14 Taco Bell QSRs
Closing dates: Mid-2022
Price: $32.2 million
Cap rates: 4.25% & 5.25%
Earlier this year, a Birmingham-based broker-developer with whom Chris Schellin, President of Westwood Net Lease Advisors, has sold many properties over the years, approached Schellin with a deal involving the largest Taco Bell franchise in the country.
Affiliates of the franchisee were contemplating selling a portion of their real estate portfolio, so they contacted their broker-developer at Harbert Realty Services in Alabama for assistance. In turn, he reached out to Schellin for his national reach, substantial commercial real estate client base, and triple net (NNN) lease expertise, confident he could help his client sell multiple Taco Bell properties while the sellers’ market was still hot.
Up to the challenge, Schellin didn’t waste a moment, and within five months of that phone call, contracted and sold 14 of the franchise’s Taco Bell NNN properties for $32.2 million.
The Challenge: Selling 14 NNN Taco Bell Fast Food Restaurants Quickly in the Most Competitive & Unpredictable Triple Net Market
“In the first half of 2022, we were still in a very competitive sellers’ market,” Schellin explained, “but there was a hint of unpredictability as to the timing of market shifts. I suspected it would begin moving toward a buyers’ market around the end of Q2 and the beginning of Q3, so I had to work smart and efficiently to help the seller list and contract fourteen triple net Taco Bells very quickly.
“I reached out to my vast nationwide buyer and broker network and used my NNN expertise to price each Taco Bell so they would sell fast and turn a significant profit while collaborating with the Harbert Realty broker, who acted as the seller’s representative.”
The other ongoing challenge that required complete organization and strong communication was working with multiple buyers and their brokers across the nation and the various dynamics that surface throughout each transaction.
Schellin said, “It was up to me, as the co-listing agent and triple net specialist, to get the Taco Bell franchise owners premium pricing for their properties, meet any challenges that arose head-on, get them to the closing table without complications, and ensure the transactions would be profitable.”
The Process: Maximize NNN Market Trends — List & Sell Taco Bells with Precision
To interest buyers in the peak seller’s market, Schellin and Harbert Realty put together a plan to be aggressive on pricing and cap rates, and feature each Taco Bell’s 20- to 25-year guaranteed absolute NNN lease (a full-term lease is an unusual feature on existing properties). They also highlighted each high-performing location, many in desirable southern states.
“We didn’t list all fourteen Taco Bells at once. We wanted an exactness of what the market would bear when it came to timing, pricing, and cap rates. This resulted in precisely what we wanted. We were able to adjust the list price and advertised cap rates up or down on each subsequent property based on buyer feedback. We proceeded to achieve the asking price on each property, and thirteen of the Taco Bells sold inside of five months, the fourteenth shortly thereafter.” Schellin explained.
Since most triple net properties are classified as essential, they were selling at record pace for nearly two years, putting buyers in bidding wars and driving the price up. This client maximized that trend and with Schellin’s help, succeeded in selling this Taco Bell portfolio at just the right time.
NNN Taco Bell Benefits
Taco Bell’s stability and growth in the fast food/quick service restaurant (QSR) market, essential offerings, omnichannel adaptability, property expansion plans, and the reliable, low-maintenance monthly income offered are just a few reasons owning a NNN Taco Bell makes for a solid income-producing investment.
- Taco Bell is an essential business, proven to be pandemic-proof, recession-proof, and internet-proof, performing well in any economy for investment stability.
- Taco Bell fast food restaurants typically operate with absolute triple net leases, which means no landlord responsibilities or management costs.
- Taco Bell QSRs are operated by high-credit tenants with 10–20 year, guaranteed leases, ensuring monthly income for the lease term.
- Inflation and any other costs are typically covered by 5 to 10% rent increases every five years with extension options, so you can opt to keep your Taco Bell NNN for years beyond the original lease terms.
- Taco Bell NNN investments are tangible assets bolstered by their high-quality, underlying real estate, providing value in your portfolio.
- Taco Bell QSRs are available in various price points to fit your risk tolerance and financial goals, usually between $1.5 and $4.5 million.
Not sure how to find a Taco Bell NNN Investment? Simply reach out to a Westwood Net Lease Advisor for a no-obligation conversation and free buyer representation.
The Result: 14 Triple Net Lease Taco Bells Worth $32.2M Sold to NNN Investors at Just the Right Time
Due to Schellin’s reputation, expertise, and network, he was able to contact nationwide buyers and brokers to inform them of the Taco Bell opportunities, and in some cases, bypass the open listing process to facilitate rapid transactions at full asking price.
The seller was pleased with the result: the timely sale of a large portfolio of NNN Taco Bell properties in Alabama, Tennessee, Georgia, Texas, Kentucky, and Illinois for a total of $32.2 million. The co-broker relationship paid off and helped the client and the new Taco Bell buyers enjoy a smooth, efficient real estate process with profitable outcomes.
Westwood Net Lease Advisors primarily represent buyers, however, when it comes to triple net expertise, their representation doesn’t stop there. In this case, knowing how sellable NNN Taco Bell fast food restaurants are and how beneficial they are to buyers, Schellin could confidently reach out to his buyer network and help them add quality properties to their portfolios while meeting the seller’s price and cap rate expectations. It was a win-win for all.
If you’d like to learn more about the numerous financial and lifestyle benefits of triple net lease investing, call or email Chris Schellin, President of Westwood Net Lease Advisors, for a free, no-obligation conversation, 314-563-2208.