™

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

DUNKIN’ DONUTS2 5 4 5 W. 1 2 T H S T | E R I E , PA

0 3

0 4

1 0

0 6

EXECUTIVE SUMMARY

FINANCIAL OVERVIEW

AREA OVERVIEW

TENANT OVERVIEW

SCOTT BURDETTBROKER OF RECORDLIC # 10301213057

CALVIN SHORTFVP & SENIOR DirectorCALVIN.SHORT@MATTHEWS.COMDIR 949.432.4506MOB 310.567.3525LIC # 01927216 (CA)

BROKER OF RECORD

CONTENTS

LISTED BY

Michael ChislockAssociateMICHAEL.CHISLOCK@MATTHEWS.COMDIR 949.777.5989MOB 714.330.2077LIC # 02026406 (CA)

3

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

I N V E S T M E N T H I G H L I G H T S

• New 10-year NNN lease providing for a great passive investment for both in state and out of state investors

• Seasoned franchisee operator with 8 open locations and additional sites to be acquired/developed

• 7.50% increase in year 6 and fixed increases in the option periods

• Master entity guarantee from D.A.L.R.T., Inc.

• 2015 construction with drive-thru component

• Oversized 1.06-acre parcel allowing for an additional development opportunity (see broker for details)

• Strong frontage and visibility along W. 12th Street which has traffic counts of over 28,000 cars per day

• Less than a mile from Erie International Airport and surrounded by a strong mix of national retailers such as CVS, Starbucks, Panera Bread, ALDI, and Taco Bell

4

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

ANNUALIZED OPERATING DATA

Monthly Rent Annual Rent Rent/SF Cap Rate

Year 1-5 $7,083.33 $85,000 $46.22 5.85%

Year 6-10 $7,614.58 $91,375 $49.69 6.29%

Option 1 $7,995.25 $95,943 $52.17 6.60%

Option 2 $8,395.00 $100,740 $54.78 6.93%

EXECUTIVE SUMMARY

Property Name Dunkin’ Donuts

Property Street 2545 W 12th St

City, State, Zip Erie, PA 16505

Year Built 2015

GLA 1,839 SF

5

TENANT SUMMARY

Tenant Trade Name Dunkin' Donuts

Type of Ownership Fee Simple

Lease Guarantor D.A.L.R.T., Inc.

Lease Type NNN

Roof & Structure Tenant Responsible

Original Lease Term 10 years

Rent Commencement Date 9/8/2017

Lease Expiration Date 10/31/2027

Term Remaining 10 years

Increases 7.5% every 5 years

Options Two, 5-Year Options

FINANCIAL HIGHLIGHTS

LIST PRICE

$1,453,000

CAP RATE

5.85%

TERM REMAINING

10 YEARS

T e n a n to v e r v i e w

6

7

Dunkin’ Donuts is the world’s leading baked goods and coffee chain, serving more than 3-million customers every day. 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 ED 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

N O . O F E M P L O Y E E S± 2 7 0 , 0 0 0

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

# O F L O C A T I O N S± 1 1 , 5 0 0

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

Oceanside Blvd ± 31,792

Col

lege

Blv

d ±

40,11

6

PARCEL MAP

8

the offering

Property Name Dunkin’ Donuts

Property Address2545 W 12th St Erie, PA 16505

Assessor’s Parcel Number 33-033-1740-034.00

Site DescriptionNumber of Stories One

Year Built 2015

Lot Size ± 1.06 Acres (46,309 SF)

Type of Ownership Fee Simple

Parking ± 21 Surface Spaces

Parking Ratio 11.42 : 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

10 10

Located in the very Northwest corner of Pennsylvania, Erie is the State’s only Great Lakes port city. The lake is the main attraction in Erie, with the sparkling water giving Erie its nickname, “Gem City.” Erie is the state’s fourth-largest city with a population of 100,000 people. The nearby peninsula of Presque Isle State Park provides residents and visitors ample opportunities for outdoor activities such as sailing, swimming, hiking, and biking. The city is also part of the Snowbelt, famous for the winter wonderland created by the lake effect.

