Dunkin’

Purchase Price$2,530,000
Annual Rental Income$141,680
Cap Rate5.60%
Lease Term19 Years
CityDaphne-Fairhope-Foley MSA
Tenant: Dunkin’
Sector: Fast Food / QSR
State: Alabama

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Dunkin’ – Single Tenant Net Lease Investment
Daphne–Fairhope–Foley, AL MSA | Freestanding Drive‑Thru QSR | Absolute NNN Lease | Passive Income Opportunity

This listing highlights a freestanding Dunkin’ restaurant located in the rapidly growing Daphne–Fairhope–Foley metropolitan statistical area on Alabama’s Gulf Coast. The property is secured by a long-term absolute triple-net (NNN) lease, with scheduled rent escalations every five years and zero landlord responsibilities. It provides a fully passive income stream ideal for investors targeting net lease investment properties, NNN properties for sale, single tenant net lease offerings, and fast food NNN lease investments in a market known for regional growth, tourism, and favorable business conditions.

Situated on a busy corridor with dual-lane drive-thru access, excellent visibility, and convenient ingress and egress, the Dunkin’ sits near residential neighborhoods, grocery anchors, medical facilities, schools, hotels, and commercial centers. With strong brand recognition and drive-thru traffic supported by growing demographics, this asset is a strong candidate for 1031 exchange acquisitions, net lease real estate investments, and NNN investment property listings in Alabama and the broader Sun Belt region.

Investment Highlights

  • Occupied by a national Dunkin’ franchisee
  • Absolute NNN structure means tenant covers all property-level expenses
  • Scheduled rent escalations every five years for income growth
  • Long-term lease term with multiple five‑year renewal options
  • Freestanding dual-lane drive-thru design optimized for high throughput
  • Located on a high-traffic corridor within the Daphne–Fairhope–Foley MSA
  • Ideal for investors seeking fast food NNN lease investments or net lease opportunities
  • Suited for 1031 exchange NNN buyers and those seeking passive income and portfolio diversification

This Dunkin’ property aligns with intent-focused searches like buy NNN property, triple net lease for sale, and single tenant NNN retail properties.

Tenant Overview

Dunkin’ is a leading quick-service restaurant brand recognized nationwide for coffee, breakfast sandwiches, baked goods, and beverages. The brand maintains a loyal customer base and continues to grow through digital ordering, loyalty programs, and delivery services. The franchisee operating this location has a strong record of store performance and operates under an absolute NNN lease.

Under the absolute NNN structure, the tenant is responsible for all real estate expenses: property taxes, insurance, maintenance, HVAC, structural repairs, parking lot upkeep, landscaping, and compliance. Investors receive uninterrupted monthly cash flow while benefiting from built-in rent increases every five years, which protect against inflation and support long-term returns.

Lease Summary

  • Lease Type: Absolute triple-net (NNN)
  • Initial Term: 15 to 20 years
  • Rent Escalations: Every five years
  • Renewal Options: Multiple five-year extensions
  • Landlord Responsibility: None

This lease model supports investors looking for turnkey, low-management net lease opportunities with long-term income stability.

Market Overview – Daphne–Fairhope–Foley MSA

The Daphne–Fairhope–Foley metropolitan area is part of Alabama’s thriving Gulf Coast region, including Baldwin, Mobile, and surrounding counties. Anchored by historic towns and tourism centers, it has become a favored destination for families, retirees, and seasonal visitors. Population growth remains strong, with expanding residential development and economic diversification across healthcare, hospitality, retail, and service industries.

Major metro drivers include enduring tourism tied to Gulf Coast beaches, regional healthcare facilities, education institutions, cultural events, and local government. The region features a growing base of commuters and remote workers relocating from higher-cost urban areas. These trends create strong demand for convenience retail, drive-thru QSR, and coffee-based offerings.

This metro’s economic dynamics—population expansion, workforce growth, and travel traffic—underscore the potential of drive-thru restaurant assets in the region.

