Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire the Panera Bread located at 207 Three Rivers Drive in Kelso, Washington. The property is offered at $3,458,000, representing a 5.35% cap rate on current annual rent of $185,000. At closing, the property will be subject to a brand-new 15-year NNN lease, with 10% rental increases every five years throughout the initial term and four additional five-year renewal options. The 4,500-square-foot building was constructed in 2017 on approximately one acre and features Panera’s modern prototype with a drive-thru. The franchisee has operated at this location for approximately nine years, and the property also includes 12 Tesla Supercharger stations. The restaurant is operated by Manna Development Group, one of Panera Bread’s largest franchisees, with approximately 160 Panera cafés across 11 states. The lease is guaranteed by Hanna Graham Investments. The property is positioned along Three Rivers Drive, Cowlitz County’s primary retail corridor, near the I-5 interchange and Three Rivers Mall. The surrounding commercial environment includes national retailers, restaurants and service providers, with nearby destinations including Target, Safeway and Regal Cinemas. The corridor serves consumers from Kelso, Longview and surrounding Southwest Washington communities. The surrounding trade area includes 39,613 residents within three miles and 78,835 residents within seven miles. Average household income is approximately $82,001 within three miles and $86,256 within seven miles, with both population and household income projected to increase through 2030. This offering is also available as part of a three-property Panera Bread offering, with additional 15-year NNN leased locations available in Michigan City, Indiana and Wyoming, Michigan, which may be acquired separately.