Transforming Vacancy into Value: The Olive Garden Ground Lease Success at 2265 Whiskey Rd, Aiken
A once-vacant Golden Corral restaurant on a 1.95-acre property along the bustling Whiskey Rd. in Aiken, SC, faced an uncertain future until the Finem Group devised a strategic plan to revitalize the site. This case study delves into how our proactive approach and expert negotiations not only filled the vacancy but also enhanced the property's value significantly.
Client Challenge
The challenge was multifaceted: a valuable property was lying idle after the departure of Golden Corral, leading to loss of passive income for our client, Qi Lin of Shui Lin LLC. The client was uncertain whether to sell the building, the land, or seek other avenues to optimize returns.
How We Took Action
Detailed Analysis: We evaluated the property’s potential uses from multiple angles. The analysis included determining the value of the building as-is, the potential value if the land was redeveloped, and the feasibility of a ground lease. Our findings indicated that a ground lease was a viable option given the property’s prime location and size.
Top-Of-Market Marketing Package: After deciding to pursue a ground lease, we developed a comprehensive marketing package to showcase the property’s unique value proposition. We leveraged major commercial listing sites and targeted potential lessees through strategic email blasts, ensuring the property received wide visibility.
Nationwide Comp Analysis: When Olive Garden, part of the Darden Restaurant Group, showed interest, our team conducted a detailed comparison of similar ground lease agreements. This allowed us to formulate a compelling counteroffer and establish a competitive cap rate.
Negotiation: Armed with solid data, we negotiated terms that significantly exceeded the initial offer from Olive Garden. This was made possible by our strong analysis and understanding of market dynamics, which helped in securing a higher lease rate.
Another Top-Of-Market Marketing Package: With Olive Garden's lease secured and their commitment to develop a new building, we created another sophisticated marketing package aimed at investors. This package highlighted the stability and potential returns of investing in a single-tenant triple-net property, designed to attract global investors.
Value-Added Results
Our strategic actions transformed a non-performing asset into a high-value investment. The signing of a 10-year ground lease with Olive Garden, set to open in Q4 of 2023, revitalizes the area and promises a stable, lucrative return for our client.
Client Testimonial
"From a vacant property to securing a ground lease with Darden, the country's largest restaurant group, the Finem Group demonstrated exceptional skill and professionalism. Their strategic insights and robust negotiations brought about a deal that greatly exceeded my expectations, providing a revenue much higher than anticipated. I am immensely grateful for their efforts, which have substantially elevated the value of my investment." - Qi Lin, Shui Lin LLC