Property Features

  • Freestanding dual-lane drive-thru prototype designed for Dunkin’ brand performance
  • Monument and building signage visible from both directions along a signalized corridor
  • Ample parking lot with defined ingress/egress for drive-thru queueing and dine-in access
  • Positioned near grocery stores, pharmacies, banks, medical offices, schools, hotels, and entertainment destinations
  • Located in a daytime and commuter trade zone, benefiting from both residential and visitor-driven traffic

The combination of high visibility, traffic capture, and layout efficiency supports strong sales volume and site-level success.

Trade Area Demographics

Within a five-mile radius of the property:

  • Population ranges between 100,000 and 150,000 residents, with steady annual growth
  • High median household incomes above county averages
  • A mix of commuting professionals, retirees, seasonal residents, plus visitation-related demand
  • Daytime population supported by schools, healthcare workers, hospitality and service employment, and tourism
  • Continued housing and mixed-use development in the trade zone, including single-family neighborhoods and multifamily complexes

These demographic drivers contribute to a diversification of sales across dayparts—breakfast, lunch, afternoon, and evening—making Dunkin’ especially well-positioned.

Demand Drivers and QSR Fit

The metro’s population and subsystem mix supports multiple recurring visits to quick-service outlets:

  • Residential growth provides new rooftops and repeat-goer opportunity
  • Healthcare employees and patients generate stable midday and early evening traffic
  • Same-day tourism and weekend visitation create additional demand peaks
  • Schools and universities support breakfast and after-school traffic
  • Commuting corridors fuel weekday morning volumes

This aligns well with Dunkin’s core business model, emphasizing drive-thru convenience and multi-daypart revenue.

Rent Escalations and Income Growth

The lease includes scheduled rent escalations every five years, protecting investment value and offsetting inflationary pressure. Because the lease is absolute NNN, the property owner has no exposure to capital costs or maintenance, leading to secure net operating income and clean returns.

This rent structure benefits investors focused on long term NNN lease investments and net lease property acquisitions, particularly within high-growth secondary and tertiary Metro areas.

Ideal Buyer Profiles

  • Investors seeking net lease investment properties with quality tenancy and market upside
  • Buyers completing 1031 exchange NNN transactions targeting passive income assets
  • Private capital groups, family offices, or institutions building portfolios of single tenant NNN retail properties
  • Capital allocators focusing on fast food NNN lease investments in robust coastal metros
  • Buyers interested in NNN deals for sale with zero management responsibility

This Dunkin’ property supports buyer intent for net lease opportunities, NNN investment property listings, and Southeast NNN properties for sale.

Regional Net Lease Trends and Market Fit

The Gulf Coast region of Alabama and Florida continues to see rising demand for affordable living options and convenience retail. Population inflows from higher-cost states, remote work patterns, and retirement migration support ongoing development in coastal counties.

Quick-service retail with drive-thru capability remains in high demand, as site constraints limit new QSR construction in mature corridors. Dunkin’ performs best where convenience, speed, and brand equity meet consumer needs—a formula that resonates strongly in the Daphne–Fairhope–Foley market.

Institutional and private investors alike are focusing on Gulf Coast net lease markets that offer economic diversity, population diversity, capital appreciation, and demographic stability. Drive-thru QSR sites are primary targets due to their off-premise infrastructure, national tenants, and recession resilience, making this Dunkin’ offering compelling for those audience segments.

Conclusion

This Dunkin’ in the Daphne–Fairhope–Foley MSA offers a prime passive net lease investment with national brand backing, long-term absolute NNN lease structure, built-in income growth, and strategic positioning within a thriving coastal market. With traffic-rich corridors, growing demographics, and diverse economic drivers, the property delivers predictable cash flow without operational oversight.

For investors looking to buy NNN property, complete a 1031 exchange, or expand portfolios of net lease real estate investments, this Dunkin’ asset addresses key criteria: quality tenancy, lease strength, site fundamentals, income stability, and market momentum.

Property details provided on this site are for general informational and illustrative purposes only. Specific availability and property status may change without notice. Please contact us to confirm current opportunities.