Panera Bread Spring TX - Office Locations - Cushman & · PDF file · 2011-06-03PRICE $2,607,000 – 6.75% Cap Rate ... community shopping center adjacent to Wal-Mart...

201 California Street, Suite 800 | San Francisco, CA 94111 | tel 415.781.8100 | fax 415.956.3381 | www.ctbtnnn.com | Lic #00825241

The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness.

Panera BreadHouston Suburb (Spring)

Price: $2,607,000 – 6.75% Cap Rate•

$73K Incomes, 50% Population Growth•

Outstanding Visibility and Access from Interstate 45 – 250,000 Cars Per Day•

Proven Experienced Panera Franchisee – Highly Profi table•

File Photograph



Panera Bread Company Spring, Texas

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LOCATION 1448 Louetta Road, Spring, Texas. 18 miles north of Houston’s inner loop freeway.

On the west side of Interstate 45.

LOT SIZE Approximately 0.75494 acres – 32,644+/- square feet

IMPROVEMENTS Under construction, to be completed and opened mid-August 2011, a 4,000+/-

square foot freestanding Panera Bread bakery-café.

This is NOT a ground lease. Improvements are included in the sale.•

LEASE Leased to a franchisee of PANERA BREAD COMPANY for 15 years from August

2011 until August 2026. The initial annual net rent of $176,000 increases by

10% every fi ve years throughout the initial term. The lease is absolute net, with

the tenant responsible for taxes, insurance and all maintenance, including roof and

structure. There are three 5-year options to renew. See rent schedule below.

ANNUAL INCOME YEARS ANNUAL RENT RETURN1-5 $176,000 6.75%

6-10 $193,600 7.43%

11-15 $212,960 8.17%

Option 1 $230,000 8.82%

Option 2 $250,000 9.59%

Option 3 $270,000 10.36%

PRICE $2,607,000 – 6.75% Cap Rate

RENT PER SQUARE FOOT $44.00 net per year – $3.67 net per month




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ABOUT PANERA BREAD PANERA BREAD COMPANY (NASDAQ: PNRA) owns and franchises 1,467 bakery-

cafes as of March 29, 2011 under the Panera Bread®, Saint Louis Bread Co.®,

and Paradise Bakery & Café® names. Its bakery-cafes sell breads, sandwiches,

soups, salads, and other bakery items. It is headquartered in Sunset Hills, Missouri,

a suburb of St. Louis.

For the fi rst quarter ended March 29, 2011, the company reported total revenue

of $422 million (16% increase compared to the same period in fi scal 2010), net

income of $33 million (26.8% increase) and stockholder’s equity of $632.38

million.

For the fi scal year ended December 28, 2010, Panera Bread reported total annual

sales of $1.54 billion, with net income of $111.89 million.

Additional information is available on the website, http://www.panerabread.com.

PNRA does not guarantee the lease.

ABOUT THE TENANT The franchisee tenant is an L.L.C. which currently owns and operates seven

Panera locations in the north part of Houston – this will be the eighth. It can

be demonstrated to a buyer that this franchisee is one of the most successful

and highly rated in the entire Panera system. The L.L.C. entity signing the lease

operates all these eight stores. This store is “unique” among the eight stores

because it will be the fi rst to have a drive-thru. The franchisee’s seven current

stores average $40,000+ per week ($2+ million per year) and do not have a drive-

thru. The estimate, based on other Paneras elsewhere with a drive-thru, is that

sales here will be $50,000+/week, or $2.5 million per year.

For 2011, the tenant’s revenue at its seven existing locations are running at an

annualized rate of $2+ million per location, or $14 million total. (2010 actual

revenue was just under $14 million). See also “Nearby Restaurant Sales.” 2010

net income for the tenant was in seven fi gures. Further details can be provided.




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NEARBY RESTAURANT SALES As part of the PNRA corporate approval process for this site, research was done

as to the sales volumes of nearby food chains. Results, verifi ed and submitted to

PNRA, were:

CHAIN NAME DISTANCE FROM SUBJECT (MILES)

SALES AT THE LOCATION COMPARED TO NATIONAL

AVERAGE1. Cheddar’s Adjacent +45%

2. Starbuck’s 0.1 +47%

3. Rudy’s 0.1 +37%

4. Chick-fi l-A 0.4 +33%

5. Denny’s 0.8 +27%

The reasons for the high sales are: (1) the general growth and demographics

described in this package, and (2) the freeway access and commute patterns

which make Houston freeway locations (in general), and this location (in particular)

desirable.




