dunkin donuts dunkin donuts

REPRESENTATIVE PHOTO
Exclusive OFFERING|$1,454,000 - 5.25% CAP
DUNKIN DONUTS
565 Dacula Road, Dacula, Georgia
214.915.8890
JOE CAPUTO
joe@trivanta.com
BOB MOORHEAD
bob@trivanta.com
RUSSELL SMITH
rsmith@trivanta.com
property. New Construction. 2,256+ SF building on 0.68+ acre site.
tenant. Dunkin Donuts. Franchisee: Boston Coffee, Inc., operates 38+ restaurants with 15+ years of restaurant and real estate experience. Lease includes
strong personal guarantee.
lease structure. Brand new, 10-year, Net lease with 10% rent increases every 5-years.
location. Dunkin Donuts is strategically located along Dacula Road (15,000 Cars / Day) just northwest of where Dacula intersects Fence Rd NE (11,000 Cars /
Day). Dacula Road is one of Dacula’s main arterial roads and carries significant traffic volumes throughout the city. The subject property is a pad site to Kroger and
shares the vicinity with national credit tenants such as Walgreens, AutoZone, McDonald’s, Taco Bell, KFC, and Chick-fil-a. Other notable retailers located within 1mile of the subject property include Publix, Anytime Fitness, Curves, Starbucks, Pep Boys, Sonic, and many others. The site not only benefits from the draw that
the retail trade area creates, but also benefits from close proximity to Hebron Christian Academy, Dacula Elementary School, and Hebron Baptist Church.
Table of contents | Disclaimer
Dunkin Donuts
565 Dacula Road, Dacula, Georgia
PAGE 1:
COVER
PAGE 2:
TABLE OF CONTENTS | DISCLAIMER
PAGE 3:
INVESTMENT | TENANT | LEASE OVERVIEW
PAGE 4:
SITE PLAN
PAGE 5-6:
AERIAL PHOTOS
PAGE 7:
LOCATION OVERVIEW
PAGE 8-9:
LOCATION MAPS
PAGE 10:
DEMOGRAPHICS
Disclaimer
EXP Realty Advisors, Inc. (“Agent”) has been engaged as an agent for the sale of the
property located at the 565 Dacula Road, Dacula, Georgia by the owner of the Property
(“Seller”). The Property is being offered for sale in an “as-is, where-is” condition and Seller
and Agent make no representations or warranties as to the accuracy of the information
contained in this Offering Memorandum. The enclosed materials include highly confidential
information and are being furnished solely for the purpose of review by prospective
purchasers of the interest described herein. The enclosed materials are being provided
solely to facilitate the prospective investor’s own due diligence for which it shall be fully and
solely responsible. The material contained herein is based on information and sources
deemed to be reliable, but no representation or warranty, express or implied, is being made
by Agent or Seller or any of their respective representatives, affiliates, officers, employees,
shareholders, partners and directors, as to the accuracy or completeness of the information
contained herein. Summaries contained herein of any legal or other documents are not
intended to be comprehensive statements of the terms of such documents, but rather only
outlines of some of the principal provisions contained therein. Neither the Agent nor the
Seller shall have any liability whatsoever for the accuracy or completeness of the
information contained herein or any other written or oral communication or information
transmitted or made available or any action taken or decision made by the recipient with
respect to the Property. Interested parties are to make their own investigations, projections
and conclusions without reliance upon the material contained herein. Seller reserves the
right, at its sole and absolute discretion, to withdraw the Property from being marketed for
sale at any time and for any reason. Seller and Agent each expressly reserves the right, at
their sole and absolute discretion, to reject any and all expressions of interest or offers
regarding the Property and/or to terminate discussions with any entity at any time, with or
without notice. This offering is made subject to omissions, correction of errors, change of
price or other terms, prior sale or withdrawal from the market without notice. Agent is not
authorized to make any representations or agreements on behalf of Seller. Seller shall
have no legal commitment or obligation to any interested party reviewing the enclosed
materials, performing additional investigation and/or making an offer to purchase the
Property unless and until a binding written agreement for the purchase of the Property has
been fully executed, delivered, and approved by Seller and any conditions to Seller’s
obligations hereunder have been satisfied or waived. By taking possession of and
reviewing the information contained herein, the recipient agrees that (a) the enclosed
materials and their contents are of a highly confidential nature and will be held and treated
in the strictest confidence and shall be returned to Agent or Seller promptly upon request;
and (b) the recipient shall not contact employees or tenants of the Property directly or
indirectly regarding any aspect of the enclosed materials or the Property without the prior
written approval of the Seller or Agent; and (c) no portion of the enclosed materials may be
copied or otherwise reproduced without the prior written authorization of Seller and Agent.
