Half dozen area KFC locations hit the market at ‘firesale prices’

Six area KFC restaurant properties—the buildings and the land on which they sit—are on the market for what one local broker calls “firesale prices” of around $1 million or less each. The properties, including one on Greenwell Springs Road, one in Port Allen, one in Hammond and three in New Orleans, are all up for sale by Lafayette-based businessman Seenu Kasturi, who owns dozens of restaurant franchises throughout the South and recently acquired the local KFCs from a California operator. Kasturi is selling the six properties under a sale-leaseback arrangement, which he says is the best way to strategically diversify his investments. “That way, we don’t concentrate our debt and exposure on the restaurants,” he says. “If you own the land and the building and the restaurant and it isn’t performing, then you’re stuck with all of it.” Kasturi says he believes his asking price for the properties is competitive in today’s market. As for the restaurants, he says they’ve been neglected by their previous owner and have been gradually losing market share. “But in the month we’ve owned them, just by fixing equipment and stuff we’ve already shown significant improvement,” he says. “Once we get in there and stabilize the brand and remodel the stores, you’ll see tremendous improvements.” Click here to access the KFC listings and read the rest of the new Real Estate Weekly e-newsletter. —Stephanie Riegel