investment offering dunkin’ donuts | pensacola, fl...

JOHN R. WERTZ

[email protected]

CA Lic No. 01448585

DUNKIN’ DONUTS | PENSACOLA, FL

INVESTMENT OFFERING

Listed in conjunction with Florida broker

David B. Zacharia license BK3273628 of DZ

Net Lease Realty, LLC license CQ1043817 (619) 269-4564 | www.restaurantnetlease.com

SUBJECT PROPERTY

The information contained herein has been obtained from the owners or from other sources deemed reliable. We have no reason to doubt its accuracy but regret we cannot guarantee it. References to square footage or age are approximate. Buyer must verify the infor-mation and bears all risk for any inaccuracies. All properties subject to change or withdrawal without notice. Restaurant Net Lease, Inc.

This Marketing Package was prepared by Restaurant Net Lease (RNL) (“Broker”) solely for the use of prospective buyer for the purchase of the

property known as Dunkin’ Donuts located at 4835 Mobile Highway, Pensacola, FL 32506 (the “Property”). Neither the Broker nor the Owner of

the Property make any representation or warranty, expressed or implied, as to the completeness or accuracy of the material contained in the Mar-

keting Package.

Prospective purchasers of the Property are advised that changes may have occurred in the physical or financial condition of the Property since the

time this Marketing Package or the financial statements herein were prepared. Prospective purchasers acknowledge that this Marketing Package

and the financial statements herein were prepared by Broker, and not by Owner, and are based upon assumptions or events beyond the control of

both Broker and Owner, and therefore may be subject to variation. Other than current and historical revenue and operating expense figures for

the Property, Owner has not, and will not, provide Broker or any prospective purchaser with any projections regarding the Property. Prospective

purchasers of the Property are advised and encouraged to conduct their own comprehensive review and analysis of the Property.

The Marketing Package is a solicitation of interest only and is not an offer to sell the Property. The Owner and Broker expressly reserve the right,

at their sole discretion, to reject any or all expression of interest or offers to purchase the Property and expressly reserve the right, at their sole

discretion, to terminate discussions with any entity at any time with or without notice.

The Owner shall have no legal commitments or obligations to any entity reviewing the Marketing Package or making an offer to purchase the

Property unless and until such offer is approved by Owner pursuant to its Governing Authorities and the signature of the Owner or Owner’s repre-

sentative is affixed to a Real Estate Purchase Agreement prepared by Owner.

This Marketing Package is confidential. By accepting the Marketing Package, you agree (i) that you will hold and treat the Marketing Package and

its contents in the strictest confidence, (ii) that you will not photocopy or duplicate any part of the Marketing Package, (i ii) that you will not dis-

close the Marketing Package or any of its contents to any entity without the prior authorization of the Owner, and (iv) that you will not use the

Marketing Package in any fashion or manner detrimental to the Owner or Broker.

Restaurant Net Lease obtained the information contained in this Marketing Package from sources we believe to be reliable. However, we have not

verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions,

changes of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, as-

sumptions, or estimates for example only, and they may not represent current or future performance of the Property. You and your tax and legal

advisors should conduct your own investigations of the physical condition of the Property and of the financial performance of its future Owner-

ships.

