Valdosta, GA

Panera Bread

A Net Lease Investment OpportunityConfidential Offering Memorandum

Valdosta, GA

REPRESENTATIVE PHOTO

The information contained in this Offering Memorandum is confidential, furnished solely for the purpose of review by a prospective purchaser of 1173 N St. Augustine Road, Valdosta, GA (the “Property”) and is not to be used for any other purpose or made available to any other person without the express written consent of The Net Lease Group, LLC. (“NLG”). The material is based in part upon information supplied by Owner and in part upon information obtained by The Net Lease Group from sources it deems reasonably reliable. Summaries of any documents are not intended to be comprehen-sive or all inclusive but rather only an outline of some of the provisions contained therein. No warranty or representation, expressed or implied, is made by Owner, The Net Lease Group, or any of their re-spective affiliates as to the accuracy or completeness of the information contained herein or any other written or oral communication transmitted to a prospective purchaser in the course of its evaluation of the Property. No legal liability is assumed or implied in connection with the information or such other communications. Without limiting the generality of the foregoing, the information shall not be deemed a representation of the state of affairs of the Property or constitute an indication that there has been no change in the business or affairs of the Property since the date of preparation of the information. Prospective purchasers should make their own projections and conclusions without reliance upon the materials contained herein and conduct their own independent due diligence, including engineering and environmental inspections, to determine the condition of the Property and the existence of any potentially hazardous material located at the site. This Offering Memorandum was prepared by The Net Lease Group and has been reviewed by the Owner. It contains select information pertaining to the Property and does not purport to be all inclusive or to contain all of the information which a prospective purchaser may desire. All financial projections are provided for general reference purposes only and are based on assumptions relating to the general economy, competition and other factors beyond control and, therefore, are subject to material change or variation. An opportunity to inspect the Property will be made available to qualified prospective purchasers. In this Offering Memorandum, certain documents and other materials are described in summa-ry form. The summaries do not purport to be complete nor, necessarily, accurate descriptions of the full agreements involved, nor do they constitute a legal analysis of such documents. Interested parties are expected to independently review all documents. This Offering Memorandum is subject to prior placement, errors, omissions, changes or with-drawal without notice and does not constitute a recommendation, endorsement or advice as to the value of the Property by The Net Lease Group or the Owner. Each prospective purchaser is to rely upon its own investigation, evaluation and judgment as to the advisability of purchasing the Property described herein. This Offering Memorandum is the property of The Net Lease Group and may be used only by parties approved by The Net Lease Group and Owner. The Property is privately offered and, by accepting delivery of this Offering Memorandum, the party in possession hereof agrees (i) to return it to The Net Lease Group immediately upon request of The Net Lease Group or Owner and (ii) that this Offering Memorandum and its contents are of a confidential nature and will be held and treated in the strictest confidence. No portion of this Offering Memorandum may be copied or otherwise reproduced or disclosed to anyone without the prior written authorization of The Net Lease Group and Owner. The terms and conditions set forth above apply to this Offering Memorandum in its entirety.

CONFIDENTIALITY & RESTRICTED USE AGREEMENT

EXCLUSIVELY MARKETED BY

3350 Riverwood Parkway, Suite 700Atlanta, GA 30339

thenetleasegroup.com

Philip WickstromManaging [email protected]

Esmael HillManaging [email protected]

Chandler AmersonSenior [email protected]

TABLE OF CONTENTS

Executive Summary............................1 The Offering Investment Highlights

Financial Overview.............................3 Financial Summary Rent Schedule

Tenant Overview.................................5

Property Overview.............................7 Site Plan Location & Market Aerials

Market Overview...............................14

Demographics...................................15

The Net Lease Group is pleased to exclusively offer for sale 1173 N St. Augustine Road, Valdosta, GA. The offering consists of the fee simple interest in 0.96 acres that is 100% ground leased to Panera Bread, providing an investor with the opportunity to own an institutional quality asset that delivers stable and predictable income throughout the lease term.

Panera is currently constructing a 4,400 SF restaurant on the property with an expected completion date of May 2018. The ground lease is an absolute triple net (NNN) lease with a 15-year initial term and three (3), 5-year renewal options. The landlord has no responsibilities whatsoever during the term and option periods. The rental escalations are 10% every five (5) years throughout the initial term and option periods.

