Offering Memorandum DUNKIN DONUTS BASKIN ROBBINS...Dunkin Donuts/Baskin Robbins stores in Florida,...

Subject Property

DUNKIN DONUTS | BASKIN ROBBINSOffering Memorandum

1480 US-331, DeFuniak Springs, FL 32435

CONFIDENTIALITY AND DISCLAIMER

NON-ENDORSEMENT NOTICE

The 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 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 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 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.

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.

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 is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corpora-tion’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.

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

NET LEASED DISCLAIMER

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. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services© 2017. All rights reserved.

SUBJECT PROPERTY


• Brand New, 15-Year LeaseThe Dunkin Donuts/Baskin Robbins located at 1480 US-331 in DeFuniak Springs has a brand new, 15-year lease.• Renewal Options and Rent IncreasesThere are four, five-year renewal options with 10% increases every five years throughout the base term and option periods.• Traffic CountsLocated on State Road 331, with a traffic count of more than 18,000 vehicles per day. The subject property is within close proximity to Interstate 10, which has a traffic count of more than 22,000 vehicles per day.• Surrounding AreaSurrounding retailers include Lowes, Walmart Supercenter, Tractor Supply Company, Hibbett Sports, Winn Dixie, Rent-A-Center, Dollar General, Dollar Tree, Bealls Outlet, Walgreens, McDonald’s, Taco Bell, Pizza Hut, Waffle House and many more.

Investment Highlights Lease guarantor is Purple Square Management Company, LLC until 10th anniversary of lease term

FINANCIAL OVERVIEW

Overview1480 US-331, DeFuniak Springs, Florida 32435

Price: $1,957,000Cap Rate: 5.40%Rentable Square Feet: 2,050Annual Rent: $105,670Rent/Square Foot: $51.55Land Area: 0.69 AcresYear Built: 2017

Lease SummaryTenant: Dunkin’ Donuts | Baskin RobbinsWebsite: www.DunkinDonuts.comLease Guarantor: Purple Square Management Co.Lease Type: NNNLease Term: 15 YearsOption Periods: 4, 5-Year OptionsRental Increases: 10% Every 5 YearsRent Commencement: 9/19/2017Lease Expiration: 9/30/2032

Base Term Annual Rent PSF Cap Rate

9/19/2017-9/30/2022 $105,670 $51.55 5.40%10/1/2022-9/30/2027 $116,237 $56.70 5.94%10/1/2027-9/30/2032 $127,861 $62.37 6.53%

Option Periods Annual Rent PSF Cap Rate

10/1/2032-9/30/2037 $140,647 $68.61 7.19%10/1/2037-9/30/2042 $154,712 $75.47 7.91%10/1/2042-9/30/2047 $170,183 $83.02 8.70%10/1/2047-9/30/2052 $187,201 $91.32 9.57%

TENANT SUMMARY


Headquartered in Canton, Massachuetts, Dunkin’ Brands Group is an international operator and franchisor of quick-service restaurants. Dunkin’ Donuts is the world’s leading baked goods and coffee chain, serving more than 3 million customers each and every day. The company offers more than 50 varieties of donuts, as well as dozens of premium beverages, bagels, breakfast sandwiches and other baked goods.

The company operates the Dunkin’ Donuts brand and the Baskin-Robbins brand, the world’s largest chain of ice cream specialty shops. Dunkin’ Brands has more than 19,000 points of distribution throughout the U.S. as well as in more than 60 countries worldwide; nearly 100% of the stores are franchised.

Since 2005 the company has been operating under the ownership of private-equity consortium Bain Capital Partners, the Carlyle Group and Thomas H. Lee Partners. In addition to its standalone shops, Dunkin’ Donuts operates locations in gas stations, supermarkets, malls and airport food courts.

NYSE:DNKN

STOCK SYMBOL

19,000+LOCATIONS

HEADQUARTERED INCanton, MA

Purple Square Management was founded in Tampa, Florida, their reach extends far and wide. Currently they own and operate 59 Dunkin Donuts/Baskin Robbins stores in Florida, Alabama and Louisiana. They also have 10 The Brass Tap locations in Florida, Alabama, North Carolina and South Carolina. In addition, they have multi-unit development agreements for both Brands in Florida, Alabama, Louisiana, North Carolina and South Carolina. With their current development pipeline, they will have close to 100 locations by the end of 2018.

The company is also very excited to add Popeyes Louisiana Kitchen to their stable of brands. They will be developing multiple stores in the Atlanta, Georgia market and anticipate having seven locations open by the end of 2018.

The company has more than 800 employees and were recently named Dunkin Brands’ Southeast Franchisee of the Year.

Purple Square Management Co.

LEASE ABSTRACT


• Dunkin’ Donuts is the World’s Leading Baked Goods and Coffee Chain, Serving More Than 3 Million Customers Everyday

• The Company Also Operates the Baskin-Robbins Brand, the World’s Largest Chain of Ice Cream Specialty Shops

• More Than 19,000 Points of Distribution in Nearly 60 Countries Worldwide

• Dunkin’ Brands Group, Inc. is One of the World’s Leading Franchisors of Quick Service Restaurants

• Purple Square Management Co. Owns and Operates 59 Dunkin Donuts/Baskin Robbins Locations

• Annual Sales in Excess of $40 Million• Named Dunkin Brands’ Southeast Franchisee of the Year

Tenant HighlightsTaxes Tenant shall pay directly the Real Estate Taxes levied

against the Property for each year during the Term.

