Dunkin' Donuts building served up

Real Estate Alert, April 21, 2004

An opportunistic joint venture involving Lone Star Partners is shopping the headquarters of Dunkin' Donuts--a suburban Boston building worth some $35 million.

The partnership leased the entire 175,000-square-foot property in November to Allied Domecq Quick Service Restaurants, Dunkin' Donuts' parent company. The building is located at 130 Royall Street in Canton, Mass.

Allied Domecq's lease runs for 10 more years at a triple-net rent that is estimated at $15-17/sf.

The Lone Star partnership completed the development of 130 Royall Street in 2001, without having a tenant lined up.

The space came on-line just as the dot-corn implosion made the suburban-Boston leasing market far more difficult. For that reason, landing the donuteer as a tenant was seen as something of a coup, and the property has already come to be known as the Dunkin' Donuts Building.

Trammell Crow has the listing. For more information, call Peter Joseph at 617-757-2525.