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  Dunkin' Donuts


Average Property & Lease

Average Sale Price$1,668,292
CAP Rate (12mo avg with 10+ lease term)5.13%
NOI$85,251
$/Square Foot$600 - $900
Building Size2,200 +/- sf
Lot Size0.5 - 1.5 acres
Lease Term15 - 20 Years
Escalations8-10% every 5 years
CREDIT RATING
N/A
S&P
N/A
Moody's
view credit rating chart
View Net Lease Property Listings at CALKAIN.COM Last Updated: December 12, 2016
Net Lease Advisor Overview

Dunkin' Donuts is an attractive net lease asset for many investors. They are usually well located in shopping centers, mini-malls etc and easily accessed by their customers. Dunkin' Donuts parcels tend to be smaller but they are also very reusable due to their high-profile locations. The smaller parcel size also means Dunkin' Donuts net leases typically pay lower rent, which leads to lower price points. Since Dunkin' Donuts deals with perishable items they are not in the same danger many brick & mortal retailers are in from online commerce. Dunkin' Donuts also usually includes rental increases in their leases making them a popular choice for net lease investors.

Pros

Cons

  • Lease usually includes increases
  • Typically very landlord friendly lease structure, either NNN or ground leases
  • Usually very high profile real estate
  • Smaller parcels but reusable
  • Shorter lease terms
  • Non-investment grade credit
  • A lot of franchisee operated stores, means doing proper due diligence on credit of guarantor, performance of store, etc.
Tenant Description

In 1950 Bill Rosenberg opened the first Dunkin' Donuts restaurant in Quincy, Mass., with the goal to "make and serve the freshest, most delicious coffee and donuts quickly and courteously in modern, well-merchandised stores." Rosenberg licensed the first of many franchises in 1955 and is a subsidiary of Dunkin' Brands, Inc which includes Baskin-Robbins.

Dunkin' Donuts is the world's leading baked goods and coffee chain, serving more than 3 million customers per day. Dunkin' Donuts is still using the original proprietary coffee blend recipe established by its founder. Dunkin' Donuts sells 52 varieties of donuts and more than a dozen coffee beverages as well as an array of bagels, breakfast sandwiches and other baked goods.

There are more than 11,300 Dunkin' Donuts restaurants worldwide - more than 8,000 Dunkin' Donuts restaurants in 41 states in the U.S. plus the District of Columbia, and more than 3,200 international restaurants in 36 countries.

Dunkin' Donuts has earned the No. 1 ranking for customer loyalty in the coffee category by Brand Keys for nine years running.


DUNKIN' DONUTS TREND
CAP Rate

2015 avg: 5.66%

2016 avg: 5.17%

RECENT SALES

Odessa, FL | 5.44%

Duluth, MN | 6.00%

MORE INFO
www.dunkindonuts.com
Google Finance: DNKN
Google News: DNKN