Four Corners Property Trust announced the disposition of a Red Lobster property for $4.9M. The property is located in Ohio and is corporate-operated under a triple net lease. The transaction was priced at cap rate in range with previous FCPT dispositions. The company plans to repurpose the proceeds into new investment opportunities consistent with FCPT thresholds. FCPT anticipates redeploying the proceeds from this transaction through an Internal Revenue Code Section 1031 like-kind exchange. As a result, net cash proceeds from the sale will be held in an escrow account until one or more properties are purchased through the 1031-Exchange. However, there can be no assurance that an acquisition of a new property or properties will occur. If the company fails to identify one or more like-kind replacement properties of comparable value within 45 days of the date of sale and/or fails to acquire such property or properties within 180 days of the date of sale, the company will be required to pay a tax at the highest corporate income tax rate on any gain recognized on the sale of this property.
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