Corporate Potbelly & pie five For more info on this opportunity please contact: JOHN ANDREINI JOE CACCAMO kansas city msa [email protected] | (415) 274-2715 [email protected] | (415) 274-7394 CA BRE# 01440360 CA BRE# 01191110 hard corner grocery pad RICK SANNER CHRIS PETERS [email protected] | (415) 274-2709 [email protected] | (415) 274-2703 6819 Johnson Drive, Mission, KS 66202 CA BRE# 01792433 CA BRE# 01339983 In conjunction with KS Licensed Broker: Bradley Saville, Landmark Commercial Real Estate, Inc. [email protected] | (316) 262-2442 Capital Pacific collaborates. Click here to meet the rest of our San Francisco team. TWO-TENANT STRIP CENTER, paD TO A NEWLY-DEVELOpeD NatURAL GROCERS ANCHORED SHOppiNG CENTER IN MISSION, KS. Investment Highlights Mission, Kansas is an upper class suburb in the heart of Kansas City Metro PRICE: $2,392,000 RENTABLE SF ....4,000 SF LAND AREA ......0.5 AC LEASE TYPE. NNN CAP: 6.25% PRICE PER SF ....$598 CONSTRUCTED ..2015 HIGHLIGHTS Extensive new construction in the immediate area including: Natural Grocers, Starbucks, Qdoba, a recently completed Chick- fil-a, Subway, Freebirds, a Culver’s development with over 100 senior housing units, and a planned 700,000 square foot WalMart/Sprouts anchored development with office and residential Excellent retail fundamentals - hard corner signalized intersection, pad to grocery-anchored shopping center Over 250,000 population within a 5-mile radius Immediate area retailers include Target, HyVee Grocery, CVS, McDonald’s, Burger King, Applebee’s, FedEx, and many others POTBELLY SANDWICH LEASE POTBELLY SANDWICH 10-year corporate lease; 10% rental increases every 5 years during the (SEE paGE 6 FOR MORE DETAILS) base term and in the two 5-year option periods Record 2014 revenues of $326 million Tenant administers and pays utilities, taxes, CAM’s, and insurance expenses directly Q1 2015 EBITDA up 30.3% Tenant responsible for repairs, maintenance, and replacement of all Company projecting net income increase of 30% interior non-structural components, and HVAC for 2015 Landlord responsible for roof, structural components, parking lot, and landscaping PIE FIVE (SEE paGE 6 FOR MORE DETAILS) PIE FIVE LEASE Lease guaranteed by the former CEO of 10-year corporate lease; rental increases Applebee’s - very experienced operator Tenant administers and pays utilities, taxes, CAM’s, and insurance Tenant has 30+ open locations in 9 states with another 400 units under contract in 16 states expenses directly Tenant responsible for repairs, maintenance, and replacement of all interior non-structural components, and HVAC Landlord responsible for roof, structural components, parking lot, and landscaping POTBELLY & PIE FIVE NOW OPEN! POTBELLY SANDWICH & PIE FIVE | 2 IMMEDIATE AREA RETAILERS INCLUDE TARGET, HYVEE GROCERY, CVS, MCDONALD’S, AND BURGER KING 35 69 KANSAS CITY 35 635 Midland Trail Elementary 69 35 MERRIAM TOWN CENTER Westwood View The Elementary Pembroke Hill 35 School 69 56 169 MISSION HILLS Johnson Drive GOLF COURSE Johnson Drive Shawnee 24,744 DAILY Mission North High School Indian Hills Middle School 56 HOMESTEAD COUNTRY CLUB oe Avenue R INDIAN HILLS COUNTRY CLUB 35 Metcalf Avenue Income & Expense PRICE $2,392,000 Price Per Square Foot: $598.00 Building Size (SF): 4,000 Capitalization Rate: 6.25% 9/1/2017 Capitalization Rate: 6.40% Year Built: 2015 STABILIZED INCOME Per Square Foot Rent $37.38 $149,500 LESS Per Square Foot Taxes NNN $0.00 Insurance NNN $0.00 Total Operating Expenses $0.00 EQUALS NET OPERATING INCOME $149,500 This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. POTBELLY SANDWICH & PIE FIVE | 4 Rent Roll TENANT INFO LEASE TERMS RENT SUMMARY Lease Lease Expira- Monthly Rent/ Yearly Rent/ Tenant Name Sq. Ft. Current Rent Monthly Rent Start tion FT FT Potbelly 2,100 9/1/2015 8/31/2020 $73,500 $6,125.00 $2.92 $35.00 9/1/2020 8/31/2025 $80,850 $6,737.50 $3.21 $38.50 Option 1 9/1/2025 8/31/2030 $88,935 $7,411.25 $3.53 $42.35 Option 2 9/1/2030 8/31/2025 $97,818 $8,151.50 $3.88 $46.58 Pie Five 1,900 9/1/2015 11/30/2017 $76,000 $6,333.33 $3.33 $40.00 12/1/2017 11/30/2019 $79,800 $6,650.00 $3.50 $42.00 12/1/2019 10/31/2022 $83,600 $6,966.67 $44.00 $44.00 Option 1 11/1/2022 10/31/2027 $87,400 $7,283.33 $3.83 $46.00 Option 2 11/1/2027 10/31/2032 $91,200 $7,600.00 $4.00 $48.00 Option 3 11/1/2032 10/31/2037 $95,000 $7,916.67 $4.17 $50.00 Current Totals: 4,000 $149,500 $12,458 $6.25 $75.00 This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. [ packed parking lot ] POTBELLY SANDWICH & PIE FIVE | 5 Tenants ABOUT POTBELLY SANDWICH WORKS Potbelly Sandwich Works is a privately held restaurant chain specializing in submarine sandwiches. Sandwich Works began expanding in 1997 and today has more than 300 shops around the country. Bryant Keil, the Founding Chairman, is dedicated to preserving the individuality of each shop in an attempt to keep Potbelly from becoming “just another fast food chain”. Bryant was the 2007 Ernst & Young Entrepreneur of the Year Award recipient, and has also been tapped by Crain’s Chicago Business as one of its “40 Under 40” young business leaders. Based on Technomic estimates, the average Potbelly generates $1.2 million in annual revenue – a figure that is twice that of competitors Subway and Jimmy John’s. Potbelly Sandwich Works also rivals its competitors in average store size and is typically much better furnished – boasting heavy wooden furniture and faux-antique décor. LOCATIONS TYPE 2014 REVENUE www.potbelly.com 300+ Subsidiary $327 Million ABOUT PIE FIVE Pie Five Pizza is a fast-casual pizza chain that offers individual hand-crafted pizzas with fresh ingredients made to order in less than five minutes. First introduced in the Dallas area in 2011, Pie Five has grown to more than 30 locations in 9 states and has more than 400 announced franchised units under contract in 16 states and the District of Columbia. Pie Five has been named a 2013 Top 50 Restaurant Brand of the Year, a 2012 Hot Concepts winner by Nation’s Restaurant News and one of “10 Hot New Restaurant Chains from Established Brands” by Forbes.com. The CEO, Randy Gier, was named one of the “Top 10 Trendsetting Executives in Pizza” in 2013 by Pizza Marketplace. LOCATIONS TYPE 2014 REVENUE www.PIEFIVEPIZZA.com 30+ Subsidiary $41.2 Million [ surrounding area ] POTBELLY SANDWICH & PIE FIVE | 6 Site Plan Johnson Drive MONUMENT SIGN NOT A PART NOT A PART MONUMENT SIGN NOT A PART Barkley Street Broadmoor Street TWO STORY MIXED USE NOT A PART NOT A PART Regional Map traffic counts IN EXCESS OF Mission KS Location 24,744 vpd on JOHNSON DRIVE POTBELLY PIE FIVE KANSAS City 12 Min 8 Miles MISSION POTBELLY SANDWICH & PIE FIVE | 8 Surrounding Retail SURROUNDING RETAIL INCLUDES CVS, ARby’S, Mcdonald’S, AND APPlebee’S POTBELLY SANDWICH & PIE FIVE | 9 Area Developments CHICK-FIL-A, CULVERS, AND SUBWAY ANCHORED RETAIL PROJECT NATURAL GROCERS ANCHORED DEVELOPMENT 100+ UNIT SENIOR HOUSING PROJECT PROPOSED WALMART & SPROUTS ANCHORED CENTER 410,000 SF of retail 295,000 SF residential units (330 units) 705,000 project total [ kansas city, mo ] Location & Demos MISSION, KS OVERVIEW POPULATION Mission is located in Johnson County, just eight miles from Kansas City, and 1-Mile 3-Mile 5-Mile is a member of the Kansas City Metropolitan Area, which has a population of 2010 10,498 87,533 249,672 2.34 million and ranks as the second largest metropolitan area in Missouri. 2014 10,854 88,929 253,091 Kansas City, the largest city in the state of Missouri, is the headquarters of 2019 11,371 91,819 260,104 dozens of national companies including American Century Investments, 2013 HOUSEHOLD INCOMES AMC Theatres, Applebee’s, and Hallmark Cards. 1-Mile 3-Mile 5-Mile It is also home to one of the largest drug manufacturing plants in the U.S., Sanofi-Aventis, located in South Kansas City. Average $70,649 $77,487 $75,558 Numerous agricultural companies operate out of the city as well, such as Dairy Farmers of America, the largest Dairy Co-op in the country. TOP EMPLOYERS IN KANSAS CITY Kansas City is also one of ten regional office cities for the United States Employer # of Employees* Government, making the U.S. Government the largest employer in the Kansas City metro area, with more than 146 federal agencies. Federal Government 41,500 State/County/City Government 26,326 Public School System 26,250 HCA Midwest 8,632 *Approximate POTBELLY SANDWICH & PIE FIVE | 11 A unique HUMAN THE CAPITAL paCIFIC EXPERIENCE - OUR DAILY COMMITMENT TO OUR CLIENTS RESULTS-DRIVEN client experience [ www.CapitalPacific.com ] JOHN ANDREINI JOE CACCAMO In conjunction with KS Licensed Broker: [email protected] | (415) 274-2715 [email protected] | (415) 274-7394 Bradley Saville, Landmark Commercial Real Estate, Inc. CA BRE# 01440360 CA BRE# 01191110 [email protected] | (316) 262-2442 RICK SANNER CHRIS PETERS [email protected] | (415) 274-2709 [email protected] | (415) 274-2703 CA BRE# 01792433 CA BRE# 01339983 Copyright © 2015 [Capital Pacific Real Estate Brokerage Company].