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SITE INFORMATION The site is located approximately 18 miles north of Houston’s inner loop at the

northwest corner of Interstate 45 and Louetta Road, central to two of Houston’s

most signifi cant employment bases. The site is mid-way between The Woodlands,

a 28,000-acre master-planned community containing 20.7 million square feet

of commercial development, eight miles to the north, and the Greenspoint

master-planned community containing 17.1 million square feet of commercial

development, eight miles to the south. It is two miles north of FM 1960 and eight

miles north of the Sam Houston Tollway (Beltway 8).

See “Exxon Mobil Offi ce Complex.”

The site is off Interstate 45, which has traffi c counts of over 250,000 cars per day.

Louetta Road, with traffi c counts of over 33,000 cars per day, is a major east-

west commercial and residential thoroughfare connecting Interstate 45 and State

Highway 249.

Located at the southwest corner of the property is Louetta Central, a 100% leased

community shopping center adjacent to Wal-Mart Supercenter. The center’s anchor

tenants include Kohl’s, Ross Dress for Less, and Michaels. Outparcels include Bank

of America, Chick-fi l-A, Arby’s, Whataburger, Quizno’s, and Shell.

A new HEB Grocery store opened in 2010 less than 0.35 miles northwest of the

parcel at Spring Cypress and Holzwarth Road. Other nearby retailers include Super

Target, Home Depot, Lowe’s, Offi ce Depot, Kroger, Best Buy, Petco, Linens N

Things, Pier One Imports and Walgreens, to name a few.

The subject property is located across the freeway from SplashTown Water Park.

The water park features 14 rides and attractions.




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EXXON MOBIL OFFICE COMPLEX The following is partially unconfi rmed information, but is widely believed to be

correct. Exxon Mobil, by the year 2015, is expected to build 3.9 million sf of new

offi ce space in Spring, 1.5 miles north of the subject. it will front I-45 on the

west side. It will be a phased development, with 14,000 employees in 2015. In

connection with that Exxon Mobil will close 1.7 million sf of its 2.1 million sf of

offi ces at I-45 and Beltway 8, which is eight miles south of the subject. Thus 1.7

million sf of this new construction would be a relocation, and 2.2 million sf would

be an expansion.

According to one source, this major offi ce complex will house the natural gas

division of Exxon Mobil. The company is the largest U.S. producer of natural gas.

This is all “unconfi rmed” because Exxon Mobil has formally announced nothing,

although there are construction cranes currently on the site. Seven hundred

thousand square feet is currently under construction.

ABOUT THE AREA SPRINGListed as one of U.S. News and World Reports top places to retire, Spring is

situated between Houston and The Woodlands. Located in northern Harris County

and southern Montgomery County, Spring is a community with excellent schools,

heavily wooded neighborhoods, master planned communities, great shopping,

diverse dining, excellent parks, world class golf courses, museums, quick access to

world class healthcare, and close proximity to Bush Intercontinental Airport (IAH).

It is one of the fastest growing areas in the Houston region.

Recreational attractions abound in Spring. The city is home to SplashTown, as

well as Old Town Spring, Spring Town Center, The Barbara Bush Library, and The

Centrum. The many parks include Bayer Park, Collins Park, Cypresswood Golf Club,

Klein Park, Meyer Park, Pundt Park (under construction), Southwell Park, and

Spring Creek Greenway Project.

The area known as Old Town Spring grew from its roots as a railroad switchyard

in the early 1900’s. Old Town Spring now pays tribute to its heritage with many

historic buildings, including more than 150 boutiques, galleries, wineries, and

specialty stores which host several events each year.




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ABOUT THE AREA(CONTINUED)

SPRING (Continued)Spring has grown into a vibrant and active community for every lifestyle. In

contrast to Old Town Spring’s historical atmosphere, the new Spring Town Center

is exploding with activity at the intersection of Kuykendahl and FM 2920 with its

many dining and shopping venues. Spring has become one of the most popular

residential and commercial locations in the Houston metro region because of its

own amenities as well as its easy access to the resources of Houston and The

Woodlands. In addition to its own theatre, museum, and library, Spring is only

minutes away from Mercer Arboretum and Botanical Gardens, Cypress Creek Park

Project, Jesse H. Jones Park and Nature Center, The Woodlands Waterway, The

Woodlands Mall, and Market Street.

