CHICAGO—A single-tenant, net-leased Dunkin' Donuts in suburban Naperville has traded hands for $2.27 million. The Boulder Group, a suburban net leased brokerage, represented the seller, a Midwest-based private partnership. The buyer was an East Coast based private investor in a 1031 exchange.

The property has several attributes that net lease investors look for, including a long term lease with built-in escalations. The 3,816-square-foot building, located at 1991 Brookdale Rd. along Illinois Rte. 59, has about nine years remaining on Dunkin' Donuts original twenty-year lease. Dunkin' Donuts, a publicly traded company, guarantees the lease, which features a 15% rental escalation in the primary term and in each renewal option period. There are five 5-year renewal option periods.

The surrounding area is densely populated and affluent area, a further plus. It has about 190,000 people living within a five mile radius, Boulder officials say, with an average annual household income in excess of $102,000. The surrounding area also features many national retailers including Target, Meijer, Walgreens, CVS, and Chase Bank.

“We received significant interest in this property and received numerous offers which resulted in the property trading at full price,” says Randy Blankstein, president of Boulder. Jimmy Goodman, partner of Boulder adds, “properties with corporately guaranteed leases and rental escalations throughout remain at the forefront of investor demand because they provide investors with an inflationary hedge.”