D70 - OFFERING MEMORANDUM
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O FF E R I N G
MEMORANDUM
52
MASON OH
70
Kings Mill Road
52
MASON OH
Summary
70
Colliers International is pleased to offer the
opportunity to purchase a Panera Bread located at
Contacts 5270 Kings Mill Road, Mason, Ohio 45040.
This is a 11.8 year, Covelli Enterprises guaranteed lease of a recently
constructed Panera. This is a true passive investment, an absolute
Peter Block NNN lease offering, with zero landlord responsibilities or expenses.
Executive Vice President
There are healthy 10% rental increases every 5 years in the base
+1 847 384 2840
peter.block@colliers.com term of the lease and in the three, five-year options to renew.
This store sits in a very dense area just West of the major on off
Christian Pera
Associate ramps for I-71. The area is filled with many hotels, residential and
+1 847 384 2844 minutes from the local high school. Additionally, the site is immedi-
Kings Mill Road
christian.pera@colliers.com ately adjacent to the dominant grocer in the market-Kroger. The
Panera Bread sits on the outparcel to the very busy Shoppes of
BROKER OF RECORD Mason.
Justin Rex
Vice President The property is offered at $3,510,493 which translates.to a 5.50%
COLLIERS INTERNATIONAL cap rate.
425 Walnut Street, Suite 1200
Cincinnati, OH 45202 United 3
$3,510,493
Details PRICE
STRATEGIC LOCATION
› Sits Next to recently built Mason Grand | $45 Million 5.50%
C A P R AT E
Luxury Apartment Complex with 294-Units
› Less than One-Mile from One of the Largest Tennis Stadi-
ums in the World & Home of W&S Open
› Less than Two-Miles from Kings Island | Largest Amuse-
$1 93 ,07 7 *
NOI
ment Park in the Midwest | 2nd Most Visitors in US with
3.5M Annually
› Percent Population Growth and 71 Percent Household
Growth Since 2000 with 15 Percent Additional Growth
1L E1. 8 Y RS
ASE TERM REMAINING
Projected by 2024
› Located in a very dense area just North of major on off
ramps for I-78 1C O1.1. 201 7
› Numerous credit tenants surrounding site MMENCEMENT
› Strategically located on a hard corner with a lighted inter-
1E X1.3 0. 203 2
section
› Numerous retailers including Kroger, The UPS Store, PNC P I R AT I O N
Bank, Starbucks, CVS, McDonald’s, Chipotle, Popeyes,
Burger King and more.
STRONG INVESTMENT FUNDAMENTALS CA D Cap ital, LLC
GUARANTEE
› COVID & recession proof brand
› 10% rent bump in base term & options
› Strong recognized brand 1inc.0% every 5 years,
options
› 100% Fee Simple E S C A L AT I O N S
*as o f Nove m b e r 20 22 5
– s e l l e r w il l cre dit re n t
diffe re n ce
MASON GRAND LUXURY
APARTMENTS
Offering Details
PROPERTY DESCRIPTION
5270 Kings Mills Road
PROPERTY ADDRESS Mason, OH 45040
OFFERING PRICE $3,510,493 22,179
$193,077.13 * as of
NOI November 2022 – seller KINGS MILL
will credit rent difference S ROAD
CAP RATE 5.50%
LAND SIZE 1.81 acres
BUILDING SIZE 3,528 SF
YEAR BUILT 2017
LEASE SUMMARY
SINCLAIR COMMUNITY
COLLEGE
LEASE TYPE Absolute NNN
1
LEASE TERM REMAINING 11.8 Years KINGS HIGH SCHOOL
I-7
RENT COMMENCEMENT November 1, 2017 69,949
LEASE EXPIRATION November 30, 2032
RENEWAL OPTIONS Three, Five-year options
ESCALATIONS 10% every five years
NEXT RENT INCREASE November 1, 2027
LINDNER FAMILY
Retail Map
GUARANTOR CAD Capital, LLC TENNIS CENTER
7
COLLIERS INTERNATIONAL | OFFERING MEMORANDUM
About Covelli About Panera
CAD Capital, LLC is a subsidiary of Covelli Enterprises, Panera Bread Company is one of the top fast-casual
the largest franchisee of Panera Bread. At one time, chain restaurants in the United States and Canada,
Covelli was the largest franchisee of McDonald’s leading the industry in clean food, digital sales, custom-
restaurants, but in 1997 Covelli sold their interest in er loyalty, delivery and catering. Its headquarters are in
McDonald’s and shifted their focus to grow their Panera Sunset Hills, Missouri, a suburb of St. Louis, and SALES HEADQUARTERS
Bread holdings along with franchising Dairy Queen’s operates under the trade names of Panera Bread, Saint $6 billion Sunset Hills, MO
and O’Charley’s. Covelli operates over 300 Panera Louis Bread Company and Paradise Bakery & Cafe.
Bread locations in the United States and Canada. They
have 35 stores in the Carolinas, including 19 in South In the past 35 years, Panera has grown from one
Carolina, and 5 in the Charleston MSA. Covelli also 400-square-foot cookie store in Boston, Massachusetts,
operates the nearest Panera location on 1311 N. Main into an enterprise with 2,360 bakery-cafes, 140,000
Street in Summerville, demonstrating Covelli’s commit- associates serving approximately 9 million customers
ment to the area. Today, Covelli employs more than per week, with an estimated $6 billion in annual sales.
