exclusive offering | $2,400,000 / 5.00% cap bread_houston_tx... · exclusive offering | ... site...

214.915.8890

JOE CAPUTO

[email protected]

BOB MOORHEAD

[email protected]

RUSSELL SMITH

[email protected]

property. Newly constructed Panera Bread Bakery-Cafe. 4,475+ SF building on 0.9+ acre lot.

tenant. Rolling Dough, Ltd., “Lessee”, is a growing franchisee that operates 15 Panera’s and 5 Carl’s Jr. throughout Greater Houston. The Panera Bread legacy

began in 1981 as Au Bon Pain Co and as of September 24, 2013, there are 1,736 bakery-cafes in 45 states and in Ontario Canada.

lease structure. Brand new, 20-year, absolute NNN lease commenced in October 2013 with a 10% increase every 5-years through the primary term and in

each option period.

location. Panera Bread is a Walmart Supercenter pad site located at the corner of Houston Beltway 8 (92,000 Cars / Day) and Wallisville Road (31,193 Cars /

Day). The subject property is across Wallisville Road from the New Forest Crossing (342,942 SF) shopping center. This development is anchored by Lowe’s

Home Improvement and includes big box retailers such as Petsmart, Big Lots, Ross, and Anna’s Linens. The site is caddy corner to the Shops at Stone Park

(261,427 SF). This complex is anchored by JC Penney, Best Buy, Staples, Marshall’s, and Party City. Houston, TX: 4th largest city in US. Houston-Sugar Land-

Baytown MSA Population: 5,946,800.

EXCLUSIVE OFFERING | $2,400,000 / 5.00% CAP

PANERA BREAD GROUND LEASE

15450 Wallisville Road, HOUSTON, Texas

EXP Realty Advisors, Inc. (“Agent”) has been engaged as an agent for the sale of the

property located in the southwest corner of 15450 Wallisville Road, Houston, TX by the

owner of the Property (“Seller”). The Property is being offered for sale in an “as-is, where-

is” condition and Seller and Agent make no representations or warranties as to the

accuracy of the information contained in this Offering Memorandum. The enclosed

materials include highly confidential information and are being furnished solely for the

purpose of review by prospective purchasers of the interest described herein. The enclosed

materials are being provided solely to facilitate the prospective investor’s own due diligence

for which it shall be fully and solely responsible. The material contained herein is based on

information and sources deemed to be reliable, but no representation or warranty, express

or implied, is being made by Agent or Seller or any of their respective representatives,

affiliates, officers, employees, shareholders, partners and directors, as to the accuracy or

completeness of the information contained herein. Summaries contained herein of any

legal or other documents are not intended to be comprehensive statements of the terms of

such documents, but rather only outlines of some of the principal provisions contained

therein. Neither the Agent nor the Seller shall have any liability whatsoever for the accuracy

or completeness of the information contained herein or any other written or oral

communication or information transmitted or made available or any action taken or decision

made by the recipient with respect to the Property. Interested parties are to make their own

investigations, projections and conclusions without reliance upon the material contained

herein. Seller reserves the right, at its sole and absolute discretion, to withdraw the

Property from being marketed for sale at any time and for any reason. Seller and Agent

each expressly reserves the right, at their sole and absolute discretion, to reject any and all

expressions of interest or offers regarding the Property and/or to terminate discussions with

any entity at any time, with or without notice. This offering is made subject to omissions,

correction of errors, change of price or other terms, prior sale or withdrawal from the market

without notice. Agent is not authorized to make any representations or agreements on

behalf of Seller. Seller shall have no legal commitment or obligation to any interested party

reviewing the enclosed materials, performing additional investigation and/or making an offer

to purchase the Property unless and until a binding written agreement for the purchase of

the Property has been fully executed, delivered, and approved by Seller and any conditions

to Seller’s obligations hereunder have been satisfied or waived. By taking possession of

and reviewing the information contained herein, the recipient agrees that (a) the enclosed

materials and their contents are of a highly confidential nature and will be held and treated

in the strictest confidence and shall be returned to Agent or Seller promptly upon request;

and (b) the recipient shall not contact employees or tenants of the Property directly or

indirectly regarding any aspect of the enclosed materials or the Property without the prior

written approval of the Seller or Agent; and (c) no portion of the enclosed materials may be

copied or otherwise reproduced without the prior written authorization of Seller and Agent.

Disclaimer

PAGE 3: INVESTMENT OVERVIEW

PAGE 1: COVER

PAGE 2: TABLE OF CONTENTS | DISCLAIMER

PAGE 9-10: LOCATION MAPS

PAGE 11: DEMOGRAPHICS

Table of contents | Disclaimer Panera Bread GROUND LEASE


PAGE 7: AERIAL PHOTO

PAGE 8: LOCATION OVERVIEW

PAGE 4: SITE PLAN

PAGE 5-6: PROPERTY PHOTOS

Subject Property

http://www.bsro.jobs/about_bsro

Franchisee: Rolling Dough, LTD (Lessee)

Rolling Dough, Ltd. is a franchisee of Panera Bread in Houston, Texas. The company was founded in 2003 and currently operates 15 Panera bakery-cafes located

throughout Houston. Rolling Dough recently opened locations in League City and College Station. This franchisee also operates 5 Carl’s Jr. locations which

operate under a different entity and are not part of the lease guaranty.

