Offering Memorandum
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OFFERING MEMORANDUM 52 OH 70 MASON Kings Mill Road Summary Colliers International is pleased to offer the opportunity to purchase a Panera Bread located at 52 OH 5270 Kings Mill Road, Mason, Ohio 45040. Contacts This is a 11.8 year, Covelli Enterprises guaranteed lease of a recently constructed Panera. This is a true passive investment, an absolute Peter Block NNN lease offering, with zero landlord responsibilities or expenses. Executive Vice President There are healthy 10% rental increases every 5 years in the base +1 847 384 2840 [email protected] term of the lease and in the three, five-year options to renew. Christian Pera This store sits in a very dense area just West of the major on off Associate ramps for I-71. The area is filled with many hotels, residential and +1 847 384 2844 minutes from the local high school. Additionally, the site is immedi- 70 [email protected] ately adjacent to the dominant grocer in the market-Kroger. The Panera Bread sits on the outparcel to the very busy Shoppes of BROKER OF RECORD Mason. Justin Rex Vice President The property is offered at $3,510,493 which translates.to a 5.50% COLLIERS INTERNATIONAL cap rate. 425 Walnut Street, Suite 1200 Cincinnati, OH 45202 United 3 MASON Kings Mill Road $3,510,493 Details PRICE STRATEGIC LOCATION › Sits Next to recently built Mason Grand | $45 Million 5.50% CAP RATE Luxury Apartment Complex with 294-Units › Less than One-Mile from One of the Largest Tennis Stadi- ums in the World & Home of W&S Open $193,077* › Less than Two-Miles from Kings Island | Largest Amuse- NOI ment Park in the Midwest | 2nd Most Visitors in US with 3.5M Annually › Percent Population Growth and 71 Percent Household 11.8 YRS Growth Since 2000 with 15 Percent Additional Growth LEASE TERM REMAINING Projected by 2024 › Located in a very dense area just North of major on off ramps for I-78 11.1.2017 › Numerous credit tenants surrounding site COMMENCEMENT › Strategically located on a hard corner with a lighted inter- section › Numerous retailers including Kroger, The UPS Store, PNC 11.30.2032 EXPIRATION Bank, Starbucks, CVS, McDonald’s, Chipotle, Popeyes, Burger King and more. CAD Capital, LLC STRONG INVESTMENT FUNDAMENTALS GUARANTEE › COVID & recession proof brand › 10% rent bump in base term & options › Strong recognized brand 10%every 5 years, inc. options › 100% Fee Simple ESCALATIONS *as of November 2022 5 – seller will credit rent difference MASON GRAND LUXURY APARTMENTS Offering Details PROPERTY DESCRIPTION 5270 Kings Mills Road PROPERTY ADDRESS Mason, OH 45040 $3,510,493 OFFERING PRICE 22,179 $193,077.13 * as of NOI November 2022 – seller will credit rent difference KINGS MILLS ROAD CAP RATE 5.50% LAND SIZE 1.81 acres BUILDING SIZE 3,528 SF YEAR BUILT 2017 LEASE SUMMARY SINCLAIR COMMUNITY LEASE TYPE Absolute NNN COLLEGE LEASE TERM REMAINING 11.8 Years KINGS HIGH SCHOOL I-71 RENT COMMENCEMENT November 1, 2017 69,949 LEASE EXPIRATION November 30, 2032 RENEWAL OPTIONS Three, Five-year options ESCALATIONS 10% every five years NEXT RENT INCREASE November 1, 2027 Retail Map LINDNER FAMILY GUARANTOR CAD Capital, LLC TENNIS CENTER 7 COLLIERS INTERNATIONAL | OFFERING MEMORANDUM About Covelli About Panera CAD Capital, LLC is a subsidiary of Covelli Enterprises, Panera Bread Company is one of the top fast-casual the largest franchisee of Panera Bread. At one time, chain restaurants in the United States and Canada, Covelli was the largest franchisee of McDonald’s leading the industry in clean food, digital sales, custom- restaurants, but in 1997 Covelli sold their interest in er loyalty, delivery and catering. Its headquarters are in McDonald’s and shifted their focus to grow their Panera Sunset Hills, Missouri, a suburb of St. Louis, and SALES HEADQUARTERS Bread holdings along with franchising Dairy Queen’s operates under the trade names of Panera Bread, Saint $6 billion Sunset Hills, MO and O’Charley’s. Covelli operates over 300 Panera Louis Bread Company and Paradise Bakery & Cafe. Bread locations in the United States and Canada. They have 35 stores in the Carolinas, including 19 in South In the past 35 years, Panera has grown from one Carolina, and 5 in the Charleston MSA. Covelli also 400-square-foot cookie store in Boston, Massachusetts, operates the nearest Panera location on 1311 N. Main into an enterprise with 2,360 bakery-cafes, 140,000 Street in Summerville, demonstrating Covelli’s commit- associates serving approximately 9 million customers per week, with an estimated $6 billion in annual sales. ment to the area. Today, Covelli employs more than EMPLOYEES LOCATIONS 35,000 people across the UnitedStates and Canada. Panera remains at the forefront of food