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Dunkin’ DonutsUS-41 & Cedarcrest Road | Acworth (Atlanta MSA), Georgia 30101

Offering Memorandum

Representative Photo

Confidential Disclaimer

Stan Johnson Company6120 South Yale Ave | Suite 300 Tulsa, OK 74136 P: +1 918.494.2690 | F: +1 918.494.2692

stanjohnsonco.com

David Annett Associate [email protected] +1 918-794-9514

Hunt Rose Associate [email protected] +1 918-794-9747

In Association With: Shan Gastineau GA Lic #110992

Offered Exclusively by

This Confidential Memorandum has been prepared by Stan Johnson Company (“SJC”) and is being furnished to you solely for the purpose of your review of the commercial property located at 85 Yorktown Center, Lombard, IL (the “Property”). The material contained in this Offering Memorandum shall be used for the purposes of evaluating the Property for acquisition and shall not be used for any purpose or made available to any other person without the express written consent of Stan Johnson Company (“Broker”).

By accepting the Confidential Memorandum, you acknowledge and agree that: (1) all of the information contained herein and any other information you will be receiving in connection with this transaction, whether oral, written or in any other form (collectively, the “Materials”), is confidential; (2) you will not reproduce the Confidential Memorandum in whole or in part; (3) if you do not wish to pursue this matter, you will return this Confidential Memorandum to SJC as soon as practicable together with all other materials relating to the Property which you may have received from SJC; and (4) any proposed actions by you which are inconsistent in any manner with the foregoing agreements will require the prior written consent of SJC.

This Confidential Memorandum has been prepared by SJC, based upon certain information pertaining to the Property and any information obtained from SJC to assist interested parties in making their own evaluation of the Property is offered on a no representation or warranty provision other than customary warranties of title and is sold on an “as-is, where-is” basis and with all faults. The material and transaction does not purport to be all inclusive. This Confidential Memorandum contains descriptive materials, financial information and other data compiled for the convenience of parties interested in the Property. The Materials are being delivered by SJC to prospective investors with the understanding that it is not all inclusive and that it is qualified in its entirety by independent investigation by prospective investors of those matters which they deem appropriate in evaluating this offering without reliance upon SJC, the Broker or any of their respective affiliates or any of the information set out in the Materials. Neither SJC, the Broker, nor any of their respective affiliates have independently verified any of the information contained herein or in any of the Materials, and no representations or warranties as to the accuracy or completeness thereof or of any other kind whatsoever are made or intended and none should be inferred.

SJC, for itself and its affiliates of the Property, expressly disclaim any and all liability for statements or representations, express or implied, contained herein or for omissions from the Materials or for any other written, oral or other format of communication transmitted to a prospective investor in the course of its evaluation of the proposed transaction. All summaries and discussions of documentation and/or financial information contained herein are qualified in their entirety by reference to the actual documents and/or financial statements, which upon request may be made available. The terms and conditions described herein are subject to change without notice.

This Confidential Memorandum does not constitute an offer to accept any investment proposal but is merely a solicitation of interest with respect to the investment described herein. The Confidential Memorandum does not constitute an offer of security. The investment described herein may be financed or withdrawn from the market, without prior notice. By accepting this Confidential Memorandum you agree to release SJC and hold it harmless from any kind of claim, expense, or liability arising out of your discovery or purchase of the Property. SJC reserves the right to request the return of the Materials at any time. Ownership of the Property reserves the right to negotiate with one or more prospective investors at any time.

Table of Contents

Section 1 - About the Investment

The Offering & Investment Highlights ...............................................................................................5

Section 2 - Pricing and Property Overview

Pricing and Property Overview .............................................................................................................7

Lease Abstract & Rent Schedule ..........................................................................................................8

Tenant Overview .............................................................................................................................................9

Section 3 - Location Information

Location Overview ...................................................................................................................................11-12

Area Map ........................................................................................................................................................... 13

Area Retail Maps ..................................................................................................................................... 14-15

Site Plan .............................................................................................................................................................. 16

Demographics .................................................................................................................................................17

About the InvestmentSection One

Dunkin’ Donuts | Acworth, GA 5

The Offering

Investment Highlights

Purchase Price: $1,930,000Cap Rate: 5.75%

Dunkin’ DonutsDunkin’ Donuts is the world’s leading baked good & coffee chain with 19,000 points of distribution and serves over 3 million customers per day. As of December 2017, Dunkin’ Brands Group, Inc. (NASDAQ: DNKN) posted Revenue of over $860 million.

Top 10 U.S. Metro The Atlanta metro area is home to 5.88 million residents and headquarters to twenty-six companies in the 2018 FORTUNE 1000, of which 15 companies are also ranked in the 2018 FORTUNE 500.

