September 5, 2018 – Bob Horvath and Todd Tremblay of Horvath & Tremblay have successfully completed the sale of the ground lease to a new Honey Dew Donuts in North Providence, Rhode Island. Horvath & Tremblay exclusively represented the seller and procured the buyer to close the transaction at a sale price of $860,000, a 5.8% cap rate.
The newly constructed Honey Dew Donuts is located at 1113 Mineral Springs Avenue. The Honey Dew Donuts building is currently under construction with the store expected to open and the ground lease anticipated to commence in December 2018. The Property will include a drive-up window & ample parking. The Honey Dew Donuts lease term is for 15 years with two, 5-year tenant renewal options. The ground lease provides for a minimum 5.0% rent increase every five years during the initial term and at the start of each option period.
The new Honey Dew Donuts is strategically located at the corner of Mineral Spring Avenue and Cooper Street on a busy roadway connecting residential North Providence with the heavily travelled Route 146. The Property is set at the signalized intersection across from a popular Stop & Shop supermarket. On average, approximately 15,200 vehicles pass the site daily. The entrance to Honey Dew Donuts on Mineral Spring Avenue will function in concert with the existing traffic light serving the Stop & Shop.
Horvath & Tremblay is one of the most active and successful Investment Real Estate Brokerage firms in the United States. Our advisors specialize in the sale of single tenant net-lease assets and retail shopping centers. They have experience successfully structuring sale lease-back programs, portfolio dispositions, and 1031 exchanges. Horvath & Tremblay is dedicated to being the best source of information and expertise in the marketplace for private investors, developers, institutions, and industry professionals.