The property is located less than a mile from Interstate 75 which has traffic counts exceeding 100,000 vehicles per day and is situated in Valdosta’s primary retail corridor surrounded by many national retailers. The property is also near Lowndes High School and Valdosta State University, two of the largest secondary and post-secondary educational institutions in the state of Georgia.

As the 10th largest metropolitan area in the state of Georgia, Valdosta and Lowndes County are considered the commercial center of South Georgia. In addition to Valdosta State University, Moody Air Force Base contributes substantially to the local economy. A major military installation, Moody AFB employs over 6,000 individuals.

EXECUTIVE SUMMARYTHE OFFERING

NOI: $112,500 CAP RATE: 4.75%PURCHASE PRICE: $2,370,000

REPRESENTATIVE PHOTO 1

EXECUTIVE SUMMARYINVESTMENT HIGHLIGHTS

Long-Term, Absolute Triple Net Ground Lease The fifteen (15) year ground lease contains no landlord responsibilities whatsoever. The tenant is directly responsible for all taxes, insurance, maintenance, repair and operating costs associated with the property.

New Construction, Build to Suit Location with Drive-Thru

Currently under construction Panera Bread with drive-thru. Expected completion date May 2018 with rent commencing June 18, 2018

Rent Escalations Throughout The Lease Term The lease provides for 10% rental increases every five years throughout both the initial term and five-year option periods.

Proximity to I-75 The property is adjacent to McDonald’s at a lighted intersection less than one mile from Interstate 75 which has a daily traffic count exceeding 100,000 vehicles. The property is accessible from both St. Augustine Rd and Norman Drive.

Strategically LocatedThe property is ¼ of a mile north of Lowndes High School, one of the largest secondary education institutions in the state of Georgia with nearly 3,000 students. Valdosta State University and its 14,000 students are located two miles northeast of the property.

National Creditworthy Tenant With Strong Operating History

Panera Bread Company was recently acquired by JAB Beech, a wholly-owned subsidiary of JAB Holding Company. JAB Holding Company is a private European investment firm with a market value exceeding $20 billion and carries an investment grade credit rating (S&P/ Moody’s: BBB+/ Baa) with stable outlook.REPRESENTATIVE PHOTO

2

FINANCIAL OVERVIEW


LEASE OVERVIEW


LEASE SUMMARY

Tenant Name Panera, LLC

Address 1173 N St. Augustine Rd.

Property Type Retail/Restaurant

Lease Type Absolute Triple Net Ground Lease

Landlord Responsibilities None

Lease Term 15 Years with three (3), 5-year options

Rent Commencement June 18, 2018

Rental Escalations 10% every five years during initial term and option periods

Net Operating Income $112,500

4

TENANT OVERVIEWJAB Holding Company (“JAB” or Joh. A. Benckiser), a principal investment firm headquartered in Luxembourg, focuses on investments in companies with premium brands in the consumer goods category. JAB’s portfolio mainly consists of:

• An 8% minority stake (following successive share divestments) in Reckitt Benckiser (RB) (A+/Stable/A-1).

• A minority stake in the beauty and personal care company Coty Inc. (BB+/Stable/--), becoming 36% of the merged P&G Specialty Beauty Business.

• In July 2016, JAB-controlled JAB Beech acquired US doughnut shop operator, Krispy Kreme Doughnuts, Inc., for $1.35 billion

• A majority ownership (58%) in Acorn Holdings B.V., the umbrella entity for Jacobs Douwe Egberts (JDE) (BB/Stable/--) and the coffee company Keurig Green Mountain (BB-/Stable/--).

Through its wholly-owned subsidiary, JAB Beech, JAB operates a substantial U.S. coffee and breakfast business which includes brands Panera Bread, Krispy Kreme Doughnuts Corp, Einstein Noah (Bagels), Peet’s Coffee & Tea, Caribou Coffee, as well as wholesale roasters, Stumptown Coffee Roasters, and Intelligentsia.

In July 2017, JAB Beech acquired Panera Bread Company for approximately $7.2 billion.

