Address: 1705 S. Stapley Drive, Mesa, Arizona, United States 85204
Cap Rate: 4.75%
Lease Type: Triple-Net (NNN)
Annual Rent: $190,461
Net Operating Income: $190,461
Lease Term Remaining: 15 Years
Rental Increases: 8.0% Every Five (5) Years
Options: Four (4) Periods of Five (5) Years Each
Rentable Sq/Ft: 4,425 SF
Rent Sq/Ft: $43.04
Price Sq/Ft: $906
Lot Size: +/- 1.99 Acres
Marcus & Millichap is pleased to present the exclusive listing for a brand-new Panera Bread located at 1705 S. Stapley Drive in Mesa, Arizona. This is a rare investment opportunity to participate in a direct sale leaseback with Panera Bread. The newly constructed site will consist of roughly 4,425 rentable square feet of building space on estimated 1.99-acre parcel of land. The café is scheduled to open in September of 2019.
Panera, LLC, the corporate operating entity, will enter into a brand new 15-year triple-net (NNN) sale leaseback with the purchaser upon close of escrow. The initial annual rent will be $190,461 and will increase by eight percent (8.0%) every five (5) years throughout the term of the lease and in each option period. There will be four (4), five (5)-year tenant renewal options, extending the total possible lease term to 35 years.
The subject investment property is situated on S. Stapley Drive, which experiences an average daily traffic count exceeding 46,430 vehicles, respectively. Intersecting with S. Stapley Drive is U.S. Route 60 and E. Baseline Road, which brings an additional 237,700 and 35,200 vehicles into the immediate area on average daily. There are more than 417,720 individuals residing within a five-mile radius of the property and more than 1,118,920 individuals within a ten-mile radius.
This café benefits from being well-positioned in a highly dense retail corridor consisting of national and local tenants, shopping centers, and academic institutions all within close proximity of this property. Major national tenants within the immediate area include: Walmart, AMC Theatres, Kohl’s, Staples, HomeGoods, Burger King, Texas Roadhouse, Chili’s, as well as many others. This Panera Bread benefits from its close proximity to several academic institutions. Most notable is Arizona State University, which has a total enrollment exceeding 42,400 students and is located within a ten-mile radius of the subject café. Banner Desert Medical Center, a 615-bed, general medical and surgical facility, is located less than five miles south of the Panera Bread. Phoenix Sky Harbor International Airport, one of the nation’s busiest airports and the 19th busiest in the world, serves over 40,00,000 passengers annually and is located approximately six miles from the subject café.
Mesa, a city in Maricopa County, is a suburb located less 20 miles east of Phoenix in the East Valley section of the Phoenix Metropolitan Area. It is bordered by Tempe on the west, the Salt River Pima-Maricopa Indian Community on the north, Chandler and Gilbert on the south along with Queen Creek, and Apache Junction on the east. Mesa is the largest suburban city by population in the United States, the third-largest city in Arizona after Phoenix and Tucson, and the 36th-largest city overall in the US. The city is home to 496,400 people as of 2017 according to the Census Bureau, which makes it more populous than major cities such as Minneapolis, St. Louis, or Miami. The City provides the advantages of a thriving metropolis while maintaining the feel of a suburban environment. With dynamic recreational, educational and business opportunities, Mesa enjoys the best in a variety of amenities including parks, a variety of sports facilities, highly rated golf courses, a diversity of special events and community festivals, and Mesa’s ever-popular Chicago Cubs and Oakland A’s Spring Training baseball. It is also home to the largest relief airport in the Phoenix area, Phoenix-Mesa Gateway Airport, which is located in the southeastern corner of the city.
Broker of Record: Ryan Sarbinoff License # BR675146000