TENANT TYPES
HOW
we
invest
what we
buy
Alignment invests nationwide in high-quality real estate and durable brands with a focus on franchise-operated, quick-service restaurants. Alignment is a proven partner within the space and can provide a critical component of the capital structure to an operator completing an acquisition, or freeing up cash on their balance sheet to grow their company.
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
Franchise Operated
Quick-Service Restaurants
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
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.