In October 2016, less than three months after it closed on the acquisition of Krispy Kreme for $1.35 billion, JAB Beech announced the launch of a new co-branded breakfast concept, Coffee & Bagels featuring Caribou coffee and Einstein Bagels.

Three senior partners oversee JAB investments: Peter Harf, Bart Becht and Olivier Goudet, together with 8 other partners who focus

on business development, finance, legal, tax, and human resources. The company actively manages its investments. and operates offices in Europe and the US (Luxembourg, London, Mannheim, Germany and Washington DC).

JAB carries an investment grade credit rating (Baa1 at Moody’s with stable outlook and BBB+ at S&P with stable outlook). JAB Holdings B.V. (a wholly owned subsidiary of JAB) has issued senior unsecured bonds listed on the Euro MTF Market of the Luxembourg Stock Exchange.

JAB has built the second-largest investment portfolio within the rated European sector, with a market value at approximately €19 billion ($20.5 billion USD) as of Oct. 27, 2016, per analyst estimates.

JAB HOLDING COMPANYHeadquarters

Ownership

Credit Rating (S&P/Moodys)

Annual Revenue

Website

Luxembourg

Private

BBB+ / Baa1

N/A

jabholco.com

5

TENANT OVERVIEWPanera Bread Company is an American chain of bakery-café fast casual restaurants known for its quality food and casual atmosphere. Over the past 35 years, Panera has grown from one 400-square-foot cookie store into an enterprise with more than 2,000 bakery-cafes, 100,000 associates and annual systemwide sales of over $5 billion. In 2015, there were 1,972 Panera outlets and stores, up from 1,880 the year before. 901 of those stores were company owned, while 1,071 were franchised. Panera opened its 2000th location in 2016.

Notable awards include MenuMaster 2017, for leading by example with an extensive menu clean-up, ranked top 5 in Fast Casual’s Top 100, #1 Most Innovative Company in Food by Fast Company, and #1 in Hospitality Industry by the Reputation Institute. Panera has been able to achieve this success by implementing innovative ideas such as free WIFI, providing the best quality food, and focusing on customer service.

In June 2014, Panera unveiled its official Food Policy which detailed commitments to clean ingredients, transparency and a positive impact on the food system. This policy outlined the company’s values and sets a course for continuous improvement. Panera also made a commitment to remove artificial additives from the food in its US bakery-cafes by the end of 2016. In January 2017, Panera announced its US food menu was free of artificial colors, flavors, sweeteners, and preservatives.

Prior to being taken private by JAB Beech Holdings, Panera was the best-performing restaurant stock of the last 20 years, delivering a total shareholder return up 86-fold from July 18, 1997, to July 18, 2017, compared to a less than twofold increase for the S&P 500 during the same period. Panera stock generated annualized returns of 25% in the same time frame.

,

6

PROPERTY OVERVIEW

The subject property is located along the northerly right-of-way of St. Augustine Road, which connects the property directly to Interstate 75 three-quarters of a mile northwest. Approximate traffic counts along I-75 and St. Augustine Road are 100,000 and 24,700, respectively.

The subject property is an outparcel to a Best Buy anchored shopping center and is immediately adjacent to McDonald’s at the lighted intersection of St. Augustine Road and Norman Drive. The property can be accessed from both roadways.

The dense retail corridor along St. Augustine Road is Valdosta’s primary shopping destination. North of the property along the west side of Norman Drive is the Valdosta Mall which includes retailers such as Belk, PetSmart, JCPenney, Sears and Old Navy. Directly north of the property are Target, Home Depot and Kohl’s among many others. Immediately south across St. Augustine Road are Chick-fila, Panda Express and Hobby Lobby. Located just further south along Norman Drive is Lowndes High School, a 3,000-student institution and one of the largest high schools in Georgia.


