$1,542,000 - 5.5% cap - exp realty advisors donuts_ga_lawrenceville_marketing... · of mcnulty...

214.915.8890

JOE CAPUTO

[email protected]

BOB MOORHEAD

[email protected]

RUSSELL SMITH

[email protected]

property. New Construction. 2,175+ SF building on 0.58+ 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, Absolute NNN lease with 10% rent increases every 5-years.

location. Dunkin’ Donuts is strategically located along the heavily travelled corridor of W Pike St (54,037 Cars / Day). W Pike St is one of Lawrenceville’s main

arterial roads and carries significant traffic volumes from Highway 316 (90,844 Cars / Day), which is located just west of the subject property. The subject property

is 0.5-miles east of the Lawrenceville Market Shopping Center (531,039 SF). This complex is anchored by Target, The Home Depot, Ross, Petsmart, Hobby

Lobby, Marshals, and features other nationally recognized credit tenants such as Panera Bread, Chili’s, IHOP, and Payless Shoe Source. A Publix Supermarket,

Staples, Longhorn Steakhouse, and Mellow Mushroom are located across from Lawrenceville Market. Also, the site is 1.9-miles southeast of Georgia Gwinnett

College (8,400 Students) and has Phoenix High School (490 Students) as an immediate neighboring tenant. Lawrenceville is 30-miles northeast of Atlanta, GA.

551 W Pike Street, Lawrenceville, GA

Exclusive OFFERING|$1,542,000 - 5.5% CAP

DUNKIN DONUTS

REPRESENTATIVE PHOTO

EXP Realty Advisors, Inc. (“Agent”) has been engaged as an agent for the sale of the

property located at the 551 W Pike Street, Lawrenceville, 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.

PAGE 3: INVESTMENT | TENANT | LEASE OVERVIEW

PAGE 1: COVER

PAGE 2: TABLE OF CONTENTS | DISCLAIMER

PAGE 10: DEMOGRAPHICS

Table of contents | Disclaimer Dunkin Donuts


PAGE 5-6: AERIAL PHOTOS

PAGE 7: LOCATION OVERVIEW

PAGE 8-9: LOCATION MAPS

Disclaimer

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PAGE 4: SITE PLAN

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SUBJECT PROPERTY PRIOR TO PANDA EXPRESS EXPANSION

PRICE: $1,542,000

CAP RATE: 5.5%

NET OPERATING INCOME: $84,780

BUILDING AREA: 2,175+ Square Feet

LAND AREA: 0.58+ Acres

YEAR BUILT: 2015

LANDLORD RESPONSIBILITY: None

OWNERSHIP: Fee Simple Interest

OCCUPANCY: 100%

Tenant overview

Investment overviewDunkin Donuts


Projected Lease Expiration: September 2025

Projected Rent Commencement: September 2015

Initial Lease Term: 10-Years, Plus 4, 5-Year Options to Renew

Franchisee: Boston Coffee, Inc.

Lessee: BC 551 PS, LLC

Guarantor: David McNulty

Rent Increases: 10% Every 5-Years In Primary Term & Options

Year 1-5 Annual Rent (Current): $84,780

Lease Type: Absolute NNN

Year 6-10 Annual Rent: $93,258

Year 11-15 Annual Rent (Option 1): $102,583



Lease overview


BOSTON COFFEE, INC.

Boston Coffee, Inc. is a partnership between David McNulty and Robert Hensley who both have extensive experience in the retail restaurant industry. Mr. McNulty

has successfully owned, financed and operated over 50 Dunkin Donuts, Hurricane Grill and Wings and Marco’s Pizza restaurants in Florida and Georgia. Mr.

Hensley has over 16 years of experience as an operator of Taco Bell, Hurricane Gill and Wings, Marco’s Pizza and Dunkin Donuts. He now is President and COO

of McNulty Management for the Atlanta region with a commitment to build 25 Dunkin Donuts / Baskin Robbins and 20 Marco’s Pizza locations. The lease is

guaranteed by David McNulty who has a strong personal net worth.