Insurance

Tenant shall obtain and maintain at its sole cost and expense building and property insurance coverage for the Leased Premises from a nationally recognized company licensed to do business in the state of Florida in an amount that will provide for a payment of 100% of the replacement cost of all improvements on the Property and Leased Premises (without deduction for depreciation) for loss due to fire and other hazards or casualties as are included in “special form coverage” (formally known as “all risk coverage”) in including Loss of Rent coverage for Rent, Property Taxes and Insurance. Tenant agrees to provide a certificate of said insurance policy indicating Landlord (and Landlord’s lender) as named additional insureds.

Tenant, in its name and at its own expense, shall procure and continue in force, commercial general liability insurance for (i) bodily injury and/or death and (ii) property damage liability occurring in or on the Leased Premises, Building and Property during the Term.

Maintenance

Tenant shall, at all times during the Term of this Lease, at its sole cost and expense, maintain, repair and replace (or cause the same to be maintained, repaired and replaced) in good repair and condition the Leased Premises and all components thereof that at any time may be erected thereon. Unless otherwise provided for herein, Landlord shall not be required to furnish any maintenance, repairs, or replacement to the Leased Premises it being understood and agreed that all such needs be the sole responsibility and cost of the Tenant.

Utilities

The Tenant shall pay for all sewerage disposal services, water, gas, heat, electric, garbage disposal, security, fire alarm and other utilities furnished to it and consumed by it, in or upon the Leased Premises.

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31

AERIAL

Walgreens

22,000Daily

18,000Daily

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. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services of Florida© 2018. All rights reserved. Z0240009

LOCAL & REGIONAL MAPS


Click Here to View in Google Maps

https://www.google.com/maps/place/1480+US-331,+Defuniak+Springs,+FL+32435/@30.7007939,-86.1399593,3886m/data=!3m1!1e3!4m5!3m4!1s0x8893d1b2ca226765:0x8ef3d3fd87ca65db!8m2!3d30.7006493!4d-86.1229309


DEMOGRAPHICS

POPULATION 3 MILES 5 MILES 10 MILES2010 Population 6,090 11,338 19,7092016 Population 6,794 12,935 22,4372022 Population 7,068 13,651 23,7062016 Male Population 3,424 6,669 11,8842016 Female Population 3,370 6,266 10,5532016 Median Age 41.0 40.2 40.5

RACE & ETHNICITY 3 MILES 5 MILES 10 MILESAmerican Indian, Eskimo 0.7% 0.7% 0.8%Asian 1.0% 0.9% 0.8%Black 19.6% 14.7% 12.8%Hawaiian/Pacific Islander 0.2% 0.2% 0.1%White 71.6% 76.4% 79.3%Other 4.0% 4.0% 3.3%Multi-Race 2.9% 3.0% 2.9%Hispanic Ethnicity 7.6% 7.5% 6.5%

HOUSEHOLDS 3 MILES 5 MILES 10 MILES2010 Households 2,533 4,537 7,2152016 Households 2,876 5,244 8,3782022 Households 3,064 5,676 9,082

HOUSEHOLD INCOME 3 MILES 5 MILES 10 MILES2010 Avg Household Income $42,725 $43,785 $46,0172016 Avg Household Income $46,026 $46,779 $48,8182022 Avg Household Income $52,893 $53,307 $55,4212010 Med. Household Income $29,635 $31,981 $33,9132016 Med. Household Income $29,504 $32,603 $34,9772022 Med. Household Income $33,728 $36,745 $39,0162010 Per Capita Income $20,054 $19,668 $18,2552016 Per Capita Income $21,418 $20,747 $19,4022022 Per Capita Income $24,776 $23,840 $22,334

The Wolfe Retail Group of Marcus & Millichap specializes in the sale of single-tenant properties and shopping centers and has successfully assisted clients in selling approximately 400 separate commercial properties with a market value exceeding $1.25 billion. Having closed sales in more than 40 states, our track record is evidence that we are one of the premier brokerage teams in the United States.

With our experience and background in various fields such as law and finance, we have proved to be invaluable to our clients, earning their trust and exceeding their expectations while best assisting them in their real estate transactions.

For more about the Wolfe Retail Group of Marcus & Millichap, or to view all of our available listings, visit www.WolfeRetailGroup.com

Marcus & Millichap (NYSE: MMI) has established itself as a leading and expanding investment real estate company with nearly 1,500 brokers in 78 markets throughout the United States and Canada. The foundation of our investment sales is the depth of our local market knowledge. Our 44-year history of maintaining investor relationships in local markets enables us to be the best information source and transaction service provider in North America.

About Marcus & Millichap

The Wolfe Retail Group

has sold approx. 400 properties

in more than 40 states

http://www.WolfeRetailGroup.com

Barry M. WolfeSenior Managing Director Investments

[email protected](954) 245-3493

Alan LipskyVice President Investments


Evan WhelanAssociate


Catie JacksonMarketing Coordinator


Angelica LinaresTransaction Coordinator


Subject Property

mailto:Evan.Whelan%40marcusmillichap.com?subject=

mailto:Angelica.Linares%40marcusmillichap.com?subject=

Offering Memorandum DUNKIN DONUTS BASKIN ROBBINS...Dunkin Donuts/Baskin Robbins stores in Florida,...

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