quality stan- 140,000 2,360 dards and transparency, all made with healthy, real Financial Performance ingredients, prepared fresh daily. The lease is guarenteed by CAD Capital, LLC, the parent entity operates more than 125 Panera Bread stores in During it’s final 20 years as a public company, it was a Ohio alone, and more than 250 stores across 8 states. best performing restaurant stock, delivering an 86-fold CAD is well-positioned to cover financial obligations and return to shareholds from 1997 to 2017. In 2017, Panera operate smoothly and profitably into the future. Covelli was acquired by JAB Holding, a privately held company OWNERSHIP TENANT Enterprises represents expert operations and deep and investment arm of the Reimann family, focused on Public Covelli Enterprises market knowledge necessary to produce successful long term investments in companies with premium Panera Bread locations. brands, attractive growth and strong cash flow. Panera Bread remains poised for continued growth and Awards & Recognition long-term returns. In May 2018, the company intro- 2017 Franchisee of the Year - Panera Bread duced delivery services to 897 cities in 43 states, employing its own drivers and creating an estimated 13,000 jobs. FOUNDED CREDIT RATING 1987 S&P BBB+ panerabread.com Area Map99 Location Overview Cincinnati is a major city in the state of Ohio, and is the government seat of Hamilton County. Settled in 1788, the city is located at the northern Demographics side of the confluence of the Licking and Ohio rivers, the latter of which 3 minutes marks the state line with Kentucky. The city drives the Cincinnati-Mid- 3,47 dletown - Wilmington combined statistical area, which had a population people of 2,172,191 residents making it Ohio’s largest metropolitan area. With an 1,388 estimated population of 301,301 residents, Cincinnati is the third largest households city in Ohio and 65th in the Unites States. Its metropolitan area is the fastest growing economic power based on the increase of economic $120,663 output. Cincinnati is also within a day’s drive of 49.70% of the United average HHI States populace. Economy 22 MILES 5270 KINGS MILLS RD, 5 minutes Metropolitan Cincinnati has the 28th largest economy in the U.S. and the 7th largest in MASON, OH 45040 9,294 the Midwest. Several Fortune 500 companies are headquartered in Cincinnati, such as people Procter & Gamble, The Kroger Company, and Macy’s Inc. General Electric has head- quartered their Global Operations Center there as well. The Kroger Company employs 3,592 households 21,646 people locally, making it the largest employer in the city, and the University of Cincinnati is the second largest at 16,000 employees and about 43,691 students $126,790 enrolled. Tourism is a strong, growing industry in the the region, helping the city’s average HHI economy. The Cincinnati region hosted a record 26.6 million visitors in 2018 with visitors spending, all together, roughly about $5.3 billion. Contemporary Life 10 minutes 65,529 The city is home to the Cincinnati Zoo and Botanical Garden which is the second-oldest people zoo in the U.S, opening in 1875. The city is also home to the Newport Aquarium that has 70 exhibits and 14 galleries, including five seamless acrylic tunnels. The city 24,321 households includes Coney Island Amusement Park which is a vintage park with bumper boats, mini-golf & a massive pool. Cincinnati is home to 3 major league teams, seven minor $132,938 league teams, five college institutions with sports teams, and seven major sports average HHI venues. Cincinnati’s three major league teams are Major League Baseball’s Red Stockings, the Bengals of the National Football League, and FC Cincinnati, promoted to Major League Soccer in 2019. Area Map 11 Site Plan Area Retail 13 1313 Contacts Confidentiality & Peter Block Executive Vice President +1 847 384 2840 Disclaimer Statement [email protected] This Offering Memorandum contains select information pertaining to the business and affairs of the property at 5270 Kings Mills Rd, Mason, OH 45040. It has been prepared by Colliers International. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The Christian Pera information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is Associate not to be used for any other purpose or made available to any other person without the written consent of Seller or Colliers International. The material is based in +1 847 384 2844 part upon information supplied by the Seller and in part upon financial information obtained by Peter Block from sources it deems reliable. Owner, nor their officers, [email protected] employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness or this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto.