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offering memorandum DUNKIN’ DONUTS 2545 W. 12TH ST | ERIE, PA CONTENTS

03 EXECUTIVE SUMMARY

04 FINANCIAL OVERVIEW

06 TENANT OVERVIEW

10 AREA OVERVIEW

LISTED BY

CALVIN SHORT FVP & SENIOR Director [email protected] DIR 949.432.4506 MOB 310.567.3525 LIC # 01927216 (CA)

Michael Chislock Associate [email protected] DIR 949.777.5989 MOB 714.330.2077 LIC # 02026406 (CA)

BROKER OF RECORD

SCOTT BURDETT BROKER OF RECORD LIC # 10301213057 EXECUTIVE OVERVIEW

INVESTMENT HIGHLIGHTS

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

• Seasoned franchisee operator with 6 open locations and an additional 6 locations planned to open over the coming years

• 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, , Panera Bread, ALDI, and Taco Bell

3 FINANCIAL OVERVIEW

EXECUTIVE SUMMARY ANNUALIZED OPERATING DATA

Monthly Rent Annual Rent Rent/SF Cap Rate Property Name Dunkin’ Donuts Years 1-5 $7,083.33 $85,000.00 $46.22 5.65% Property Street 2545 W 12th St Years 6-10 $7,614.58 $91,375.00 $49.69 6.07% City, State, Zip Erie, PA 16505 Option 1 $7,995.25 $95,943.00 $52.17 6.38% Option 2 $8,395.00 $100,740.00 $54.78 6.70% Year Built 2015 GLA 1,839 SF

4 TENANT SUMMARY

Tenant Trade Name Dunkin' Donuts FINANCIAL HIGHLIGHTS 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 LIST PRICE CAP RATE TERM REMAINING Rent Commencement Date 9/8/2017 $1,504,000 5.65% 10 YEARS Lease Expiration Date 10/31/2027 Term Remaining 10 years Increases 7.5% every 5 years Options Two, 5-Year Options

5 Tenant overview

6 DUNKIN’ DONUTS

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 COMPANY TRADE NAME for customer loyalty in the coffee category for a consecutive DUNKIN’ BRANDS (NASDAQ: DNKN) 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 HEADQUARTERED franchisors of quick-service restaurants that also operates the CANTON, MASSACHUSSETS Baskin-Robbins chain.

AN INDUSTRY LEADER NO. OF EMPLOYEES Dunkin’ Brands continues to pursue innovative menu choices ±270,000 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 WEBSITE offers, Dunkin’ Donuts is constantly searching for products WWW.DUNKINDONUTS,COM 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. # OF LOCATIONS ±11,500 MARKETING AND COMPANY STRATEGY Through extensive marketing efforts, Dunkin’ Brands has a 94% global brand awareness, including markets where the YEAR FOUNDED company has yet to establish stores. To broaden reach and 1963 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.

7 PARCEL MAP the offering

Property Name Dunkin’ Donuts 2545 W 12th St Property Address Erie, PA 16505 Assessor’s Parcel Number 33-033-1740-034.00

Site Description Number of Stories One Year Built 2015 Oceanside Blvd ± 31,792 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 College Blvd ± 40,116 ± Blvd College

Construction Foundation Concrete Slab Framing Wood Exterior Masonry Parking Surface Asphalt Roof Flat

8 surrounding tenants 9 AREA OVERVIEW

Erie, PA

Located in the very Northwest corner of , 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 is the Commonwealth of Pennsylvania’s primary access point to Lake POPULATION 1 Mile 3 Mile 5 Mile 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 2022 Projection 5,954 68,417 135,445 smaller and more agile steel and plastic plants, but also a vigorous service 2017 Estimate 6,107 69,346 135,916 sector: health, insurance, and tourism. Erie is the corporate headquarters of HOUSEHOLDS 1 Mile 3 Mile 5 Mile the Erie Insurance Group, and Marquette Savings Bank. Lord Corporation 2022 Projection 3,044 32,274 60,218 was founded and has major operations in Erie. Erie is an emerging center for biofuels and environmental research, producing over 45 million U.S. 2017 Estimate 2,981 31,264 57,817 gallons of biofuel a year. Tourism plays an increasingly important role in the Growth 2010 - 2017 1.16% 2.50% 2.27% local economy with over 4 million people visiting Presque Isle State Park INCOME 1 Mile 3 Mile 5 Mile and other attractions. Shoppers from Ohio, , and the Canadian 2017 Est. Average province of Ontario frequent the and Peach Street stores and $63,218 $59,632 $63,306 Household Income attractions as a result of Pennsylvania’s tax exemption on clothing. 10 10 Erie County - Top Employers

The Port of Erie

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.

11 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.

12 CONFIDENTIALITY & DISCLAIMER STATEMENT

This Offering Memorandum contains select information pertaining to the business and affairs of Dunkin’ Donuts located at 2545 W 12th St, Erie PA (“Property”). It has been prepared by Matthews Real Estate Investment Services. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Real Estate Investment Services. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.

By acknowledging your receipt of this Offering Memorandum for the Property, you agree:

1. The Offering Memorandum and its contents are confidential;

2. You will hold it and treat it in the strictest of confidence; and

3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller.

Owner and Matthews Real Estate Investment Services expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.

If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.

A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Real Estate Investment Services or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum. EXCLUSIVELY LISTED BY ™

CALVIN SHORT FVP & SENIOR Director [email protected] DIR 949.432.4506 MOB 310.567.3525 LIC # 01927216 (CA)

Michael Chislock Associate [email protected] DIR 949.777.5989 MOB 714.330.2077 LIC # 02026406 (CA)

BROKER OF RECORD

SCOTT BURDETT BROKER OF RECORD LIC # 10301213057 (FL)

2545 W 12TH ST | ERIE, PA