LSC-DD MC1, DST

130 Royall Street, Canton, Massachusetts 02021

Beneficial Interests: $15,673,000

Offering Price: $41,200,000

  • Loan Proceeds: $25,527,000
  • Loan-to-Offering Price Ratio: 62.00%
  • Cash Flow : 6.44%
  • Minimum Investment[1031]: $100,000

Livingston Street Capital, LLC is a boutique private equity firm whose investment strategies currently encompass three main sectors, including healthcare, mission critical/strategic and multifamily properties. Our investment strategy can best be described as focusing on the “needs” of individuals and corporations versus the “wants.”

DUNKIN BRANDS PROPERTY

The property is located in the Town of Canton in Norfolk County, MA. Specifically, the property is located on Royall Street, just off Route 128 at the intersection of Interstate 95 in Canton. The subject is situated on the northwest quadrant of this interchange.

INVESTMENT HIGHLIGHTS

  • Long operating history at the property which began in 2004
  • Significant capital invested by Tenant in excess of $12 million
  • Tenant executed a new lease in 2014 with approximately 12 years of remaining lease term
  • Property serves as the corporate headquarters building for Dunkin’ Brands Group, Inc.
  • Minimal expense and maintenance obligations as the lease is considered net
  • Dunkin’ Brands Group, Inc. is listed on the NASDAQ under the symbol DNKN with an approximate market capitalization of more than $5 billion
  • Amortization on a 30-year schedule begins in Year 4 of the loan term
  • The Tenant is a subsidiary of Dunkin’ Brands Group, Inc. (“Dunkin”), one of the world’s leading franchisors of quick service restaurants serving hot and cold coffee and baked goods, as well as hard-serve ice cream. Dunkin franchises restaurants under the Dunkin’ Donuts and Baskin-Robbins brands and has more than 20,000 points of distribution in more than 60 countries worldwide. Dunkin operates its business in four segments: Dunkin’ Donuts U.S., Dunkin’ Donuts International, Baskin-Robbins International, and Baskin-Robbins U.S.
  • In fiscal year 2016, the Dunkin’ Donuts segments generated revenues of $630.9 million, or 79% of the total segment revenues, of which $608.0 million was in the U.S. segment and $22.9 million was in the international segment.In fiscal year 2016, Dunkin’s Baskin-Robbins segments generated revenues of $166.5 million, of which $119.0 million was in the international segment and $47.5 million was in the U.S. segment.

PROPERTY OVERVIEW

DUNKIN’ BRANDS, INC.
CANTON, MASSACHUSETTS

The property is located in the Town of Canton in Norfolk County, MA. Specifically, the property is located on Royall Street, just off Route 128 at the intersection of Interstate 95 in Canton. The subject is situated on the northwest quadrant of this interchange.

Royall Street is an established business park setting consisting primarily of owner-occupied industrial and office properties. According to the appraiser, the location is considered to be a prime office location within the overall Route 128 south submarket.Land uses within the subject neighborhood consist of a mixture of commercial and residential development.

The immediate area surrounding the property consists primarily of office development within the Royall Street area and commercial along Route 128. Additional nearby uses include the headquarters office building of Boston Mutual Insurance Company as well as a Homewood Suites hotel.

ABOUT Livingston Street Capital, LLC

Livingston Street Capital, LLC is a boutique private equity firm whose investment strategies currently encompass three main sectors, including healthcare, mission critical/strategic and multifamily properties. Our investment strategy can best be described as focusing on the “needs” of individuals and corporations versus the “wants.” As a result, we focus on investment themes that we believe are less geared towards discretionary expenditures and are more closely aligned to what is essential to the user.
We are led by a management team that has collectively transacted more than $20 billion of real estate transactions throughout their careers and brings more than 75 years of collective experience. Our team has experience in both the full development cycle of real estate as well as ability to execute and structure the full capitalization of an investment. We bring a broad spectrum of understanding from ground-up development within certain sectors to multibillion dollar recapitalization and buy-outs of real estate companies.