over $300 million in active inventory. As the first boutique firm to offer a national listing platform while providing the proven track record of a large firm, Sands Investment Group has become one of the nation’s fastest growing net lease companies in the US. As a leader in the industry and the only to offer product-type specialization, the firm’s experience in net lease, retail, office and industrial transactions is unparalleled. Sands Investment Group has offices in Atlanta, GA, Austin, TX, Charleston, SC, Indianapolis, IN, Philadelphia, PA and Santa Monica, CA. Learn more at www.signnn.com.