The 7,815 square-foot retail/restaurant building, currently operated as a Red Lobster, sold November 17, 2016 for $7,858,347. The property, located on the southeast corner of Executive Square and Silas Deane Highway, is situated in a popular commercial corridor in downtown Wethersfield, CT. The buyer, Persam Wethersfield LLC, purchased the restaurant from GGC Real Estate Investments III LP for its strong investment value.
The 1.21 acre parcel was under a land lease to Red Lobster at the time of sale. The property is in a highly desirable location, less than a half-mile south of the Wethersfield Shopping Plaza and located adjacent to the Comfort Inn of Wethersfield-Hartford. Connecticut’s Department of Transportation estimates the average traffic flow along the subject’s street frontage at 25,400 drivers a day. The property also has excellent accessibility due to its location on C.T. Route 99 and close proximity to Exit 24 of Interstate-91.
The transaction reportedly took place 4.0% below the initial asking price and was listed on market for 3 months prior to closing. The capitalization rate, based on the actual NOI of the property, was 5.75%. The concluded sale price averages to approximately $1,000 per square-foot. Red Lobster plans to continue to lease this space, as its premium location offers high-quality dining to residents and visitors of Hartford County alike.