dunkin’ donuts - · pdf fileexecutive summary dunkin’ donuts 7171 philips highway...

OFFERING MEMORANDUM

DUNKIN’ DONUTS 7171 PHILIPS HIGHWAY, JACKSONVILLE, FL 32256

Matthews Retail Group

CONFIDENTIALITY & DISCLAIMER STATEMENTThis Of fer ing Memorandum contains se lec t in format ion per ta in ing to the bus iness and af fa i rs of Dunkin’ Donuts located at 7171 Philips Highway, Jacksonville, FL 32256 (“Proper ty”). I t has been prepared by Mat thews Retai l Group . This Of fer ing Memorandum may not be al l - inc lus ive or contain a l l o f the in format ion a prospect ive purchaser may desi re. The in format ion contained in th is Of fer ing Memorandum is conf ident ia l and furn ished sole ly for the purpose of a rev iew by a prospect ive purchaser of the Proper ty. I t i s not to be used for any other purpose or made avai lable to any other person wi thout the wr i t ten consent of Sel le r or Mat thews Retai l Group . The mater ia l i s based in par t upon in format ion suppl ied by the Sel ler and in par t upon f inancia l in format ion obtained f rom sources i t deems re l iable. Owner, nor thei r of f icers, employees, or agents makes any representa t ion or warranty, express or impl ied, as to the accuracy or comple teness of th is Of fer ing Memorandum or any of i t s contents and no legal l iabi l i ty i s assumed or shal l be impl ied wi th respect there to. Prospect ive purchasers should make thei r own projec t ions and form thei r own conclus ions wi thout re l iance upon the mater ia l contained herein and conduct thei r own due di l igence.

By acknowledging your receipt of th is Of fer ing Memorandum for the Proper ty, you agree:

1. The Of fer ing Memorandum and i t s contents are conf ident ia l ;

2. You wi l l ho ld i t and t reat i t in the s t r ic tes t o f conf idence; and

3. You wi l l not , di rec t ly or indi rec t ly, disc lose or permi t anyone e lse to disc lose th is Of fer ing Memorandum or i t s contents in any fashion or manner det r imenta l to the in teres t of the Sel ler.

Owner and Mat thews Retai l Group express ly reser ve the r igh t , a t thei r so le discre t ion, to re jec t any and al l express ions of in teres t or of fers to purchase the Proper ty and to terminate discuss ions wi th any person or ent i ty rev iewing th is Of fer ing Memorandum or making an of fer to purchase the Proper ty un less and unt i l a wr i t ten agreement for the purchase and sale of the Proper ty has been fu l ly executed and del ivered.

I f you wish not to pursue negot ia t ions leading to the acquis i t ion of the Proper ty or in the fu tu re you discont inue such negot ia t ions, then you agree to purge al l mater ia ls re la t ing to th is Proper ty inc luding th is Of fer ing Memorandum.

A prospect ive purchaser ’s so le and exc lus ive r igh ts wi th respect to th is prospect ive t ransact ion, the Proper ty, or in format ion provided herein or in connect ion wi th the sale of the Proper ty shal l be l imi ted to those express ly provided in an executed Purchase Agreement and shal l be subjec t to the terms thereof. In no event shal l a prospect ive purchaser have any other c la ims agains t Sel le r or Mat thews Retai l Group or any of thei r af f i l ia tes or any of thei r respect ive of f icers, Di rec tors, shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion re la t ing to th is so l ic i ta t ion process or the market ing or sa le of the Proper ty.

This Of fer ing Memorandum shal l not be deemed to represent the s ta te of af fa i rs of the Proper ty or cons t i tu te an indicat ion that there has been no change in the s ta te of af fa i rs of the Proper ty s ince the date th is Of fer ing Memorandum.

EXCLUSIVELY L ISTED BY:

Table of ContentsPRICING & FINANCIAL ANALYSIS

Investment Overview .................................................... 2Investments Highlights .................................................. 2Executive Summary ..................................................... 3Company Overview ................................................... 4

PROPERTY DESCRIPTIONPhysical Description ..................................................... 7Tenant Map ................................................................ 8Regional Map ............................................................. 9Bird’s Eye ................................................................. 10

DEMOGRAPHICSCity Overview | Jacksonville, FL ................................. 12Demographics Report ................................................ 13

Justin BeckBroker of Record License No. BK3118299

Jason MiguelAssociate DIRECT +1.310.919.5831 MOBILE +1.504.236.0734 [email protected] License No. 01970104

Chad KurzManaging Partner DIRECT +1.310.919.5850 MOBILE +1.562.480.2937 [email protected] License No. 01911198

