investment offering memorandum

Single-Tenant Absolute NNN with Drive-Thru | Kingwood, TX

Kevin Dalrymple [email protected] 713-775-9986clay-co.com

FILE PHOTO

INVESTMENT OFFERING MEMORANDUM

Clay & Company | 5151 San Felipe, Suite 1410 | Houston, Texas | 77056 | 713-722-1250 | clay-co.com

Investment Overview |

LOCATION991 Northpark Drive, Kingwood, TX 77339

Just east of Loop 494 and less than 1 mile from Highway 69

RENTABLE AREA 1,977 SF

YEAR BUILT 2021

LOT SIZE 1.6 Acres

TENANT M E Kingwood, LLC dba Dunkin’ Donuts

GUARANTOR First Hartford Corp (OTCMKTS: FHRT)

LEASE TYPE Absolute NNN

NOI $118,000

CAP RATE 4.85%

OWNERSHIP Fee Simple

Rendering |


Investment Highlights |


New 2020 Construction Built-To-Suit with January 2021 estimated completion date

15-Year Lease Term Long-Term Cash Flow Stream Through 2036

Absolute NNN Lease StructureZero Landlord Responsibilities

Favorable Rent Escalations 10% Rent Bumps Every 5 Years

Construction WarrantyFive-Year Warranty on Building; Ten-Year Warranty on Roof

Excellent Visibility and Access Fronts on high traffic Northpark Drive (±36,055 Vehicles Passing Per Day), one of the main east-west arteries connecting Highway 69 with

Kingwood

Experienced Operator Over 65 years of real estate development experience combined with 25 years operations experience in coffee, prepared drink and ice cream/gelato

industry

CONSTRUCTION PHOTO

Lease Overview |


LEASE DETAILS

ORIGINAL LEASE TERM 15 Years

INCREASE YRS 6-10 10%

INCREASE YRS 11-15 10%

OPTIONS 5 YEARS

RENT COMMENCEMENT APRIL 1, 2021

LEASE EXPIRATION MARCH 31, 2036

SITE RENDERING


Brand Profile

Dunkin’, founded in 1950, is famous for its combination of high-quality coffees, espresso beverages, baked goods and breakfast sandwiches served all day with fast, friendly service. Dunkin’ Brands is the parent company of two of the world’s most recognized and beloved brands: Dunkin’ and Baskin-Robbins. With more than 21,000 points of distribution in more than 60 countries, Dunkin’ Brands is one of the world’s leading franchisors of quick service restaurants (QSRs). Dunkin’ is based in Canton, Massachusetts.

COMPANY TYPE SUBSIDIARY

PARENT COMPANYDUNKIN’ BRANDS

NASDAQDNKN

2019 EMPLOYEES1,114

2019 REVENUE$1.37 BILLION

2019 NET INCOME$242.02 MILLION

2019 ASSETS$3.92 BILLION

CREDIT RATINGS&P: A-


Guarantor

First Hartford Realty Corporation, (FHRT - OTC Market) www.firsthartford.com

First Hartford Realty Corporation is engaged in the acquisition, development and management of commercial and multifamily properties. The real estate owned and managed by

the company through various subsidiaries is located in Connecticut, Delaware, Louisiana, Massachusetts, New Jersey, New York, Rhode Island and Texas. First Hartford is engaged as

a preferred developer for CVS Health and Cumberland Farms. In this capacity they have assisted CVS in opening over 250 locations and over 50 locations on behalf of Cumberland

Farms. First Hartford recently received the rights to franchise Dunkin Donuts in the Texas market and are actively pursuing new Dunkin developments across the state. Their audited

financials can be found at the bottom of their website.

The Chief Operating Officer, Kirby Dolliole, has a broad and successful background in the food service industry. As VP of Operations at Paciugo Italian Gelato, he utilized a broad

scope of industry knowledge and dynamic business acumen to develop a forward-thinking operation, including managing all marketing and real estate efforts. He was responsible

for protecting and growing assets for 42 franchise locations in 16 states, leading 3 Franchise Business Coaches and 2 Marketing Managers where he notably improved customer

transactions 7% with their new beverage program expanding brand usage; implemented standardized operations system and a standards manual for franchisees; developed Oper-

ations Excellence Review/Brand Protection Audit; and increased speed of service and customer thru-put by developing key deployment structures.

As VP of Operations at Jamba Juice, Kirby expertly handled all financial and people development initiatives to support growth within highly competitive markets. He mentored 6

District Managers, 1 Marketing Manager, 1 Human Resource Manager, and 1 Construction/Maintenance Chief. While at Jamba, Kirby successfully achieved 83% in overall custom-

er satisfaction for 4 consecutive years; led profit/loss management for 42 franchise stores generating $27 + million in sales; increased speed of service and customer thru-put by

developing key deployment structures; reduced cost 29% annually while increasing brand awareness by refocusing all local marketing; and achieved 25 additional units opening in

4 years by initiating a multi-channel real estate growth plan.

As Senior District Manager for Starbucks Coffee, Kirby strategically steered financial and team building plans for 18 stores to support high volume growth within the Dallas – Fort

Worth market, including delivering a stable training environment for future store managers in a profitable district. He achieved “Highest Profitable District” honors in Texas for 4

consecutive years; reached $900,000 Average Unit Volume in the first year and maintained a 5% growth rate YOY. In addition, he improved customer wait time by 2+ minutes via

development of a popular “Call Ahead Program”; and developed training programs within the district that were adopted for all locations in the Texas market.

Area Retailers and Traffic Counts |


Maps |


Lease Options |


LEASE OPTIONS

YRS 16-20 $13,088.17

YRS 21-25 $14,396.98

YRS 26-30 $15,836.68

YRS 31-35 $17,420.35

YRS 36-40 $19,162.38

LEASE START DATE LEASE END DATE MONTHLY BASE RENT ANNUAL BASE RENT

April 2021 March 2026 $9,833.33 $118,000

April 2026 March 2031 $10,816.67 $129,800

April 2031 March 2036 $11,898.33 $142,780

Demographics (5 Miles) |


investment offering memorandum

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