CRIC CAPITAL ACQUIRES 26 APPLEBEE’S RESTAURANTS IN $65 MILLION SALE-LEASEBACK

Leading Net Lease Company Acquires Portfolio from the Largest Casual Dining Brand in the United States

BOSTON — CRIC Capital, LLC, one of the nation’s leading investors in net leased and other credit real estate , has entered into a $65 million sale-leaseback with Apple American Group LLC, the largest franchisee in the Applebee’s system. CRIC Capital will acquire 26 Applebee’s Neighborhood Grill & Bar® casual dining restaurants in five states, including Indiana , Ohio , Washington , Delaware , and New Jersey . Pursuant to the terms of the net lease transaction, Apple American will lease back the restaurants under a 20-year, triple net lease.

The $65 million deal is the latest in CRIC Capital’s program to acquire more than $400 million of single-tenant properties across the U.S.

“This deal hits a sweet spot for us,” states John Gregorits, Principal of Prudential Real Estate Investors. “With a portfolio of multiple, smaller non-credit assets, our equity capital enables us to close quickly and efficiently offering the lessee a certainty of execution, which plays to one of our competitive advantages.”

Apple American Group is the largest franchisee in the Applebee’s system, and is the 10 th largest franchisee of any concept in the United States. The company currently employs approximately 5,200 people nationwide. Apple American Group generated total sales of $195 million in 2002, and expects to generate total sales of $218 million in 2003.

“We are excited about this acquisition because it solidifies our position as a leading investor in the small box retail and restaurant sectors, an increasing business focus of ours,” says Marcy Axelrad, Principal of CRIC Capital LLC. CRIC Capital plans to close several more transactions of this nature by year end.

Applebee’s International, Inc. develops, franchises and operates Applebee’s Neighborhood Grill & Bar ® casual dining restaurants in 49 states and nine countries. Applebee’s is the largest casual dining concept in the world, both in terms of number of restaurants and market share, and has more restaurants than its nearest two competitors combined.

CRIC Capital, LLC combines the pioneering net leasing professionals of Boston-based Corporate Realty Investment Company L.L.C. with Prudential Real Estate Investors, the real estate investment and advisory business of Prudential Financial. CRIC Capital p urchases real estate from and leases it back to investment grade and select below-investment grade companies through a variety of customized net leases. Net lease transactions allow corporations and organizations to strengthen their financial positions and free up capital to reinvest in their core business.

Contact:
Victoria Nessen Kohlasch
CRIC Capital, LLC
617-388-9862
vkohlasch@criccapital.com