The Deal Story - Applebee's (Lexington, KY)

In December 2021 I had the opportunity to acquire an Applebee’s asset located in Lexington, KY from a private investor based in Orlando, FL. The entire acquisition took a total of 60 days from executed LOI to close, putting this among the quickest acquisitions in our organization’s history. 

The most compelling characteristic of this asset was the intrinsic fundamental real estate. The Applebee’s is positioned on a healthy-sized lot, surrounded by multiple rows of single-family homes and two hotels. In addition to being the only Applebee’s in the market, it’s also located immediately adjacent to the off-ramp of a major throughway in Lexington, providing strong accessibility to the surrounding consumer market.

The casual dining sector was one of the hardest-hit asset classes during the pandemic. This reality, combined with the short-term nature of Applebee's lease, created a level of risk that the seller was uncomfortable with. The combination of the uncertainty of the casual dining space, the asset being located in a foreign state from where she was currently residing, and the potential tax implications going into place in 2022 created a perfect storm for an immediate sale that would close in 2021. After speaking with the seller’s representation and understanding her level of urgency, I was able to expedite the closing process of this deal and secure the transaction in under 60 days.

We were committed to fulfilling the seller’s objective of completing the transaction before the end of the year. With less than two months remaining in 2021, we needed to complete our entire due diligence process in a very tight timeline.

By maintaining constant contact and clear communication with the seller’s attorney, I managed to secure an executed contract in under 72 hours from the initial conversation with the seller. I immediately began our due diligence process and worked directly with our third parties to expedite all necessary items, enabling us to move towards closing as quickly as possible. A swift closing was of utmost importance to the seller, and thus of utmost importance to me.

This transaction achieved goals for both the seller and the purchaser. At Ocean Block Capital, we are always seeking the opportunity to purchase strong fundamental real estate in growth markets. We look forward to more investment opportunities in the greater Lexington MSA, across all asset types.