dunkin’ donuts - matthews · marketing or sale of the property. ... dunkin’ brands group, inc.,...

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R E T A I L A D V I S O R SOFFERING MEMORANDUM

DUNKIN’ DONUTS 13627 BEACH BLVD , JACKSONVILLE, FLORIDA 32224

Matthews Retail Advisors

CONFIDENTIALITY & DISCLAIMER STATEMENT

This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of Dunkin’ Donuts located at 13627 Beach Blvd , Jacksonville, Florida 32224 (“Property”) . I t has been prepared by Matthews Retai l Advisors . This Offer ing Memorandum may not be al l - inclusive or contain a l l of the informat ion a prospect ive purchaser may desire. The informat ion contained in th is Offer ing Memorandum is conf ident ia l and furnished solely for the purpose of a review by a prospect ive purchaser of the Property. I t is not to be used for any other purpose or made avai lable to any other person without the wri t ten consent of Sel ler or Matthews Retai l Advisors . The mater ia l is based in part upon informat ion suppl ied by the Sel ler and in part upon f inancial informat ion obtained from sources i t deems rel iable. Owner, nor their of f icers , employees, or agents makes any representat ion or warranty, express or impl ied, as to the accuracy or completeness of th is Offer ing Memorandum or any of i ts contents and no legal l iabi l i ty is assumed or shal l be impl ied with respect thereto. Prospect ive purchasers should make their own project ions and form their own conclusions without rel iance upon the mater ia l contained herein and conduct their own due di l igence.

By acknowledging your receipt of th is Offer ing Memorandum for the Property, you agree:

1 . The Offer ing Memorandum and i ts contents are conf ident ia l ;

2 . You wi l l hold i t and treat i t in the str ictest of conf idence; and

3. You wi l l not , d i rect ly or indirect ly, d isclose or permit anyone else to disclose this Offer ing Memorandum or i ts contents in any fashion or manner detr imental to the interest of the Sel ler.

Owner and Matthews Retai l Advisors expressly reserve the r ight , at their sole discret ion, to reject any and al l expressions of interest or of fers to purchase the Property and to terminate discussions with any person or ent i ty reviewing this Offer ing Memorandum or making an of fer to purchase the Property unless and unt i l a wr i t ten agreement for the purchase and sale of the Property has been ful ly executed and del ivered.

I f you wish not to pursue negot iat ions leading to the acquis i t ion of the Property or in the future you discont inue such negot iat ions, then you agree to purge al l mater ia ls relat ing to th is Property including this Offer ing Memorandum.

A prospect ive purchaser ’s sole and exclusive r ights with respect to th is prospect ive t ransact ion, the Property, or informat ion provided herein or in connect ion with the sale of the Property shal l be l imited to those expressly provided in an executed Purchase Agreement and shal l be subject to the terms thereof. In no event shal l a prospect ive purchaser have any other c la ims against Sel ler or Matthews Retai l Advisors or any of their af f i l iates or any of their respect ive of f icers , Directors , shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion relat ing to th is sol ic i tat ion process or the market ing or sale of the Property.

This Offer ing Memorandum shal l not be deemed to represent the state of af fa i rs of the Property or const i tute an indicat ion that there has been no change in the state of af fa i rs of the Property s ince the date this Offer ing Memorandum.

EXCLUSIVELY LISTED BY:

Table of Contents

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Justin BeckBroker of RecordBeck Partners CRE, LLC License No. BK3118299

PRICING & FINANCIAL ANALYSISInvestment Overview ..................................................................... 2Executive Summary.........................................................................3Company Overview .......................................................................4Franchisee .........................................................................................4

PROPERTY DESCRIPTIONPhysical Description .......................................................................7Birds Eye ........................................................................................... 8Regional Map ................................................................................... 9Tenant Map......................................................................................10

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

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 Advisors

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PRICING & FINANCIAL ANALYSIS

OFFERING MEMORANDUM | Dunkin’ DonutsP. 2 Matthews Retail Advisors

PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS


• New construction, built in 2014

• 19 years remaining on the lease with 10% increase every 5 years

• Absolute NNN lease, no landlord responsibilities

• Very dense population with over 160,000 residents within a 5-mile radius

• Strong historical growth, over 20% growth since 2000

• Located on major thouroghfare with strong traffic counts, over 32,000 vehicles per day

• Located approximately 4 miles from University of North Florida with over 16,000 students

• Great retail synergy; tenants include: Walmart Supercenter, Target, Bojanjles, Chick-fil-A, Five Guys, Panda Express, Panera Bread, Taco Bell, Bank of America, Arby’s, Bealls Department Store, and many more

• Leasehold interest, able to depreciate entire purchase price*

• Average household income over $85,000 within 1-mile radius, $75,000 within a 3-mile radius

• Strong traffic counts, over 30,000 vehicles per day

• Located approximately 0.5 miles from Providence School of Jacksonville with over 1,200 students enrolled

Investment Overview

*Consult with tax advisor

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



Executive Summary

DUNKIN’ DONUTS13627 BEACH BLVD JACKSONVILLE, FLORIDA 32224

List Price .............................................................................................$1,028,571CAP Rate - Current ....................................................................................7.00%Gross Leasable Area ............................................................................. 1,711 SFLot Size ..................................................................... 0.46 Acres (20,000 SF)Year Built ........................................................................................................2014

