A Net Lease Riddle: Which Is Better, A Strong Guarantor or Strong Location?
By
Burger King
HERNDON, VA—As net lease deals go, it was a fairly routine transaction. Calkain Cos. was marketing sevenBurger King locations in Ashburn, Centreville, Woodbridge, Manassas and Springfield, VA. The guarantor was a local owner with 25 years experience who owned about 16 other locations.
The marketing materials were circulating and offers were coming in, Calkain’s Betty Friant, who was handling the deal along with Rick Fernandez and Teal Henderson, tells GlobeSt.com.
Then, the guarantor decided to sell his operations as well, Friant says. This particular businessperson was retiring and, while the sales at the locations were above average for a typical Burger King, but with a rent to sales ratio of 8.5%, they could have been better, Friant diplomatically explains…
A Net Lease Riddle: Which Is Better, A Strong Guarantor or Strong Location?
