East Coast investors buy restaurant properties in South Bay, East Bay

SAN JOSE — East Coast real estate investors who seek to own small-business properties have bought several restaurant sites in the South Bay and East Bay, consisting of Denny’s and Keke’s dining spots.

The just-bought properties include Denny’s restaurant locations in San Jose, Gilroy and Pleasant Hill and Keke’s Breakfast Cafe in Sunnyvale, according to property records in Santa Clara County and Contra Costa County.

Essential Properties Realty Trust paid a combined $10 million for the four Bay Area restaurant sites, the real estate documents show. The sales were all formally completed on Jan. 26 with the filing of several grant deeds.

“We acquire, own and manage single-tenant properties that are net leased to middle-market companies operating in service-oriented or experience-based businesses,” Essential Properties Realty Trust states on its website.

Here are the details of the restaurant sites, all occupied by existing dining establishments, that Essential Properties bought in the East Bay and South Bay, according to public documents:

— Denny’s site at 1015 Blossom Hill Road in south San Jose, bought for $4.7 million.

— Keke’s Breakfast Cafe location at 311 South Mathilda Ave. in Sunnyvale, purchased for $1.9 million.

— Denny’s restaurant property at 8425 San Ysidro Ave. in Gilroy, bought for $1.7 million.

— Denny’s location at 612 Contra Costa Blvd. in Pleasant Hill, purchased for $1.7 million.

Restaurants, car washes, automotive services, medical services, convenience stores, entertainment, health and fitness, and early childhood education sites are all properties that entice Essential Properties, the company’s website shows.

New Jersey-based Essential Properties believes such businesses can thrive in a retailing environment that includes some titan-sized tech companies.

“These businesses exhibit favorable growth characteristics and are generally insulated from e-commerce pressure,” Essential Properties states on its website.