offering memorandum dunkin donuts – exposure to 92,500 ... · beloved franchises: dunkin’...

8419 US-19, PORT RICHEY, FL 34668

Dunkin Donuts – Exposure to 92,500+ Vehicles Per DayOFFERING MEMORANDUM

ACTUAL PHOTO

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap ZAA0390491

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EXECUTIVE SUMMARY

■ Newer construction Dunkin’ Donuts with more than 5 years on the base term of the lease and three options to renew with 10% increases in rent

■ Excellent intrinsic value: large 2,422 square foot building on 1.38 acres

■ Very strong operator: 120 units and growing in Florida, Georgia, Arizona, Alabama and Louisiana

■ Situated on a parcel that spans an entire block, the property has visibility to over 92,500 vehicles per day, 4 points of access and a signalized intersection on route 19, a major thoroughfare for Port Richey

■ Bay Boulevard is the only point of access to Schroters Point, a residential peninsula with over 150 single family homes and 18 apartment buildings.

■ Florida in a no income tax state

INVESTMENT HIGHLIGHTSINVESTMENT OVERVIEWMarcus & Millichap is pleased to exclusively present for sale this single tenant absolute NNN leased Dunkin Donuts in Port Richey, Florida. Dunkin Donuts has more than five years on the base term of the lease with three (five year) options to renew. With frontage on two major thoroughfares, the property has visibility to over 92,500 vehicles per day. The property is situated across the street from a Walmart Supercenter which has attracted many strong tenants to the area such as Walgreens, Checker’s, PNC Bank, Wawa, Long John Silver’s and Red Lobster to name a few.

This Dunkin Donuts is located next door to a very busy Culver’s restaurant on the busiest intersection of Port Richey. An investor can realize a strong return from a fee simple, low price point drive thru restaurant. Port Richey has experienced strong historical population growth and has a strong 15 percent population growth projection for the next five years.

Dunkin’ Donuts is the world’s leading baked goods and coffee chain, serving more than three million customers each and every day. True to their name, they offer 50 plus varieties of donuts, but you can also enjoy dozens of premium beverages, bagels, breakfast sandwiches and other baked goods. In 1950, Bill Rosenberg opened the first Dunkin’ Donuts shop in Quincy, Massachusetts. Just five years later, a franchise legacy was born. There are more than 11,300 Dunkin’ Donuts restaurants worldwide – that’s over 8,500 restaurants in 41 states across the U.S.A. and over 3,200 international restaurants across 36 countries. With over 130 years of franchising experience, Dunkin’ Brands is home to two of the world’s most recognized, beloved franchises: Dunkin’ Donuts and Baskin-Robbins.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap ZAA0390491

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PRICING AND FINANCIAL ANALYSIS

Dunkin’ Donuts 8419 US-19, PORT RICHEY, FLORIDA 34668

PROPERTY DETAILS FINANCIAL OVERVIEW

Lot Size 60,548 SF (1.39 Acres)

Rentable Square Feet 2,422 SF

Price/SF $847.88

Year Built 2015

List Price $2,053,571 Down Payment

Cap Rate

Type of Ownership

100% / $2,053,571

5.60%

Fee Simple

RENT INCREASES MONTHLY RENT ANNUAL RENT

12/18/2019 - 12/17/2024 (CURRENT) $9,583 $115,000

12/18/2024 - 12/17/2029 (OPTION 1) $10,542 $126,500

12/18/2029 - 12/17/2034 (OPTION 2) $11,596 $139,150

12/18/2034 - 12/17/2039 (OPTION 3) $12,755 $153,065

Base Rent ($47.48 /SF) $115,000

Net Operating Income $115,000.00

TOTAL ANNUAL RETURN CAP 5.60% $115,000

PROPERTY RENT DATA

THE OFFERING

LEASE ABSTRACT

Tenant Trade Name Dunkin’ Donuts

Tenant Franchisee

Ownership Private

Guarantor Franchisee Guarantee

Lease Type NNN

Lease Term 10 Years

Lease Commencement Date 12/18/2014

Rent Commencement Date 12/18/2014

Expiration Date of Base Term 12/17/2024

Increases 10% Each Option Periods

Options Three Five-Year Options

Term Remaining on Lease 5+ Years

Property Type Net Leased Restaurant

Landlord ResponsibilityPave/Resurface Parking Area – Cost Reimbursed by Tenant

Maintain $2 million liability insurance Policy

Tenant Responsibility All other

Right of First Refusal N/A

LOCAL STREET AERIALRESEARCH

4This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap ZAA0390491

SITEPLAN AERIALRESEARCH


RESEARCH ABOUT

Founded in 1950, Dunkin’ is America’s favorite all-day, everyday stop for coffee and baked goods. Dunkin’ is a market leader in the hot regular/decaf/flavored coffee, iced coffee, donut, bagel and muffin categories in the U.S. Dunkin’ has earned the No. 1 ranking for customer loyalty in the coffee category by Brand Keys for 13 years running in the U.S. The brand has more than 12,800 restaurants in 44 countries worldwide. Based in Canton, Mass., Dunkin’ is part of the Dunkin’ Brands Group, Inc. (Nasdaq: DNKN) family of companies.