New Build-To-Suit Construction Constructed in 2018, the Property is built specifically for Dunkin’ Donuts and is institutional-quality construction.

10-Year Base Lease Term Remaining Dunkin’ Donuts is operating under a brand new 10-year base lease term, offering investors the opportunity for long-term cash flow.

Absolute Net Lease Structure Property offers investors a passive investment with no landlord responsibility throughout the base term or option periods.

Attractive Rental Escalations Lease features attractive, 10% rental increases every five (5) years throughout the base term and at the start of each renewal option period.

Publix-Anchored Outparcel Located adjacent to Governor’s Towne Square, a 69,000 square foot Publix-anchored shopping center.

Experienced Franchisee Bluemont Group, LLC is a leading franchisee that owns and/or operates over 35 locations across Georgia and Tennessee. By the end of 2021, the number of Bluemont Group Dunkin’ Donuts locations is projected to double in volume.

Strong Franchisee Guarantee Bluemont Group is capitalized by VantEdge Partners who has over 60 years of transaction experience and 55 investments exceeding $25 billion in market capital.

Affluent Atlanta Suburb Average annual household income in a 5-mile radius around the Property is over $95,000

Stan Johnson Company is pleased to exclusively offer for sale to qualified investors, the opportunity to purchase a 100% fee-simple interest in the Dunkin’ Donuts property located at the SW corner of US-41 & Cedarcrest Rd, Acworth (Atlanta), GA (the “Property”). The Property boasts a brand new construction of 2,032 square feet and is situated on 0.62 acres.

The Dunkin’ Donuts Franchisee, Bluemont Group, is operating under a brand new 10-year fee-simple lease with four (4), five (5) year renewal options. The lease features 10% rental escalations every 5 years throughout the base term and at the beginning of each option period. The lease is Absolute Net and will be structured with no landlord responsibilities for operating or capital expenses related to the Property.

The Property is located just off of US-41 (34,900 VPD) and sits in a popular retail area of Acworth, GA. The Property benefits from strong demographics with an average household income of $95,958 within a five (5) mile radius. Bringing additional strength to the location, the Property will be operated by a franchisee that owns/operates over 35 Dunkin’ Donuts locations across the Southeast United States.

Dunkin’ Donuts is the world’s leading baked goods and coffee chain, serving more than 3 million customers per day. Today, there are more than 11,300 Dunkin’ Donuts restaurants worldwide with more than 8,500 in 41 states in the U.S. plus the District of Columbia and 3,200 internationally across 36 countries. They are a subsidiary of Dunkin’ Brands Group, Inc. (NASDAQ: DNKN) which represents both the Dunkin’ Donuts and Baskin-Robbins brands. At fiscal year-end 2017 Dunkin’ Donuts Brands posted annual revenues of $860.5 million and net income of $350.9 million.

Adjacent to the Property, an 8,500 SF retail center is being constructed. Properties are available to be purchased together. Contact broker for details.

Pricing & Property OverviewSection Two


Pricing Overview

Offering Price: $1,930,000

Offering Cap Rate: 5.75%

Annual Net Rent: $111,000

Tenant: Bluemont Group, LLC (35 Unit Operator)

Trade Name: Dunkin’ Donuts

Estimated Rent Commencement: January 2019

Property Overview

Building Size: +/- 2,032 SF

Land Area: +/- 0.62 AC

Year Built: 2018 (Under Construction)

Ownership Interest: Fee Simple

Lease Type: Absolute NNN


Lease Abstract

Tenant: Bluemont Group, LLC

Address: US-41 & Cedarcrest Road Acworth (Atlanta MSA), Georgia 30101

Building Size (SF): 2,032 SF

Lot Size (Acres): 0.62 AC

Year Built: 2018

Delivery Date: Estimated November 2018

Lease/Rent Commencement: 45 Days from Delivery Date

Lease/Rent Expiration: 10 Years from Rent Commencement

Base Lease Term: 10 years

Base Lease Term Remaining: 10 years

Annual Base Rent: $111,000

Rent Increases: 10% every 5 years

Renewal Options: 4, 5-year

Renewal Notice: Not later than 180 days

Option Increases: 10% per option


Landlord Responsibilities: None

Financial Reporting: Required to report 30 days after each calendar year whether tenant satisfies Net Worth Requirement