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Investment overview
Dunkin Donuts
565 Dacula Road, Dacula, Georgia
Lease overview
PRICE:
$1,454,000
Initial Lease Term:
10-Years, Plus 4, 5-Year Options to Renew
CAP RATE:
5.25%
Projected Rent Commencement:
October 2015
NET OPERATING INCOME:
$76,300
Projected Lease Expiration:
October 2025
BUILDING AREA:
2,256+ Square Feet
Lease Type:
Net Lease
LAND AREA:
0.68+ Acres
Rent Increases:
10% Every 5-Years In Primary Term & Options
Year 1-5 Annual Rent (Current):
$76,300
YEAR BUILT:
2015
Year 6-10 Annual Rent:
$83,930
LANDLORD RESPONSIBILITY:
Roof & Structure
Year 11-15 Annual Rent (Option 1):
$92,323
OWNERSHIP:
Fee Simple Interest
Year 16-20 Annual Rent (Option 2):
$101,555
OCCUPANCY:
100%
Year 21-25 Annual Rent (Option 3):
$111,710
Year 26-30 Annual Rent (Option 4):
$122,881
Tenant overview
Franchisee: Boston Coffee, Inc.
Lessee: BC 565 DR LLC
BOSTON COFFEE, INC.
Boston Coffee, Inc. is a partnership between two seasoned professionals who both have extensive experience in the retail restaurant industry. The first partner
has successfully owned, financed and operated over 50 Dunkin Donuts, Hurricane Grill and Wings and Marco’s Pizza restaurants in Florida and Georgia. The
second partner has over 16 years of experience as an operator of Taco Bell, Hurricane Gill and Wings, Marco’s Pizza and Dunkin Donuts, has a commitment to
build 25 Dunkin Donuts / Baskin Robbins and 20 Marco’s Pizza locations, has a strong personal net worth and guaranteed the lease.
DUNKIN’ DONUTS | www.dunkindonuts.com
Founded in 1950, 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. Dunkin’ Donuts has
earned the No. 1 ranking for customer loyalty in the coffee category by Brand Keys for eight years running . Dunkin’ Donuts derives its revenues as a percentage
of franchisee sales, known as royalty income. Most of Dunkin’s expenses are fixed (such as SG&A) and therefore strong franchisee sales provide leverage to
SUBJECT PROPERTY
boost margins by spreading these costs over a bigger revenue base .
PRIOR TO PANDA EXPRESS EXPANSION
In the long term, the company plans to increase its store count in the U.S. to 15,000 in the next 18-20 years – almost double the number it has today. The Western
part of the U.S. is a major focus area for the company since it has little presence in the region . Dunkin’ sees an opportunity to add 5,000 more stores to the West
of the Mississippi river, including 1,000 in California . Even in the Eastern part of the country, the company sees an opportunity to add 3,000 more stores,
especially in places such as New York City, where Dunkin’ Donuts has a relatively low presence.
DUNKIN’ BRANDS | www.dunkinbrands.com
With more than 18,000 points of distribution in nearly 60 countries worldwide, Dunkin' Brands Group, Inc. (Nasdaq: DNKN) 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. At the end of 2013, Dunkin' Brands' nearly 100
percent franchised business model included nearly 11,000 Dunkin' Donuts restaurants and 7,300 Baskin-Robbins restaurants. For the full-year 2013, the company
had franchisee-reported sales of approximately $9.3 billion. Dunkin' Brands Group, Inc. is headquartered in Canton, Mass.
