New Jersey investor buys Tampa Denny's

BUYER: JFC Prop-13 LLC and KIC Prop-13 LLC, Hackensack, N.J.
SELLER: Lubna Real Estate Inc.
PROPERTY: 5603 E. Hillsborough Ave., Tampa
PRICE: $1.21 million
PREVIOUS PRICE: $814,700, December 2007

BUYER: JFC Prop-15 LLC and KIC Prop-15 LLC, Hackensack, N.J.
SELLER: Lubna Real Estate Inc.
PROPERTY: 940 Missouri Ave. N., Largo
PRICE: $1.23 million
PREVIOUS PRICE: $1.7 million, December 2007

TITLE FIRM ON BOTH DEEDS: GRS Title Services LLC, Scottsdale, Ariz.

PLANS, DESCRIPTION: A New Jersey investment group purchased Denny's restaurant buildings in Tampa and Largo for a total of $2.44 million. The group purchased a 4,680-square-foot Denny's restaurant building in Tampa for $1.21 million and a 5,090-square-foot Denny's in Largo for $1.23 million.

The price for both equated to $250 per square foot.

Constructed in 1984, the Tampa restaurant building occupies an acre site. The Largo building was built in 1975.

The investors purchased the real estate as part of a portfolio of three Florida Denny's properties that also included a Lakeland property, according to Glenn Rocca, manager of the purchase entities. All of the properties were sold as passive investments and are covered by 20-year leases with the Denny's franchise operator.

“This is totally passive income,” Rocca says. “We felt it was a very reasonable cap rate [purchase price payoff ratio based on income].”

The investment group, which bought the properties through two entities for estate planning, also owns restaurant properties in the Jacksonville area.