what we

buy

Alignment invests in high-quality real estate and durable brands with a focus on quick-service restaurants, aftermarket automotive centers, and other essential/non-discretionary retail assets. 

We target assets with strong unit-level performance operated by a non-investment grade, lower/middle market operators of durable brands that demonstrate consistent and calculated organic and inorganic growth.

 

TRANSACTION TYPEs

Sale-Leaseback,

M&A Double Escrow,

Reverse Build to Suit

ASSET TYPES

Quick-Service Restaurants, Aftermarket Automotive, 

Others Case-by-Case 

Non-Investment Grade

Lower/Middle Market Operators

5+ Unit Operators

TARGET MARKETS

Nationwide

Secondary / Tertiary Markets, OK

Investment size

$500,000 - $25,000,000+

Portfolio or Single-Unit

LEASE TERM

10 + Years 

Others Case-by-Case

 
 

CASE STUDY

Sonic Portfolio
Sonic Portfolio

Sonic Portfolio
Sonic Portfolio

Sonic Portfolio
Sonic Portfolio

Sonic Portfolio
Sonic Portfolio

1/4

Alignment Realty Capital acquired four SONIC Drive-In restaurants in a double-escrow transaction where a SONIC franchisee purchased the operations and real estate of a like-sized franchisee and simultaneously spun-off the real estate at closing. The additional units acquired in the transaction represent the acquiring franchisees first foray into the St. Louis MSA, and will further solidify the operator’s position as a top SONIC franchisee. The SONIC franchisor parent company was acquired by Inspire Brands (a Roark Capital Company) in 2018 for $2.3 billion.

The SONIC Drive-In locations acquired by Alignment Realty Capital were high performing stores before COVID-19, when negotiations of the transaction were initiated. During the pandemic, sales continued to increase, demonstrating the resilience of quick-service restaurants, and particularly SONIC, against the adverse economic conditions caused by the pandemic. SONIC’s drive-in business model, which naturally promotes social distancing, has recently made SONIC a top choice among quick-service restaurant customers. “SONIC is running over 30% positive year over year for the quarter,” according to Inspire Brands CEO, Paul Brown, on an interview with Yahoo Finance on August 13th, 2020.