Panera Bread | NASDAQ: PNRA | www.panerabread.com

Au Bon Pain Co. purchased the St. Louis Bread Company in 1993. In 1999 the company changed its name and sold its other chains, including former namesake

company Au Bon Pain, in order to expand Panera Bread into a national company. Today, Panera Bread Company, together with its subsidiaries, owns, operates,

and franchises quick-casual retail bakery-cafes in the United States and Canada. As of September 24, 2013, it operated approximately 1,736 bakery-cafes in 45

states under the Panera Bread, Saint Louis Bread Co., and Paradise Bakery & Cafe. The company was founded in 1981 and is based in Sunset Hills, Missouri.

Panera Bread ranked 37th on BusinessWeek’s list of “Hot Growth Companies” in 2005, and in 2008 Health magazine judged the company as North America’s

healthiest fast casual restaurant. Panera Bread scored the highest level of customer loyalty among quick-casual restaurants, according to research conducted by

TNS Intersearch. It ranked #2 among Excellent Large Fast-Food Chains (500 or more units) in the Sandelman & Associates 2011 Quick-Track Study. Zagat

named it the “Top Rated Facility”, the “Best Salad”, and “Best Healthy Option” amongst chain restaurants with less than 5,000 outlets. Panera Bread was also

named to BusinessWeek’s 2010 list of top 25 “Customer Service Champs,” to FORTUNE magazine’s 2010 list of “100 Fastest-Growing Companies,” and has also

won awards and recognition in nearly every market in which it has locations. Recently, Panera Bread was named Casual Dining Brand of the Year in the 2012

Harris Poll EquiTrend.

Panera Bread Co.’s 2011 fiscal annual revenue was $1.8 billion with an annual profit of $136.0 million. The company’s cash flow from operating activities was

$237 million. Average annual appreciation is 32.8% since the company’s IPO in 1991. There is no debt on the Panera Bread Co. balance sheet. Panera Bread

Co.’s 52-week range trading high is 165.90. PNRA closed at 143.14 on 7/10/2012.

PRICE: $2,400,000

CAP RATE: 5.00%

NET OPERATING INCOME: $120,000

BUILDING AREA: 4,475+ Square Feet

LAND AREA: 0.9+ Acres

YEAR BUILT: 2013

OWNERSHIP: Fee Simple Interest

OCCUPANCY: 100%

Tenant overview

3

Investment overviewPanera Bread GROUND LEASE


Lease Expiration: October 2033

Rent Commencement: October 2013

Initial Lease Term: 20-year term with 4, 5-year options to extend

Rent Increases: 10% every 5-years through term and options

Year 1-5 Annual Rent (Current): $120,000

Lease Type: Absolute NNN | Ground Lease

Year 6-10 Annual Rent: $132,000



Lease overview

Year 21-25 Annual Rent (Option 1): $175,692



Year 36-40 Annual Rent (Option 4): $233,846ROLLING DOUGH, LTD., dba Panera Bread

4

Site planPanera Bread GROUND LEASE


5

PROPERTY PHOTOPanera Bread GROUND LEASE


6

PROPERTY PHOTOPanera Bread GROUND LEASE


7

Aerial photoPanera Bread GROUND LEASE


New Forest

Crossing

Shops at

Stone Parke

Ho

ust

on

Bel

tway

8 (

92,0

00 C

ars

/ Day

)

Lance Corporal

Anthony Aguirre

Jr. High SchoolShops at

Wallisville

IMMEDIATE TRADE AREA

Panera Bread is a Walmart Supercenter pad site located at the corner of Houston

Beltway 8 (92,000 Cars / Day) and Wallisville Road (31,193 Cars / Day). Houston

Beltway 8 is an outer ring road that encircles the city of Houston and provides direct

access between the city’s northern suburbs and the Houston Ship Channel which is

just west of the site. Wallisville Road is a primary arterial road that traverses the

northeastern part of the Greater Houston area and connects the Houston Ship

Channel with the Houston central business district.

The traffic volumes, growth, population density, and accessibility of the immediate

trade area have attracted numerous nationally known retail brands to the trade

area. The subject property benefits significantly from a densely populated

surrounding residential area and robust population growth. 15,533 people reside

within a 1-mile radius of the site. The population within this radius is projected to

grow at a 7.0% rate over the next 5-years.

The subject property is across Wallisville Road from the New Forest Crossing

(342,942 SF) shopping center. This development is anchored by Lowe’s Home

Improvement and includes big box retailers such as Petsmart, Big Lots, Ross, and

Anna’s Linens. CVS, Buffalo Wild Wings, Carino’s, and Applebee's are also located

in New Forest Crossing. The site is caddy corner to the Shops at Stone Park

(261,427 SF). This complex is anchored by JC Penney, Best Buy, Staples,

Marshall’s, and Party City. Chipotle and Chick-fil-A are also located in this shopping

center. Additional nearby retailers include Verizon Wireless, Wingstop, JPMorgan

Chase Bank, Taco Bell, Wendy’s Discount Tire, and La Quinta.