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

boost margins by spreading these costs over a bigger revenue base .

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.

4

SITE PLANDUNKIN DONUTS


5

Aerial photoDUNKIN DONUTS


Gwinnett

Medical Center Phoenix High School

Mixed-

Commercial

SpaceMixed-

Commercial

Space

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Aerial photoDUNKIN DONUTS


Phoenix High School

IMMEDIATE TRADE AREA

Dunkin’ Donuts is strategically located along the heavily travelled corridor of W

Pike St (54,037 Cars / Day). W Pike St is one of Lawrenceville’s main arterial

roads and carries significant traffic volumes from Highway 316 (90,844 Cars /

Day), which is located just west of the subject property.

The subject property is 0.5-miles east of the Lawrenceville Market Shopping

Center (531,039 SF). This complex is anchored by Target, The Home Depot,

Ross, Petsmart, Hobby Lobby, Marshals, and features other nationally

recognized credit tenants such as Panera Bread, Chili’s, IHOP, and Payless

Shoe Source. A Publix Supermarket, Staples, Longhorn Steakhouse, and

Mellow Mushroom are located across from Lawrenceville Market. Additional

nationally known tenants representing a wide breadth of industries such as

Chik-fil-A, Wells Fargo, Burger King, CVS, Pep Boys, Starbucks, Bank of

America, McDonald’s, and Chipotle are also located near the site. Also, the

site is 1.9-miles southeast of Georgia Gwinnett College (8,400 Students) and

has Phoenix High School (490 Students) as an immediate neighboring tenant.

LAWRENCEVILLE, GA / GWINNETT COUNTY

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

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.

7

Location overviewDUNKIN DONUTS


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 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 .

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.

