The Situation 
PREF CB Partners, LLC, a company organized by PREF, purchased 1782 Cheshire Bridge, a .25-acre site with a 5,000-square foot building for $1.075 million in April 2014.  At the time of the all-cash purchase, the 1940’s building was leased to Woodfire Grill, one of Atlanta’s most notable and long-standing, fine-dining establishments. 

Situated in the path of progress with long-term growth potential, this prime location draws from Buckhead, Morningside, Ansley, Virginia-Highland and Midtown as well as other new, high-income neighborhoods in the immediate vicinity.  

The Problem  
When Chef Kevin Gillespie, a Top Chef winner, left Woodfire Grill to open another signature restaurant, sales declined.  To give the tenant the opportunity to regroup, PREF restructured the lease with a lower base rent with potential increases if sales escalated.  Unfortunately, despite a new chef in the kitchen, sales remained stagnant but expenses increased resulting in closure of the restaurant in May 2015.  

The Solution  
PREF CB Partners, LLC engaged The Schumacher Group, a well-respected restaurant brokerage firm in Atlanta, to identify a new, reputable chef/restaurant operator.  

Restaurateur Justin Anthony, owner of 10 Degrees South, Yebo and Bilton Bar, visited the space and immediately envisioned his newest concept, Cape Dutch.  The concept was inspired by the Cape Dutch-Style home of a winemaker friend who hosted a lovely dinner party during a recent visit to Cape Town.  With a completely updated interior, the restaurant features a global menu focused on steaks, seafood and wines from around the world.    

The Results
The new restaurateur signed an eight-year lease with a five-year renewal option.  With renowned Chef Phillipe Haddad directing the kitchen, the restaurant has been highly acclaimed and is doing well. With only 60 days of vacancy between tenants, the cash flow disruption to the company was brief.  The property is cash flowing with a current return on investment of 6 - 8% per year.        

The all-cash purchase provided the ability to wait for the appropriate tenant and Justin Anthony was the right partner.  The short vacancy period along with the high level of interest from prospective replacement tenants validated the strength of the location.

As revitalization of surrounding commercial and residential properties occurs, the success of the tenant as well as the value of the property is promising.