PROPERTY OVERVIEWSITE PLAN

LOCATION

STORE NUMBER

PROJECT MANAGER

DATEARTIST

DRAWING NAME

APPROVALS

Engineering

Sales

Estimating

Signatures Required Before Release to Production

DATE

DATE

DATE

BY

BY

BY

REVISIONS

1

2

3

4

5

6

7

8

9

NO. BY DATEDESCRIPTION

676 GEORGE WASHINGTON HIGHWAYLINCOLN, RI 02865-4255

401-334-9100 401-334-7799

www.mandevillesign.com

CUSTOMER

PHONE

ARTWORK EXCLUSIVE PROPERTY OF

FAX

WEB

Production

Quality Control

PDF NAME

DATE

DATE

BY

BY

1917SINCE

All electrical signs shall comply with the National

Electric Code (Article 600) and be manufactured

according to Underwriters Laboratories U.L. 48

standards and labeled accordingly.

10

00/00/00XX xxxxxxxxx

30333-1

1173 N. Augustine Road,VALDOSTA, GA

Linda D.

30212.7

11/01/17

6071

WD

THANK YOUDO NOT ENTER

SIGN

SITE PLAN: NOT TO SCALE

MENU BOARD

N

S/F DRIVE THRUDIRECTIONALWITH ARROW

CANOPY-SPEAKER

PANERA PYLON ORMONUMENT SIGN

4,400 SF

ST. AUGUSTINE ROAD

CLEARANCE BAR

PREVIEW BOARD

RAPID PICK-UPSIGNS

DRIVE THRUAWNING

8

PROPERTY OVERVIEWELEVATIONS

LOCATION

STORE NUMBER

PROJECT MANAGER

DATEARTIST

DRAWING NAME

APPROVALS

Engineering

Sales

Estimating


DATE

DATE

DATE

BY

BY

BY

REVISIONS

1

2

3

4

5

6

7

8

9



401-334-9100 401-334-7799


CUSTOMER

PHONE


FAX

WEB

Production

Quality Control

PDF NAME

DATE

DATE

BY

BY

1917SINCE





10


30333-1

SIGN ELEV.: 3/8" = 1'- 0"

24"

42 1/2”

7.08 SQ.FT.

COMPLIANT

42.4 SQ.FT.

SIGN ELEVATION: 1/4" = 1'- 0"

24”

254½”

INTERNALLY ILLUMINATED CHANNEL LETTERS:

• (#2447 WHITE) 1/4" ACRYLIC FACES• 4” DEEP ALUM. RETURNS PAINTED MATTE BLACK• ALUMINUM COMPOSITE BACKS• (4000K WHITE) L.E.D. ILLUMINATION• LOW VOLTAGE OUTPUT POWER SUPPLIES• U.L. AND MFG. LABELS OUT OF VIEW• WEEP HOLES REQUIREDDrive Thru SIGN ONLY:• (BROWN) VINYL BACKGROUND for

WHITE LETTERS w/ BLACK OUTLINES

4” DEEP ALUM.CHANNEL

10' ELEC. WHIP,CONNECTION TO PRIMARY BY G.C.

1/4”- #2447 WHITE ACRYLIC FACE

WHITE L.E.D. ILLUMINATION

REMOTE POWER SUPPLY

WEEP HOLES IN CHANNEL BOTTOMFOR EXTERIOR LETTERS

5/8” HOLE IN LETTER BACKWITH SNAP-IN BUSHING

TYPICAL CHANNEL LETTER: N.T.S.

SIGN CODE ALLOWANCE:

Wall Signs: NTE the Greater of:1 sq.ft. per linear foot OR 50 sq.ft.OR 5% of facade area.Single facade signage NTE 400 sq.ft.


Linda D.

30212.2

11/01/17

6071

WD

STOREFRONT (EAST) ELEVATION: 1/8" = 1'- 0"

FIRST FLOOR0"

B.O. DECK18' - 0"

T.O. PARAPET24' - 0"

T.O. MULLIONS12' - 0"

EQ

4' - 6"

4'-

4"

TY

P.

10'-

0"

EQ EQ

4' -

0"

EQ

±11’-0”±11’-0”

COMPLIANT

±77’-3”

FASTENERS APPROPRIATE TO FASCIABRICK OR BRICK VENEER (VIF) LOCATION

STORE NUMBER

PROJECT MANAGER

DATEARTIST

DRAWING NAME

APPROVALS

Engineering

Sales

Estimating


DATE

DATE

DATE

BY

BY

BY

REVISIONS

1

2

3

4

5

6

7

8

9



401-334-9100 401-334-7799


CUSTOMER

PHONE


FAX

WEB

Production

Quality Control

PDF NAME

DATE

DATE

BY

BY

1917SINCE





10


30333-1


Linda D.