HOUSTONFrom 2005-2010, according to the U.S. Bureau of Labor Statistics, the Houston metro area added 129,800 private sector jobs, easily outdistancing #2 Dallas, which added 71,300.

Houston is among the fastest-growing metropolitan areas in the United States. The area grew 25.2 percent between the 1990 and 2000 censuses—adding more than 950,000 people—while the nation’s population increased 13.2 percent over the same period. Between 2000 and 2009, the population increase was 24.4%. From 2000 to 2009, the area grew by 1,152,000 people, making it the 3rd fastest growing metro area in the US. Between 2008-2009, the total growth in the metropolitan area ranked 2nd in the nation with a population increase of 140,000.

Houston–Sugar Land–Baytown is the sixth-largest metropolitan area in the United

States with a population of 5.86 million as of the 2009 U.S. Census estimate.

HOUSTON HAS ONE OF THE STRONGEST ECONOMIES IN THE U.S. HOUSTON

IS THE “HEADQUARTERS LOCATION” FOR THE U.S. ENERGY INDUSTRY!

Houston’s economy has a broad industrial base in the energy, aeronautics, and

technology industries. The Port of Houston ranks fi rst in the United States in

international commerce, and is the tenth-largest port in the world. It connects via

the Houston Ship Channel to Galveston Bay and fi nally to the Gulf of Mexico, and

is expected to be a primary benefi ciary of the widening of the Panama Canal, now

underway.




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ABOUT THE AREA(CONTINUED)

HOUSTON (Continued)Houston is the home of the Texas Medical Center, the world’s largest concentration

of healthcare and research institutions, and NASA’s Lyndon B. Johnson Space

Center.

In 2006, the Houston metropolitan area ranked fi rst in Texas and third in the U.S.

within the category of “Best Places for Business and Careers” by Forbes magazine.

Forty foreign governments maintain trade and commercial offi ces here, and the

city has 23 active foreign chambers of commerce and trade associations. Twenty

foreign banks representing 10 nations operate in Houston, providing fi nancial

assistance to the international community.

Houston is home to Rice University, one of the country’s leading teaching and

research universities, and the University of Houston, Texas’s third largest public

research university, with more than 36,000 students from 130 countries.

Houston is served by two commercial airports. George H. Bush Intercontinental

Airport (“IAH”) is the ninth-busiest airport in the United States for total passengers,

and 17th-busiest worldwide. By far the largest carrier has been Continental

Airlines. Bush Intercontinental has been Continental’s largest hub, and is 30

to 40 minutes northeast of downtown. A merger has recently occurred between

Continental and United Airlines, with the merged entity now under the United

name. Continental’s hub here is now a major hub in the new combined airline. In

fact, it will likely grow in importance, because the closest other United hubs are

Chicago and Denver.

The smaller commercial airport is William P. Hobby Airport, 20 minutes southeast

of downtown. Hobby Airport (“HOU”) operates primarily small to medium-haul

fl ights and is the only airport in Houston served by the discount carriers Southwest

Airlines and JetBlue Airways. Southwest fl ies to about 20 cities from HOU and has

80% of the fl ights.




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DEMOGRAPHICS 2009 ESTIMATE 3-MILE 5-MILE 7-MILE

Population 55,901 177,213 302,843

Avg HH Income $73,397 $74,585 $75,346

Growth 2000-2009 51.73% 44.65% 46.25%

The overall growth in the U.S. during 2000-2010 was just 9.7%. This is a high

growth area!

NOTE The information set forth herein has been received by us from sources we believe

to be reliable, but we have made no independent investigation of the accuracy or

completeness of the information and make no representations with respect thereto.

The above is submitted subject to errors, prior sale or lease, change in status, or

withdrawal without notice.

