Click Here for Property Video : FILE PHOTO Exclusive OFFERING $1,945,000 5.25% CAP 214.915.8890 RUSSELL SMITH rsmith@trivanta.com JOE CAPUTO joe@trivanta.com ALEX TOWER atower@trivanta.com Property. New Construction. 2,350+ SF building on 0.73+ 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, NNN lease with 10% rent increases every 5-years. Location. Dunkin Donuts is strategically located along Jonesboro Rd. (25,000 Cars / Day). Jonesboro Rd. is one of McDonough's main arterial roads and carries significant traffic volumes from Interstate 75 I-75 (140,000 Cars / Day), which is located just west of the subject property. Traffic volumes, growth, and accessibility of the immediate trade area have attracted numerous nationally known retail brands to the trade area. The subject property is surrounded by notable national credit tenants such as Walmart, Sam s, Target, Home Depot, Kroger, Publix, Dick s, Best Buy, Aldi, Gander Mountain, Walgreen s, Discount Tire, O Reilly, Sally s Beauty Supply, Wells Fargo, Bojangles Starbuck s, Chick Fil La, Mc Donald s, and many more. McDonough, GA is a city located in the central part of Henry County, between Interstate 75 and Highway 155 (Population: 203,922). McDonough currently has a population of 22,834.
Table of contents Disclaimer PAGE 1: PAGE 2: PAGE 3: PAGE 4-6: PAGE 7: PAGE 8: PAGE 9-10: PAGE 11: COVER TABLE OF CONTENTS DISCLAIMER INVESTMENT TENANT LEASE OVERVIEW AERIAL PHOTOS SITE PLAN LOCATION OVERVIEW LOCATION MAPS DEMOGRAPHICS CONSTRUCTION PROGRESS 6.23.16 Disclaimer Trivanta ( Agent ) has been engaged as an agent for the sale of the property located along Jonesboro Rd, McDonough, GA 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. Georgia Broker of Record: Pamela Atwater Atwater Commercial Real Estate Services 2
Investment overview PRICE: $1,945,000 CAP RATE: 5.25% NET OPERATING INCOME: $102,100 BUILDING AREA: 2,350+ Square Feet LAND AREA: 0.73+ Acres YEAR BUILT: 2016 Lease overview Initial Lease Term: 10-Years, Plus 4, 5-Year Options to Renew Projected Rent Commencement: September 2016 Projected Lease Expiration: September 2026 Lease Type: NNN Rent Increases: 10% Every 5-Years In Primary Term & Options Year 1-5 Annual Rent (Current): $102,100 LANDLORD RESPONSIBILITY: None Year 6-10 Annual Rent: $112,310 OWNERSHIP: OCCUPANCY: 100% Tenant overview Franchisee: Boston Coffee, Inc. Lessee: BC JR, LLC Fee Simple Interest Year 11-15 Annual Rent (Option 1): $123,541 Year 16-20 Annual Rent (Option 2): $135,895 Year 21-25 Annual Rent (Option 3): $149,484 Year 26-30 Annual Rent (Option 4): $164,433 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. 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 boost margins by spreading these costs over a bigger revenue base. SUBJECT PROPERTY 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 PRIOR numberto it has PANDA today. EXPRESS The Western EXPANSION 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. 3
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Aerial photo Walnut Creek Elementary School Crystal Lake Country Club Henry County Middle School Toy R Us Distribution Center 5
Aerial photo Pinecrest Baptist Church 6
SITE PLAN 7
