Dunkin’ Donuts and corporate mattress firm Actual Photo of Subject Property Currently Under Construction For more info on this opportunity please contact: Two tenant strip center JOHN ANDREINI CHRIS KOSTANECKI [email protected] | (415) 274-2715 [email protected] | (415) 274-2701 with drive thru CA BRE# 01440360 CA BRE# 01002010 RICK SANNER BOB SANNER 2531 East Morris blvd morristown, TN 37813 [email protected] | (415) 274-2709 [email protected] | (415) 274-2717 CA BRE# 01792433 CA BRE# 00869657 In conjunction with TN Licensed Broker: Capital Pacific collaborates. Click here to meet the rest of our San Francisco team. Doug Stanfield, The Stanfield York Company (404) 255-8066 [email protected] Property Signage TWO TENANT NET LEASED STRIP CENTER WITH DRIVE-THRU Investment Highlights ON MAIN RETAIL THOROUGHFARE OF MORRISTOWN, TN AND LOCATED DIRECTLY ACROSS FROM COLLEGE SQUARE MALL PRICE: $2,238,875 CAP: 6.75% RENTABLE SF. 5,704 SF PRICE PER SF. .$392.51 LAND AREA. 41,207 SF YEAR BUILT/RENOVATED. 2008/2014 INVESTMENT HIGHLIGHTS Located across the street from College Square Mall which features more than 50 specialty shops and is anchored by Belk, Kohl’s, JCPenney, Goody’s, Carmike Cinema 12, and T.J Maxx Newer construction building Dunkin’ Donuts has very rare drive-thru in strip center Dunkin’ Donuts is paying more than 50% below recently signed Mattress Firm lease TENANT HIGHLIGHTS Mattress Firm had 2013 revenues of $1.2 billion and is the largest bedding retailer in the United States (see page 6 and 7 for more info) Mattress Firm has $964 million in net assets as of 7/29/14 Dunkin’ Donuts is the world’s leading baked goods and coffee chain Dunkin’ Donuts has system wide sales in excess of $8.3 billion (see page 6 for info on Dunkin guarantor/franchisee) LEASE HIGHLIGHTS Dunkin’ Donuts extended lease early to run through 2024 Rental increases in the primary term of both leases - 2.75% annual increases for Dunkin Donuts Brand new 10 year corporate Mattress Firm lease DUNKIN’ DONUTS & MATTRESS FIRM | 2 Landlord responsible for roof and structure Rent Roll Actual Rent Monthly Base Monthly Annual Tenant Sq. Ft. Percent of GLA Lease Term Annual Rent Rent Rent/SF Rent/SF Mattress Firm 4,064 71.25% 11/1/2014 10/31/2019 $9,991 $2.46 $29.50 $119,888 11/1/2019 10/31/2024 $10,990 $2.70 $32.45 $131,877 Option 1 11/1/2024 10/31/2029 $12,087 $2.97 $35.69 $145,044 Option 2 11/1/2029 10/31/2034 $13,296 $3.27 $39.26 $159,552 Dunkin' Donuts - Franchisee 1,640 28.75% 12/1/2008 11/30/2009 $1,867 $1.14 $13.66 $22,404 (See page 6 for more info) 12/1/2009 11/30/2010 $2,000 $1.22 $14.63 $24,000 12/1/2010 11/30/2011 $2,134 $1.30 $15.61 $25,608 12/1/2011 11/30/2012 $2,267 $1.38 $16.59 $27,204 12/1/2012 11/30/2013 $2,400 $1.46 $17.56 $28,800 Early Extension 12/1/2013 11/30/2014 $2,534 $1.55 $18.54 $30,408 12/1/2014 11/30/2015 $2,603 $1.59 $19.05 $31,236 12/1/2015 11/30/2024 Annual 2.75% Increases Option 1 12/1/2024 11/30/2028 Annual 2.75% Increases Option 2 12/1/2023 11/30/2028 Annual 2.75% Increases Current Totals: 5,704 100.00% Totals $12,525 $151,124 Occupied 5,704 100.00% This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. DUNKIN’ DONUTS & MATTRESS FIRM | 3 Dunkin’ Donuts Drive Thru Income & Expense PRICE $2,238,875 Price Per Square Foot: $392.51 Building Size: 5,704 Capitalization Rate: 6.75% Lot Size (SF): 41,207 STABILIZED INCOME Per Square Foot Rent $26.49 $151,124 LESS Per Square Foot Taxes NN $0.00 Insurance NN $0.00 Total Operating Expenses NN $0.00 EQUALS NET OPERATING INCOME $151,124 This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. DUNKIN’ DONUTS & MATTRESS FIRM | 4 Tenant Founded in 1950 in Quincy, MA, Dunkin Donuts is one of the world’s most recognized brands and is the world’s leading baked goods and coffee chain, selling almost 2.5 million donuts a day and more than 1 billion cups of coffee each year. The original Dunkin Donuts experience DUNKIN’ DONUTS was a single cup of coffee with a donut. Today, Dunkin Donuts offers a wide range of hot and iced coffee, specialty beverages, baked goods IS RANKED #1 IN and an expanding all-day Oven Toasted menu. REGULAR/DECAF/ Dunkin Brands, based in Canton, MA, is home to two of the world’s most recognized brands: Dunkin Donuts and Baskin Robbins. Dunkin FLAVORED COFFEE Brands is renowned for its leadership in the QSR segment, with more than 17,000 global points of distribution and total system wide sales of AND #1 IN DONUTS $8.3 billion. Dunkin Brands is traded on the NASDAQ (DUNK). Fresco Development Group - Guarantor/Franchisee