OFFERING MEMORANDUM. Dunkin Donuts. 375 Main St Warren, RI. Dunkin Donuts, Warren, RI 1

Transcription

1 OFFERING MEMORANDUM Dunkin Donuts 375 Main St Warren, RI Dunkin Donuts, Warren, RI 1

2 contents Investment Highlights financial OVERVIEW tenant overview exclusively listed by rahul chhajed Single Tenant Net Lease DIR (949) MOB (818) LIC # (CA) MIchael Moreno Senior Associate Property OVERVIEW Area overview Michael.Moreno@matthews.com DIR (949) MOB (818) LIC # (CA) Aron Cline SVP & Sr. Director Aron.Cline@matthews.com DIR (949) MOB (818) LIC # (CA) Andrew Knight BROKER OF RECORD LIC #

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4 Investment Highlights LEASE Absolute NNN Lease - The investment is hands-free and provides the landlord with zero management responsibilities Passive Income - Lease still has 8 years remaining on the primary term and two, 5-year options to renew Incredible Hedge Against Inflation - The lease has built-in annual increases of 3%-5%! Strong Return - Average return of 5.95% over the primary term if purchased at list price (Potential to be significantly higher if annual increases go up to 5%) Growth in income - Nearly a 9% return on your initial investment at the end of the option periods LOCATION Commitment to Location - A complete store remodel is scheduled to take place within the next 5 years Strong Market Share - Closest Starbucks is in an in-line space across the Barrington River, Dunkin Donuts dominates the immediate trade area Optimal Prototype - The building comes equipped with a drive-thru that promotes additional traffic and stronger sales at the store Affluent Demographics - Average household incomes within a 3-mile radius are in excess of $104,000 Dense Population - Over 80,000 residents within a 5-mile radius Longstanding Operating History - Dunkin Donuts has been at this location since 1972 and has served the community for over 45 years! Great Accessibility Property s parking lot extends to the corner of Miller & Main, giving customers an easy way to exit the property after using the drive-thru FRANCHISE/HISTORY Joma Realty Company has exclusive rights to the Dunkin Donuts brand in the East Bay which includes Warren, Bristol, and Barrington Experienced Franchisee - Franchisee operates 8 locations with satellites at Roger Williams University as well Reliable Franchisee - Dunkin Donuts corporate turned this location over to this specific franchisee in Offering Memorandum

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6 financial overview Dunkin Donuts 375 Main St Warren, RI List Price...$1,300,000 CAP Rate - Current % Gross Leasable Area...± 2,600 SF Lot Size...± 0.24 Acres Year Built Annualized Operating Data Monthly Rent Annual Rent Cap Rate Current - 10/31/2018 $5, $69, % 11/1/ /31/2019 $5, $71, % 11/1/ /31/2020 $6, $73, % 11/1/ /31/2021 $6, $75, % 11/1/ /31/2022 $6, $78, % 11/1/ /31/2023 $6, $80, % 11/1/ /31/2024 $6, $83, % 11/1/ /31/2025 $7, $85, % Option 1 3%-5% Inc. 3%-5% Inc. 3%-5% Inc. Option 2 3%-5% Inc. 3%-5% Inc. 3%-5% Inc. Tenant Summary Tenant Trade Name Dunkin Donuts (Joma Realty Company) Type of Ownership Fee Simple Lease Guarantor Franchisee Lease Type Absolute NNN Roof and Structure Tenant Responsible Original Lease Term 15 Years Lease Commencement Date 10/31/2010 Rent Commencement Date 10/31/2020 Term Remaining on Lease ± 8 Years Increases Minimum 3% and Maximum 5% Annual Increases Options Two, 5-Year Options 6 Offering Memorandum

