Panera Bread SaleSale-Leaseback
Grand Rapids, Michigan
CONTACT:
RYAN D O’CONNELL
ONNE
P. 602.595.4000
F. 602.467.3218
ryan.oconnell@rdoinvestments.com
Office 602.595.4000 Fax 602.467.3218 • 3810 East Coolidge Street, Phoenix, AZ 85018 • www.RDOinvestments.com
The information contained in the following Marketing Brochure is proprietary and strictly
confidential. It is intended to be reviewed only by the party receiving it from RDO Investments,
LLC and should not be made available to any other person or entity without the written consent of
RDO Investments, LLC. This Marketing Brochure has been prepared to provide summary,
unverified information to prospective purchasers, and to establish only a preliminary level of
interest in the subject property. The information contained herein is not a substitute for a
thorough due diligence investigation. RDO Investments, LLC has not made any investigation, and
makes no warranty or representation, with respect to the income or expenses for the subject
property, the future projected financial performance of the property, the size and square footage
of the property and improvements, the presence or absence of contaminating substances, PCB's
or asbestos, the compliance with State and Federal regulations, the physical condition of the
improvements thereon, or the financial condition or business prospects of any tenant, or any
tenant’s plans or intentions to continue its occupancy of the subject property. The information
contained in this Marketing Brochure has been obtained from sources we believe to be reliable;
however, RDO Investments, LLC has not verified, and will not verify, any of the information
contained herein, nor has RDO Investments, LLC conducted any investigation regarding these
matters and makes no warranty or representation whatsoever regarding the accuracy or
completeness of the information provided. All potential buyers must take appropriate measures to
verify all of the information set forth herein.
All properties are by appointment only.
Please consult your RDO Investments, LLC agent for more details.
INVESTMENT SUMMARY
Location:
2044 Celebration Drive
Grand Rapids, Michigan 49525
Tenant:
Tenant
Panera Bread
Franchisee/Operator:
Trigo Hospitality
Property Type:
Single Tenant
Lease Type:
Absolute Triple Net (No Landlord Responsibilities) Sale Leaseback
List Price:
$1,806,000
Lease Term:
15 Years with 4 – 5 year renewals
Base Rent:
Years 1-5:
Years 6-10
Years 11-15
$131,000
$137,550
$144,427
5% Increase
5% Increase
Cap Rate:
7 25%
7.25%
Year Completed:
2003
Rent Commencement:
Upon COE
Lease Expiration:
15 years from COE
Building Sq. Ft.:
4,724 square feet
Price per Sq. Ft.:
$382.30 (approximate)
Land Area:
0.9 acres
Financing:
Property will be delivered free and clear
PROPERTY SUMMARY
OVERVIEW
The subject property is an approximate 4,724 square foot, single story, single tenant, retail building located
at 2044 Celebration Drive - Grand Rapids, Michigan.
The mixed-use development was completed in 2003, and located within the Celebration Village Lifestyle
Center at Knapp
Knapp’s
s Corner.
Corner The development is anchored by Celebration Cinema/IMAX Theater which
houses 20 screens and over 5,000 seats. Other tenants within the development are ALDI, Buffalo Wild
Wings, Chili’s, IHOP, The Melting Pot, LSI Credit Union, Johnny Carino’s and Boston Gourmet Pizza. The
property is located adjacent to Meijer Grocery Center, PF Chang’s, Walgreens and Chase Bank. The
property is located along the main retail thoroughfare of northeast Grand Rapids. Within a one-mile radius
of the property, the average household income exceeds $102,000.
Grand Rapids is located on the Grand River and is approximately 30 miles from Lake Michigan. As of the
2000 census, the city population was 197,800, making it the 114th largest city in the United States. In 2009,
the Grand Rapids metropolitan area had a population of 778,009 and a Combined Statistical Area
population of 1,327,336. It is the county seat of Kent County, Michigan, second largest city in Michigan
(after Detroit), and the largest city in West Michigan. The major industry in Grand Rapids once having been
furniture production, it is nicknamed the "Furniture City". However, the city and surrounding communities
are more economically diverse today, and contribute heavily to the health care, automotive, and consumer
goods manufacturing industries, among others.
