Harbert Retail has completed the sale of a single tenant net leased Dunkin’ located at 300 Commons Drive, Birmingham, AL, for $1,654,205 ($458 per square foot). The property sold with multiple offers at a 5.4% cap, which was over of the asking price. Harbert’s Casey Howard exclusively represented the seller. The Seller, “300 Commons Drive, LLC” is registered to Matthew Lemak of Merem Capital, Merem Healthcare and Lemak Sports Medicine and the purchaser is CAGEllis and RDGEllis, LLC a private Pennsylvania 1031 exchange investor.
The Dunkin’ property features a 3,610 SF stand-alone building that sits on 1.17acres and was built in 1997, but fully renovated in 2020 by Bluemont Group, the Dunkin’ franchisee tenant in the property that has over 52+ Dunkin’ locations throughout the Southeast . Dunkin’ has approximately 9 years remaining on their absolute NNN lease.
Located in a strong retail corridor backed by national tenants, the property boasts high average daily traffic counts of 32,500 on Lakeshore Parkway and 118,000 on I-65. This high pedestrian traffic has created a strong customer base to this location. Neighbors include: Hobby Lobby, new Conn’s Home Plus, Sam’s Club, Walmart Supercenter, new Club 4 Fitness, Starbucks, Taco Bell, Chick-Fil-A, Candlewood Suites, new Holiday Inn Express, new Cookout, new Premiere Cinema’s Luxury Theatre (opened Oct. 2019), and many others.
“Well-located single tenant net lease properties in the South in growing markets are at the forefront of investor demand. There is a limited supply of available absolute NNN lease properties on the market resulting in historically low cap rates and a competitive bidding environment,” stated Casey Howard, Vice President/Broker with Harbert Retail. “Over the past 18-months, net lease investors have flocked to Dunkin’ assets due to their attractive long-term net leases and both essential & service-based use.”