$1,542,000 - 5.5% CAP - EXP Realty Advisors Donuts_GA_Lawrenceville_Marketing... · of McNulty...
Transcript of $1,542,000 - 5.5% CAP - EXP Realty Advisors Donuts_GA_Lawrenceville_Marketing... · of McNulty...
214.915.8890
JOE CAPUTO
BOB MOORHEAD
RUSSELL SMITH
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
551 W Pike Street, Lawrenceville, GA
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
551 W Pike Street, Lawrenceville, GA
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
Year 16-20 Annual Rent (Option 2): $112,842
Year 21-25 Annual Rent (Option 3): $124,126
Lease overview
Year 26-30 Annual Rent (Option 4): $136,539
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.
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SITE PLANDUNKIN DONUTS
551 W Pike Street, Lawrenceville, GA
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Aerial photoDUNKIN DONUTS
551 W Pike Street, Lawrenceville, GA
Gwinnett
Medical Center Phoenix High School
Mixed-
Commercial
SpaceMixed-
Commercial
Space
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Aerial photoDUNKIN DONUTS
551 W Pike Street, Lawrenceville, GA
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.
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Location overviewDUNKIN DONUTS
551 W Pike Street, Lawrenceville, GA
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
551 W Pike Street, Lawrenceville, GA
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Location mapDUNKIN DONUTS
551 W Pike Street, Lawrenceville, GA
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DemographicsDUNKIN DONUTS
551 W Pike Street, Lawrenceville, GA
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 20 to 29 Years 19.9% 14.9% 13.2%
2014 Est. Population 30 to 44 Years 22.3% 21.9% 22.0%
2014 Est. Population 45 to 59 Years 15.4% 20.3% 21.7%
2014 Est. Population 60 to 74 Years 7.7% 9.2% 9.4%
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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551 W Pike St1 mi radius 3 mi radius 5 mi radius
Lawrenceville, GA 30046