3511 South 27th Street in Milwaukee, Wisconsin, a high-profile investment property with a long-term corporate tenant now available for Sale from PARADIGM.
Full info sheet HERE.
A 4,300-square-foot retail building with a drive-thru, leased to Panera, is now available on South 27th Street in Milwaukee, Wisconsin. The property has a corporate lease with Panera, with almost 12 years remaining and several renewal options. There are 10% rent increases] every five years, with Seller to carry forward 2026 renewal rate upon closing.
Located about 4 miles south of downtown Milwaukee in a prime retail area anchored by the renowned 931-bed Aurora St. Luke’s Medical Center, the site benefits from excellent traffic exposure and demographics. The area has 384,953 residents within a 5-mile radius with an average household income of $78,550, making this an excellent net lease investment opportunity.
Offering Summary:
- Building Size: 4,300 SF
- Land Size: 0.72 Acres
- Tax Key Number: 5530772000
- Ownership Type: Fee Simple
Property Description:
- HVAC: (4) Four | Lennox gas-fired units and rooftop exhaust fans
- Construction: Decorative Masonry
- Year Built: 2020
- Zoning: LB-1
- Restrooms: (2) Two
- Sprinkler: Yes
- Power: 3-phase, 800 amp service (TBV)
- Signage: Prominent monument & building façade
- Drive Thru: Yes
- Outdoor Café Seating: Yes
Financial Summary:
- Price: $3,300,000
- Price PSF: $767.44
- Occupancy: 100%
- NOI (Current) / Year 4: $163,400 (before sale)
- NOI (Pro Forma) / Year 5: $179,740 (upon sale)*
- CAP Rate (Pro Forma / Year 5): 5.45% (upon sale)*
- Average CAP Rate: 5.67% (remaining term)
*Seller to carry forward 2026 renewal rate upon closing
We obtained the following information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent the current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction. Photos subject to copyright.
PANERA BREAD INVESTMENT OFFERING
LONG-TERM LEASE WITH RENT INCREASES
- 2020, Panera signed a 15-year lease with 10% rent increases every 5 years, including options. This enhances investment yield and guards against inflation.
- Panera, a top bakery-café chain with over 2,000 locations and $5 billion in annual sales, was acquired by JAB Holding Company in 2017, a German firm with a “BBB+” S&P credit rating.
NEW BUILDING WITH DRIVE-THRU
- Newly built to Panera’s latest standards in 2020, featuring a drive-thru.
- Located on an outparcel with a transferable 20-year roof warranty.
NEAR AURORA ST. LUKE’S MEDICAL CENTER
- Half a mile from Wisconsin’s largest hospital, Aurora St. Luke’s, with 931 beds and $6.154 billion in annual revenue, ensuring a steady customer base
DENSE POPULATION WITH HIGH INCOMES
- Over 197,654 residents within 3 miles, average household income $73,946.
- Within 5 miles, 384,953 residents, average household income $78,550, supporting long-term value.
EXCELLENT TRAFFIC, ACCESS & VISIBILITY
- Located near a busy intersection with nearly 47,000 vehicles daily.
- Easy access and high visibility with multiple entry points.
PRIME RETAIL LOCATION
- In a retail corridor next to a shopping center with Ross, Marshalls, and Michael’s.
- Surrounded by major retailers like Walmart, Kohl’s, Walgreens, and
Planet Fitness, attracting many customers.
Tenant Profile
Panera began in 1987 as St. Louis Bread Company, a humble community bakery founded with a sourdough starter from San Francisco and a dream of putting a loaf of bread in every arm. While Panera has expanded well beyond St. Louis since then, that same sourdough starter is still used in their iconic sourdough bread and the craft of baking bread fresh each day remains at the heart of Panera Bread. Each day trained bakers fill the bakery shelves with delicious freshly baked cookies, pastries, bagels, and a range of breads from focaccia to classic baguettes.
Panera believes in serving delicious, freshly prepared, Clean food made with carefully selected ingredients that they are proud to serve their own families. The menu, crafted by chefs and bakers, features classic, comforting dishes, each with an intriguing twist.
Panera respects our planet and takes measures to lessen their impacts. They believe in treating people with warmth, kindness, and respect, whether it’s a guest in Panera café or one of their associates. They believe in helping local communities, especially in times of need.
Panera also focused on improving quality and convenience. With investments in technology and operations, they offer omni-channel access to Panera favorites – like mobile ordering, catering, and Rapid Pick-Up® for to-go orders, Curbside pick-up and delivery – all designed to make things easier for guests.
Today, Panera operates as both Panera Bread® or Saint Louis Bread Co./ St. Louis Bread Company in 48 states, the District of Columbia and Canada.
Panera Bread is privately held by JAB Holding Company. Panera Bread is part of Panera Brands, one of the largest fast casual restaurant platforms in the U.S., comprised of Panera Bread®, Caribou Coffee® and Einstein Bros.® Bagels.
Source: www.panerabread.com
LEASE ABSTRACT
- Tenant: Panera LLC
- Effective Date: August 1, 2021
- Original Lease Term: (15) Fifteen Years
- Lease Term Remaining: (12) Twelve Years
- Options: (3) Three, (5) Five-Year Options
- Lease Type: (NN) Double Net: Landlord reimbursed for all operating expenses
- Rental Increases: (10%) Ten Percent every 5 years
- Utilities: Tenant Responsibility
- Taxes: Landlord reimbursed for all property taxes by Tenant
Tenant’s Proportionate Share: 1.98% (of Center). Landlord pays these expenses and tenant reimburses landlord on a pro-rata basis.
Landlord Responsibilities: Landlord’s sole obligation to keep in good repair all Common Areas, common utility systems, and center service equipment including exterior lighting, structural and roof.
Tenant Responsibilities: All building repairs not Landlord’s responsibility, repair and replacements to all HVAC, electrical, plumbing and other mechanical systems.
More details regarding demographics; traffic counts; rent roll; income & expenses; cash flow analysis / investor perspective; etc. can be found in the full info sheet HERE.
