by Dan Rafter
Want to buy a Buffalo Wild Wings? How about an Applebees?
You’ll need more than $3 million to purchase either property, according to the latest net lease casual dining report from the Boulder Group.
According to the company’s first quarter report, the median asking price of all casual dining restaurants stood at more than $3.5 million in the first three months of the year.
Certain casual chains, though, were listed at higher median asking prices. Outback Steakhouse restaurants, for instance, were listed at a median price of more than $4.3 million in the first quarter, while Red Lobster restaurants were listed for a median asking price of more than $4.5 million, according to The Boulder Group.
These high prices aren’t surprising. The casual dining segment remains a strong one, a better performer than traditional fast-food restaurants. Investors have noticed, and are increasingly investing in these properties. One of the reasons cited by the Boulder Group? Casual dining restaurants remain one of the few net lease sectors that remains resistant to the threat of e-commerce.
Some notable net least casual dining sales in the Midwest during the first quarter includes the sale of an IHOP in Beavercreek, Ohio, for more than $3.7 million and a Logan’s Roadhouse in Dickson, Tennessee, for more than $3.6 million. A Denny’s in Tiffin, Ohio, sold for $1.45 million.