Restaurant REITs to Merge

U.S. Restaurant Properties, Dallas, is acquiring CNL Restaurant Properties, a unit of Orlando, Fla.-based CNL Financial Group, and 18 CNL income funds in a $540 million transaction that is expected to create a "one-stop" financing source for restaurant-related real estate transactions.The new company, which will continue trading on the New York Stock Exchange and operate under the CNL Restaurant Properties name, will be the largest restaurant real estate investment trust in the United States, according to U.S. Restaurant Properties, owning 1,900 properties and having financial interests in about 3,000 properties in 49 states. "Not only will we own and trade properties, but we will provide the full range of financial services and M&A advisory expertise that owners and operators require today," said Robert Stetson, chief executive officer of U.S. Restaurant Properties. Curtis McWilliams, president and CEO of CNL Restaurant Properties, will continue in the same positions at the merged company, the companies said.