30212.3

11/01/17

6071

WD

FIRST FLOOR0"

B.O. DECK18' - 0"


T.O. STOREFRONT12' - 0"

EQ

2'-

0"

EQ

EQ

4' - 0"

4'-

0"

EQ

RIGHT SIDE (NORTH) ELEVATION: 1/8" = 1'- 0"

SIGN ELEV.: 3/8" = 1'- 0"

24"

42 1/2”

7.08 SQ.FT.

COMPLIANT

42.4 SQ.FT.

SIGN ELEVATION: 1/4" = 1'- 0"

24”

254½”


• (#2447 WHITE) 1/4" ACRYLIC FACES• 4” DEEP ALUM. RETURNS PAINTED MATTE BLACK• ALUMINUM COMPOSITE BACKS• (4000K WHITE) L.E.D. ILLUMINATION• LOW VOLTAGE OUTPUT POWER SUPPLIES• U.L. AND MFG. LABELS OUT OF VIEW• WEEP HOLES REQUIREDDrive Thru SIGN ONLY:• (BROWN) VINYL BACKGROUND for WHITE LETTERS w/ BLACK OUTLINES





REMOTE POWER SUPPLY


FASTENERS APPROPRIATE TO FASCIABRICK OR BRICK VENEER (VIF)



COMPLIANT

±60” ±60”

±58’-10”

4'-

4"

TY

P.

10'-

0"

CODE ALLOWANCE (NORTH): 70.6 SQ.FT. ALLOWEDSIGNS PROPOSED (NORTH): 49.48 SQ.FT.


• (#2447 WHITE) 1/4" ACRYLIC FACES• 4” DEEP ALUM. RETURNS PAINTED MATTE BLACK• ALUMINUM COMPOSITE BACKS• (4000K WHITE) L.E.D. ILLUMINATION• LOW VOLTAGE OUTPUT POWER SUPPLIES• U.L. AND MFG. LABELS OUT OF VIEW• WEEP HOLES REQUIRED

LOCATION

STORE NUMBER

PROJECT MANAGER

DATEARTIST

DRAWING NAME

APPROVALS

Engineering

Sales

Estimating


DATE

DATE

DATE

BY

BY

BY

REVISIONS

1

2

3

4

5

6

7

8

9



401-334-9100 401-334-7799


CUSTOMER

PHONE


FAX

WEB

Production

Quality Control

PDF NAME

DATE

DATE

BY

BY

1917SINCE





10


30333-1


Linda D.

30212.4

11/01/17

6071

WD

FIRST FLOOR0"

B.O. DECK18' - 0"


5'-

0"

EQ EQ

10'

-0"

4'-

4"

5'-

0"

5'-

0"

9'-

0"

LEFT SIDE (SOUTH) ELEVATION: 1/8" = 1'- 0"

COMPLIANT42.4 SQ.FT.SIGN ELEVATION: 1/4" = 1'- 0"

24”

254½”

10’-0” ±11’-0”

58’-3”

EXTERNALLY ILLUMINATED DRIVE THRU AWNING:

• 1” x 2” x .125 ALUMINUM EXTRUSION WELDED • FRAME POWDER COATED SEIBERT SILVER #189110• TRUSS SPACING N.T.E. 24" APART O.C.• SUNBRELLA #4859 “SILICA DUNE” FABRIC w/ ENDCAPS• GREY PVC TRIM STAPLE COVER• MOUNTED USING Z-CLIPS & APPROPRIATE ANCHORS

FRAME

108”Above Grade

4'-0"

1" x 2” ALUM. EXTRUSION

FRAME (SILVER)

INTERIOR TRUSS

Z CLIPS / FASTENERSN.T.E. 24” APART O.C.

G3 FABRICENDCAPS

5'-

0"

DRIVE THRU AWNING SECTION ONLY: 3/4" = 1'- 0"

37"

C. t

o C

.

165” A.G.

128” A.G.

168” A.G.

42"

126” A.G.