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8 Tenant overview Company Name Parent Company Trade Name Ownership Dunkin Donuts Dunkin Brands (NASDAQ: DNKN) Public No. of Locations ± 11,500 No. of Employees (all) ± 270,000 Headquartered Website Canton, Massachussets Year Founded 1950 Dunkin Donuts Dunkin Donuts is the world s leading baked goods and coffee chain, serving more than 3 million customers every day. Since its founding in 1950, Dunkin Donuts has earned the #1 ranking for customer loyalty in the coffee category for a consecutive nine years and a market leader in sales of hot, decaffeinated and flavored coffee, iced coffee, bagels, donuts, and muffins. It is a subsidiary of Dunkin Brands, Inc., one of the world s leading franchisors of quick-service restaurants that also operates the Baskin-Robbins chain. An Industry Leader Dunkin Brands continues to pursue innovative menu choices through the collaboration of their culinary team of acclaimed chefs and their research and development team. From new types of coffee creations and flavors to limited time offers, Dunkin Donuts is constantly searching for products their patrons will love. With over 130 years of franchising experience, Dunkin Brands continues to deliver food and beverages quickly, affordable and conveniently in a welcoming environment through the Dunkin Donuts brand. Marketing and Company Strategy Through extensive marketing efforts, Dunkin Brands has a 94% global brand awareness, including markets where the company has yet to establish stores. To broaden reach and recognition, Dunkin Donuts partners with other prominent and respected brands, including Coca Cola, JetBlue, Smucker s, and Keurig. A distinguishing characteristic of the company is their passion for offering guests products they will enjoy, giving plenty of menu options, and providing accurate nutrition information so they can make informed choices. 8 Offering Memorandum

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10 Property overview Property Name Property Address Dunkin Donuts 375 Main St Warren, RI Assessor s Parcel Number Site Description Number of Stories One Year Built 1999 Gross Leasable Area (GLA) ± 2,600 SF Lot Size ± 0.24 Acres (10,567 SF) Parking Spaces ± 12 Surface Space Type of Ownership Fee Simple Landscaping Professional Topography Generally Level Main Street ± 19,000 ADT PARCEL MAP 10 Offering Memorandum

11 PARCEL MAP Dunkin Donuts, Warren, RI 11

12 Warren, RI Warren, RI is a town 20 minutes outside of Providence, in Bristol County. Once popular for the launching of the five vessels, Warren is turning into an artistic and cultural area. The town first got its start in the whaling industry, while also being involved in merchant services and the West India trade. Throughout the years, the town has moved to focusing more on their business on land and developing them into attractive restaurants, art galleries, and much more. When entering Warren, the architecture and streets feel like you stepped back into the 19th century. The community has done an amazing job on preserving their history and represent their European routes. Recently, the main focus has been to promote the different talents within the community. From theatre to design and art galleries, Warren has a very creative community. demographics POPULATION 3 Mile 5 Mile 10 Mile 2022 Projection 7,312 32,995 77, Estimate 7,385 32,967 77, Census 7,557 33,176 77, Census 8,031 34,245 80,198 HOUSEHOLDS 3 Mile 5 Mile 10 Mile 2022 Projection 3,239 13,170 32, Estimate 3,247 13,067 31,751 INCOME 3 Mile 5 Mile 10 Mile 2017 Est. Average Household Income $90,955 $111,812 $99, Offering Memorandum

13 Providence, RI Older than the United States, Providence, Rhode Island is a city that has persevered through every challenge history has thrown its way. Located at a point where numerous streams flow into the Narragansett Bay, the capital city is a primary commercial, industrial and residential area for the state. It remains a center of liberal intellectual thought, largely influenced by Brown University and the large college student population in the area. From Benefit Street s Mile of History on the east side of the city to Federal Hill, Rhode Island s own Little Italy, Providence is known for having an abundance of historic and cultural attractions. Over three centuries worth of history lives on through the countless preserved houses throughout the city. Dunkin Donuts, Warren, RI 13

