Buffalo Wild Wings TENANT OVERVIEW
Updated: February 26, 2019
- Long term lease with rent increases
- Well known chain
- Mix of corporate and franchisee locations
- Highly competitive industry
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
12 mo avg with 10+ yr lease term
Average Property & Lease
|Average Sale Price
||$385 - $490
||5,500 - 7,000
||1.20 - 1.75 acres
||10% every 5 yrs
Average Cap Rate Trend
Rates reflect last 12 mos, short and long-term
Recent Sales Comps
Featured Tenant Profiles
Avg. Cap Rate: 6.40%
Avg. Cap Rate: 6.10%
Avg. Cap Rate: 5.36%