San Bernardino, CA - Panera Bread

Description:

SRS National Net Lease is pleased to offer the opportunity to acquire the leased fee interest (land ownership) in an absolute NNN, drive-thru equipped, corporate guaranteed, Panera Bread investment property located in San Bernardino, California. The tenant, Panera, LLC, recently signed a 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. The building is a reverse build to suit allowing a buyer to depreciate a portion of the building. Moreover, the site receives additional income from a cell tower and electric vehicle charging station located within the parcel. Tesla, Inc., signed a new 10-year lease to operate 12 charging stations on the premises - construction of which will begin following permit approval (additional revenue is included in total NOI - see page 19 for pricing details).

Panera Bread has excellent position and visibility at the corner intersection of University Parkway (46,600 VPD) and Interstate 215 (83,000 VPD). The site is directly accessible via on/off ramps of Interstate 215, a heavily trafficked highway which overlaps with State Highway 210 (146,000 VPD) just 3-miles South of the property. Both highways are frequently utilized by commuters throughout the Inland Empire and Los Angeles County, providing the tenant with exposure to a broad consumer base. Panera receives significant consumer traffic from its location near major highways in addition to nearby national retailers including Walmart, Lowe’s, the Ralphs and LA Fitness-anchored University Town Center (2.4M annual visits - per Placer.ai), and adjacent Chick-fil-A, Dutch Bros, Starbucks, and McDonald’s pads. The concentration of national retailers, and premier fast-food tenants, promotes crossover retail exposure to the subject property. The immediate area represents a strong consumer base comprised of over 259,000 residents and 51,600 employees with an average household income of $90,008 within 5-miles. Furthermore, the asset is situated less than 2-miles from California State University of San Bernardino (17,900+ students), with over 1,500 multi-family and apartment units within the same radius.