Sell Your LongHorn Steakhouse Property
Thinking about selling your LongHorn Steakhouse property? NNN Realty specializes in net lease investment sales nationwide. This page covers how buyers evaluate LongHorn Steakhouse leases, the role of Darden’s credit, and what to expect through the sale.
The LongHorn Steakhouse Market at a Glance
Short Answer
A LongHorn Steakhouse property’s value depends on the rent, the years remaining, and which Darden entity signed or guarantees the lease, because buyers pay for Darden’s investment grade credit only when it backs your lease. Most leases are NNN on the building or the land, so the tenant typically covers taxes, insurance and maintenance. The next rent increase and the restaurant’s sales also shape how buyers view renewal risk.
- Typical cap rate
- 5% to 5.75%
- Typical sale price
- $1.75M to $2.5M
- Typical term left at sale
- 5 to 10 years
- Typical lease type
- NNN
Approximate ranges from NNN Realty’s tracking of LongHorn Steakhouse listings and reported sales, with data as of October 6, 2026. They are a starting point, not an appraisal or a quote of current pricing: your property’s value depends on its lease, location and condition.
How to Sell Your LongHorn Steakhouse Property
Selling a LongHorn Steakhouse property starts with confirming the tenant and guarantor and laying out the rent schedule clearly. Our process covers pricing, marketing, negotiation and closing.
Property Review & Valuation
We review the lease and any guaranty to identify the tenant entity (often a Darden operating subsidiary such as GMRI, Inc. or RARE Hospitality International, Inc.) and whether Darden Restaurants, Inc. guarantees it. We also confirm the lease form (building or ground lease), remaining term, rent increases, renewal options, landlord duties and the site’s size and access, then compare the property with recent LongHorn Steakhouse and casual dining sales to recommend a price.
Market Positioning & Buyer Targeting
LongHorn Steakhouse properties attract 1031 exchange buyers, private investors and institutions that want investment grade restaurant credit on larger sites. Our offering memorandum explains the tenant and guarantor structure, the rent schedule and the site, with professional and aerial photography, and we contact buyers whose criteria fit the term and price.
Offers, Buyer Qualification & Negotiations
We review each offer’s price, financing or proof of funds, closing record, exchange timing and contingencies. We negotiate a non-binding Letter of Intent (LOI) on the key terms, then move to a Purchase and Sale Agreement (PSA).
Due Diligence & Closing
Once the PSA is signed, the buyer typically has about 30–45 days for due diligence on the lease and guaranty, title, survey, environmental reports and the building. During that period the buyer can usually end the agreement and recover its earnest money.
We coordinate documents, site visits and communication with attorneys, the title company and lenders, and we request a tenant estoppel confirming the lease terms. Depending on the PSA, the deposit may become nonrefundable after due diligence, subject to contract exceptions, and closing commonly follows within 15–30 days. Timelines vary by transaction.
What Is My LongHorn Steakhouse Property Worth?
The value of a LongHorn Steakhouse property depends on its net operating income (NOI) and the capitalization rate (cap rate) buyers will accept. LongHorn Steakhouse properties do not all trade at the same cap rate. The guarantor, remaining term, increase schedule and store sales can each move pricing.
How Cap Rates Affect Your Property’s Value
A cap rate represents the relationship between a property’s annual net operating income and its purchase price. Generally, a lower cap rate results in a higher property value, while a higher cap rate results in a lower value.
Example: $120,000 annual NOI at 5.5% cap rate = approximately $2,181,818 estimated property value.
Property Value = Annual NOI ÷ Cap Rate
Cap rate calculator
Estimated property value
Illustrative calculation only. Actual sale prices depend on property characteristics and market conditions.
Factors That Influence LongHorn Steakhouse Property Values
Tenant Entity & Darden Guarantee
Leases are often signed by a Darden subsidiary, and buyers price Darden Restaurants’ credit only when the parent guarantees the lease. Confirming the guarantor early avoids surprises in negotiations.
Remaining Lease Term
Each additional year of term generally supports a lower cap rate. With only a few years left, buyers start to price in the chance that LongHorn Steakhouse does not renew.
Rent Increase Schedule
Many leases raise rent at set intervals, often 10% every five years. A sale shortly before an increase lets buyers count on higher income, while a lease just past its increase faces a longer flat period.
Store Sales & Renewal Outlook
Strong sales at the restaurant suggest it is likely to stay when the lease ends. Buyers weigh this most heavily when the remaining term is short.
Building or Ground Lease & Site Size
Some leases cover the building and some only the land, which changes the landlord’s exposure. The large building and lot also matter, because buyers consider what it would take to re-lease the space.
LongHorn Steakhouse as a Tenant
LongHorn Steakhouse is a casual dining brand owned by Darden Restaurants, which also owns Olive Garden. Darden operates nearly all U.S. LongHorn Steakhouse restaurants through subsidiaries such as GMRI, Inc., so leases are typically signed by a Darden operating entity and some carry a guarantee from Darden Restaurants, Inc. The tenant entity and any guarantee should be confirmed from your lease.
As of August 30, 2026, Darden operated 624 company-owned LongHorn Steakhouse restaurants, up from 618 at May 31, 2026, and the brand’s same-restaurant sales rose 6.2% in the first quarter of fiscal 2027. Darden’s publicly issued debt is rated BBB by S&P and Baa2 by Moody’s, which buyers value when Darden guarantees the lease.
- Parent company
- Darden Restaurants, Inc. (NYSE: DRI)
- Restaurants
- 624 company-owned as of August 30, 2026
- Credit rating
- BBB from S&P and Baa2 from Moody’s on Darden’s debt (Form 10-Q filed October 2, 2026)
- Common lease terms
- Often NNN on the building or the land, with increases such as 10% every five years and renewal options. Confirm the tenant entity, guarantor and landlord duties in your lease.
- Typical building
- About 5,800 square feet on 1.5 to 2 acres
What Is Your LongHorn Steakhouse Property Worth?
Considering selling your LongHorn Steakhouse property? NNN Realty can estimate its market value by reviewing the lease and guaranty, the rent schedule, recent comparable sales, and current buyer demand.
Whether you plan to sell soon or want to understand your options, we can provide an informed assessment.
NNN Realty is not affiliated with Darden Restaurants, Inc.. Market ranges are approximate, based on listings and sales tracked through October 6, 2026, and the calculator is illustrative. Nothing here is tax, legal or investment advice.