EMPLOYEES LOCATIONS
35,000 people across the UnitedStates and Canada. Panera remains at the forefront of food quality stan- 140,000 2,360
Financial Performance dards and transparency, all made with healthy, real
ingredients, prepared fresh daily.
The lease is guarenteed by CAD Capital, LLC, the parent
entity operates more than 125 Panera Bread stores in During it’s final 20 years as a public company, it was a
Ohio alone, and more than 250 stores across 8 states. best performing restaurant stock, delivering an 86-fold
CAD is well-positioned to cover financial obligations and return to shareholds from 1997 to 2017. In 2017, Panera
operate smoothly and profitably into the future. Covelli was acquired by JAB Holding, a privately held company OWNERSHIP TENANT
Enterprises represents expert operations and deep and investment arm of the Reimann family, focused on Public Covelli Enterprises
market knowledge necessary to produce successful long term investments in companies with premium
Panera Bread locations. brands, attractive growth and strong cash flow.
Awards & Recognition Panera Bread remains poised for continued growth and
long-term returns. In May 2018, the company intro-
2017 Franchisee of the Year - Panera Bread duced delivery services to 897 cities in 43 states,
employing its own drivers and creating an estimated
13,000 jobs. FOUNDED CREDIT RATING
1987 S&P BBB+
panerabread.com
Area Map99
Location Overview
Cincinnati is a major city in the state of Ohio, and is the government seat
of Hamilton County. Settled in 1788, the city is located at the northern
Demographics 3 minutes
side of the confluence of the Licking and Ohio rivers, the latter of which
marks the state line with Kentucky. The city drives the Cincinnati-Mid- 3,47
dletown - Wilmington combined statistical area, which had a population people
of 2,172,191 residents making it Ohio’s largest metropolitan area. With an
1,388
estimated population of 301,301 residents, Cincinnati is the third largest households
city in Ohio and 65th in the Unites States. Its metropolitan area is the
fastest growing economic power based on the increase of economic $120,663
average HHI
output. Cincinnati is also within a day’s drive of 49.70% of the United S
LE
States populace. MI
Economy 22
5270 KINGS MILLS RD, 5 minutes
Metropolitan Cincinnati has the 28th largest economy in the U.S. and the 7th largest in MASON, OH 45040 9,294
the Midwest. Several Fortune 500 companies are headquartered in Cincinnati, such as people
Procter & Gamble, The Kroger Company, and Macy’s Inc. General Electric has head-
quartered their Global Operations Center there as well. The Kroger Company employs 3,592
households
21,646 people locally, making it the largest employer in the city, and the University of
Cincinnati is the second largest at 16,000 employees and about 43,691 students $126,790
enrolled. Tourism is a strong, growing industry in the the region, helping the city’s average HHI
economy. The Cincinnati region hosted a record 26.6 million visitors in 2018 with
10 minutes
visitors spending, all together, roughly about $5.3 billion.
Contemporary Life
65,529
The city is home to the Cincinnati Zoo and Botanical Garden which is the second-oldest people
zoo in the U.S, opening in 1875. The city is also home to the Newport Aquarium that
has 70 exhibits and 14 galleries, including five seamless acrylic tunnels. The city 24,321
households
includes Coney Island Amusement Park which is a vintage park with bumper boats,
mini-golf & a massive pool. Cincinnati is home to 3 major league teams, seven minor $132,938
league teams, five college institutions with sports teams, and seven major sports average HHI
venues. Cincinnati’s three major league teams are Major League Baseball’s Red
Stockings, the Bengals of the National Football League, and FC Cincinnati, promoted to
Major League Soccer in 2019.
Area Map 11
Site Plan
Area Retail
13 13
13
Contacts
Confidentiality & Peter Block
Disclaimer Statement
Executive Vice President
+1 847 384 2840
peter.block@colliers.com
This Offering Memorandum contains select information pertaining to the business and affairs of the property at 5270 Kings Mills Rd, Mason, OH 45040. It has been
prepared by Colliers International. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The Christian Pera
information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is Associate
not to be used for any other purpose or made available to any other person without the written consent of Seller or Colliers International. The material is based in +1 847 384 2844
part upon information supplied by the Seller and in part upon financial information obtained by Peter Block from sources it deems reliable. Owner, nor their officers,
christian.pera@colliers.com
employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness or this Offering Memorandum or any of its
contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own
conclusions without reliance upon the material contained herein and conduct their own due diligence.
By acknowledging your receipt of this Offering Memorandum from Colliers International, you agree: BROKER OF RECORD
1) The Offering Memorandum and its contents are confidential; Justin Rex
2) You will hold it and treat it in the strictest of confidence; and
Vice President
3) You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the
interest of the Seller.
COLLIERS INTERNATIONAL
Owner and Colliers International expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property 425 Walnut Street, Suite 1200
and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written Cincinnati, OH 45202 United States
agreement for the purchase and sale of the Property has been fully executed and delivered.
If you wish not to pursue negotiations leading to the acquisition of the property at 5270 Kings Mills Rd, Mason, OH 45040 or in the future you discontinue such
negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.
A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the
sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a
prospective purchaser have any other claims against Seller or Colliers International or any of their affiliates or any of their respective officers, Directors, shareholders,
owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.
This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state
of affairs of the Property since the date this Offering Memorandum.
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