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SITE PLAN
DUNKIN DONUTS
565 Dacula Road, Dacula, Georgia
4
Aerial photo
DUNKIN DONUTS
565 Dacula Road, Dacula, Georgia
Hebron Christian
Academy
Dacula Elementary School
Hebron Baptist Church
5
Aerial photo
DUNKIN DONUTS
565 Dacula Road, Dacula, Georgia
6
Location overview
DUNKIN DONUTS
565 Dacula Road, Dacula, Georgia
IMMEDIATE TRADE AREA
ATLANTA-SANDY SPRINGS-MARIETTA, GA MSA
Dunkin Donuts is strategically located along Dacula Road (15,000 Cars / Day)
just northwest of where Dacula intersects Fence Rd NE (11,000 Cars / Day).
Dacula Road is one of Dacula’s main arterial roads and carries significant
traffic volumes throughout the city.
The Atlanta metropolitan area, or metro Atlanta, is officially designated by the
United States Census Bureau as the Atlanta-Sandy Springs-Marietta
Metropolitan Statistical Area, and is the most populous metro area in the U.S.
state of Georgia and the9th largest metropolitan statistical area (MSA) in the
United States. In addition to Atlanta, Georgia's capital and largest city, the
Atlanta metropolitan area spans 28 counties in north Georgia and has a total
2010 population of 5,268,860, a 28.13% increase from 2000. With a gross
metropolitan product of $270 billion, Atlanta's economy ranks 15th among world
cities and 6th in the nation. As such, a Globalization and World Cities Study
Group and Network at Loughborough University has labeled the metro Atlanta
area as an “Alpha- World City” based on how the city externally impacts the
world through advanced producer services in accountancy, advertising,
banking, finance, and law .
The subject property is a pad site to Kroger and shares the vicinity with national
credit tenants such as Walgreens, AutoZone, McDonald’s, Taco Bell, KFC, and
Chick-fil-a. Other notable retailers located within 1-mile of the subject property
include Publix, Anytime Fitness, Curves, Starbucks, Pep Boys, Sonic, and
many others. The site not only benefits from the draw that the retail trade area
creates, but also benefits from close proximity to Hebron Christian Academy,
Dacula Elementary School, and Hebron Baptist Church.
DACULA, GA / LAWRENCEVILLE, GA / GWINNETT COUNTY
Dacula is a city in Gwinnett County, Georgia. The population was 4,804 at the
2009 census. Dacula is primarily a residential community, and many
subdivisions have been built within the city limits in recent years.
Located 6-miles west of Dacula, Lawrenceville, GA is a city in and the county
seat of Gwinnett County (Population: 805,321). Lawrenceville currently has a
population of 28,546 and has a sustained history of brisk growth. The city’s
population increased by 27.5% in the 2000s and has met or exceed that
number in every decade since the 1960s. Gwinnet County has undergone
comparable growth, adding 36.9% to its population in the 2000s.
County population has grown at a minimum of 34.7% since the 1960s. A key
driver to recent growth in Gwinnett County has been the Research and
Development Corridor along Highway 316 between Norcross and
Lawrenceville. This development has drawn numerous global corporations to
the area. Cisco Systems currently maintains significant operations near
Lawrenceville. Atlanta Biologicals is also based there. Norcross is also home
to the Siemens International southeast regional office and Saab USA. Federal
Several major national and international companies are headquartered in metro
Atlanta such as The Coca-Cola Company; Home Depot; United Parcel Service;
Delta Air Lines; AT&T Mobility; and Newell Rubbermaid. 4 of these companies
have Fortune 100 status. Other major corporate headquarters in Atlanta and
around the metro area include Arby's, Chick-fil-A, Earthlink, Equifax, First Data,
Gentiva Health Services, Georgia-Pacific, NCR, Oxford Industries, RaceTrac
Petroleum, Southern Company, Mirant, and Waffle House. The MSA also has
a sizable financial sector. The Federal Reserve has its district headquarters in
Atlanta and Sun Trust, the 7th largest bank in the U.S. by assets, held is based
there. The metro area is a major transportation hub, too. Hartsfield–Jackson
Atlanta International Airport, the world’s busiest airport, is located 7 miles
south of the Atlanta central business district.