Location overview IMMEDIATE TRADE AREA Dunkin Donuts is strategically located along Jonesboro Rd. (25,000 Cars / Day). Jonesboro Rd. is one of McDonough's main arterial roads and carries significant traffic volumes from Interstate 75 I-75 (140,000 Cars / Day), which is located just west of the subject property. I-75 is a major north south Interstate Highway in the Great Lakes and Southeastern regions of the United States. Interstate 75 is the seventh longest interstate highway and the second longest north-south in the U.S. Traffic volumes, growth, and accessibility of the immediate trade area have attracted numerous nationally known retail brands to the trade area. The subject property is surrounded by notable national credit tenants such as Walmart, Sam s, Target, Home Depot, Kroger, Publix, Dick s, Best Buy, Aldi, Gander Mountain, Walgreen s, Discount Tire, O Reilly, Sally s Beauty Supply, Wells Fargo, Bojangles Starbuck s, Chick Fil La, Mc Donald s, and many more. MCDONOUGH, GA / HENRY COUNTY McDonough, GA is a city located in the central part of Henry County, between Interstate 75 and Highway 155 (Population: 203,922). McDonough currently has a population of 22,834. Conveniently located 20 miles south of Atlanta, McDonough s key industries are filming, advanced manufacturing, healthcare services, logistics and professional solutions, which are primed for expansion. Quality of place has been a key factor in the city s residential and economic growth. Attractive housing in safe neighborhoods with nearby historic small town features still surrounded by farms and open space, with easy access to the rest of Metro attracts families and businesses. McDonough is home to a number of major national and international companies including Home Depot, Whirlpool, Ken s Foods, ALPLA, and Luxottica Retail Group. McDonough also serves as a center for the arts with The Henry County Performing Arts Center and a center for education with Mercer University, Southern Crescent Technical College, Clayton State University, Gordon State College and the University of Phoenix all having a presence in McDonough. Henry County has gained a solid reputation as one of the top sites for business locations and expansions in Georgia and the Southeast. In the southeast of the ninth largest metro region in the nation, Henry County boasts unique access to global transportation options for every business. Henry County, Georgia is located only 20 miles southeast of Atlanta s business core. Henry County is positioned to serve as Metro Atlanta s connector to global transportation and distribution. The county is minutes from Atlanta and the Hartsfield-Jackson Atlanta International Airport. With direct rail service from Norfolk Southern Railroad, and the metro s best access to the Port of Savannah, you are less than two hours away by air and two days by truck to 80% of the United States. ATLANTA-SANDY SPRINGS-MARIETTA, GA MSA 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 15 th among world cities and 6 th 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. 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 7 th 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. Click Here for Property Video : 8
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Demographics Jonesboro Rd McDonough, GA 30253 1 mi radius 3 mi radius 5 mi radius Jonesboro Rd McDonough, GA 30253 1 mi radius 3 mi radius 5 mi radius POPULATION HOUSEHOLDS AGE MARITAL STATUS & GENDER INCOME 2015 Estimated Population 3,076 36,371 75,411 2020 Projected Population 3,215 37,916 78,814 2010 Census Population 2,888 34,144 71,644 2000 Census Population 2,636 21,834 40,213 Projected Annual Growth 2015 to 2020 0.9% 0.8% 0.9% Historical Annual Growth 2000 to 2015 1.1% 4.4% 5.8% 2015 Estimated Households 1,084 12,853 26,783 2020 Projected Households 1,124 13,311 27,816 2010 Census Households 1,013 11,963 25,244 2000 Census Households 933 7,667 14,061 Projected Annual Growth 2015 to 2020 0.7% 0.7% 0.8% Historical