Krispy Kreme - Allen Park, MI
Krispy Kreme Corporate Ground Lease
Marketing description
SRS National Net Lease is pleased to offer the opportunity to acquire the leased fee interest (land ownership) in an absolute NNN, corporate signed, drive-thru equipped, Krispy Kreme investment property located in Allen Park, MI (Detroit MSA). The tenant, Krispy Kreme Doughnut Corporation, recently exercised their second of four option periods, providing firm term through October 2028. The lease features CPI increases at the beginning of each option, growing NOI and hedging against inflation. The lease is signed by the corporate entity and is absolute NNN with zero landlord responsibilities, making it an ideal, management-free investment opportunity for a passive investor. Founded in 1937, Krispy Kreme is a world-renowned sweet treats brand with a strong customer base spanning 35 countries.
Krispy Kreme is strategically located along Southfield Road with clear visibility and access to an average of 61,700 vehicles passing by daily. The asset benefits from nearby access onto State Highway 85 (42,600 VPD), Interstate 75 (104,500 VPD), Interstate 94 (155,000 VPD), and others, making it an ideal and centralized location with easy commutes. Krispy Kreme is ideally situated within a dense retail trade area with many national/credit tenants including Kroger, The Home Depot, Target, ALDI, Meijer, ACE Hardware, and others. The strong tenant synergy increases consumer draw to the immediate trade area, promotes crossover store exposure, and contributes to the local economy. Furthermore, the property is near numerous single-family communities and multi-family complexes including The Cove at Allen
Park (132 units), Park Plaza (200 units), Gale Gardens (233 units), and others, providing a direct residential consumer base. The 5-mile trade area is supported by over 288,200 residents and 117,000 daytime employees, with a healthy average household income of $78,438.
Investment highlights
Corporate signed ground lease (NASDAQ: DNUT) – passive ownership
Structured rent growth with CPI increases at the beginning of each option period
Krispy Kreme recently exercised their 2nd of four option periods, providing firm term through October 2028
Long-term occupancy, having operated at the site since 2003
Within 3 miles of Corewell Health Dearborn Hospital (632 bed), Ford Research & Product Development Center, Ford Dearborn Manufacturing Plant
More than 288,200 residents and 117,000 employees support the trade area
Located along Southfield Rd with 61,700 VPD
Equipped with a drive-thru, providing ease and convenience for customers
Among the most visited Bakeries and Dessert Shops in the state of Michigan with 233K+ annual visits, ranking in the top 85th percentile (per Placer.ai)
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