LOCATION OVERVIEW:
Grand Rapids is the county seat of Kent County and the second largest city in the state. The city will always
have a healthy consumer population due to the large number of colleges in the area and the local DeVos
Place Convention Center has become a large draw for the region. The property is located within the
Celebration Village Lifestyle Center at the corner of East Beltline Road and Knapp Street.
Based upon the 2010 Census, the national demographics consulting firm Claritas has estimated that for
2010 there are approximately 146,833 residents and 56,437 households within a five-mile radius of the
Property. According to Claritas, the average household income within a one-mile radius of the Property was
estimated to be $102,000.
$102 000
TENANT OVERVIEW
Panera Bread Company (NASDAQ: PNRA) specializes in providing fresh baked goods, made-to-order
sandwiches, salads, soups, custom roasted coffees and other cafe beverages. The company operates in
the US and Canada. It is headquartered in Richmond Heights, Missouri and employs about 12,100
people.
The company recorded revenues of $1,353.5 million during financial year ended December 2009
(FY2009), an increase of 4.2% over FY2008. The reason for the increase in revenues was primarily due
to the opening of 69 new bakery-cafes system-wide in FY2009, and to a lesser extent, a 0.5% increase
in system-wide comparable bakery-cafe sales. The operating profit of the company was $140.9 million
during FY2009, an increase of 25% over FY2008. The net profit was $86.1 million in FY2009, an
increase of 27.6% over FY2008.
Trigo Hospitality is a successful regional franchise owner and operator with over 50 stores covering the
Panera Bread, Pizza Hut/Wing Street, and Sonic Burger concepts. The principals of the firm have been
active in franchise ownership and operations for over 30 years with both Trigo Hospitality and Pizza Hut
of Michigan Inc.
Inc Trigo Hospitality has been ranked in the Monitor 200
200’ss list of top franchisees in sales
including the 114th spot in 2008 with sales of $40-$50 million annually. Their continued success has
allowed Trigo Hospitality to continue its expansion with the addition of new stores, and currently there
are a number of new sites underway.
Corporate Financials are available upon agreed Letter of Intent.
PROPERTY PHOTOS
PROPERTY PHOTOS
AERIAL
SITE PLAN
LOCATION MAP
Ryan D. O'Connell
Principal
RDO Investments, LLC
3810 East Coolidge Street
Phoenix, Arizona 85018
P. 602-595-4000
F. 602-467-3218
M. 602-790-9036
e mail. ryan.oconnell@rdoinvestments.com
e-mail
ryan oconnell@rdoinvestments com
Pop-Facts: Demographic Quick Facts 2010 Report
Radius 1: 2044 CELEBRATION DR NE, GRAND RAPIDS, MI 49525-9592, aggregate
Radius 2: 2044 CELEBRATION DR NE, GRAND RAPIDS, MI 49525-9592, aggregate
Radius 3: 2044 CELEBRATION DR NE, GRAND RAPIDS, MI 49525-9592, aggregate
0.00 - 1.00 miles
0.00 - 3.00 miles
Description
Radius 1
%
Radius 2
%
0.00 - 5.00 miles
Radius 3
%
Population
2015 Projection
2010 Estimate
2000 Census
1990 Census
Growth 1990 - 2000
2,835
2,740
2,529
