DUNKIN' DONUTS | DAVENPORT, FL

Offering Memorandum

DUNKIN' DONUTS | DAVENPORT, FL43450 US Highway 27, Davenport, FL 33837

DUNKIN' DONUTS | DAVENPORT, FL

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OFFERING SUMMARY

NNN with Minimal Landlord Responsibilities

New 10-Year Term with Four, Five-Year Options

Growing Franchisee with Multiple Units

Long-term Commitment by Franchisee

Located in Prime Regional Retail Corridor

Located in High Growth Development Area

Florida is a NO STATE INCOME TAX State

INVESTMENT HIGHLIGHTS

Marcus & Millichap is pleased to offer this Dunkin' Donuts located at 43450 US Highway 27 in Davenport, Florida. The Property contains anewly constructed 1,800 square foot building and is situated on 0.62 acres. This lease is a NNN lease with minimal Landlord responsibilitiesof roof structure (covered by warranty) and parking lot replacement. The lease further provides for 10 percent rent increases every five years,including the four, five year renewal options.

The Property is centrally located between Orlando and Tampa on US Highway 27, just south of the Interstate 4 exit. US Highway 27 is amajor north-south artery connecting Central and South Florida with a traffic count of 52,535 AADT at the Property. Interstate 4 is a majoreast-west artery connecting Orlando and Tampa with a traffic count of 110,500 AADT at the exit to US Highway 27, just north of theProperty. It is situated in Davenport’s retail corridor across from Posner Park Shopping Center, a regional power center that includes BestBuy, JC Penneys, Target, PetSmart, Michaels, Ross, Dicks Sporting Goods and several other national retailers. Nearby retailers includeWawa, RaceTrac, 7-Eleven, Cracker Barrel, Perkins, Bob Evans, Popeye’s, McDonald’s, Burger King, Wendy’s, Denny’s, Subway and TacoBell. In addition, the Property’s immediate trade area includes Hampton Inn, Holiday Inn Express, Ramada, Comfort Inn, Quality Inn andDays Inn. Also nearby is a newly constructed regional Walmart distribution center and a regional FedEx distribution center.

The Tenant, a former McDonald’s franchisee, is a well-established and highly successful Dunkin' Brands franchisee. The Tenant operatesDunkin' Donuts and Baskin Robbins restaurants in Central and North Florida. They currently operate 12 stores. The Tenant is expandingregionally into South Georgia with plans to open an additional five new stores.

INVESTMENT OVERVIEW

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TENANT SUMMARY

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ABOUT DUNKIN’ BRANDS

Dunkin’ Donuts is the world’s leading baked goods and coffee chain, serving more than threemillion customers per day. Dunkin’ Donuts sells 52 varieties of donuts and more than a dozencoffee beverages as well as an array of bagels, breakfast sandwiches, and other baked goods.

The company went public in mid-2011. Dunkin’ Brands raised $422.8 million in the publicoffering. After using the bulk of its IPO proceeds to repay debt, the company used the leftovercash to begin a rapid expansion of the Dunkin’ Donuts chain.

Today, there are more than 12,200 Dunkin’ Donuts restaurants worldwide – more than 8,000Dunkin’ Donuts restaurants in 41 states in the U.S. plus the District of Columbia, and more than3,200 international restaurants in 36 countries.

Dunkin’ Donuts is a subsidiary of Dunkin’ Brands Group, Inc. (Nasdaq:DNKN) which representsboth Dunkin’ Donuts and Baskin-Robbins brands.

With more than 19,000 points of distribution in nearly 60 countries worldwide, Dunkin’ BrandsGroup, Inc. is one of the world’s leading franchisors of quick service restaurants (QSR) servinghot and cold coffee and baked goods, as well as hard-serve ice cream. In 2016, Dunkin’Brands’ nearly 100 percent franchised business model included more than 12,000 Dunkin’Donuts restaurants and more than 7,700 Baskin-Robbins restaurants.

ABOUT FLMS FOODS

FLMS Foods is a well-established and highly successful Dunkin Brands franchisee. They develop and operate Dunkin Donuts and Dunkin DonutsBaskin Robbins combo quick service restaurants in Central and North Florida. They currently own and operate 12 Dunkin’ Donuts and DunkinDonuts & Baskin Robbins stores with another two under development. In addition, FLMS Foods is expanding regionally as they have StoreDevelopment Agreements in place for North Florida and South Georgia for five new stores. Previously, this operator was a successful McDonald’sfranchisee.