Purchase Option: None

Termination Option: None

ROFR: None

Rent Schedule

Address

Tenant: Bluemont Goupr, LLC

Tenant DBA: Dunkin Donuts

Rent Commencement: 45 Days from Delivery Date

Lease Expiration: 10 Years from Rent Commencement

Initial Lease Term: 10 years

Initial Base Rent: $111,000

Rent Increases: 10% every 5 years

Renewal Options: 4, 5-year


Landlord Responsibility: None

Year Net Operating Income Increase

Year 1 - 5 $111,000 -

Year 6 - 10 $122,100 10%

Year 11 - 15 $134,310 10%

Year 16 - 20 $147,741 10%

Year 21 - 25 $162,515 10%

Year 21 - 30 $178,769 10%

Representative Photo


Tenant OverviewBluemont Group, LLC, the lease guarantor, is a leading Dunkin’ Donuts franchisee the that owns and/or operates 35+ locations across Georgia and Tennessee. Bluemont was found in 2008 and has over 10 years of experience operating Dunkin’ Donuts locations. Bluemont is currently undertaking a expansion initiative. By the end of 2021, the number of Bluemont Group Dunkin’ Donuts locations is projected to double in volume. Bluemont is capitalized by VantEdge Partners, a middle market private equity firm co-founded Paul Edgerley, former co-head of the investment committee for Bain Capital, one of the world’s leading alternative investment funds. VantEdge Partners has 60+ years of transaction experience and 55 investments exceeding $25 billion in market capital.

Dunkin’ Donuts is the world’s leading baked goods and coffee chain, serving more than 3 million customers per day. Dunkin’ Donuts sells 52 varieties of donuts and more than a dozen coffee 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 public offering. After using the bulk of its IPO proceeds to repay debt, the company used the leftover cash to begin a rapid expansion of the Dunkin’ Donuts chain.

Today, there are more than 11,700 Dunkin’ Donuts restaurants worldwide – more than 8,500 Dunkin’ Donuts restaurants in 41 states in the U.S. plus the District of Columbia, and more than 3,200 international restaurants in 36 countries. Dunkin’ Donuts is a subsidiary of Dunkin’ Brands Group, Inc. (NASDAQ: DNKN) which represents both the Dunkin’ Donuts and Baskin-Robbins brands.

With more than 19,000 points of distribution in nearly 60 countries worldwide, Dunkin’ Brands Group, Inc. is one of the world’s leading franchisers of quick service restaurants (QSR), serving hot and cold coffee and baked goods, as well as hard-serve ice cream. At the end of fiscal 2014, Dunkin’ Brands’ nearly 100 percent franchised business model included more than 12,500 Dunkin’ Donuts restaurants and more than 7,900 Baskin-Robbins restaurants.

As of December 30, 2017, Dunkin’ Donuts posted Revenue of $860+ million and Net Income of $350+ million.

Location InformationSection Three


Location Overview

Acworth is a city in Cobb County, Georgia and is is located about 35 miles

northwest of Atlanta, just minutes off of I-75. The city, also known as “The

Lake City,” is located in the foothills of the North Georgia mountains along

the southeastern banks of Lake Acworth and Lake Allatoona on the Etowah

River.

Acworth’s historic downtown and small-town feel provide many leisure

opportunities for families, foodies, and outdoor enthusiasts alike. The city

boasts a rich history, abundant outdoor recreational activities, a vibrant

restaurant scene, and an active festival and events calendar. Acworth is one

of the best, family-friendly destinations in the Atlanta region.

In addition, nestled along the banks of Lake Acworth is Cobblestone Golf

Course which was recently rated the #1 public course in Georgia by Golf

Digest.

Each day, thousands of commuters travel through the town of Acworth,

both in and out of the city. There are 8,671 commuters leaving the town

of Acworth and 5,382 commuters entering the city daily. 90% of these

commuters travel by car, most along Cherokee Street, Highway 92, and Cobb

Parkway.

The largest employment sector within the City of Acworth is is Retail Trade,

followed by Accommodation and Food Services, and Educational services.

The largest employment sector of residents of Acworth is also Retail Trade,

followed closely by Health Care and Social Assistance, and Accommodation

and Food Services.

Cobb Parkway Commercial Corridor As the busiest commercial corridor in Acworth and one which also defines

the southernmost boundary of the City, this four-mile section of Cobb

Parkway (U.S. Highway 41) in the Acworth city limits is home to several big

box stores and several large retail developments. A broad mix of restaurants

and retail stores, both franchises and independents, complete the economic

make-up of this area. Many of these developments share parking, signage

monuments and Cobb Parkway ingress and egress points. Many of the

access drives are accessible at traffic-signal-controlled intersections, thereby

allowing safe access into and out of the commercial development. Safe

access and market visibility is further enhanced by appropriate landscaping

and building setbacks as well landscape requirements that limit the height of

trees and shrubs near Cobb Parkway.