TEXAS




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3,978 sf

SITE PLAN




SITE PLAN

JUAN & LEFTY’S MEXICAN CANTINA

SITE PLAN

HOLZWARTH ROAD

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SPLASHTOWN SPLASHTOWN WATER PARKWATER PARK

SPRING HIGH SPRING HIGH SCHOOLSCHOOL

HAUDE HAUDE ELEMENTARYELEMENTARY

BAYER PARKBAYER PARK

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SUBJECT




0 mi 0.5 1 1.5 2 2.5

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0 mi 5 10 15 20 25

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0 mi 20 40 60 80 100

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Updated Summary Report (%) May 9, 2011

Coordinates Longitude: -95.435812

Latitude: 30.071154

3.0 Mile 5.0 Mile 7.0 Mile Ring Ring Ring

28.27 sq/mi 78.54 sq/mi 153.94 sq/mi

POPULATION 1990 Total Population 30,795 101,082 166,116 2000 Total Population 36,842 122,511 207,0762009 Total Population 55,901 177,213 302,8432014 Total Population 64,139 203,290 347,985% Population Change 1990-2000 19.64% 21.20% 24.66%% Population Change 2000-2009 51.73% 44.65% 46.25%% Population Change 2009-2014 14.74% 14.72% 14.91%

HOUSEHOLDS 1990 Total Households 10,648 36,161 60,124 2000 Total Households 13,128 44,747 76,0472009 Total Households 20,408 65,948 113,1932014 Total Households 23,638 76,293 131,222% Households Change 1990-2000 23.29% 23.74% 26.48%% Households Change 2000-2009 55.45% 47.38% 48.85%% Households Change 2009-2014 15.83% 15.69% 15.93%

2009 RACE % 2009 White Population 79.39% 75.36% 73.25%% 2009 Black Population 8.10% 9.27% 10.93%% 2009 American Indian/Alaska Native 0.51% 0.58% 0.56%% 2009 Asian/Hawaiian/Pacific Islander 3.81% 4.07% 4.58%% 2009 Other Population (Incl 2+ Races) 8.19% 10.72% 10.69%

% 2009 Hispanic Population 18.82% 22.35% 21.74%% 2009 Non-Hispanic Population 81.18% 77.65% 78.26%




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Updated Summary Report (%) May 9, 2011

Coordinates Longitude: -95.435812

Latitude: 30.071154

3.0 Mile 5.0 Mile 7.0 Mile Ring Ring Ring

28.27 sq/mi 78.54 sq/mi 153.94 sq/mi

INCOME2009 Per Capita Income $26,795 $27,756 $28,1622009 Median Household Income $58,139 $54,725 $53,8532009 Average Household Income $73,397 $74,585 $75,346

% 2009 Household Income < $10,000 3.29% 3.41% 3.35%% 2009 Household Income $10,000-$14,999 2.68% 2.52% 2.77%% 2009 Household Income $15,000-$19,999 2.63% 3.03% 3.23%% 2009 Household Income $20,000-$24,999 3.05% 3.67% 4.37%% 2009 Household Income $25,000-$29,999 4.12% 4.56% 5.30%% 2009 Household Income $30,000-$34,999 4.19% 5.58% 5.81%% 2009 Household Income $35,000-$39,999 5.09% 6.41% 6.59%% 2009 Household Income $40,000-$44,999 5.16% 6.69% 6.50%% 2009 Household Income $45,000-$49,999 7.06% 7.41% 6.93%% 2009 Household Income $50,000-$59,999 15.66% 14.24% 13.35%% 2009 Household Income $60,000-$74,999 20.96% 16.83% 15.12%% 2009 Household Income $75,000-$99,999 19.16% 16.03% 15.49%% 2009 Household Income $100,000-$124,999 3.38% 4.25% 4.71%% 2009 Household Income $125,000-$149,999 2.24% 2.63% 2.91%% 2009 Household Income $150,000-$199,999 1.00% 1.30% 1.75%% 2009 Household Income $200,000-$249,999 0.07% 0.28% 0.34%% 2009 Household Income $250,000-$499,999 0.28% 1.14% 1.45%% 2009 Household Income $500,000+ 0.00% 0.04% 0.04%

2009 Average Household Size 2.7 2.7 2.7% 2009 Total Owner Occupied Housing Units 76.80% 67.40% 66.28%% 2009 Total Renter Occupied Housing Units 23.20% 32.60% 33.72%

2009 Total Daytime Population 48,161 162,541 295,1712009 Total Daytime Work Population 23,863 84,418 155,7352009 Total Establishments 2,856 9,882 17,650

Panera Bread Spring TX - Office Locations - Cushman & · PDF file · 2011-06-03PRICE $2,607,000 – 6.75% Cap Rate ... community shopping center adjacent to Wal-Mart...

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