Fresco Development Group LLC was started in 2004 as a restaurant development and management company, as of today, it operates 8 Dunkin Donuts stores, 5 in Miami and 3 in Jacksonville, Florida. It currently has additional locations under development in Boca Raton and Jacksonville. In addition, Fresco Development Group owns a donut production facility in Miami that produces donuts and baked goods for the South Florida franchise community. In total it employs over 120 people. In 2013, the group had retail sales of over 7.5 million and $3 million in bakery production sales. The management team includes Scott Ball, Fred Guttenberg and Andrew Faber. Prior to forming FDG, Scott worked in Business Development at Triarc Restaurant Group, a publically held company that owned and operated Arby’s and TJ Cinnamon’s brands. Scott also spent time in the healthcare and sports/entertainment industries. Scott’s current role as CEO is overseeing Finance, Marketing and Human Resources. Mr. Ball has been a member of the Dunkin Donuts Brand Advisory Council, Marketing Steering Committee and Regional Advisory Council. Prior to forming FDG, Fred Guttenberg, formerly of Johnson & Johnson Pharmaceuticals, spent 13 years in training and sales management positions. As President and CDO, his current management role involves all development, training, legal and information technology. Fred has been a member of Dunkin Donuts Information Technology and People Subcommittees. DUNKIN’ DONUTS & MATTRESS FIRM | 5 Tenants Mattress Firm (see page 7 for more info) NASDAQ Mattress Firm currently operates over 1,480 locations across 36 states nationwide, which makes it MFRM the largest US bedding retailer. Mattress Firm offers conventional mattresses; specialty mattresses, # OF LOCATIONS including viscoleastic foam mattresses and YuMe sleep system, a revolutionary sleep system made 1,480 of foam produced from coconut oil; and bedding related accessories comprising bed frames, NUMBER OF EMPLOYEES mattress pads, and pillows. The company’s stores carry a broad assortment of national mattress 3,861 brands and its exclusive brands. In 2011, Mattress Firm Holding Corp went public and has shown very strong sales and profit growth. Mattress Firm, as of July 29th 2014, has assets in excess of $964 million and in 2013, Mattress Firm had net sales in excess of $1.2 billion. In September 2014 Mattress Firm announced that it has entered into an agreement to acquire all of the outstanding equity interests in The Sleep Train, Inc., the leading West Coast based bedding specialty retailer, for an aggregate purchase price of $425 million, subject to working capital and other customary adjustments. As further consideration, the Company has agreed to assume certain additional liabilities totaling approximately $15 million. Sleep Train operates approximately 310 specialty mattress retail stores located in California, Oregon, Washington, Idaho, Nevada and Hawaii, and reported net sales of $471 million for the 2013 fiscal year, according to Furniture Today. Representative Photo DUNKIN’ DONUTS & MATTRESS FIRM | 6 Mattress Firm Article Excerpts MATTRESS FIRM TO ACQUIRE SLEEP TRAIN COMPELLING STRATEGIC RATIONALE HOUSTON--(BUSINESS WIRE)-- Mattress Firm Holding Corp. (the “Company”) •Expands footprint into the West Coast, including key strategic markets (NASDAQ:MFRM), the leading specialty retailer of mattresses and related Adds over 310 retail store locations in major markets in California, products and accessories in the United States today announced that it has Washington, Oregon, Nevada, Idaho and Hawaii from a leading market entered into an agreement to acquire all of the outstanding equity interests share player with limited overlap. inThe Sleep Train, Inc., the leading West Coast based bedding specialty retailer, for an aggregate purchase price of $425 million, subject to working capital and Provides customers with great value, convenience and choice. other customary adjustments. As further consideration, the Company has agreed to assume certain additional liabilities totaling approximately $15 million. Sleep •Fortifies Mattress Firm as the leading mattress specialty retailer in the United States Train operates approximately 310 specialty mattress retail stores located in California, Oregon, Washington, Idaho, Nevada and Hawaii, and reported net Pro forma sales approaching $2 billion annually and total enterprise sales of $471 million for the 2013 fiscal year, according to Furniture Today. locations exceeding 2,000 retail store units.