Annual Growth 2000 to 2015 1.1% 4.5% 6.0% 2015 Est. Population Under 10 Years 12.6% 13.4% 13.2% 2015 Est. Population 10 to 19 Years 17.0% 16.6% 16.3% 2015 Est. Population 20 to 29 Years 14.8% 14.3% 13.7% 2015 Est. Population 30 to 44 Years 20.2% 20.4% 20.3% 2015 Est. Population 45 to 59 Years 21.6% 20.5% 20.9% 2015 Est. Population 60 to 74 Years 10.5% 10.8% 11.5% 2015 Est. Population 75 Years or Over 3.3% 4.0% 4.1% 2015 Est. Median Age 34.5 34.2 35.0 2015 Est. Male Population 47.4% 47.0% 47.3% 2015 Est. Female Population 52.6% 53.0% 52.7% 2015 Est. Never Married 31.1% 29.6% 29.9% 2015 Est. Now Married 45.6% 47.5% 48.2% 2015 Est. Separated or Divorced 18.8% 18.2% 17.4% 2015 Est. Widowed 4.5% 4.7% 4.6% 2015 Est. HH Income $200,000 or More 2.4% 2.6% 2.3% 2015 Est. HH Income $150,000 to $199,999 5.6% 3.7% 4.5% 2015 Est. HH Income $100,000 to $149,999 13.6% 12.7% 14.0% 2015 Est. HH Income $75,000 to $99,999 13.0% 14.5% 14.7% 2015 Est. HH Income $50,000 to $74,999 23.1% 23.8% 22.8% 2015 Est. HH Income $35,000 to $49,999 17.2% 14.5% 13.5% 2015 Est. HH Income $25,000 to $34,999 10.8% 11.2% 10.5% 2015 Est. HH Income $15,000 to $24,999 6.0% 9.6% 9.2% 2015 Est. HH Income Under $15,000 8.1% 7.6% 8.4% 2015 Est. Average Household Income $68,022 $70,359 $72,153 2015 Est. Median Household Income $59,414 $59,392 $60,452 2015 Est. Per Capita Income $23,986 $24,985 $25,741 2015 Est. Total Businesses 86 1,414 3,583 2015 Est. Total Employees 598 11,697 33,187 LABOR FORCE OCCUPATION TRANSPORTATION TO WORK TRAVEL TIME CONSUMER EXPENDITURE 2015 Est. Labor Population Age 16 Years or Over 2,395 27,928 58,173 2015 Est. Civilian Employed 63.1% 62.3% 61.0% 2015 Est. Civilian Unemployed 4.4% 5.2% 5.0% 2015 Est. in Armed Forces 0.1% 0.2% 0.3% 2015 Est. not in Labor Force 32.4% 32.3% 33.7% 2015 Labor Force Males 46.2% 45.8% 46.1% 2015 Labor Force Females 53.8% 54.2% 53.9% 2010 Occupation: Population Age 16 Years or Over 1,429 15,165 31,766 2010 Mgmt, Business, & Financial Operations 16.2% 13.8% 14.1% 2010 Professional, Related 12.2% 19.5% 21.3% 2010 Service 20.1% 20.3% 18.6% 2010 Sales, Office 26.2% 26.7% 27.3% 2010 Farming, Fishing, Forestry - 0.1% 0.1% 2010 Construction, Extraction, Maintenance 9.7% 7.4% 7.1% 2010 Production, Transport, Material Moving 15.7% 12.3% 11.4% 2010 White Collar Workers 54.5% 60.0% 62.7% 2010 Blue Collar Workers 45.5% 40.0% 37.3% 2010 Drive to Work Alone 82.1% 81.9% 82.6% 2010 Drive to Work in Carpool 8.7% 9.7% 9.5% 2010 Travel to Work by Public Transportation 1.5% 2.1% 1.6% 2010 Drive to Work on Motorcycle - - 0.1% 2010 Walk or Bicycle to Work 0.5% 1.1% 0.8% 2010 Other Means 0.8% 0.7% 0.6% 2010 Work at Home 6.5% 4.4% 4.7% 2010 Travel to Work in 14 Minutes or Less 25.7% 16.9% 17.2% 2010 Travel to Work in 15 to 29 Minutes 21.5% 30.1% 31.0% 2010 Travel to Work in 30 to 59 Minutes 34.9% 39.5% 39.1% 2010 Travel to Work in 60 Minutes or More 17.9% 13.5% 12.7% 2010 Average Travel Time to Work 26.4 28.3 28.3 2015 Est. Total Household Expenditure $58.5 M $698 M $1.49 B 2015 Est. Apparel $2.04 M $24.3 M $51.9 M 2015 Est. Contributions, Gifts $3.82 M $45.0 M $96.6 M 2015 Est. Education, Reading $2.19 M $25.7 M $55.3 M 2015 Est. Entertainment $3.28 M $39.1 M $83.4 M 2015 Est. Food, Beverages, Tobacco $9.04 M $108 M $230 M 2015 Est. Furnishings, Equipment $1.99 M $23.8 M $50.8 M 2015 Est. Health Care, Insurance $5.12 M $61.4 M $131 M 2015 Est. Household Operations, Shelter, Utilities $18.1 M $215 M $460 M 2015 Est. Miscellaneous Expenses $876 K $10.4 M $22.1 M 2015 Est. Personal Care $757 K $9.07 M $19.3 M 2015 Est. Transportation $11.3 M $135 M $288 M 11