Annualized Operating DataMonthly Rent Annual Rent Rent/SF CAP Rate

Current - 9/30/2019 $6,000.00 $72,000 $42.08 7.00%

10/1/2019 - 9/30/2024 $6,600.00 $79,200 $46.29 7.70%

10/1/2024 - 9/30/2029 $7,260.00 $87,120 $50.92 8.47%

10/1/2029 - 9/30/2034 $7,986.00 $95,832 $56.01 9.32%

Option 1 - 9/30/2039 $8,784.60 $105,415 $61.61 10.25%

Option 2 - 9/30/2044 $9,663.06 $115,957 $67.77 11.27%

Option 3 - 9/30/2049 $10,629.37 $127,552 $74.55 12.40%

Option 4 - 9/30/2054 $11,692.30 $140,308 $82.00 13.64%

Tenant Summary

Tenant Trade Name Dunkin Donuts

Type of Ownership Leasehold Interest

Lease Guarantor Franchisee

Lease Type NNN

Roof and Structure Tenant Responsible

Original Lease Term 20 years

Lease Commencement Date 10/1/2014

Rent Commencement Date 10/1/2014

Lease Expiration Date 9/30/2034

Term Remaining on Lease 19 years

Increases 10 % every 5 years

Options 4, 5-year options

Current leasehold rent is $108,000. Current ground lease rent is $36,000.




Company Overview

Property Name Dunkin’ Donuts

Gross Leasable Area 1,711 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

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PROPERTY DESCRIPTION



Physical Description

THE OFFERING

Property Name ..............................................................................Dunkin’ Donuts

Property Address .................................................................... 13627 Beach Blvd

Jacksonville, Florida 32224

Assessor’s Parcel Number .............................................................166641-0000

Zoning .............................................................................................................. CCG-1

SITE DESCRIPTION

Number of Stories .............................................................................................One

Year Built .............................................................................................................2014

Gross Leasable Area (GLA) ...................................................................... 1,711 SF

Lot Size............................................................................ 0.46 Acres (20,000 SF)

Type of Ownership ............................................................................. Lease Hold

Parking ...................................................................................... 15 Surface Spaces

Parking Ratio................................................................................... 8.76 : 1,000 SF

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

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

CONSTRUCTION

Foundation .......................................................................................Concrete Slab

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

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

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

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



Birds Eye



Regional Map



Tenant Map

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DEMOGRAPHICS


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

City Overview | Jacksonville, FL

Jacksonville is in the First Coast region of northeast Florida and is centered on the banks of the St. Johns River, about 25 miles south of the Georgia state line and about 340 miles north of Miami.

Jacksonville’s heart is in its Downtown urban core. Nestled between skyscrapers and the St. Johns River, Downtown Jacksonville’s North and South banks have an urban vibe with a cool atmosphere. Fortune 500 companies call the city’s core home. During the week, thousands of professionals and visitors fill the streets enjoying unique lunch and dining destinations, world-class museums, and a variety of nightlife options, from casual bars to upscale lounges.

The NFL’s Jacksonville Jaguars play Downtown at the Sports Complex, as does the city’s minor league baseball team, the Jacksonville Suns and AFL team, the Jacksonville Sharks. Downtown museums include the Ritz Theatre & Museum, the Museum of Contemporary Art Jacksonville, the Museum of Science and History, the Jacksonville Fire Museum, and the Jacksonville Maritime Heritage Center. Downtown Jacksonville boasts 5.6 miles of beautiful riverfront, including almost 3 miles of riverwalk.

Jacksonville has 22 miles of wide, uncrowded, white-sandy beaches that offer visitors majestic sunrises and star filled nights. Restaurants, nightlife hotspots, souvenir shops, and oceanfront hotels blend into the scene without crowding views of the shorelines.



Demographics ReportPopulation 1-Mile 3-Mile 5-Mile2020 Projection 10,309 73,393 172,0492015 Estimate 9,696 68,261 161,2812010 Census 9,184 63,472 151,5082000 Census 8,677 49,355 123,725Growth 2000-2010 5.84% 28.60% 22.46%Growth 2010-2015 5.58% 7.55% 6.45%Growth 2015-2020 6.32% 7.52% 6.68%

Households2020 Projection 4,397 28,994 68,5602015 Estimate 4,095 27,087 64,2882010 Census 3,776 25,343 60,3542000 Census 3,477 18,729 48,282Growth 2000-2010 8.58% 35.32% 25.00%Growth 2010-2015 8.46% 6.88% 6.52%Growth 2015-2020 7.37% 7.04% 6.65%

Income$0 - $15,000 9.87% 9.47% 10.21%$15,000 - $24,999 9.04% 8.66% 9.50%$25,000 - $34,999 9.57% 9.55% 9.35%$35,000 - $49,999 14.18% 14.41% 13.63%$50,000 - $74,999 16.24% 19.08% 20.52%$75,000 - $99,999 12.38% 12.25% 12.02%$100,000 - $124,999 9.57% 9.99% 8.93%$125,000 - $149,999 6.34% 6.40% 5.61%$150,000 - $199,999 5.02% 5.20% 5.08%$200,000 - $249,999 2.38% 1.88% 1.82%$250,000 - $499,999 4.29% 2.53% 2.44%$500,000+ 1.12% 0.57% 0.89%2015 Est. Average Household Income $85,912 $78,679 $77,9092015 Est. Median Household Income $61,309 $60,362 $58,901

DUNKIN’ DONUTS13627 Beach Blvd Jacksonville, Florida 32224OFFERING MEMORANDUM

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

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

Justin BeckBroker of RecordBeck Partners CRE, LLC License No. BK3118299

dunkin’ donuts - matthews · marketing or sale of the property. ... dunkin’ brands group, inc.,...

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