CONFIDENTIALITY & DISCLAIMER


FINANCIAL OVERVIEW

LOCATION 4835 MOBILE HWY, PENSACOLA, FL 32506

Price $1,527,638

Down Payment 100% / $1,527,638

Rentable Square Feet 1,813 SF

CAP Rate 5.25%

Year Built 2017

Lot Size 1.05 ± Acres

Type of Ownership Fee Simple

TENANT SUMMARY Tenant Trade Name Dunkin’ Donuts

Ownership Public

Lease Guarantor Franchisee

Lease Type Absolute NNN

Roof and Structure Tenant Responsible

Original Lease Term Fifteen (15) Years

Lease Commencement Date July 2016

Rent Commencement Date September 2017

Lease Expiration Date September 2032

Term Remaining on Lease Fifteen (15) Years

Increases 10% every 5-Years

Options to Renew (4) 5-Year Options

ANNUALIZED OPERATING DATA Rent Increases Annual Rent Monthly Rent

Years 1-5 $80,201.00 $6,683.42

Years 6-10 $88,221.10 $7,351.76

Years 11-15 $97,043.21 $8,086.93

Years 16-20 (Option 1) $106,747.53 $8,895.63

Years 21-25 (Option 2) $117,422.28 $9,785.19

Years 26-30 (Option 3) $129,164.51 $10,763.71

Years 31-35 (Option 4) $142,080.96 $11,840.08

Base Rent $80,201.00

Net Operating Income $80,201.00

Total Return 5.25% $80,201.00


TENANT OVERVIEW

ABOUT DUNKIN’ BRANDS GROUP, INC. Dunkin’ Donuts, a subsidiary of Dunkin’ Brands Group, Inc. (Nasdaq:

DNKN), is one of the largest coffee and baked goods chains in the

world, with more than 12,000 restaurants in 36 countries. With

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 (QSR) serving hot and cold

coffee and baked goods, as well as hard-serve ice cream. Dunkin'

Brands' nearly 100 percent franchised business model includes more

than 12,000 Dunkin' Donuts restaurants and more than 7,700 Baskin

-Robbins restaurants.

Property Name Dunkin’ Donuts

Property Address 4835 Mobile Hwy,

Pensacola, FL 32506

Property Type Net Lease Quick Service Restaurant

Parent Company Dunkin Brands Group, Inc.

Ownership Public

Lease Guarantor Franchisee

Stock Symbol DNKN

Board NASDAQ

Term Remaining on Lease Fifteen (15) Years

Options to Renew (4) 5-Year Options

Lease Type Absolute NNN

Landlord Responsibility None

Increases 10% Every 5-Years

Year 1 Net Operating Income $80,201.00

No. of Locations 12,000+

Headquartered Canton, Massachusetts

Web Site www.dunkindonuts.com

Years in the Business Since 1950

ABOUT THE TENANT

Purple Square Management, a very experienced and successful

growing franchisee of Dunkin’ Brands Inc., currently owns and

operates over 50 Dunkin’ Donuts/Baskin Robbins stores in Florida,

Alabama, and Louisiana. One of the largest and fastest growing

Dunkin’ Donuts operators in the country, Purple Square

Management most recently entered into a partnership with Super

Bowl winning New Orleans Saints quarterback, Drew Brees to build

and develop 69 Dunkin Donuts stores in the State of Louisiana. The

tenant has earned Dunkin’ Brands “National Rising Star

Award” (2008), “Franchisee of the Year Award” (2014), and

“Philanthropist of the Year Award” (2015).


INVESTMENT OVERVIEW

The subject property is a newly constructed Dunkin’ Do-nuts drive-thru located in Pensacola, Florida. The brand new 15-year absolute NNN lease commenced September, 2017. There are 10% rental increases every 5-years in the primary term and in the (4) five-year option periods. This is an excellent opportunity for an investor to purchase a stable, long term investment with zero landlord responsi-bility.

The site is located in a dense retail trade area immediately north of the Wal-Mart Supercenter at the signalized inter-section of Mobile Highway and Edison Drive. The property benefits from its excellent visibility and frontage along one of the most heavily trafficked east/west thoroughfares in Pensacola (Mobile Highway), which boasts over 35,000 ve-hicles per day. National retailers in the immediate vicinity include Wal-Mart, Walgreens, Home Depot, Lowe's, Ross Dress for Less, Office Depot, T- Mobile, AutoZone, Chili's, Burger King, GameStop, Pep Boys, O'Reilly Auto Parts, Dol-lar General, and Denny's.

• Brand New 2017 Construction

• 15-Year Absolute NNN Lease (Zero Landlord

Responsibilities)

• 10% Rental Increases Every 5 Years Throughout

Primary Term and Options

• Traffic Counts Over 35,000 Cars per Day

• Population Exceeds 144,000 Residents in a 5-Mile

Radius

• Located at Signalized Intersection Immediately North

of Wal-Mart Supercenter

• Dense Retail Trade Area with Excellent Visibility and

Frontage along Mobile Highway

• Income Tax Free State

INVESTMENT HIGHLIGHTS

PROPERTY PHOTOS



SITE PLAN


AERIAL PHOTO

LOCATION MAP


AREA MAP


REGIONAL MAP



MARKET OVERVIEW

Pensacola, Florida is the western most city in the Florida Panhandle, and the county seat of Escambia County. The city's economy is dominated by the

military, health care, and tourism industries. The Department of Defense contributes in excess of $7.8 Billion to the local economy, including more than