Interstate 75, which extends
from Tampa, FL north to Canada, passes through the center of the city.
Interstates 85 and 20 also intersect in Atlanta. These amenities have lured
corporations such as Ford Motor Company, Publix, Kellog’s, Toys r Us, Office
Depot, and GE Appliance to locate major distribution centers in the area, and in
the outside of Atlanta.
Express is planning to construct a 50 acre distribution site in Norcross. NCR
Corporation is headquartered in nearby Duluth. Both Norcross and Duluth are
immediately west of Lawrenceville.
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Location map
DUNKIN DONUTS
565 Dacula Road, Dacula, Georgia
8
Location map
DUNKIN DONUTS
565 Dacula Road, Dacula, Georgia
9
Demographics
DUNKIN DONUTS
565 Dacula Road, Dacula, Georgia
565 Dacula Rd
565 Dacula Rd
1 mi radius 3 mi radius 5 mi radius
2010 Census Population
3,946
33,278
98,186
2000 Census Population
Projected Annual Growth 2014 to 2019
1,252
1.3%
14,486
1.3%
51,573
1.3%
Historical Annual Growth 2000 to 2014
16.5%
10.0%
7.1%
2014 Estimated Households
1,280
10,413
31,188
2019 Projected Households
2010 Census Households
1,340
1,234
10,897
10,032
32,623
30,054
416
4,473
16,415
0.9%
14.8%
0.9%
9.5%
0.9%
6.4%
Projected Annual Growth 2014 to 2019
Historical Annual Growth 2000 to 2014
2014 Est. Population Under 10 Years
15.7%
14.9%
15.0%
2014 Est. Population 10 to 19 Years
17.5%
17.3%
17.2%
2014 Est. Population 20 to 29 Years
2014 Est. Population 30 to 44 Years
9.7%
22.7%
10.9%
23.3%
11.5%
22.9%
2014 Est. Population 45 to 59 Years
21.4%
21.0%
21.1%
2014 Est. Population 60 to 74 Years
2014 Est. Population 75 Years or Over
10.3%
2.7%
9.9%
2.9%
9.6%
2.7%
34.8
34.7
34.3
2014 Est. Male Population
2014 Est. Female Population
48.3%
51.7%
50.2%
49.8%
49.9%
50.1%
2014 Est. Never Married
27.2%
25.9%
27.3%
2014 Est. Now Married
58.1%
56.1%
53.8%
2014 Est. Separated or Divorced
2014 Est. Widowed
12.8%
1.9%
15.0%
3.0%
15.6%
3.2%
2014 Est. HH Income $200,000 or More
5.4%
4.7%
4.7%
2014 Est. HH Income $150,000 to $199,999
7.8%
9.1%
8.0%
2014 Est. HH Income $100,000 to $149,999
2014 Est. HH Income $75,000 to $99,999
19.8%
17.9%
22.4%
17.8%
19.2%
17.6%
2014 Est. HH Income $50,000 to $74,999
2014 Est. HH Income $35,000 to $49,999
17.3%
13.4%
19.1%
10.9%
20.2%
11.3%
2014 Est. HH Income $25,000 to $34,999
8.4%
7.3%
7.8%
2014 Est. HH Income $15,000 to $24,999
2014 Est. HH Income Under $15,000
5.1%
5.0%
4.5%
4.2%
5.8%
5.4%
2014 Est. Average Household Income
$84,500
$87,075
$83,062
2014 Est. Median Household Income
2014 Est. Per Capita Income
$77,150
$26,101
