Overview

Description

McKelvey Properties in collaboration with SRS Real Estate Partners, LLC is pleased to offer the opportunity to acquire the leased fee interest (land ownership) in an absolute NNN ground leased, 7 Brew investment property located in O’Fallon, Missouri. The tenant recently signed a brand new 15 year lease with 3 (5-year) options to extend, demonstrating their commitment to the site. The lease features 10% rental increases every 5 years throughout the initial term and at the beginning of each option period, steadily growing NOI and hedging against inflation. The lease is absolute NNN with zero landlord responsibilities making it an ideal, management free investment opportunity for a passive investor. 7 Brew is a growing and popular brand with over 200 locations and counting.

The 7 Brew is located near the signalized, hard-corner intersection of State Rte N and Sommers Rd/Ronald Reagan Dr with a combined 23,000 vehicles passing by daily. Ronald Reagan Dr is a major retail thoroughfare serving the city of O’Fallon. The 7 Brew is positioned next door to a newly-constructed Chick-fil-A and Chase Bank. The asset is located less than a mile from a 101,000 square foot Dierbergs grocery anchored center with outparcels including Andy’s Frozen Custard and PJ’s Coffee. In addition, 7 Brew is also in close proximity to The Shoppes at Hawk Ridge, an 80,000 square foot center anchored by TJ Maxx. The property is in the center of a primary retail corridor with other nearby national/credit tenants including a Walmart, Lowe’s, Aldi, Chick-fil-A, McDonald’s, Panera Bread, Taco Bell, Wendy’s, Jack in the Box, and more, further increasing consumer traffic to the site. Strong tenant synergy increases consumer draw to the immediate trade area and promotes crossover store exposure to the site. The 5-mile trade area is supported by a population of over 112,700 with an average household income of $136,149.

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