CHARLOTTE—Charlotte is seeing some triple net action this week. A Downtown Charlotte Dunkin Donuts triple net corporate ground lease just sold for $1.43 million.
Bryan Belk, director of Franklin Street Real Estate Services, represented both the buyer and seller. The seller is a local developer. The buyer is a California 1031 exchange investor who plans to hold the property for the long-term income stream.
“Investors are willing to pay for strong real estate locations with long-term viability,” Belk tells GlobeSt.com. “At a 5.5% cap rate, this is the lowest we have seen for a Dunkin Donut property. We received a dozen offers within two days of marketing the property and agreed to a letter of intent to purchase within 24 hours.”
Dunkin Donuts signed a 20-year, triple net ground lease in May 2004. The triple net property is located at 701 South Kings Drive. That’s across from Presbyterian Hospital, one of the largest hospitals in the state.
The Dunkin Donuts was surrounded by an urban landscape. Belk says the building design was particularly interesting to investors.
“One of the advantages to this property was that it is one of the few locations in the area that actually has a drive-thru,” Belk says. “With strict building codes in the area, developers have a difficult time getting drive-thru locations approved and significantly enough, this site was grandfathered in to include one.”