$81,935
$26,436
$76,386
$25,531
INCOME
MARITAL STATUS
& GENDER
2014 Est. Median Age
LABOR FORCE
102,749
109,302
OCCUPATION
34,854
37,101
2014 Est. Labor Population Age 16 Years or Over
3,026
24,480
73,262
2014 Est. Civilian Employed
72.7%
68.3%
68.0%
4.4%
4.1%
4.3%
2014 Est. in Armed Forces
2014 Est. not in Labor Force
22.9%
0.1%
27.5%
0.1%
27.7%
2014 Labor Force Males
2014 Labor Force Females
47.4%
52.6%
47.7%
52.3%
48.0%
52.0%
2010 Occupation: Population Age 16 Years or Over
1,921
15,202
44,121
2010 Mgmt, Business, & Financial Operations
18.4%
18.3%
17.1%
2010 Professional, Related
2010 Service
26.0%
10.7%
23.5%
12.6%
21.5%
13.1%
2010 Sales, Office
31.2%
30.7%
29.6%
0.1%
6.1%
0.1%
6.7%
0.1%
8.1%
2014 Est. Civilian Unemployed
2010 Farming, Fishing, Forestry
2010 Construction, Extraction, Maintenance
2010 Production, Transport, Material Moving
TRANSPORTATION
TO WORK
4,146
4,425
TRAVEL TIME
2014 Estimated Population
2019 Projected Population
2000 Census Households
1 mi radius 3 mi radius 5 mi radius
Dacula, GA 30019
CONSUMER EXPENDITURE
AGE
HOUSEHOLDS
POPULATION
Dacula, GA 30019
7.6%
8.2%
10.4%
2010 White Collar Workers
2010 Blue Collar Workers
75.6%
24.4%
72.5%
27.5%
68.3%
31.7%
2010 Drive to Work Alone
81.0%
82.3%
81.1%
2010 Drive to Work in Carpool
11.5%
9.1%
9.6%
2010 Travel to Work by Public Transportation
2010 Drive to Work on Motorcycle
0.6%
0.3%
1.0%
0.4%
1.2%
0.3%
2010 Walk or Bicycle to Work
2010 Other Means
0.5%
0.7%
0.5%
1.1%
0.6%
1.2%
2010 Work at Home
5.3%
5.6%
6.0%
2010 Travel to Work in 14 Minutes or Less
12.5%
14.7%
14.1%
2010 Travel to Work in 15 to 29 Minutes
2010 Travel to Work in 30 to 59 Minutes
25.3%
44.2%
29.3%
38.9%
31.9%
37.3%
2010 Travel to Work in 60 Minutes or More
18.1%
17.1%
16.7%
32.0
30.2
29.7
2014 Est. Total Household Expenditure
2014 Est. Apparel
$80.8 M
$3.90 M
$670 M
$32.3 M
$1.94 B
$93.5 M
2014 Est. Contributions, Gifts
$5.39 M
$45.1 M
$129 M
2014 Est. Education, Reading
$2.32 M
$19.6 M
$55.8 M
2014 Est. Entertainment
$4.57 M
$38.0 M
$110 M
2014 Est. Food, Beverages, Tobacco
$12.6 M
$104 M
$303 M
2014 Est. Furnishings, Equipment
2014 Est. Health Care, Insurance
$3.65 M
$5.56 M
$30.4 M
$45.8 M
$87.4 M
$133 M
2014 Est. Household Operations, Shelter, Utilities
2014 Est. Miscellaneous Expenses
$24.1 M
$1.30 M
$200 M
$10.8 M
$579 M
$31.4 M
2010 Average Travel Time to Work
2014 Est. Total Businesses
101
846
2,983
2014 Est. Personal Care
$1.16 M
$9.61 M
$27.8 M
2014 Est. Total Employees
1,388
9,271
25,604
2014 Est. Transportation
$16.1 M
$134 M
$387 M
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