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R E P R E S E N T A T I V E P H O T O

o f f e r i n g m e m o r a n d u m

DUNKIN’ DONUTSS W Q O A K L A W N D R & H W Y 3 3 1 | D E F U N I A K S P R I N G S , F L

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E X E C U T I V E S U M M A RY

F I N A N C I A L O V E RV I E W

A R E A O V E RV I E W

T E N A N T O V E RV I E W

F R A N C H I S E E O V E RV I E W

KYLE MATTHEWSBROKER OF RECORDLIC # CQ1052263 (FL)

MAXX BAUMANAssociateMAXX.BAUMAN@MATTHEWS.COMDIR 214.692.2024MOB 310.994.0262LIC # 01996741 (CA)

CHAD KURZSVP & National DirectorCHAD.KURZ@MATTHEWS.COMDIR 214.692.2927MOB 562.480.2937LIC # 01911198 (CA)

BROKER OF RECORD

CONTENTS

LISTED BY

R E P R E S E N T A T I V E P H O T O

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E X E C U T I V EO V E R V I E W

• Brand New 2017 Construction

• Equipped with a Drive Thru and Patio which are designed to bolster sales

• Increases cash flow by 10% every 5 years

• Nearly an 9% return on your initial investment by the end of the lease

• Highly trafficked corridor - Located off of Hwy 331 (±15,000 VPD) and Hwy 10 (± 14,800 VPD)

• Only National Coffee Retailer for ± 25 Miles

• Surrounding retailers include Walmart Supercenter, Lowe’s, Tractor Supply, Taco Bell, Burger King, Sonic, Whataburger, McDonald’s and more

• Strategically Located on the “Going to Work” side of the street - many residents of the city of Defuniak Springs are employed by the popular beach cities along the Florida panhandle

• Directly off the famous Interstate 10 Freeway which begins in Santa Monica, CA and ends in Jacksonville, FL

TENANT

LEASE/PROPERTY DETAILS

LOCATION

• Backed by one the largest Dunkin’ Donuts Franchisees in the country

• Purple Square Management recently partnered with Drew Brees (Entrepreneur & Quarter Back of the New Orleans Saints) click here for article

• Franchisee currently operates ±50 Dunkin’ Donuts / Baskin Robbins stores with strong financials

• Purple Square Management has plans to nearly double the size of their portfolio by the end of 2017

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F I N A N C I A LO V E R V I E W

FINANCIAL HIGHLIGHTS

LIST PRICE

$1,921,000

CAP RATE

5.50%

TERM REMAINING

15 YEARS

TENANT SUMMARY

Tenant Trade Name Dunkin' Donuts

Type of Ownership Fee Simple

Lease Guarantor Franchisee

Lease Type NNN

Roof & Structure Tenant Responsible

Original Lease Term 15 years

Lease Commencement Date 8/25/2016

Rent Commencement Date 9/1/2017

Lease Ex Date 8/31/2032

Term Remaining 15 years

Increases 10% every 5 years

Options Four, 5-Year Options

ANNUALIZED OPERATING DATA

Monthly Rent Annual Rent Increases Cap Rate

Current - 2022 $8,805.83 $105,669.96 -- 5.50%

2023 - 2027 $9,686.41 $116,236.96 10% 6.05%

2028 - 2032 $10,655.05 $127,860.65 10% 6.66%

Option 1 $11,720.56 $140,646.72 10% 7.32%

Option 2 $12,892.62 $154,711.39 10% 8.05%

Option 3 $14,181.88 $170,182.53 10% 8.86%

Option 4 $15,600.07 $187,200.78 10% 9.74%

EXECUTIVE SUMMARY

Property Name Dunkin Donuts

Property Street SWQ Oaklawn Dr & Hwy 331

City, State, Zip DeFuniak, FL 32435

Year Built 2017

Lot Size ± 0.69 Acres

F R A N C H I S E Eo v e r v i e w

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With over 10 years of operating experience, Purple Square Management Co. is one of the largest Dunkin’ Donuts franchisees in the entire Dunkin’ system. Vik Patel and his team currently operate 51 locations throughout Florida, Alabama, and Louisiana and are on track to open an additional 34 locations by the end of 2017. Most recently, Purple Square Management Co. partnered with Super Bowl Champion and New Orleans Saints Quarterback Drew Brees, to develop and operate an additional 69 Dunkin’ Donuts locations throughout the state of Louisiana. Purple Square Management Co. is one of the most recognized and well respected Dunkin’ Donuts franchisees under the brand.

Click here to read about Purple Square Managements new partnership with Drew Brees

PURPLE SQUARE MANAGEMENT COMPANY

RECIPIENT OF THE 2008 DUNKIN’ BRANDS NATIONAL “RISING STAR” AWARD

RECIPIENT OF THE 2014 DUNKIN’ BRANDS SOUTHEAST “FRANCHISEE OF THE YEAR” AWARD

AW

AR

DS

RECIPIENT OF THE 2008 DUNKIN’ BRANDS NATIONAL “RISING STAR” AWARD

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Dunkin’ Donuts is the world’s leading baked goods and coffee chain, serving more than 3 million customers everyday. 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 LEADERDunkin’ 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, affordably and conveniently in a welcoming environment through the Dunkin’ Donuts brand.