Matthews Retail Group

Pricing & Financial Analysis

OFFERING MEMORANDUM | Dunkin’ DonutsP. 2 Matthews Retail Group

PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS

• Brand new 2014 renovations

• 10% rent increase in year 2024, and every 5-year option

• Approximately 19 years remaining on initial 20-year lease

• NNN lease with drive-thru

• Dense business, office and medical area, anchored by St. Vincent Medical Center

• Great retail synergy; other tenants included: Wendy’s, Chick-fil-A, Sonic Drive-In, Whataburger, Zaxbys, McDonald’s

• There are over 165,000 residents within a 5-mile radius

• Strong traffic counts, over 40,000 vehicles per day.

• Nearby hotels include: The Marriott, Best Western Hotel, Radisson Hotel, Fairfield Inn, Hometown Inn & Suites, Extended Stay America, Holiday Inn, Candlewood Suites, and many more

• Located 0.5 mile from I-95 freeway, attracting over 130,000 vehicles per day.

• Located near Samuel W. Wolfson High School with over 1,200 students enrolled.

Investment Overview

Matthews Retail Group P. 3Dunkin’ Donuts | OFFERING MEMORANDUM

PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS

Executive Summary

DUNKIN’ DONUTS7171 PHILIPS HIGHWAY JACKSONVILLE, FL 32256

List Price .........................................................................$2,181,818CAP Rate - Current .................................................................. 5.50%Gross Leasable Area ........................................................... 2,796 SFLot Size ....................................................... 0.95 Acres (41,197 SF)Year Built ..................................................................................2005Year Renovated .........................................................................2014

Annualized Operating DataMonthly Rent Annual Rent Rent/SF CAP Rate

Current - 6/30/2024 $10,000 $120,000 $42.92 5.50%

1/1/2023 - 6/30/2034 $11,000 $132,000 $47.21 6.05%

Option 1 - 6/30/2039 $12,100 $145,200 $51.93 6.66%

Option 2 - 6/30/2044 $13,310 $159,720 $57.12 7.32%

Tenant Summary

Tenant Trade Name Dunkin Donuts

Type of Ownership Fee Simple

Lease Guarantor Franchisee

Lease Type NNN

Roof and Structure Tenant Responsible

Original Lease Term 20 Years

Lease Commencement Date January 1,2014

Rent Commencement Date January 1,2014

Lease Expiration Date June 30,2034

Term Remaining on Lease 19 years

Increases 10% rental increases

Options 2, 5-year options



Company Overview

Property Name Dunkin’ Donuts

Gross Leasable Area 2,796 SF

Property Type Net Leased Quick Service Restaurant

Parent Company Trade Name Dunkin’ Brands Group, Inc.

Ownership Public

Credit Rating B+

Rating Agency Standard & Poor’s

Revenue $748.7 million

Net Income $176.4 million

Stock Symbol DNKN

Board NASDAQ

No. of Locations ±11,000

No. of Employees ±260,000

Headquartered Canton, Massachusetts

Web Site www.dunkindonuts.com

Year Founded 1950

Dunkin’ Brands Group, Inc., together with its subsidiaries, develops, franchises, and licenses quick service restaurants under the Dunkin’ Donuts and Baskin-Robbins brands worldwide. The company operates through four segments: Dunkin' Donuts U.S., Dunkin' Donuts International, Baskin-Robbins U.S., and Baskin-Robbins International. Dunkin’ Donuts is the world’s leading baked goods and coffee chain, serving more than 3 million customers per day. Its restaurants offer hot and cold coffee, baked goods, donuts, bagels, muffins, breakfast sandwiches, hard-serve ice cream, soft serve ice cream, frozen yogurt, shakes, malts, and floats. It also leases franchised restaurant properties in Canada, as well as office space in Brazil, China, Dubai, and the United Kingdom. Dunkin' Brands Group, Inc. is headquartered in Canton, Massachusetts.

Back Cove Holdings, LLC, the largest franchisee in Jacksonville, FL, operates 11 Dunkin Donuts locations. They have recently signed a lease for a 12th location and currently in the process of developing three (3) additional stores over the next 3 years. Back Cove Holdings, LLC has a 2015 estimated gross revenue of $11 million.