ECONOMY DEMOGRAPHICS

Erie, PA

Erie is the Commonwealth of Pennsylvania’s primary access point to Lake Erie, the Great Lakes, and the Saint Lawrence Seaway. Erie has a diverse mix of mid-sized industries. The broader economic base includes not only smaller and more agile steel and plastic plants, but also a vigorous service sector: health, insurance, and tourism. Erie is the corporate headquarters of the Erie Insurance Group, and Marquette Savings Bank. Lord Corporation was founded and has major operations in Erie. Erie is an emerging center for biofuels and environmental research, producing over 45 million U.S. gallons of biofuel a year. Tourism plays an increasingly important role in the local economy with over 4 million people visiting Presque Isle State Park and other attractions. Shoppers from Ohio, New York, and the Canadian province of Ontario frequent the Millcreek Mall and Peach Street stores and attractions as a result of Pennsylvania’s tax exemption on clothing.

POPULATION 1 Mile 3 Mile 5 Mile

2022 Projection 5,954 68,417 135,445

2017 Estimate 6,107 69,346 135,916

HOUSEHOLDS 1 Mile 3 Mile 5 Mile

2022 Projection 3,044 32,274 60,218

2017 Estimate 2,981 31,264 57,817

Growth 2010 - 2017 1.16% 2.50% 2.27%

INCOME 1 Mile 3 Mile 5 Mile

2017 Est. Average Household Income

$63,218 $59,632 $63,306

A R E AO V E R V I E W

The Port of Erie is located on the southeast shore of Lake Erie in a natural bay formed and sheltered by Presque Isle Pennsylvania. Erie’s harbor entrance channel is 29 feet deep. The Port of Erie and O-N Minerals Erie offer cargo shippers on the Great Lakes/Seaway System the finest facilities available. With 85 million people within a 500-mile radius, Port Erie is the hub of the US and Canadian Industrial Center. n Whiting Field.

The Port of Erie

11

Erie County - Top Employers

12

Tourism

Erie’s location along the shores of Lake Erie provides a plethora of outdoor activities throughout the year. The region’s largest attraction is Presque Isle State Park, drawing over four million visitors a year. Millions of tourists also find recreation at the Casino and horse racetrack named for the state park. Downtown Erie is surrounded by Presque Isle State Park, a National Natural Landmark. The Seaway Trail runs through downtown Erie along the lakefront. The Tom Ridge Environmental Center, at the foot of Presque Isle, features 7,000 square feet of exhibit space.

Other tourist destinations include the Bayfront Convention Center; the Bicentennial Tower that overlooks Lake Erie; Dobbins Landing, a pier in downtown Erie; the Erie Land Light, and the Erie Maritime Museum, the home port of the Niagara. The Millcreek Mall, one of the largest shopping malls in the United States, is located on Peach Street in nearby Millcreek Township.

Bayfront Convention center

Erie’s Bayfront Convention Center, located on the shores of Lake Erie’s Presque Isle Bay offers more than breathtaking views, it provides the world-class facilities, amenities and service needed for meetings, trade shows, and events. The Bayfront Convention Center boasts northwestern Pennsylvania’s largest banquet venue for 2,000 and smaller meeting rooms for as few as 10. The state-of-the-art facilities are complemented by the superb cuisine.

This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of Dunkin’ Donuts located at 2545 W 12th St, Erie PA (“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 TA T E M E N T

EXCLUSIVELY LISTED BY

2 5 4 5 W 1 2 T H S T | E R I E , PA

™

SCOTT BURDETTBROKER OF RECORDLIC # 10301213057 (FL)

CALVIN SHORTFVP & SENIOR DirectorCALVIN.SHORT@MATTHEWS.COMDIR 949.432.4506MOB 310.567.3525LIC # 01927216 (CA)

BROKER OF RECORD

Michael ChislockAssociateMICHAEL.CHISLOCK@MATTHEWS.COMDIR 949.777.5989MOB 714.330.2077LIC # 02026406 (CA)