BRICK ORBRICK VENEER

MASONRY ANCHORS

ENGINEERING CERTIFICATION REQUIREDMUST MEET 105 MPH WINDLOAD REQUIREMENTFLAME COATING OF FABRIC COVER REQUIRED

CODE ALLOWANCE (SOUTH): 69.9 SQ.FT. ALLOWEDSIGNS PROPOSED (SOUTH): 44.98 SQ.FT.

AWNING COPY = 2.58 sq.ft.

COMPLIANT

LOCATION

STORE NUMBER

PROJECT MANAGER

DATEARTIST

DRAWING NAME

APPROVALS

Engineering

Sales

Estimating


DATE

DATE

DATE

BY

BY

BY

REVISIONS

1

2

3

4

5

6

7

8

9



401-334-9100 401-334-7799


CUSTOMER

PHONE


FAX

WEB

Production

Quality Control

PDF NAME

DATE

DATE

BY

BY

1917SINCE





10


30333-1


Linda D.

30212.5

11/01/17

6071

WD

FIRST FLOOR0"

B.O. DECK18' - 0"


9'-

0"

5"

6'-0"

2'-0"

2

REAR (WEST) ELEVATION: 1/8" = 1'- 0"

6’-0”

76’-7”


• (#2447 WHITE) 1/4" ACRYLIC FACES• 4” DEEP ALUM. RETURNS PAINTED MATTE BLACK• ALUMINUM COMPOSITE BACKS• (4000K WHITE) L.E.D. ILLUMINATION• LOW VOLTAGE OUTPUT POWER SUPPLIES• U.L. AND MFG. LABELS OUT OF VIEW• WEEP HOLES REQUIRED

COMPLIANT42.4 SQ.FT.SIGN ELEVATION: 1/4" = 1'- 0"

24”

254½”





REMOTE POWER SUPPLY


FASTENERS APPROPRIATE TO FASCIABRICK OR BRICK VENEER (VIF)



CODE ALLOWANCE (WEST): 91.9 SQ.FT. ALLOWEDSIGNS PROPOSED (WEST): 42.4 SQ.FT.

9

LOCATION MAPPROPERTY OVERVIEW

10

LOCATION MAP CLOSEUPPROPERTY OVERVIEW

11

TRADE AREA MAPPROPERTY OVERVIEW

12

TRAFFIC COUNTSPROPERTY OVERVIEW

13

MARKET OVERVIEW

Valdosta is the 10th largest metropolitan area in the state of Georgia with a population over 140,000. The city is located directly on Interstate 75 fifteen miles from the Florida state line, equidistant between Atlanta and Orlando. Approximately 100,000 vehicles pass through the city per day, annually totaling close to 17 million vehicles.

There are several contributing reasons that Valdosta and Lowndes County are considered the commercial center of South Georgia, one of which is Moody Air Force Base. Moody AFB is a major military installation that is home to the 23rd Fighter Wing and the 93rd Air Ground Operations Wing. Moody’s mission is to organize, train and employ combat-ready force protection assets and support personnel. The wing executes worldwide close air support, force protection and rescue forces to include combat search and rescue and personnel recovery in support of humanitarian interests, United States national security and worldwide contingency operations. Moody is the largest employer in the region with over 6,300 employees.

Education is an influential piece of the area economy as well. Valdosta State University has seen substantial growth in the past decade and its current enrollment of 14,000 students makes it one of the largest universities in Georgia. The university employs 1,500 individuals, and combined with city and county school employees, the public education system supports a total of more than 4,000 employees.


DEMOGRAPHICS


SUMMARY 1 MILE 3 MILES 5 MILES

Population - 2017

Avg. Household Size

Median Age

Avg Household Income

6,158

2.3

27.6

$37,604

31,324

2.3

30.7

$48,089 $51,130

30.6

2.4

65,257

15

3350 Riverwood Parkway, Suite 700Atlanta, GA 30339

thenetleasegroup.com

EXCLUSIVELY MARKETED BYPhilip WickstromManaging [email protected]

Esmael HillManaging [email protected]

Chandler AmersonSenior [email protected]


Valdosta, GA

Documents

Transcript of Valdosta, GA