The Little Property That Could – Part III - Time to Expand

The Little Property That Could – Part III - Time to Expand

Bruchi’s Cheesesteaks is a local favorite. Serving subs and cheesesteaks since 1990, they’ve grown to seventeen locations and recently opened a store in Sacramento, CA.  Bruce and Susan Greene have done a great job with the company, especially with new competition from national sandwich franchises coming into the market.  

In late 2015, I saw a listing for a recently built Bruchi’s Cheesesteaks in Cheney, Washington.  Bruce and a partner owned the building and the Bruchi’s restaurant leased it back from the partnership (much the same way we had structured the Jacobs Java deal).  Bruce and his partner decided to end their business relationship which meant selling the real estate.  However, the Greene’s wanted to keep the business there. This was a “sale / leaseback” scenario - they wanted to sell the building and then lease it back from the buyer.

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When NOT Owning Real Estate Makes More Sense

When NOT Owning Real Estate Makes More Sense

A former client of mine was a successful franchisee who preferred to lease his store locations.  However, when he couldn’t find an acceptable location to lease, he purchased a building that met his needs.  This happened to him twice.

When he couldn’t lease or purchase a suitable location, he was forced to purchase land and construct a building for his business.  This also happened to him twice.

He therefore had four buildings in his portfolio that he didn’t want to own, but needed to for the sake of opening stores in certain markets.

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