panera bread (houston msa) - loopnet

Panera Bread (Houston MSA)6439 Garth RoadBaytown, Texas 77521

Net Lease Investment Offering

www.bouldergroup.com | Confidential Offering Memorandum

Panera Bread | Baytown, TX

Offering SummaryExecutive Summary ................................................................... 1

Investment Highlights ............................................................. 2

Property Overview ...................................................................... 3

Location OverviewPhotographs ...................................................................................4

Location Aerial .............................................................................. 5

Site Plan ..............................................................................................6

Location Map ................................................................................. 7

Market OverviewDemographics ..............................................................................8

Market Overviews .......................................................................9

Tenant SummaryTenant Profile .................................................................................11

Table of Contents

TABLE OF CONTENTS

www.bouldergroup.com | Confidential Offering Memorandum| 1 |

Panera Bread | Baytown, TXExecutive Summary

EXECUTIVE SUMMARY

The Boulder Group is pleased to exclusively market for sale a single tenant net leased Panera Bread property located within the Houston MSA in Baytown, Texas. Panera Bread has been in this location since June 2013. There are over 12 years remaining on the primary term of the lease. The Panera Bread lease features 10% rental increases every five years in the primary term and in the four 5-year renewal options.

The 4,552 square foot Panera Bread benefits from its location on a signalized hard corner along Hunt Road and Garth Road (33,580 VPD) which is a primary north-south thoroughfare and has direct access to the Interstate 10 interchange (82,340 VPD). The property is across from H-E-B, the strongest grocer in Texas and positioned directly south of San Jacinto Mall which is currently under redevelopment to become a 1 million+ square foot open air shopping center that will be anchored by Macy’s and JC Penney. All of this makes the Panera Bread location fall in a primary retail corridor in Baytown with strong density and traffic counts. Retailers in the area include Academy Sports, Big Lots, Buffalo Wild Wings, Dollar General, H-E-B, Kohl’s, Kroger, McDonald’s, Verizon, and Walgreens. There are 106,286 people living within 5 miles of the property with an average household income in excess of $76,157 annually. This is high population growth area with approximately 2% annual population growth forecasted within 3 miles of the site.

The Panera Bread lease expires on March 31, 2033 and features four 5-year renewal options with 10% rental escalations at the start of each. Panera Bread Company is an American chain store of bakery-café fast casual restaurants with over 2,100 locations, all of which are in the United States and Canada. Company-wide sales in 2018 topped $5.76 Billion. Rolling Dough Ltd. is a Panera Bread franchisee that operates 28 locations. They opened their first location in 2003.



INVESTMENT HIGHLIGHTS

■ Houston MSA – Ranked #5 in the United States for population size

■ Over 12 years remain on the primary term of the lease

■ Absolute NNN – No landlord responsibility

■ 10% rental escalations every 5 years in the primary term and the four 5-year renewal options (Next escalation in 2023)

■ Tenant (Rolling Dough, Ltd) is a 28-unit operator

■ Located near the proposed 1 million square foot open air shopping center – San Jacinto Marketplace which makes Baytown a primary retail corridor with strong density and traffic counts

■ Retailers in the area include Academy Sports, Big Lots, Buffalo Wild Wings, Dollar General, H-E-B, Kohl’s, Kroger, McDonald’s, Verizon, and Walgreens

■ There are 106,286 people living within 5 miles of the property with an average household income in excess of $76,157 annually

Investment Highlights



PROPERTY OVERVIEW

Price: $3,142,857

Cap Rate: 5.25%

Lease Commencement Date: 6/21/2013

Lease Expiration Date: 3/31/2033

NOI: $165,000

Renewal Options: Four 5-year

Rental Escalations: 10% every 5 years

Lease Type: NNN – Absolute

Tenant:Rolling Dough, Ltd

(28-unit operator)

Year Built: 2013

Building Size: 4,552 SF

Land Size: 0.71 AC

Property Overview


Panera Bread | Baytown, TXPhotographs


Panera Bread | Baytown, TXLocation Aerial


Panera Bread | Baytown, TXSite Plan


Panera Bread | Baytown, TXLocation Map

BaytownBaytown



3-Mile 5-Mile 7-Mile

Total Population: 47,868 106,286 122,825

Total Households: 16,706 36,319 41,755

3-Mile 5-Mile 7-Mile

Average Household Income: $60,428 $57,032 $56,743

Median Household Income: $78,776 $76,157 $75,853

Population Income

DEMOGRAPHICS

Demographics



City ofBaytown, Texas

Baytown is a city within Harris County and partially in Chambers County in the Gulf Coast region of the U.S. state of Texas. Located within the Houston–The Woodlands–Sugar Land metropolitan area, it lies on the northern side of the Galveston Bay complex near the outlets of the San Jacinto River and Buffalo Bayou. It is the sixth-largest city within this metropolitan area. Major highways serving the city include State Highway 146 and Interstate 10. As of 2010, Baytown had a population of 71,802, and it had an estimated population of 77,192 in 2019.

