Marcus & Millichap is pleased to exclusively market for sale the subject single-tenant net-leased Panera Bread Sale-Leaseback located at 2641 East Sunshine Street in Springfield, Missouri. The subject cafe opened on January 19, 2017 and consists of roughly 5,767 square feet of total building space; of which, 715 square feet has been designated to support catering activities for each of the tenants five Springfield Cafes. This helps to ensure strong volume and contributes to the long-term viability at this location.
The cafe features a drive-thru and is strategically situated on a 1.28-acre parcel on the north side of East Sunshine Street (Route D), which is a major supplemental route that runs east-to-west through Springfield, and offers excellent visibility and exposure to the nearly 36,000 vehicles that travel through each day. While the property is not positioned directly at the hard-corner, signalized intersection, the cafe benefits from a state highway easement that provides access from the traffic light directly to Panera through Qdoba which is immediately adjacent to the west, in addition to access offered directly off of East Sunshine Street.
The property also offers ease of access to major thoroughfares including Interstate 44, U.S. 65, U.S 60, U.S. 160 and Missouri 13. Springfield is between two and three hours from Kansas City, St. Louis and Tulsa and is the third largest city in Missouri, home to more than 456,000 people. The subject property is located within a dense retail corridor just four miles from downtown Springfield. Other tenants within immediate proximity include: Great Southern Bank due west of Qdoba, followed by Dominos Pizza; Walgreens is directly across the street from Panera, followed by Bancorp South Branch and Captain Ds and Bank of America, to the west; Simmons Bank, Rubys Market, Sonic, Kum & Go and Dollar General are among some of the retailers to the east.
This investment opportunity is subject to a brand new 20-year, triple-net (NNN) sale-leaseback with The Traditional Bakery, Incorporated, an 18-unit operating entity (the Tenant). The lease will commence upon close of escrow and will be subject to four, five-year tenant renewal options, bringing the total possible lease term to 40 years. The initial rent will be $156,000 and will increase by one and three quarters percent annually, beginning in year six and continuing throughout the remainder of the base term and in each renewal period. As of June 27, 2017, Panera Bread consists of 2,043 bakery-cafes in 46 states and in Ontario, Canada operating under the Panera Bread(R), Saint Louis Bread Co. (R) or Paradise Bakery & Cafe(R) names.