MARKETING AND COMPANY STRATEGYThrough 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.

DUNKIN’ DONUTS

C O M P A N Y T R A D E N A M E D U N K I N ’ B R A N D S ( NASDAQ: DNKN)

H E A D Q U A R T E R E DC A N T O N , M A S S A C H U S S E T S

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W E B S I T EW W W . D U N K I N D O N U T S , C O M

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Y E A R F O U N D E D1 9 6 3

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PARCEL MAP

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the offering

Property Name Dunkin’ Donuts

Property Address SWQ Oaklawn Drive & Hwy 331

Defuniak Springs, FL 32435

Assessor’s Parcel Number 03-2N-19-18000-012-0000

Site DescriptionNumber of Stories One

Year Built 2017

Lot Size ± 0.69 Acres (30,056 SF)

Type of Ownership Fee Simple

Parking ± 23 Surface Spaces

Parking Ratio 12.69 : 1,000 SF

Landscaping Professional

Topography Generally Level

ConstructionFoundation Concrete Slab

Framing Wood

Exterior Masonry

Parking Surface Asphalt

Roof Flat

s u r r o u n d i n g t e n a n t s 9

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Located in Walton County between Pensacola, Panama City and Tallahassee, the city

of DeFuniak Springs originated as a railroad stop and is now Walton County’s seat of

government. This community has over 200 structures listed on the National Register

of Historic Places in its historic district, which encircles Lake DeFuniak: One of only

two perfectly round lakes in the world.

Reflecting a look many remember as Old Florida, DeFuniak Springs is all about

business as a retail center for major chains and home to a variety of antique and

curio shops. The city is the home base for Walton County’s largest manufacturer,

Professional Products Corporation, which makes specialized orthopedic devices.

Additionally, DeFuniak Springs also owns and operates Walton County’s only general

aviation airport and an adjacent industrial park. Major east-west artery Interstate

10 serves the city, along with the mainline of freight rail giant CSX Transportation,

allowing for ease of transportation to the rest of the state.

DEFUNIAK SPRINGS, FL DEMOGRAPHICS

WALTON COUNTY

Located in Walton County between Pensacola and Tallahassee, the city of DeFuniak

Springs originated as a railroad stop and is now Walton County’s seat of government.

This community has over 200 structures listed on the National Register of Historic

Places in its historic district, which encircles Lake DeFuniak: One of only two perfectly

round lakes in the world.

Reflecting a look many remember as Old Florida, DeFuniak Springs is all about

business as a retail center for major chains and home to a variety of antique and

curio shops. The city is the home base for Walton County’s largest manufacturer,

Professional Products Corporation, which makes specialized orthopedic devices.

Additionally, DeFuniak Springs also owns and operates Walton County’s only general

aviation airport and an adjacent industrial park. Major east-west artery Interstate

10 serves the city, along with the mainline of freight rail giant CSX Transportation,

allowing for ease of transportation to the rest of the state.

POPULATION 1 Mile 3 Mile 5 Mile

2022 Projection 1,104 7,259 12,774

2017 Estimate 1,046 6,852 11,962

Growth 2017 - 2022 5.54% 5.94% 6.79%

Growth 2011 - 2017 7.50% 8.54% 10.59%

HOUSEHOLDS 1 Mile 3 Mile 5 Mile

2022 Projection 484 3,005 5,217

2017 Estimate 458 2,822 4,868

Growth 2011 - 2017 7.26% 9.21% 10.99%

INCOME 1 Mile 3 Mile 5 Mile

2017 Est. Average Household Income

$53,728 $46,058 $47,120

A R E AO V E R V I E W

Pensacola, a sea port on Pensacola Bay, has been referred to as The Cradle of Naval Aviation. Known for its laid-back, coastal way of life, Pensacola has a long history and a diverse culture. Downtown Pensacola is evolving on all fronts, with chic shops and trendy restaurants popping up around historic Palafox street, the city’s main drag. Pensacola hosts a number of historic tours, landmarks, events and annual festivals such as the Pensacola Seafood Festival and the Pensacola Crawfish Festival held in the heart of its historic downtown, as well as the Greater Gulf Coast Arts Festival. The city is also home to the Blue Angels flight demonstration team and the National Museum of Naval Aviation.

n Whiting Field.

PENSACOLA, FL

military bases:PENSACOLA NAVAL AIR STATION

NAVAL TRAINING CENTEREGLIN AIR FORCE BASE

CORRY STATION NAVAL TECHNICAL TRAINING CENTER

1914 NAVAL AIR STATION PENSACOLA BECAME THE FIRST NAVAL AIR STATION COMMISSIONED BY THE U.S. NAVY

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surrounding attractions

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PANAMA CITY, FL

As the largest city in northern Florida between Tallahassee and Pensacola, Panama City is located along the Florida “panhandle” on St. Andrews Bay. St. Andrews Bay surrounds much of Panama City, providing a protected harbor for facilities at the growing Port of Panama City complex. More than ever, Panama City is booming with events and activities. As the county seat of Bay County, Panama City encourages new or relocating industries and businesses to consider the area for there are many opportunities for growth and development. Panama City’s main retail center is Pier Park on the beach and Panama City Mall across the Hathaway Bridge in town.

