For sale to qualified investors is the fee simple interest in a brand new, long-term,
corporately-guaranteed lease with Dunkin’ in Medina, Ohio. The store is operated
by DB Operating Company, a subsidiary of Inspire Brands, and features a corporate
guaranty for the first 10 years of the lease. The investment features a firm 15 year base
term plus options, and provides the buyer with 10% increases every 5 years during the
initial term and options. This will act as a hedge against inflation and provide future
value and revenue growth for the investor. Within only 3 years, the cap rate jumps
from 5.75% to 6.32% due to the built in rental increase. Structured as a ground lease,
the Tenant is responsible for all maintenance, repairs, and replacements, rendering
this asset as “hands-off” to the investor. The new prototypical facility is located
adjacent to many new retailers, including Taco Bell, McDonald’s, Mr. Tire, and Discount
Drug Mart (78 Stores), and directly across the street from a new Chipotle and ACME
grocery store. Medina is part of the Cleveland MSA which has over 2,000,000 residents.