Northridge, CA – July 2017, Centers Business Management (CBM) completes new ground leasing transaction with expanding East Coast-based donut shop franchise.
CBM leasing agent + property manager, Eric Kalfa, recently completed a new 10-year ground lease with Dunkin Donuts (an East Coast based donut shop franchise currently pursuing massive West Coast expansion) in a freestanding retail building at the intersection of Reseda Boulevard and Vincennes Street in Northridge, CA. The Dunkin Donuts shop, leased by franchisees, Madison Food Management, will occupy a completely remodeled 2,900 SQFT store adjacent to the Cal State Northridge campus and the Valley Performing Arts Center. Additionally, the new location just celebrated its official grand opening!
Dunkin Donuts, a publicly traded company (NASDAQ: DNKN,) operates 11,000 stores worldwide, and 7,700 in the US. This East Coast-based chain began its California expansion in 2014 and has since open highly successful Southern California stores in Long Beach, Santa Monica, Hollywood and East LA’s Atwater Village. Dunkin plans to open 1,000 stores in California over the next decade, including 200+ in SoCal. And many of those locations will be launched with franchising partners, like Madison Food Management, a successful Los Angeles area fast food franchising enterprise.
“When I took over as property manager of the site, it was car stereo installation business, and clearly not the property’s highest and best use, ” says Encino leasing agent + property manager, Eric Kalfa. “When the car stereo tenant’s lease expired, I convinced the landlord to bring the site to market, which prompted multiple offers. Popeye’s [chicken], Coffee Bean & Tea Leaf, and Dunkin Donuts were all clamoring for the site and each submitted a strong offer,” Kalfa notes in reference to the property’s high demand, driven largely by its proximity to nearby Cal State Northridge University.
The landlord also had a unique stipulation in this deal, requesting the property be let on ground lease. “Negotiating and drafting ground leases is a complicated and tricky process. And not many leasing agents possess the knowledge and expertise to make this kind of deal happen,” Kalfa adds regarding the difficulty in structuring ground lease transactions.
“Dunkin Donuts has promised massive expansion, and we hope this, in addition to another site we leased to Dunkin at Glendale and Glenhurst in Atwater Village, are just the first of many deals wit the company and its franchisees,” Says CBM President, Rick Rivera. “And considering many of the shopping center and street retail sites CBM represents are an ideal fit for Dunkin, we’re confident that will happen,” Rivera notes in anticipation of completing future transactions with the expansion-minded Dunkin Donuts.
For more information about CBM and their retail leasing and property management services, please contact: Rick Rivera 310.575.1517 x201 | email@example.com.