Today, Baytown is largely a community centered on industry, including oil, rubber and chemical plants. Home to petrochemical giants, including ExxonMobil and Chevron, Baytown serves an international community through the Port of Houston and Houston Ship Channel which reach 1,053 ports worldwide.

www.baytown.org

Market Overview



MSA ofHouston, Texas

Houston is the most populous city in the state of Texas and the fourth-most populous city in the United States. With a population of more than 2.3 million people within an area of 667 square miles, it is also the largest city in the southern United States and the seat of Harris County. Located in Southeast Texas near the Gulf of Mexico, it is the principal city of the Greater Houston metro area, which is the fifth-most populated MSA in the United States.

Houston was founded on 1836 near the banks of Buffalo Bayou (now known as Allen’s Landing) and incorporated as a city in June 1837. The city was named after former General Sam Houston, who was president of the Republic of Texas and had commanded and won at the Battle of San Jacinto 25 miles east of where the city was established. The burgeoning port and railroad industry, combined with oil discovery in 1901, has induced continual surges in the city’s population. In the mid-20th century, Houston became the home of the Texas Medical Center—the world’s largest concentration of healthcare and research institutions—and NASA’s Johnson Space Center, where the Mission Control Center is located.

Houston’s economy has a broad industrial base in energy, manufacturing, aeronautics, and transportation. Leading in health care sectors and building oilfield equipment, outside New York City, Houston has more Fortune 500 headquarters than any other U.S. municipality within its city limits. The Port of Houston ranks first in the United States in international waterborne tonnage handled and second in total cargo tonnage handled. Nicknamed the “Space City”, Houston is a global city, with strengths in business, international trade, entertainment, culture, media, fashion, science, sports, technology, education, medicine, and research. It is home to many cultural institutions and exhibits, which attract more than 7 million visitors a year to the Museum District. Houston has an active visual and performing arts scene in the Theater District and offers year-round resident companies in all major performing arts.

www.houstontx.gov

Market Overview



Panera BreadPanera Bread Company is an American chain store of bakery-café fast casual restaurants with over 2,000 locations, all of which are in the United States and Canada. Its headquarters are in Sunset Hills, Missouri, a suburb of St. Louis. The company operates as Saint Louis Bread Company in the Greater St. Louis area, where it has over 100 locations. Offerings include bakery items, pasta, salads, sandwiches, soups, and specialty drinks.

The company, which also owns Au Bon Pain, is owned by JAB Holding Company which is, in turn, owned by the Reimann family of Germany.

Panera offers a wide array of pastries and baked goods, such as bagels, brownies, cookies, croissants, muffins, and scones. These, along with Panera’s artisan breads, are typically baked before dawn by an on-staff baker. Aside from the bakery section, Panera has a regular menu for dine-in or takeout including: flatbreads, panini, Panera Kids, pastas, salads, sandwiches, side choices, and soups, as well as coffee, espresso drinks, frozen drinks, fruit smoothies, hot chocolate, iced drinks, lattes, lemonade, and tea.

During its final 20 years as a public company, from 1997 to 2017, it was the best performing restaurant stock, delivering an 86-fold return to shareholders. Panera was once the largest provider of free Wi-Fi hotspots in the United States. Many locations restrict the duration of free Wi-Fi to 30 or 60 minutes during peak hours.

Website: www.panerabread.comFounded: 1987Number of Locations: 2,100+Headquarters: Sunset Hills, MissouriParent Company: JAB Holding Company

Rolling DoughRolling Dough, opened its first Panera Bread Bakery-Cafe in June 2003. Today the Company operates 28 Panera Bread Bakery-Cafe restaurants in Texas, Tennessee, Arkansas, and Mississippi. Rolling Dough’s principals are Mark and Monica von Waaden and Keith Isbell. Mr. von Waaden serves as the CEO and Mr. Isbell as the COO.

Tenant Overview

John FeeneySenior Vice [email protected]

EXLUSIVELY LISTED BY:

Randy [email protected]

The Boulder Group3520 Lake Avenue, Suite 203Wilmette, Illinois 60091

www.bouldergroup.com

CONFIDENTIALITY & DISCLAIMERThe information contained in the following Offering Memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from The Boulder Group and should not be made available to any other person or entity without the written consent of The Boulder Group.

This Offering Memorandum has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. The Boulder Group has not made any investigation, and makes no warranty or representation.

The information contained in this Offering Memorandum has been obtained from sources we believe to be reliable; however, The Boulder Group has not verified, and will not verify, any of the information contained herein, nor has The Boulder Group conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

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