27,600 uniformed and civilian jobs. Pensacola's beautiful, sunny beaches, historic tours, special events and festivals drew nearly two million visitors to

the city and generated nearly $1 Billion in 2015. The University of West Florida, located in Pensacola, serves a student population of more than 12,000

and is among Forbes's "America's Top Colleges" and a "Best Southeastern College" according to the Princeton Review. The city is also home to the na-

tion's largest credit union, Navy Federal. Pensacola's infrastructure includes an international airport, a deep-water ocean port, and direct routes to major

metropolitan cities.

The city of Pensacola has often been referred to as “The Cradle of Naval Aviation”. Naval Air Station Pensacola (NASP) was the first Naval Air Station

commissioned by the U.S. Navy in 1914. Tens of thousands Naval Aviators have received their training there including John H. Glenn, USMC who became

the first American to orbit the earth in 1962 and Neil Armstrong who became the first man to set foot on the moon in 1969. The Navy’s Flight Demon-

stration Squadron, the Blue Angels, is stationed there.

There are seven major Hospitals in Pensacola – Baptist Health Care, Gulf Breeze Hospital, Naval Hospital, Sacred Heart Hospital, Santa Rosa Medical Cen-

ter, West Florida Hospital, and Nemours Children’s Clinic. Each is noted amongst the top of the industry in their specializations as they employ some of

the most esteemed doctors, nurses and medical staff in the country. Sacred Heart Health System and Baptist Health Care are the two top employers of

the county, with a total of 8,163 employees as of 2010.

There are a number of annual festivals, events, historic tours, and landmarks in Pensacola which draw a significant number of tourists each year. The

Pensacola Seafood Festival and The Pensacola Crawfish Festival held in the heart of historic Downtown have been held for nearly 30 years with live mu-

sic acts, local food and fare, and family entertainment all can enjoy. The Great Gulfcoast Arts Festival is held annually in November in Seville Square often

drawing more than 200 regional and international artists.

DEMOGRAPHIC ANAYLISIS REPORT


Population 1-Mile 3-Mile 5-Mile

2017 Total Population 8,309 69,558 144,373

2010 Census 8,057 67,005 138,434

Growth 2010 - 2017 3.13% 3.81% 4.29%

Growth 2000 - 2010 1.13% 2.28% 2.38%

Households

2017 Households 3,179 25,506 53,449

2010 Census 3,108 24,903 52,013

Growth 2010 - 2017 2.29% 2.42% 2.76%

Growth 2000 - 2010 1.05% 1.35% 3.06%

Income

Income: Less than $10,000 11.05% 11.27% 10.69%

Income: $10,000 to $14,999 6.79% 6.61% 6.14%

Income: $15,000 to $19,999 9.50% 8.21% 8.19%

Income: $20,000 to $24,999 8.24% 7.20% 6.87%

Income: $25,000 to $29,999 8.87% 7.85% 6.87%

Income: $30,000 to $34,999 5.59% 7.24% 7.29%

Income: $35,000 to $39,999 7.95% 6.72% 6.76%

Income: $40,000 to $44,999 4.99% 5.20% 5.19%

Income: $45,000 to $49,999 3.50% 4.54% 4.63%

Income: $50,000 to $59,999 8.87% 9.87% 9.38%

Income: $60,000 to $74,999 8.55% 7.60% 8.23%

Income: $75,000 to $99,999 10.32% 10.27% 10.91%

Income: $100,000 to $124,999 2.97% 3.14% 3.41%

Income: $125,000 to $149,999 1.67% 2.05% 2.29%

Income: $150,000 to $199,999 0.57% 1.28% 1.69%

Income: $200,000 or more 0.57% 0.95% 1.48%

2017 Est. Average Household Income $44,245 $47,306 $50,839

JOHN R. WERTZ

Managing Principal

CA Lic No. 01448585

[email protected]

(619) 269-4564 | www.restaurantnetlease.com

Listed in conjunction with Florida broker

David B. Zacharia license BK3273628 of DZ

Net Lease Realty, LLC license CQ1043817

investment offering dunkin’ donuts | pensacola, fl...

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