CHANNELVIEW / GALENA PARK, TEXAS

The subject property is located in an unincorporated part area of Harris County

adjacent to Galena Park (Population: 10,887) to the west and Channelview

(Population: 38,289) to the east. The growth of this area has been driven primarily

by the Houston Ship Channel. The channel is a 50-mile waterway that is part of the

Port of Houston and is the conduit for ocean-going vessels between the Houston-

area shipyards and the Gulf of Mexico. The channel hosts more than 60 ship and

340 barge movements daily and serves as a backbone to shipping petroleum

refined at the numerous adjacent facilities. Oil giants which include Exxon, Royal

Dutch Shell, Valero, and Lyondell Basell operate refineries in the area. These 5

facilities alone refine over 1.35 million barrels of oil per day. Local growth in the oil

and gas industry has led to a boom in engineering, logistics, refining, and pipeline

work making the area surrounding the Houston Ship Channel a highly desirable

residential location.

HOUSTON-SUGAR LAND-BAYTOWN METROPOLITAN AREA

The Houston-Sugar Land-Baytown Metropolitan Statistical Area (MSA), colloquially

known as Greater Houston, is the 6th largest in the United States with a population

of 5,946,800. From 2000 to 2030, the metropolitan area is projected by Woods &

Poole Economics to rank fifth in the nation in population growth—adding 2.66 million

people.

In 2006, Greater Houston ranked 1st in Texas and 3rd in the U.S. within the category

of "Best Places for Business and Careers" by Forbes. The Greater Houston Gross

Metropolitan Product (GMP) in 2005 was $308.7 billion, up 5.4 percent from 2004 in

constant dollars. By 2010, the GMP rose to $384 billion, 5th in the nation. Only 28

nations other than the United States have a GDP exceeding the Greater Houston

GMP. Mining, which in Houston is almost entirely oil and gas exploration and

production, accounts for 11% of Greater Houston's GMP.

Houston is 2nd to New York City in Fortune 500 headquarters. Galveston Bay and

the Buffalo Bayou together form one of the most important shipping hubs in the

world, and the Port of Houston, the Port of Texas City, and the Port of Galveston

are all major seaports located in Greater Houston. The area is one of the leading

centers of the energy industry, particularly petroleum processing, and many

companies have large operations in this region. The MSA comprises the largest

petrochemical manufacturing area in the world, including for synthetic rubber,

insecticides, and fertilizers. Much of metro area's success as a petrochemical

complex is enabled by the Houston Ship Channel. The area is also the world's

leading center for building oilfield equipment, and is a major center of biomedical

research, aeronautics, and high-technology. Because of these economic trades,

many residents have moved to the Houston area from other U.S. states, as well as

hundreds of countries worldwide.

Houston is home to the Texas Medical Center—the largest medical center in the

world—several universities (including Rice University, Texas Southern University,

and The University of Houston), and two of the largest systems of higher learning in

the United States (The Houston and Lone Star Community College systems). The

University of Houston’s annual impact on the Houston-area's economy alone

equates to that of a major corporation: $1.1 billion in new funds attracted annually to

the Houston area, $3.13 billion in total economic benefit, and 24,000 local jobs

generated.

CNN/Money and Money Magazine have recognized 5 cities in the Greater Houstonarea the past 3-years as part of its 100 Best Places to Live in the United States.

8

Location overviewPanera Bread GROUND LEASE


9

Location mapPanera Bread GROUND LEASE


10

Location mapPanera Bread GROUND LEASE


DEMOGRAPHIC SNAPSHOT

Houston Ship Channel

11

DemographicsPanera Bread GROUND LEASE


Downtown Houston, Texas

Radius 1 Mile 3 Mile 5 Mile

Population:

2018 Projection 17,170 110,962 173,886

2013 Estimate 15,695 101,567 159,210

2010 Census 14,350 93,279 146,367

Growth 2013-2018 9.40% 9.25% 9.22%

Growth 2010-2013 9.37% 8.89% 8.77%

Households:

2018 Projection 5,221 33,787 52,361

2013 Estimate 4,761 30,861 47,847

2010 Census 4,321 28,157 43,723

Growth 2013 - 2018 9.66% 9.48% 9.43%

Growth 2010 - 2013 7.58% 7.29% 6.87%

Owner Occupied 3,923 19,615 29,466

Renter Occupied 838 11,246 18,382

2013 Avg Household Income $75,341 $60,095 $57,006

2013 Med Household Income $68,752 $50,993 $46,335

2013 Households by Household Inc:

<$25,000 517 6,556 11,934

$25,000 - $50,000 1,120 8,551 13,727

$50,000 - $75,000 963 6,904 9,689

$75,000 - $100,000 1,069 4,621 6,419

$100,000 - $125,000 550 2,189 3,176

$125,000 - $150,000 271 915 1,326

$150,000 - $200,000 202 796 1,035

$200,000+ 69 327 540

exclusive offering | $2,400,000 / 5.00% cap bread_houston_tx... · exclusive offering | ... site...

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