1,652
44,463
44,291
43,503
38,263
146,146
146,833
146,875
138,638
53.09%
13.69%
5.94%
939
904
818
526
17,404
17,216
16,614
14,175
56,522
56,437
55,597
50,402
55.51%
17.21%
10.31%
2,740
44,291
146,833
2,599 94.85
32 1.17
6 0.22
55 2.01
2 0.07
11 0.40
35 1.28
36,781 83.04
4,618 10.43
191 0.43
796 1.80
23 0.05
762 1.72
1,119 2.53
111,683
21,120
807
2,063
158
6,542
4,460
2,740
44,291
146,833
35 1.28
2,705 98.72
1,679 3.79
42,612 96.21
12,313 8.39
134,520 91.61
Households
2015 Projection
2010 Estimate
2000 Census
1990 Census
Growth 1990 - 2000
2010 Est. Population by Single Classification Race
White Alone
Black or African American Alone
American Indian and Alaska Native Alone
Asian Alone
Native Hawaiian and Other Pacific Islander Alone
Some Other Race Alone
Two or More Races
2010 Est. Population Hispanic or Latino
Hispanic or Latino
Not Hispanic or Latino
2010 Tenure of Occupied Housing Units
Owner Occupied
Renter Occupied
2010 Average Household Size
Prepared On: Mon Oct 11, 2010 Page
904
17,216
56,437
833 92.15
71 7.85
12,449 72.31
4,767 27.69
37,584 66.59
18,853 33.41
2.99
1
Of 3
2.42
Prepared By:
Nielsen Solution Center 1 800 866 6511
Prepared For:
76.06
14.38
0.55
1.40
0.11
4.46
3.04
© 2010 The Nielsen Company. All rights reserved.
2.47
Pop-Facts: Demographic Quick Facts 2010 Report
Radius 1: 2044 CELEBRATION DR NE, GRAND RAPIDS, MI 49525-9592, aggregate
Radius 2: 2044 CELEBRATION DR NE, GRAND RAPIDS, MI 49525-9592, aggregate
Radius 3: 2044 CELEBRATION DR NE, GRAND RAPIDS, MI 49525-9592, aggregate
0.00 - 1.00 miles
0.00 - 3.00 miles
Description
Radius 1
%
Radius 2
%
2010 Est. Households by Household Income
904
Income Less than $15,000
Income $15,000 - $24,999
Income $25,000 - $34,999
Income $35,000 - $49,999
Income $50,000 - $74,999
Income $75,000 - $99,999
Income $100,000 - $124,999
Income $125,000 - $149,999
Income $150,000 - $199,999
Income $200,000 - $499,999
Income $500,000 and over
32 3.54
33 3.65
46 5.09
87 9.62
194 21.46
174 19.25
136 15.04
79 8.74
48 5.31
64 7.08
10 1.11
17,216
1,714
1,910
1,910
3,039
3,581
2,345
1,160
564
409
477
108
0.00 - 5.00 miles
Radius 3
%
56,437
9.96
11.09
11.09
17.65
20.80
13.62
6.74
3.28
2.38
2.77
0.63
7,340
6,638
6,728
9,760
11,049
6,491
3,362
1,668
1,421
1,641
340
2010 Est. Average Household Income
$102,108
$66,544
$63,497
2010 Est. Median Household Income
$83,571
$50,251
$46,546
2010 Est. Per Capita Income
$33,762
$26,439
$24,934
83,743
45,000
7,500
200,000
0
87,500
75,000
52,807
29,857
32,857
49,375
18,750
42,262
44,500
50,044
26,954
32,179
51,771
32,222
39,209
35,321
42,500
83,743
44,000
50,623
37,215
47,131
2010 Median HH Inc by Single Race Class or Ethn
White Alone
Black or African American Alone
American Indian and Alaska Native Alone
Asian Alone
Native Hawaiian and Other Pacific Islander Alone
Some Other Race Alone
Two or More Races
Hispanic or Latino
Not Hispanic or Latino
Prepared On: Mon Oct 11, 2010 Page
2
Of 3
Prepared By:
Nielsen Solution Center 1 800 866 6511
Prepared For:
© 2010 The Nielsen Company. All rights reserved.
13.01
11.76
11.92
17.29
19.58
11.50
5.96
2.96
2.52
2.91
0.60