Faris Lee Investments, a leading retail advisory and investment sales firm, has completed the portfolio sale of ten operating Dairy Queen Restaurants in the state of Louisiana. Faris Lee Investments bifurcated the sale of the real estate and business to maximize the proceeds for the seller. The sale of the real estate and business for all 10 locations closed simultaneously with two separate buyers at an undisclosed price.
Scott DeYoung, Senior Managing Director, and Jeff Conover, Managing Principal, and Hunter Steffien, Director, at Faris Lee Investments, represented the seller, MP Holdings, LLC, the existing Dairy Queen franchisee. Faris Lee Investments bifurcated the sale of the real estate and business portfolio to expand the buyer pool and maximize the Sale proceeds to the Seller. Faris Lee Investments located an experienced franchisee to purchase the business portfolio of all ten operating restaurants and then secured a west-coast based family office to acquire the Real Estate portfolio.
The 10 stores were in the MSA’s of New Orleans, Baton Rouge, Lafayette, and Houma in Louisiana. All featured relatively new prototypes with the Houma location under construction during the sale. All were freestanding buildings with a drive-thru on large parcels with excellent visibility and traffic counts. The operating stores were profitable stores with strong and stable cash flow. One of the locations was temporally closed and going through a remodel at the close of escrow due to the impact of Hurricane Ida.
“This was a strategic purchase opportunity for the Buyers as they were able to purchase a portfolio of Dairy Queens that had an established base of operations with proven sales and the opportunity to expand the portfolio within the New Orleans MSA. The properties ranged in age but were all fairly new construction,” says DeYoung.
Due to the nature of the operating business, Faris Lee Investments strategically targeted multi-unit Dairy Queen Franchisee operators, REIT’s, private equity firms, and family offices which generated multiple offers and consummated a sale within 52 days from opening escrow.