Faris Lee Investments is pleased to announce the successful $2,000,000 acquisition of a newly constructed Dunkin’ Donuts in Jacksonville, Florida, on behalf of a Long Beach-based private investor. Faris Lee Investments’ Nick Miller represented the Buyer, managing the transaction from the disposition of the client’s relinquished asset through the acquisition of the 1031 replacement property.
Built in 2024, the Dunkin’ is subject to an 18-year absolute NNN ground lease and was acquired at a 4.99% cap rate, the lowest reported cap rate for a Dunkin’ investment in Florida over the trailing 12 months. The transaction closed all-cash in 27 days following a competitive bidding process.
Strategic 1031 Exchange Execution
The client had a defined 1031 exchange timeline and specific investment criteria centered on long-term income, passive ownership and strong underlying real estate fundamentals.
Miller identified the Jacksonville Dunkin’ as a strong fit based on its newly constructed improvements, long-term lease term, absolute NNN structure and strategic Jacksonville location.
The investment also featured below-market, replaceable ground rent with rare 2.5% annual increases, providing contractual rent growth and additional long-term upside tied to the underlying real estate.
Navigating a Competitive Acquisition
After identifying the opportunity, Miller represented the Buyer through a competitive bidding process and successfully positioned the client to secure the property despite competing offers.
The investment provided the client with a passive, single-tenant QSR asset supported by a long-term contractual lease and minimal property-level management responsibilities. The franchisee operates 105 Dunkin’ locations, providing significant operating experience and scale. Faris Lee Investments coordinated the acquisition with the disposition of the client’s relinquished asset, helping ensure the transaction remained aligned with the client’s 1031 exchange requirements and compressed timeline.
Transaction Highlights
• $2,000,000 acquisition price
• 4.99% cap rate — lowest reported Dunkin’ cap rate in Florida over the trailing 12 months
• 2024-built Dunkin’ Donuts
• 18-year absolute NNN ground lease
• 2.5% annual rent increases
• Below-market, replaceable ground rent
• All-cash acquisition
• 27-day escrow
• Full 1031 exchange execution
• Buyer representation by Faris Lee Investments
• Acquired through a competitive bidding process
The transaction highlights Faris Lee Investments’ ability to identify and secure highly sought-after net-leased investment opportunities while representing clients through complex 1031 exchanges and competitive acquisition processes. For private investors completing a 1031 exchange, the transaction demonstrates the value of strategic sourcing, disciplined underwriting and experienced representation in identifying replacement assets aligned with both exchange requirements and long-term investment objectives.
About Faris Lee Investments
Faris Lee is a leading national retail investment brokerage firm with 30 years of experience in maximizing value for retail property owners. Guided by core principles of integrity, high level of real estate knowledge, and accountability, the firm is dedicated to delivering exceptional results while maintaining a strong commitment to ethical practices, collaboration, and in-depth real estate knowledge.
Faris Lee’s process begins with a deep understanding of each property, followed by the application of market analytics using real-time financial, real estate, and retail data to inform strategic decisions.
By combining cutting-edge research, precise marketing strategies, and a collaborative team approach, Faris Lee maximizes sale proceeds, ensuring clients achieve exceptional results well above the competition. Their team of seasoned professionals brings extensive real estate expertise and a client-focused mindset, ensuring long-term success through creative solutions and unwavering focus for the client.