Stan Johnson Company, one of commercial real estate’s leading investment sales brokerage firms, has completed the sale of two freestanding Arby’s quick service restaurants for a 1031 exchange client. Brian Lane and Emery Shane of Stan Johnson Company represented the Oregon-based seller, The Garfinkel Trust, in the disposition of one location at 1019 Nashville Pike in Gallatin, Tennessee. They then acquired a second restaurant located at 470 Cummings Street in Abingdon, Virginia in a 1031 exchange. The buyer of the Tennessee property was an individual investor based in Lebanon, Tennessee. The seller of the Virginia location was a Bristol, Tennessee-based franchisee.
“We were able to help a long-time client complete a 1031 exchange that will secure their continued retirement for the next 20 years,” said Shane, Senior Director in Stan Johnson Company’s Alpharetta, Georgia office.
“We were able to negotiate a closing extension on the Tennessee property and successfully close on the Virginia property just days later, ensuring we minimized the investor’s loss of income,” added Lane, Associate Director in Stan Johnson Company’s Alpharetta, Georgia office. “They traded out of the Gallatin property that only had just over five years remaining on the lease and acquired the Abingdon location that featured a brand new 20-year lease.”
The Tennessee asset sold for $3.2 million reflecting a 6.67 percent cap rate with five years remaining on the lease. The Virginia property was purchased for approximately $3.1 million at a 5.35 percent cap rate for a new 20-year lease.