CORNWALL – A Montreal real estate trust has made its first investment in Ontario, buying the Burger King property on Brookdale Avenue.
Fronsac REIT (Real Estate Investment Trust) announced this week it purchased the property at 1319 Brookdale Avenue for $815,000.
The Burger King restaurant is run under a $60,000 per year triple-net lease, meaning the lessee pays for real estate taxes, building insurance and maintenance costs.
In an interview with Cornwall Newswatch, Fronsac President Michel Lassonde says they made the move to buy the land after being contacted by a real estate agent.
“It’s the occasion actually. The price was right and we decided to make the move. That’s the type of property we purchase. We are only looking at properties where the lessee will do all the management. In other words, we have nothing to do with the management of the property…we only collect the rent,” Lassonde said.
That lease agreement is set to run out in 2017 but Lassonde says they will be meeting in the next couple of weeks with the lessee now that the deal is finalized.
“We have three years in front of us so we’re not too worried. Burger King is a good brand. They just purchased Tim Hortons. It’s a good company to deal with,” Lassonde said.
Fronsac’s investment portfolio includes McDonald’s, Tim Hortons, Petro-Canada and Ultramar and many locations are beside major highways because of the low risk to changes.
“The government is not going to change it (the highway) any time soon. So, that’s why we like those properties. In Cornwall, that’s a very good location. If, at one point, the restaurant wants to close we will just put another type of lessee there,” Lassonde said.
He said they are not looking at any other property in Cornwall at this time.