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Griffin Capital Completes Recapitalization of Black Angus Restaurant Holdings.

LOS ANGELES--(BUSINESS WIRE)--Aug. 25, 1998--ARG Properties I LLC (ARGP) has completed the $36.41 million recapitalization of a portfolio of 16 Stuart Anderson's Black Angus restaurants it acquired 18 months ago from subsidiaries of Newport Beach, Calif.-based American Restaurant Group Inc. (ARG) in a sale-leaseback transaction.

ARGP is owned by Los Angeles-based Griffin Capital, which structured and negotiated the sale-leaseback in 1996 and also handled the recapitalization, according to Kevin A. Shields, managing director.

ARGP originally acquired 24 restaurant properties and, according to Shields, subsequently sold eight restaurants for $19.05 million, leaving ARGP with a current portfolio of 16 assets. Pursuant to the recapitalization, ARGP renegotiated its triple-net lease with ARG Enterprises Inc., the Stuart Anderson's operating subsidiary of ARG, extending its term to 25 years and converting it to a bond-type lease.

Griffin Capital arranged for the mortgage loan to replacethe then-existing senior secured and subordinate participating debt of ARGP.

Griffin Capital also acquired a to-be-built Stuart Anderson's Black Angus restaurant in Dublin, Calif., for $2 million. Construction on that restaurant is due to start in the fourth quarter of 1998.

Shields noted that the portfolio of restaurants recapitalized by ARGP is concentrated in California, where 12 of the assets are located. This includes six restaurants in Los Angeles and two in San Diego. The balance of the assets are located in Indiana, Arizona and Colorado.

Los Angeles-based Griffin Capital is a real estate investment bank that specializes in acquiring and financing structured net-leased real estate assets. Griffin Capital is an NASD-licensed broker-dealer formed by Shields in July 1995.

 CONTACT: William J. Thompson, 818/886-3060
 818/400-3100 (cellular)


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Publication:Business Wire
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Geographic Code:1USA
Date:Aug 25, 1998
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