Lake Acworth - Acworth, GA


Location OverviewAtlanta is the capital of and the most populous city in Georgia, with an estimated 2016 population of 472,522. It is the cultural

and economic center of the Atlanta metropolitan area, home to approximately 5,884,736 people and the ninth-largest

metropolitan area in the United States. Atlanta is the county seat of Fulton County, and a small portion of the city extends

eastward into DeKalb County. It is the primary transportation hub of the Southeastern United States, via highway, railroad, and

air, with Hartsfield–Jackson Atlanta International Airport being the world's busiest airport since 1998.

Atlanta rated a "beta(+)" world city that exerts a medium impact upon commerce, finance, research, technology,

education, media, art, and entertainment. It ranks 40th among world cities and 8th in the nation with a

gross domestic product of $270 billion. Atlanta's economy is considered diverse, with dominant

sectors that include logistics, professional and business services, media operations, and

information technology.

Revitalization of Atlanta's neighborhoods, initially spurred by the 1996 Olympics in Atlanta,

has intensified in the 21st century, altering the city's demographics, politics, and culture.

With a GDP of $304 billion, the Metro Atlanta economy is the eighth-largest in the

country and 17th-largest in the world. Corporate operations play a major role in the

economy, as the city claims the country's third-largest concentration of Fortune 500

companies, and hosts the global headquarters of corporations such as The Coca-

Cola Company, The Home Depot, Delta Air Lines, AT&T Mobility, Chick-fil-A, and

UPS. Over 75 percent of Fortune 1000 companies conduct business operations

in metro Atlanta, and the region hosts offices of over 1,250 multinational

corporations. Many corporations are drawn to Atlanta by the city's educated

workforce; as of 2014, 45% of adults 25 or older in the city have at least 4-year

college degrees, compared to the national average of 28%.

Atlanta, GA


N

N

SUBJECT PROPERTY IS 36 MILES FROM ATLANTA, GA

ATLANTA


N

DAY’S

CHEVROLET

NORTH COBB HIGH SCHOOL

NORTH COBB HIGH SCHOOL

BARBER MIDDLESCHOOL

GOVERNOR’S TOWNE CLUB GOLF COURSE

ALLATOONA HIGH SCHOOL

NORTHWEST CHRISTIAN CHURCH

US 41/COBB PKWY (34,900 VPD)

+/- 8 miles from subject property

Red Top Mountain State Park


N

WELLSTAR ACWORTH HEALTH PARK

VILLAGE PODIATRY CENTERS

DISCOVERY POINT CEDARCREST ROAD

CEDARCREST RD (10,770 VPD)

ACWORTH SHOPPING CENTER

GOVERNORS TOWNE SQUARE

TOTAL SF - 68,658

BANK DEPOSIT TOTALS AS OF JUNE 30, 2017

$72,80MM

$29.95MM

$20.24MM

$14.7MM

US 41/COBB PKWY (34,900 VPD)


Site Plan

Acworth Shopping Center & Dunkin’ Donuts

Total Square Feet: 10,197

SF Dunkin’ Donuts: 2,032

Year Built: 2018

Retail/Rest SF 8,165

Total Acreage: 1.192

Parking Spaces (Total): 86

Parking Spaces (Dunkin’ Donuts) 22

SUBJECT PROPERTY

AVAILABLE TO PURCHASE AS PORTFOLIO. CONTACT BROKER FOR DETAILS.


Demographics US-41 & Cedarcrest Rd | Acworth, GA 30101 0 - 1 mi. 0 - 3 mi. 0 - 5 mi.

Population

2018 Population 1,790 18,956 77,726

2023 Population 2,066 21,711 88,868

2010-2018 Annual Rate 1.28% 1.73% 1.68%

2018-2023 Annual Rate 2.91% 2.75% 2.72%

Households

2018 Total Households 615 6,769 26,539

2023 Total Households 704 7,676 30,183

2010-2018 Annual Rate 1.23% 1.65% 1.54%

2018-2023 Annual Rate 2.74% 2.55% 2.61%

2018 Average Household Income $95,856 $94,488 $95,958

2018 Per Capita Income $32,529 $32,977 $32,837 N

going beyond

The information contained herein was obtained from sources believed reliable, however, Stan Johnson Company makes no guaranties, warranties or representations as to the completeness thereof. The presentation of this property for sale, rent or exchange is submitted subject to errors, omissions, change of price or conditions, or withdrawal without notices.

Stan Johnson Company6120 S Yale Ave | Suite 300Tulsa, OK 74136P: +1 918.494.2690 | F: +1 918.494.2692

stanjohnsonco.com

David Annett Associate [email protected] +1 918-794-9514

Hunt Rose Associate [email protected] +1 918-794-9747

In Association With: Shan Gastineau GA Lic #110992

Offered Exclusively by

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