NAME Dunkin’ Donuts

OWNERSHIP Public

FOUNDED 1950

HQ Canton, MA

SALES $1.32 billion (2018)

NUMBER OF LOCATIONS 12,800 (44 countries)

WEBSITE www.dunkindonuts.com

NUMBER OF EMPLOYEES 270,000 people worldwide

CREDIT RATING Fitch 2016 BBB

OPERATOR INFORMATION

Purple Square Management Co. was founded in Tampa, Florida in 2006 but has extended their reach to include other areas of the Eastern United States, with 54 Dunkin Donut/Baskin Robbins in Florida, Alabama and Louisiana and 10 ofThe Brass Tap locations in Florida, North Carolina and South Carolina. Many multi-unit development agreements for both brands are in the works for Florida, Alabama, Louisiana, North Carolina and South Carolina, with 85 locations in all expected by year end 2017. In January 2017 Drew Brees, quarterback for winning Super Bowl champs The New Orleans Saints, has partnered with Purple Square to develop 69 brand new Dunkin Donuts in Louisiana. Purple Square has also made plans to add Popeye’s Louisiana Kitchen to their repertoire of popular brands and will be opening 7 new locations in the Atlanta, Georgia market by the end of 2017.


PROPERTY PHOTOSRESEARCH


RESEARCH


LOCAL STREET AERIAL

RESEARCH SURROUNDING AREA PHOTOS

Brand New Hardees next door to the Dunkin DonutsBrand New Walgreens across the street


POPULATION PROFILE DEMOGRAPHICS

1 Miles 3 Miles 5 MilesPOPULATION

2023 Projection 5,547 58,325 128,3232018 Estimate 5,526 57,923 125,1842010 Census 5,325 54,674 118,2312000 Census 5,779 55,110 118,529

INCOMEAverage $46,363 $46,082 $49,150Median $33,381 $34,505 $37,158Per Capita $20,749 $20,529 $22,007

HOUSEHOLDS2023 Projection 2,474 26,128 57,5842018 Estimate 2,446 25,658 55,7252010 Census 2,364 24,209 52,6802000 Census 2,665 25,397 54,351

HOUSING2018 $86,078 $94,549 $105,736

EMPLOYMENT2018 Daytime Population 6,440 55,184 118,687

2018 Unemployment 8.04% 6.07% 5.92%2018 Median Time Traveled 28 29 29

RACE & ETHNICITYWhite 86.10% 87.74% 89.40%Native American 0.06% 0.05% 0.06%African American 4.62% 3.50% 2.85%Asian/Pacific Islander 1.47% 1.30% 1.47%


DEMOGRAPHICS

RACE AND ETHNICITY The current year racial makeup of your selected area is as follows: 89.40% White, 2.85% Black, 0.06% Native American and 1.47% Asian/Pacific Islander. Compare these to US averages which are: 70.20% White, 12.89% Black, 0.19% Native American and 5.59% Asian/Pacific Islander. People of Hispanic origin are counted independently of race. People of Hispanic origin make up 12.35% of the current year population in your selected area. Compare this to the US average of 18.01%.

HOUSING The median housing value in your area was $105,736 in 2018, compare this to the US average of $201,842. In 2000, there were 42,714 owner occupied housing units in your area and there were 11,637 renter occupied housing units in your area. The median rent at the time was $452.

EMPLOYMENT In 2018, there are 40,209 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed that 56.44% of employees are employed in white-collar occupations in this geography, and 43.34% are employed in blue-collar occupations. In 2018, unemployment in this area is 5.92%. In 2000, the average time traveled to work was 29.00 minutes.

POPULATIONIn 2018, the population in your selected geography is 125,184. The population has changed by 5.61% since 2000. It is estimated that the population in your area will be 128,323.00 five years from now, which represents a change of 2.51% from the current year. The current population is 48.13% male and 51.87% female. The median age of the population in your area is 47.73, compare this to the US average which is 37.95. The population density in your area is 1,595.55 people per square mile.

HOUSEHOLDS There are currently 55,725 households in your selected geography. The number of households has changed by 2.53% since 2000. It is estimated that the number of households in your area will be 57,584 five years from now, which represents a change of 3.34% from the current year. The average household size in your area is 2.23 persons.

INCOMEIn 2018, the median household income for your selected geography is $37,158, compare this to the US average which is currently $58,754. The median household income for your area has changed by 25.40% since 2000. It is estimated that the median household income in your area will be $40,819 five years from now, which represents a change of 9.85% from the current year. The current year per capita income in your area is $22,007, compare this to the US average, which is $32,356. The current year average household income in your area is $49,150, compare this to the US average which is $84,609.

GEOGRAPHY: 5 MILE


By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.

Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows: The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.

As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer.

Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors.

Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property.abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property. By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.

NET LEASE DISCLAIMER

CONFIDENTIALITY AND DISCLAIMERThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

Marcus & Millichap Real Estate Investment Services, Inc. (“M&M”) is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of M&M, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of M&M, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

NON-ENDORSEMENT NOTICE

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

EXCLUSIVELY LISTEDEXCLUSIVELY LISTED BY:

OFFICES NATIONWIDEwww.marcusmillichap.com

GABRIEL BRITTI Senior Vice President Investments Senior Director, National Retail GroupMIAMI OFFICEOffice: (786) [email protected]

RONNIE ISSENBERG Senior Vice President Investments Senior Director, National Retail GroupMIAMI OFFICEOffice: (786) [email protected]

offering memorandum dunkin donuts – exposure to 92,500 ... · beloved franchises: dunkin’...

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