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EXECUTIVE SUMMARY

OFFERING SUMMARY

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DUNKIN' DONUTS | NN | DAVENPORT, FL

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OFFERING SUMMARY

DEMOGRAPHICS

1-Miles 3-Miles 5-Miles2016 Estimate Pop 2,079 11,167 29,2182010 Census Pop 1,976 10,535 26,4422016 Estimate HH 1,020 4,031 10,7582010 Census HH 983 3,832 9,796Median HH Income $48,109 $49,502 $50,193Per Capita Income $27,583 $21,269 $22,805Average HH Income $56,218 $58,365 $61,657


OFFERING SUMMARY

Price $1,428,571

Net Operating Income $80,000

Capitalization Rate – Current 5.60%

Price / SF $793.65

Rent / SF $44.44

Lease Type NNN

Gross Leasable Area 1,800 SF

Year Built / Renovated 2017

Lot Size 0.62 acre(s)


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AREA PHOTOS

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TRAFFIC COUNTS - 2015

43450 US Highway 27, Davenport, FL 33837

LOCATION OVERVIEWTENANT SUMMARYPRICING AND VALUATION MATRIX

PROPERTY NAMEDUNKIN' DONUTS | NN | DAVENPORT, FL

PRICING AND VALUATION MATRIX

PROPERTY NAME

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LOCATION OVERVIEW


NNN with Minimal Landlord Responsibilities

New 10-Year Term with Four, Five-Year Options

Growing Franchisee with Multiple Units

Long-term Commitment by Franchisee

Located in Prime Regional Retail Corridor

Located in High Growth Development Area

Florida is a NO STATE INCOME TAX State

INVESTMENT HIGHLIGHTS

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43450 US Highway 27, Davenport, FL 33837

LOCATION OVERVIEWTENANT SUMMARYPRICING AND VALUATION MATRIX

PROPERTY NAMEDUNKIN' DONUTS | NN | DAVENPORT, FL

PRICING AND VALUATION MATRIX

PROPERTY NAME

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REGIONAL MAP


AERIAL PHOTO

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PROPERTY SUMMARY

OFFERING SUMMARY

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OFFERING SUMMARY


N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E

Confidentiality and DisclaimerThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended tobe reviewed only by the party receiving it from Marcus & Millichap Real Estate Investment Services of Florida, Inc.("Marcus & Millichap") and should not be made available to any other person or entity without the written consent ofMarcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information toprospective purchasers, and to establish only a preliminary level of interest in the subject property. The informationcontained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made anyinvestigation, and makes no warranty or representation, with respect to the income or expenses for the subjectproperty, the future projected financial performance of the property, the size and square footage of the property andimprovements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance withState and Federal regulations, the physical condition of the improvements thereon, or the financial condition orbusiness prospects of any tenant, or any tenant's plans or intentions to continue its occupancy of the subjectproperty. The information contained in this Marketing Brochure has been obtained from sources we believe to bereliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, norhas Marcus & Millichap conducted any investigation regarding these matters and makes no warranty orrepresentation whatsoever regarding the accuracy or completeness of the information provided. All potential buyersmust take appropriate measures to verify all of the information set forth herein. Marcus & Millichap is a service markof Marcus & Millichap Real Estate Investment Services, Inc. © 2016 Marcus & Millichap. All rights reserved.

Non-Endorsement NoticeMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified inthis marketing package. The presence of any corporation's logo or name is not intended to indicate or implyaffiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates orsubsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included forthe purpose of providing tenant lessee information about this listing to prospective customers.

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

DUNKIN' DONUTS | NN | DAVENPORT, FLDavenport, FLACT ID Y0310156

N E T L E A S E D D I S C L A I M E R

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 willnot 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.

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 beforecompleting 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 performanceof 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 toyour 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 legaland 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 nota guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set basedon 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 anyguarantors 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 inwhole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conductinghis/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 areplacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potentialreplacement 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.

06.05.17

DUNKIN' DONUTS | DAVENPORT, FL

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