Other major industrial employers include Eastern Shipbuilding Group, Gulf Power, WestRock, Trane, L-3 Communications, ARINC, and JENSEN-GROUP. Continued economic growth and success can be attributed to the Port of Panama City and the Panama City and St. Andrew’s Marinas. Port Panama City is a growing port that handles a wide variety of cargo ranging from standard shipping containers to delicate cargo. ort Panama City is perfectly situated along Northwest Florida’s Emerald Coast, providing a Gulf Coast gateway to shippers in Georgia, Alabama, Florida, Tennessee and the Carolinas.

military bases:TYNDALL AIR FORCE BASE

U.S NAVY’S NAVAL SUPPORT ACTIVITY PANAMA CITY

This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of Dunkin’ Donuts located at SWQ Oaklawn Drive & Hwy 331, Defuniak Springs, FL 32435 (“Property”) . I t has been prepared by Matthews Real Estate Investment Services. This Offer ing Memorandum may not be al l - inclusive or contain a l l of the informat ion a prospect ive purchaser may desire. The informat ion contained in th is Offer ing Memorandum is conf ident ia l and furnished solely for the purpose of a review by a prospect ive purchaser of the Property. I t is not to be used for any other purpose or made avai lable to any other person without the wri t ten consent of Sel ler or Matthews Real Estate Investment Services. The mater ia l is based in part upon informat ion suppl ied by the Sel ler and in part upon f inancial informat ion obtained from sources i t deems rel iable. Owner, nor their of f icers , employees, or agents makes any representat ion or warranty, express or impl ied, as to the accuracy or completeness of th is Offer ing Memorandum or any of i ts contents and no legal l iabi l i ty is assumed or shal l be impl ied with respect thereto. Prospect ive purchasers should make their own project ions and form their own conclusions without rel iance upon the mater ia l contained herein and conduct their own due di l igence.

By acknowledging your receipt of th is Offer ing Memorandum for the Property, you agree:

1 . The Offer ing Memorandum and i ts contents are conf ident ia l ;

2 . You wi l l hold i t and treat i t in the str ictest of conf idence; and

3. You wi l l not , d i rect ly or indirect ly, d isclose or permit anyone else to disclose this Offer ing Memorandum or i ts contents in any fashion or manner detr imental to the interest of the Sel ler.

Owner and Matthews Real Estate Investment Services expressly reserve the r ight , at their sole discret ion, to reject any and al l expressions of interest or of fers to purchase the Property and to terminate discussions with any person or ent i ty reviewing this Offer ing Memorandum or making an of fer to purchase the Property unless and unt i l a wr i t ten agreement for the purchase and sale of the Property has been ful ly executed and del ivered.

I f you wish not to pursue negot iat ions leading to the acquis i t ion of the Property or in the future you discont inue such negot iat ions, then you agree to purge al l mater ia ls relat ing to th is Property including this Offer ing Memorandum.

A prospect ive purchaser ’s sole and exclusive r ights with respect to th is prospect ive t ransact ion, the Property, or informat ion provided herein or in connect ion with the sale of the Property shal l be l imited to those expressly provided in an executed Purchase Agreement and shal l be subject to the terms thereof. In no event shal l a prospect ive purchaser have any other c la ims against Sel ler or Matthews Real Estate Investment Services or any of their af f i l iates or any of their respect ive of f icers , Directors , shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion relat ing to th is sol ic i tat ion process or the market ing or sale of the Property.

This Offer ing Memorandum shal l not be deemed to represent the state of af fa i rs of the Property or const i tute an indicat ion that there has been no change in the state of af fa i rs of the Property s ince the date this Offer ing Memorandum.

C O N F I D E N T I A L I T Y & D I S C L A I M E R S T A T E M E N T

exclusively listed by

KYLE MATTHEWSBROKER OF RECORDL I C # C Q 1 0 5 2 2 6 3 ( F L )

CHAD KURZSVP & NATIONAL DIRECTORc h a d . k u rz @ m at t h e w s . c o mD I R 2 1 4 . 6 9 2 . 2 9 2 7M O B 5 6 2 . 4 8 0 . 2 9 3 7L I C # 0 1 9 1 1 1 9 8 ( C A )

MAXX BAUMANASSOCIATE

m a x x . b a u m a n @ m at t h e w s . c o mD I R 2 1 4 . 6 9 2 . 2 0 2 4M O B 3 1 0 . 9 9 4 . 0 2 6 2L I C # 0 1 9 9 6 7 4 1 ( C A )

BROKER OF RECORD

S W Q O A K L A W N D R & H W Y 3 3 1 | D E F U N I A K S P R I N G S , F L

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