VEGAS INC coverage
A fast-food franchisee has sold 18 Wendy’s restaurant buildings in the Las Vegas Valley.
But don't worry. The restaurants likely aren't going anywhere.
The $23.7 million bulk sale, recorded this month, was made by Cedar Enterprises to two national real estate firms. Cole Real Estate Investments in Phoenix acquired 10 of the properties while National Retail Properties in Orlando, Fla., bought the other eight.
Cedar still owns the restaurants’ operations but sold their buildings “to take advantage of the favorable market conditions,” spokeswoman Traci Mills said. She did not elaborate.
Ohio-based Cedar operates 31 Wendy’s locations in the valley. It has a regional office on East Lake Mead Boulevard in North Las Vegas.
Although Las Vegas normally doesn’t get such portfolio sales, these types of buildings are relatively safe investments, said David Lipp, an associate director with the Newmark Grubb Knight Frank real estate brokerage. Say what you will about the meals, but fast-food restaurants typically are occupied by long-term, financially sound tenants.
“They’re paying that rent, on schedule, for the next 20 years,” Lipp said.
Cole Real Estate focuses on buying single-tenant commercial properties. As of Dec. 31, it controlled about 76.4 million square feet of space in 47 states with a combined purchase price of $12.4 billion.
Spokesman Eric Waters confirmed that Cole bought the 10 Wendy’s locations but said company executives would not comment on the deal.
National Retail, which also focuses on single-tenant retail, owns about 1,500 properties in 47 states. Spokesman Chris Barry declined to comment on the Wendy’s deal.