Buffalo Wild Wings TENANT OVERVIEW


Pros

  • Long term lease with rent increases
  • Well known chain

Cons

  • Mix of corporate and franchisee locations
  • Highly competitive industry

Tenant Description

Casual sports restaurant focused on serving wings and beer.

Buffalo Wild Wings makes an attractive net lease investment for a couple reasons. One is that it is a well know brand nationally that has a well-earned reputation amongst its niche community of sports fans. Buffalo Wild Wings leases are a mixture of both NNN and Ground lease deals, which takes the financial burden of any maintenance off of the owner. The restaurants have a similar design to other casual chains, in the event Buffalo Wild Wings does not renew their lease, and will be an attractive site for other restaurant tenants and can be back-filled quickly.

In 1982, Jim Disbrow and Scott Lowery set out to establish a restaurant where patrons could dine on Buffalo style chicken wings. Eventually Mark Lutz was brought on as a third partner and they shared responsibilities of running the restaurant. In 1992, Buffalo Wild Wings began to franchise locations. By October of 1999, Buffalo Wild Wings had opened their 100th location, 23 corporately owned and 77 franchisee owned. Later that year, Buffalo Wild Wings sold a majority stake, worth $8.5M, to three venture capital firms in an effort to raise capital for further expansion. Buffalo Wild Wings decided to take their concept international with a store Canada in 2010, and a site in the United Arab Emirates in 2015. In November of 2017, Roark Capital Group and Arby’s Restaurant Group went into talks to purchase BWW for a price of $2.4 Billion plus debt. This deal was completed in February of 2018.

Average Cap Rate
6.93%
12 mo avg with 10+ yr lease term
Average Property & Lease
Average Sale Price $2,694,782
NOI $195,916
$/Square Foot $385 - $490
Building SF 5,500 - 7,000
Lot Size 1.20 - 1.75 acres
Lease Term Varies
Escalations 10% every 5 yrs
Stock Symbol N/A
Credit Rating
S&P N/A
Moody's N/A
Average Cap Rate Trend
6.03
2017
6.95
2018
Rates reflect last 12 mos, short and long-term
Recent Sales Comps
Laredo, TX 6.75%
Newnan, GA 6.15%
Arvada, CO 6.25%