Single Tenant Dunkin'
Cherry Hill, NJ
The Opportunity
Summary
- Price: $1,375,000
- Cap Rate: 6.70%
- NOI: $92,000
- Lease Type: Absolute NNN
- Building Size: 1,547 SF
- Parcel Size: 0.52 Acres
- Year Built/Renovated: 1974/2014
- Remaining Lease Term: 9.75 Years
- Options: One (1), Five (5) Year Option
- Rental Increases: 10% Every 5 Years
Forged Real Estate is pleased to exclusively offer the opportunity to acquire the fee simple interest in a single tenant property leased to Dunkin’, (the “Property”) in Cherry Hill, NJ a township in Camden County and a suburb of Philadelphia. Dunkin’ has operated at this location for over 50 years establishing an identity within the Cherry Hill community. Additionally, Dunkin’ recently commenced a new 10-year absolute triple-net (NNN) lease that features 10% rental increases every 5 years. The triple-net (NNN) lease structure allows for a hands-free, passive form of ownership.
Dunkin’ sits at the corner of the bustling signalized intersection of Marlton Pike East and Greentree Road, two thoroughfares boasting a combined 98,700 VPD and allowing for plenty of visibility from local traffic. The property boasts multiple modes of ingress and egress with access from both Marlton Pike East (84,900 VPD) and Greentree Road (13,800). Dunkin’ sits less than 1 mile from Exit 34A & 34B off Interstate 295, a major interstate highway boasting 138,800 VPD.
Just over 10 miles from Center City Philadelphia, the property is part of the Philadelphia MSA which boasts a population of over 6.24 million residents. The 5-mile area surrounding the property exhibits excellent demographics with a population of over 235,000 people and 93,000 households. Within that same radius, the average household income is over $155,000.
Dunkin’ is the world’s leading baked goods and coffee chain, serving more than 3 million customers every day. With over 13,200 locations in nearly 40 global markets, Dunkin’ has become the largest coffee and donuts brand in the United States.
Investment Highlights:
Tenant
Dunkin' Snapshot:
Ownership: PRIVATE (SUBSIDIARY OF INSPIRE BRANDS)
Credit Rating: B+ (S&P) (PARENT COMPANY)
Headquarters: CANTON, MA
# of Locations: 13,200+
Franchisee (Shyamji Donuts, Inc.)
The franchisee for this store operates under Shyamji Donuts, Inc. The franchisee has 25 locations and is run by Piyush Amin. The parent company is SUDH Management, headquartered in Maple Shade, New Jersey.
Dunkin’
Founded in 1950 in Quincy, Massachusetts just outside of Boston, Dunkin’ is America’s all-day, everyday stop for coffee and baked goods. The world’s leading baked goods and coffee chain serves more than 3 million customers each and every day. Although they decided to ditch the “Donut” in their name, Dunkin’ still offers over 50+ varieties of donuts as well as an assortment of coffee, breakfast sandwiches, muffins, and more. They have even partnered with other Boston-based companies such as Harpoon Brewery in their release of Dunkin’ inspired beers.
In December of 2020, Dunkin’s Brands, Dunkin’s parent company (along with Baskin-Robbins) was acquired by Inspire Brands (“Inspire”), one of the leading restaurant companies in the world, for $11.3 billion. The acquisition of Dunkin’ brought them into a family of some of the top casual dining and quick service restaurants today including Arby’s, Buffalo Wild Wings, Jimmy John’s, and Sonic. Inspire’s goal to bring together highly differentiated and complementary brands with a large and loyal customer base was only bolstered by their addition of Dunkin’. In QSR Magazine’s August 2023, QSR 50, QSR Annual Report, Dunkin’ ranked as the 6th leasing quick service chain. Additionally, Restaurant Business Online reports Dunkin’s 2023 U.S. sales reach $11.9 billion, bolstering their spot as the 6th largest restaurant chain. With over 13,200 locations in nearly 40 global markets, Dunkin’ has become the largest coffee and donuts brand in the United States. Dunkin’ is currently headquartered in Canton, Massachusetts, just over 6 miles from where the company all began.
