Bob Evans TENANT OVERVIEW


Pros

  • Large parcel of land, generally over 1 acre
  • Rental increases during the term of the lease

Cons

  • Private company
  • Casual Dining sector is being redefined

Tenant Description

Bob Evans is a chain of family restaurants headquartered in New Albany, Ohio.

Bob Evans makes an attractive net lease tenant because of their investor friendly leases. In a series of sale-leasebacks, investors have been purchasing 20 year triple net leases with 2% annual increases. The triple net nature of the leases frees investors from any landlord responsibilities while the annual increases provide a great hedge against inflation.

Bob Evans began as one man selling sausage from his farm. As the demand for his sausage grew he built a small restaurant. Recently Bob Evans was split between the restaurant business and wholesaler of refrigerated side dishes. Golden Gate Capital purchased the restaurant half of the business in early 2017 while the rest of the business was bought by Post Holdings in January of 2018. Bob Evans has over 500 locations in 18 states, primarily in the Midwest, Mid-Atlantic, and Southeast.

Average Cap Rate
5.70%
12 mo avg with 10+ yr lease term
Average Property & Lease
Average Sale Price $2,254,526
NOI $125,895
$/Square Foot $375 - $450
Building SF 5,000 - 6,000
Lot Size 1.0 - 1.5 Acres
Lease Term 20 Years
Escalations 2% Annually
Stock Symbol N/A
Credit Rating
S&P N/A
Moody's N/A
Average Cap Rate Trend
5.57%
2017
5.73%
2018
Rates reflect last 12 mos, short and long-term
Recent Sales Comps
Newark, OH 5.75%
Battle Creek, MI 5.93%
Sun City Center, FL 5.25%