Net Lease News

B+E Weekly Newsletter

May 14 – May 20, 2024

MARKET

SIGNS OF INCREASED CRE LENDING ACTIVITY EMERGE DESPITE SLOWDOWN | Globe St.

• While the commercial real estate lending market experienced a slowdown in the first quarter, it was primarily influenced by market conditions in the third and fourth quarters of 2023.
• We are seeing an uptick in activity, particularly driven by institutional investors seeking to recycle capital, with a notable increase in BOV activity and financings over $100 million.
• Spreads between the 10-year Treasury yield and seven-to-10-year, 55%-to-65%-loan-to-value (LTV) fixed-rate permanent commercial loans tightened by 22 basis points (bps) quarter-over-quarter to 212.

RETAIL

RED LOBSTER CLOSES 90-PLUS SITES; EQUIPMENT TO BE AUCTIONED OFF | Chain Store Age

• The beleaguered casual-dining seafood chain has closed nearly 100 restaurants and has started auctioning off furniture and equipment. 99 of Red Lobster’s approximately 650 U.S. restaurants were closed as of Tuesday morning.
• The firm leading the closure of more than 50 Red Lobster locations will have each equipment auctioned off as part of its “largest restaurant equipment sale ever.”

RESTAURANT BRANDS INTERNATIONAL COMPLETES ACQUISITION OF CARROLS RESTAURANT GROUP | QSR Magazine

• Restaurant Brands International announced that it has completed its previously announced acquisition of all issued and outstanding shares of Carrols Restaurant Group, Inc.
• RBI adds the largest Burger King franchisee in the United States to its portfolio as part of the company’s Reclaim the Flame plan. As previously announced, the Company will invest a further $500M to accelerate the reimaging of more than 600 Carrols restaurants before refranchising the majority of the acquired portfolio to new or existing smaller franchise operators over the next seven years.