FrontView REIT secures long-term Avis lease

FrontView REIT (FVR) “announced the successful re-leasing of its former TriColor property in Marietta, Georgia to Avis Budget Group. FrontView executed a new 10-year absolute net lease with Avis at the former TriColor site with an initial annual base rent of $480,000 and 2.1% average annual rent escalators. Based on comparable long-term leases in the marketplace with similarly rated credits, we estimate the property’s value at approximately $8.8 million, implying a mid 5%’s capitalization rate. Relative to FrontView’s original $7.1 million basis, this reflects an approximate 24% increase in asset value and a cash capitalization rate of 6.8% and an economic yield of 7.4%.”