Red Lobster

In the past year, Red Lobster properties have been continuing to sell, featuring standard leasing of twenty to twenty five year terms on average. Structured with NNN absolute agreements, they present longer term investment opportunities for the net leasing world. Red Lobster leases will often provide for two percent rental increases every year, with 4 separate 5 year options to renew.

 

Back in 2014, Red Lobster was sold by Darden Restaurants Inc., to a private entity conglomerate consisting of Golden Gate Capital (who now owns the real estate portion), and another entity called VEREIT.

Tenant Description

With over 678 seafood restaurants across the United States as of 2015, Red Lobster is one of the most popular chains in the casual-dining industry. Darden Restaurants, Inc. officially sold their namesake in 2014 and is now privately held.

Originally founded in Lakeland, FL by Bill Darden in 1968, they were financially supported by the well-known company General Mills. Once this happened, they expanded rapidly to all 50 states.

Earlier on in business operations, they were keeping menus simple and focusing purely on fresh lobster, crab, and shrimp selections. Eventually, Red Lobster started adding new dishes, from an assortment of grilled wild fish and Maine Lobster courses to their famous Cheddar Bay Biscuits.