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Location mapDUNKIN DONUTS


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Location mapDUNKIN DONUTS


10

DemographicsDUNKIN DONUTS


2014 Estimated Population 7,731 74,013 196,897

2019 Projected Population 8,250 78,878 209,938

2010 Census Population 7,361 70,568 187,648

2000 Census Population 5,532 55,928 135,459

Projected Annual Growth 2014 to 2019 1.3% 1.3% 1.3%

Historical Annual Growth 2000 to 2014 2.8% 2.3% 3.2%

2014 Estimated Households 3,043 24,505 62,960

2019 Projected Households 3,185 25,650 65,899

2010 Census Households 2,932 23,608 60,656

2000 Census Households 2,049 18,922 44,126

Projected Annual Growth 2014 to 2019 0.9% 0.9% 0.9%

Historical Annual Growth 2000 to 2014 3.5% 2.1% 3.0%

2014 Est. Population Under 10 Years 16.6% 14.5% 14.4%

2014 Est. Population 10 to 19 Years 14.3% 15.6% 16.4%





2014 Est. Population 75 Years or Over 3.9% 3.5% 3.0%

2014 Est. Median Age 30.2 33.4 34.3

2014 Est. Male Population 46.8% 49.0% 49.1%

2014 Est. Female Population 53.2% 51.0% 50.9%

2014 Est. Never Married 39.6% 32.5% 31.0%

2014 Est. Now Married 36.6% 45.3% 49.4%

2014 Est. Separated or Divorced 20.3% 17.7% 15.6%

2014 Est. Widowed 3.5% 4.5% 4.0%

2014 Est. HH Income $200,000 or More 1.6% 2.9% 4.2%

2014 Est. HH Income $150,000 to $199,999 1.2% 5.0% 6.8%

2014 Est. HH Income $100,000 to $149,999 5.8% 12.2% 15.9%

2014 Est. HH Income $75,000 to $99,999 9.9% 14.8% 15.3%

2014 Est. HH Income $50,000 to $74,999 25.2% 23.2% 21.7%

2014 Est. HH Income $35,000 to $49,999 14.7% 13.6% 12.7%

2014 Est. HH Income $25,000 to $34,999 15.3% 11.0% 9.4%

2014 Est. HH Income $15,000 to $24,999 18.6% 9.9% 7.6%

2014 Est. HH Income Under $15,000 7.6% 7.5% 6.4%

2014 Est. Average Household Income $50,202 $67,047 $75,860

2014 Est. Median Household Income $43,188 $59,051 $67,986

2014 Est. Per Capita Income $19,780 $22,442 $24,433

2014 Est. Total Businesses 898 4,325 8,271

2014 Est. Total Employees 9,844 46,976 84,734

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551 W Pike St1 mi radius 3 mi radius 5 mi radius

Lawrenceville, GA 30046

2014 Est. Labor Population Age 16 Years or Over 5,786 54,480 145,646

2014 Est. Civilian Employed 68.1% 68.3% 67.7%

2014 Est. Civilian Unemployed 5.8% 4.5% 4.2%

2014 Est. in Armed Forces 0.1% - -

2014 Est. not in Labor Force 26.0% 27.2% 28.0%

2014 Labor Force Males 46.3% 47.6% 47.7%

2014 Labor Force Females 53.7% 52.4% 52.3%

2010 Occupation: Population Age 16 Years or Over 3,537 32,680 87,231

2010 Mgmt, Business, & Financial Operations 13.7% 15.1% 17.2%

2010 Professional, Related 18.3% 19.0% 20.4%

2010 Service 17.8% 16.6% 15.3%

2010 Sales, Office 25.2% 26.6% 27.0%

2010 Farming, Fishing, Forestry 0.1% 0.2% 0.2%

2010 Construction, Extraction, Maintenance 10.0% 10.2% 9.0%

2010 Production, Transport, Material Moving 14.9% 12.4% 10.8%

2010 White Collar Workers 57.2% 60.6% 64.6%

2010 Blue Collar Workers 42.8% 39.4% 35.4%

2010 Drive to Work Alone 78.0% 78.7% 79.4%

2010 Drive to Work in Carpool 9.1% 10.9% 10.5%

2010 Travel to Work by Public Transportation 3.4% 2.2% 2.0%

2010 Drive to Work on Motorcycle - 0.2% 0.2%

2010 Walk or Bicycle to Work 2.1% 1.3% 0.9%

2010 Other Means 1.9% 1.7% 1.4%

2010 Work at Home 5.5% 4.9% 5.6%

2010 Travel to Work in 14 Minutes or Less 20.0% 18.9% 17.4%

2010 Travel to Work in 15 to 29 Minutes 28.8% 30.2% 30.6%

2010 Travel to Work in 30 to 59 Minutes 39.1% 37.1% 37.0%

2010 Travel to Work in 60 Minutes or More 12.2% 13.9% 15.0%

2010 Average Travel Time to Work 28.0 28.8 29.2

2014 Est. Total Household Expenditure $133 M $1.31 B $3.66 B

2014 Est. Apparel $6.40 M $63.0 M $177 M

2014 Est. Contributions, Gifts $7.79 M $82.5 M $240 M

2014 Est. Education, Reading $3.35 M $35.5 M $103 M

2014 Est. Entertainment $7.36 M $73.1 M $206 M

2014 Est. Food, Beverages, Tobacco $21.9 M $209 M $577 M

2014 Est. Furnishings, Equipment $5.58 M $57.2 M $163 M

2014 Est. Health Care, Insurance $9.75 M $92.1 M $254 M

2014 Est. Household Operations, Shelter, Utilities $39.6 M $389 M $1.09 B

2014 Est. Miscellaneous Expenses $2.29 M $21.7 M $59.9 M

2014 Est. Personal Care $1.95 M $18.9 M $52.7 M

2014 Est. Transportation $27.1 M $263 M $732 M

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Lawrenceville, GA 30046

$1,542,000 - 5.5% cap - exp realty advisors donuts_ga_lawrenceville_marketing... · of mcnulty...

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