On Apr 2, 2018 Krispy Kreme sold their iconic location at 549 North Person St, Raleigh for just over 4.6 million dollars to the New York based real estate investment company Broadstone KKD Portfolio LLC, a subsidiary of Broadstone Real Estate.
The sale left a lot of local residents wondering what the future will hold for their beloved store. Once the sale was recorded in Raleigh, I looked into the transaction and found there was a lease registered.
Your typical lease isn’t recorded but it’s good practice to record leases over 3 years. In our real estate classes we were taught to record a lease over 3 years, but looking at NC Statute § 22-2 it doesn’t specify it needs to be recorded, but it does have to be in writing.
The recorded document stated that for a period of 20 years (Apr 1, 2018 – Mar 31, 2038) Krispy Kreme can lease the property from Broadstone. This revelation came as relief to those concerned about losing their favorite donut shop.
After the initial 20 years, there is an option to extend in 5 year increments.
The great news is, when you’re hungry for a donut, Krispy Kreme will still be there serving delicious hot donuts. Just keep looking for the Hot Light!
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