Longhorn Steakhouse

Lowest
Cap Rate

5.00%

Lowest cap rate over past 24 months

Average
Cap Rate

5.75%

12 mo avg with 5+ yr lease term

Overview

LongHorn locations typically range from 5,500 to 6,500 square feet and are situated on 1.0 to 1.5-acre parcels, commonly in suburban retail corridors near shopping centers or major roads. Leases are generally structured as 15- to 20-year absolute NNN with 10% rent escalations every 5 years, and are corporately guaranteed by Darden Restaurants. Sites are purpose-built with dine-in layouts, full-service bars, and strong visibility from main roads.

Average Property & Lease

Average Sale Price	$3,800,000 - $5,500,000
Average NOI	$220,000 - $330,000
Building SF	5,710
Lease Term	15 Years
Escalations	10% Every 5 Years
Stock Symbol	NYSE:DRI

CREDIT RATING

S&P	BBB
Moody's	Baa2

TENANT DESCRIPTION

LongHorn Steakhouse was founded in 1981 in Atlanta, Georgia, by George McKerrow Jr., starting as a small neighborhood steakhouse with a western-themed ambiance. Known for its bold flavors and quality cuts, LongHorn steadily expanded throughout the Southeast and was acquired in 2007 by Darden Restaurants, Inc., the parent company of Olive Garden and other major full-service brands. Since then, LongHorn has become one of the top-performing brands in Darden’s portfolio.

Founded	1981
Headquarters	Orlando, FL, U.S.
Number of Locations	570
Revenue	$2.6 B
Company Website	https://www.longhornsteakhouse.com
Key Principal	Rick Cardenas