Franchisee


Property Description



Physical Description

THE OFFERINGProperty Name ...............................................................Dunkin’ Donuts

Property Address ..................................................7171 Philips Highway

Jacksonville, FL 32256

Assessor’s Parcel Number .................................................152594-8240

Zoning ...........................................................................................PUD

SITE DESCRIPTIONNumber of Stories ...........................................................................One

Year Built ...................................................................................... 2005

Gross Leasable Area (GLA) .......................................................2,796 SF

Lot Size ............................................................. 0.95 Acres (41,197 SF)

Type of Ownership ................................................................ Fee Simple

Parking .....................................................................30 Surface Spaces

Parking Ratio .............................................................. 10.73 : 1,000 SF

Landscaping ........................................................................Professional

Topography ....................................................................Generally Level

CONSTRUCTIONFoundation .......................................................................Concrete Slab

Framing ...................................................................................... Wood

Exterior ...........................................................................Painted Stucco

Parking Surface .........................................................................Asphalt

Roof ................................................................................................Flat



Tenant Map



Regional Map



Bird’s Eye


Demographics



City Overview | Jacksonville, FL

Jacksonville is the largest city by population in the U.S. state of Florida, and the largest city by area in the contiguous United States. It is the county seat of Duval County, with which the city government consolidated in 1968. Consolidation gave Jacksonville its great size and placed most of its metropolitan population within the city limits; with an estimated population of 853,382 in 2014, it is the most populous city proper in Florida and the Southeast, and the 12th most populous in the United States. Jacksonville is the principal city in the Jacksonville metropolitan area, with a population of 1,345,596 in 2010.Harbor improvements since the late 19th century have made Jacksonville a major military and civilian deep-water port. Its riverine location facilitates two United States Navy bases and the Port of Jacksonville, Florida's third largest seaport. The two US Navy bases, Blount Island Command and the nearby Naval Submarine Base Kings Bay form the third largest military presence in the United States. Significant factors in the local economy include services such as banking, insurance, healthcare and logistics. As with much of Florida, tourism is also important to the Jacksonville area, particularly tourism related to golf. People from Jacksonville may be called "Jacksonvillians" or "Jaxsons".Some major tourist attractions in Jacksonville include sporting events, cultural centers, festivals, and parks. The city is home to the professional football team, the Jacksonville Jaguars, and their games draw about 70,000 people to their arena. Jacksonville also hosts the second-largest jazz festival in the nation, The Jacksonville Jazz Festival. Other attractions include the Museum of Contemporary Art Jacksonville, the Museum of Science & History, the Jacksonville Zoo and Gardens, and Jacksonville landing.



Demographics ReportPopulation 3-Mile 5-Mile 10-Mile2020 Projection 72,525 178,640 621,2602015 Estimate 68,768 169,836 593,9672010 Census 65,476 162,087 571,9872000 Census 59,199 142,901 512,178Growth 2015-2020 5.46% 5.18% 4.60%Growth 2010-2015 5.03% 4.78% 3.84%Growth 2000-2010 10.60% 13.43% 11.68%

Households2020 Projection 32,654 78,429 254,8702015 Estimate 30,844 74,399 242,8722010 Census 29,202 70,805 232,5332000 Census 25,809 60,921 205,290Growth 2015-2020 5.87% 5.42% 4.94%Growth 2010-2015 5.62% 5.08% 4.45%Growth 2000-2010 13.15% 16.22% 13.27%

Income$0 - $15,000 15.71% 15.15% 15.15%$15,000 - $24,999 13.86% 12.89% 12.89%$25,000 - $34,999 12.24% 11.37% 11.37%$35,000 - $49,999 16.25% 16.12% 16.12%$50,000 - $74,999 17.67% 17.39% 17.39%$75,000 - $99,999 10.01% 10.35% 10.35%$100,000 - $124,999 5.73% 6.53% 6.53%$125,000 - $149,999 3.27% 3.71% 3.71%$150,000 - $199,999 2.66% 3.32% 3.32%$200,000 - $249,999 0.96% 1.20% 1.20%$250,000 - $499,999 1.33% 1.57% 1.57%$500,000+ 0.30% 0.41% 0.41%2015 Est. Average Household Income $58,017 $62,049 $62,999 2015 Est. Median Household Income $42,564 $44,861 $45,367

Matthews Retail Group | 841 Apollo Street, Suite 150 | El Segundo, CA 90245 | www.MatthewsRetailGroup.com

DUNKIN’ DONUTS7171 Philips HighwayJacksonville, FL 32256OFFERING MEMORANDUM

Justin BeckBroker of Record License No. BK3118299

Jason MiguelAssociate DIRECT +1.310.919.5831 MOBILE +1.504.236.0734 [email protected] License No. 01970104

Chad KurzManaging Partner DIRECT +1.310.919.5850 MOBILE +1.562.480.2937 [email protected] License No. 01911198

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