Southfield-based Diversified Restaurant Holdings Inc., owner and operator of Bagger Dave’s Burger Taverns and is among the largest franchisees of Buffalo Wild Wings, has agreed to a $24.6 million sale and leaseback transaction of 11 locations with Scottsdale, Ariz.-based Spirit Realty Capital.
Additionally, Diversified announced it will open five Buffalo Wild Wings in Birch Run, Adrian, Hammond, Ind., Wesley Chapel, Fla., and an additional unnamed location. In turn, three Bagger Dave’s “new prototype” locations will open in Canton Township, Grand Blanc, and Birch Run, and two additional restaurants in Indiana.
“We are very pleased to announce this important transaction with Spirit Realty Capital, a premier real estate investment trust, and look forward to an ongoing successful partnership with them,” says Michael Ansley, president and CEO of Diversified. “The sale and leaseback of these 11 properties further enhances our financial flexibility and allows us to capitalize on the exciting and long runway of growth we see for both Bagger Dave’s and Buffalo Wild Wings,”
Once the sales are completed, Diversified will lease the properties for a 15-year initial term.
“We are extremely pleased to have formed this strategic relationship with DRH,” says Gregg Seibert, executive vice president of investments with Spirit Realty Capital. “Their position as both an owner of a growing regional concept as well as a successful franchisee of a national brand fits well in our tenant profile, and we’re excited to help them improve their financial flexibility through this sale-leaseback.”
The following restaurants are part of the sale-leaseback agreement:
Avon, Ind. – Bagger Dave’s
Greenwood, Ind. – Bagger Dave’s
Carmel, Ind. – Bagger Dave’s
Cascade Twp. (near Grand Rapids) – Bagger Dave’s
Canton – Bagger Dave’s and additional retail leasable space
Birch Run – Bagger Dave’s and Buffalo Wild Wings
Gaylord – Buffalo Wild Wings and additional retail leasable space
Clinton Twp. – Buffalo Wild Wings
Brandon, Fla. – Buffalo Wild Wings
Wesley Chapel, Fla. – Buffalo Wild Wings and additional retail leasable space
Hammond, Ind. – Buffalo Wild Wings