Single-Tenant Absolute NNN with Drive-Thru | Kingwood, TX
Kevin Dalrymple [email protected] 713-775-9986clay-co.com
FILE PHOTO
INVESTMENT OFFERING MEMORANDUM
Clay & Company | 5151 San Felipe, Suite 1410 | Houston, Texas | 77056 | 713-722-1250 | clay-co.com
Investment Overview |
LOCATION991 Northpark Drive, Kingwood, TX 77339
Just east of Loop 494 and less than 1 mile from Highway 69
RENTABLE AREA 1,977 SF
YEAR BUILT 2021
LOT SIZE 1.6 Acres
TENANT M E Kingwood, LLC dba Dunkin’ Donuts
GUARANTOR First Hartford Corp (OTCMKTS: FHRT)
LEASE TYPE Absolute NNN
NOI $118,000
CAP RATE 4.85%
OWNERSHIP Fee Simple
Rendering |
Clay & Company | 5151 San Felipe, Suite 1410 | Houston, Texas | 77056 | 713-722-1250 | clay-co.com
Investment Highlights |
Clay & Company | 5151 San Felipe, Suite 1410 | Houston, Texas | 77056 | 713-722-1250 | clay-co.com
New 2020 Construction Built-To-Suit with January 2021 estimated completion date
15-Year Lease Term Long-Term Cash Flow Stream Through 2036
Absolute NNN Lease StructureZero Landlord Responsibilities
Favorable Rent Escalations 10% Rent Bumps Every 5 Years
Construction WarrantyFive-Year Warranty on Building; Ten-Year Warranty on Roof
Excellent Visibility and Access Fronts on high traffic Northpark Drive (±36,055 Vehicles Passing Per Day), one of the main east-west arteries connecting Highway 69 with
Kingwood
Experienced Operator Over 65 years of real estate development experience combined with 25 years operations experience in coffee, prepared drink and ice cream/gelato
industry
CONSTRUCTION PHOTO
Lease Overview |
Clay & Company | 5151 San Felipe, Suite 1410 | Houston, Texas | 77056 | 713-722-1250 | clay-co.com
LEASE DETAILS
ORIGINAL LEASE TERM 15 Years
INCREASE YRS 6-10 10%
INCREASE YRS 11-15 10%
OPTIONS 5 YEARS
RENT COMMENCEMENT APRIL 1, 2021
LEASE EXPIRATION MARCH 31, 2036
SITE RENDERING
Clay & Company | 5151 San Felipe, Suite 1410 | Houston, Texas | 77056 | 713-722-1250 | clay-co.com
Brand Profile
Dunkin’, founded in 1950, is famous for its combination of high-quality coffees, espresso beverages, baked goods and breakfast sandwiches served all day with fast, friendly service. Dunkin’ Brands is the parent company of two of the world’s most recognized and beloved brands: Dunkin’ and Baskin-Robbins. With more than 21,000 points of distribution in more than 60 countries, Dunkin’ Brands is one of the world’s leading franchisors of quick service restaurants (QSRs). Dunkin’ is based in Canton, Massachusetts.
COMPANY TYPE SUBSIDIARY
PARENT COMPANYDUNKIN’ BRANDS
NASDAQDNKN
2019 EMPLOYEES1,114
2019 REVENUE$1.37 BILLION
2019 NET INCOME$242.02 MILLION
2019 ASSETS$3.92 BILLION
CREDIT RATINGS&P: A-
Clay & Company | 5151 San Felipe, Suite 1410 | Houston, Texas | 77056 | 713-722-1250 | clay-co.com
Guarantor
First Hartford Realty Corporation, (FHRT - OTC Market) www.firsthartford.com
First Hartford Realty Corporation is engaged in the acquisition, development and management of commercial and multifamily properties. The real estate owned and managed by
the company through various subsidiaries is located in Connecticut, Delaware, Louisiana, Massachusetts, New Jersey, New York, Rhode Island and Texas. First Hartford is engaged as
a preferred developer for CVS Health and Cumberland Farms. In this capacity they have assisted CVS in opening over 250 locations and over 50 locations on behalf of Cumberland
Farms. First Hartford recently received the rights to franchise Dunkin Donuts in the Texas market and are actively pursuing new Dunkin developments across the state. Their audited
financials can be found at the bottom of their website.
The Chief Operating Officer, Kirby Dolliole, has a broad and successful background in the food service industry. As VP of Operations at Paciugo Italian Gelato, he utilized a broad
scope of industry knowledge and dynamic business acumen to develop a forward-thinking operation, including managing all marketing and real estate efforts. He was responsible
for protecting and growing assets for 42 franchise locations in 16 states, leading 3 Franchise Business Coaches and 2 Marketing Managers where he notably improved customer
transactions 7% with their new beverage program expanding brand usage; implemented standardized operations system and a standards manual for franchisees; developed Oper-
ations Excellence Review/Brand Protection Audit; and increased speed of service and customer thru-put by developing key deployment structures.
As VP of Operations at Jamba Juice, Kirby expertly handled all financial and people development initiatives to support growth within highly competitive markets. He mentored 6
District Managers, 1 Marketing Manager, 1 Human Resource Manager, and 1 Construction/Maintenance Chief. While at Jamba, Kirby successfully achieved 83% in overall custom-
er satisfaction for 4 consecutive years; led profit/loss management for 42 franchise stores generating $27 + million in sales; increased speed of service and customer thru-put by
developing key deployment structures; reduced cost 29% annually while increasing brand awareness by refocusing all local marketing; and achieved 25 additional units opening in
4 years by initiating a multi-channel real estate growth plan.
As Senior District Manager for Starbucks Coffee, Kirby strategically steered financial and team building plans for 18 stores to support high volume growth within the Dallas – Fort
Worth market, including delivering a stable training environment for future store managers in a profitable district. He achieved “Highest Profitable District” honors in Texas for 4
consecutive years; reached $900,000 Average Unit Volume in the first year and maintained a 5% growth rate YOY. In addition, he improved customer wait time by 2+ minutes via
development of a popular “Call Ahead Program”; and developed training programs within the district that were adopted for all locations in the Texas market.
Area Retailers and Traffic Counts |
Clay & Company | 5151 San Felipe, Suite 1410 | Houston, Texas | 77056 | 713-722-1250 | clay-co.com
Maps |
Clay & Company | 5151 San Felipe, Suite 1410 | Houston, Texas | 77056 | 713-722-1250 | clay-co.com
Lease Options |
Clay & Company | 5151 San Felipe, Suite 1410 | Houston, Texas | 77056 | 713-722-1250 | clay-co.com
LEASE OPTIONS
YRS 16-20 $13,088.17
YRS 21-25 $14,396.98
YRS 26-30 $15,836.68
YRS 31-35 $17,420.35
YRS 36-40 $19,162.38
LEASE START DATE LEASE END DATE MONTHLY BASE RENT ANNUAL BASE RENT
April 2021 March 2026 $9,833.33 $118,000
April 2026 March 2031 $10,816.67 $129,800
April 2031 March 2036 $11,898.33 $142,780
Demographics (5 Miles) |
Clay & Company | 5151 San Felipe, Suite 1410 | Houston, Texas | 77056 | 713-722-1250 | clay-co.com