14 Business Climate Once a city with manufacturing industries in metals, machinery, textiles, jewelry and silverware, Providence is now one of the largest centers for jewelry and silverware design and manufacturing. Services, specifically education, healthcare, and finance, also make up a significant portion of the city s economy. The Port of Providence, which is the secondlargest deep water seaport in New England also has a noteworthy contribution to the local economy as it handles cargo that includes cement, chemicals, heavy machinery, petroleum and scrap metal. Many people are capitalizing on Providence s central location relative to other East Coast cities. Prominent companies headquartered in Providence include Fortune 500 Textron and United Natural Foods, Fortune 1000 Nortek Incorporated, privately held engineering firm Gilbane, and GTECH Corporation, who recently moved their world headquarters to downtown Providence. Citizens Bank is also headquartered in Providence and is the fifteenth largest bank in the country. Downtown Developments Downtown Providence is an inspiring example of urban redevelopment where older historic buildings were restored and attractive parks and the Riverwalk were constructed along the Providence River. A shopping complex, the Rhode Island Convention Center and new residential developments continue to bring residents and visitors into the downtown area. Meanwhile, new office buildings that host banking and financial institutions and Brown University lie just east of downtown. Always rising to the challenge, the city maintains that creating jobs and growing the local economy is among its highest priorities. With dedicated optimism, residents anticipate a bright future for Providence. 14 Offering Memorandum

15 Points of Interest WATERFIRE Presented on the rivers of downtown Providence, WaterFire is an award-winning sculpture by Barnaby Evans. WaterFire has been praised by residents and visitors as a moving symbol of the city s renaissance bringing life to the downtown area. ROGER WILLIAMS PARK Roger Williams Park has been the premier playground for Rhode Island residents since the city s founding. Its 435 acres feature over 100 acres of ponds, the Museum of Natural History and Planetarium, the Botanical Center, the Carousel Village and the nationally-recognized Roger Williams Park Zoo. RISD MUSEUM OF ART The Rhode Island School of Design (RISD) Museum of Art acquires, preserves and exhibits works of art representing diverse cultures. About 100,000 objects are housed at the museum, ranging from ancient art to pieces by contemporary artists and designers. RHODE ISLAND STATE HOUSE Located on the border of the downtown and Smith Hill sections of Providence, the Rhode Island State House is the capitol building of the state. The neoclassical building is on the National Register of Historic Places. BROWN UNIVERSITY Located in Providence, Brown University is the seventh-oldest college in the United States. As a leading research university, Brown is frequently recognized for its global reach, many cultural events, competitive athletics and beautiful facilities. WATERPLACE PARK AND RIVERWALK Centrally located in the heart of downtown, Waterplace Park is an urban park situated along the Woonasquatucket River that is connected to 3/4 mile cobblestone-paved walkways along the waterfront known as Riverwalk. HISTORIC FEDERAL HILL Historic Federal Hill has been called the Heartbeat of Providence. Beginning at Atwells Avenue, historic Federal Hill spreads to Broadway, Westminster and Cranston Streets. A place dedicated to the Italian immigrants, Federal Hill remains a place of charm. THAYER STREET Thayer Street is a popular destination for students of the area s nearby schools, including Brown University and RISD. It is located in the College Hill neighborhood on the East Side of Providence and hosts independent shops and restaurants. PROVIDENCE PERFORMING ARTS CENTER As the second largest theater of its kind in the country, the Providence Performing Arts Center presents a full roster of touring Broadway theatricals and contemporary engagements. This 3100-seat, world class venue is in the heart of the arts district. Dunkin Donuts, Warren, RI 15

16 exclusively listed by rahul chhajed Single Tenant Net Lease DIR (949) MOB (818) LIC # (CA) MIchael Moreno Senior Associate Michael.Moreno@matthews.com DIR (949) MOB (818) LIC # (CA) Aron Cline SVP & Sr. Director Aron.Cline@matthews.com DIR (949) MOB (818) LIC # (CA) Andrew Knight BROKER OF RECORD LIC # Dunkin Donuts 375 Main St Warren, RI 16 Offering Memorandum

17 CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering Memorandum contains select information pertaining to the business and affairs of Dunkin Donutslocated at 375 Main St, Warren, RI 02885( Property ). It has been prepared by Matthews Real Estate Investment Services. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Real Estate Investment Services. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence. By acknowledging your receipt of this Offering Memorandum for the Property, you agree: 1. The Offering Memorandum and its contents are confidential; 2. You will hold it and treat it in the strictest of confidence; and 3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller. Owner and Matthews Real Estate Investment Services expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered. If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum. A prospective purchaser s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Real Estate Investment Services or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property. This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum. Dunkin Donuts, Warren, RI 17