InvestCore Commercial Completes Sale of Panera Bread Retail Property in Garland, Texas
GARLAND, TEXAS (May 4, 2015) – InvestCore Commercial has successfully completed the sale of a 4,315-square-foot retail building in Garland that is triple-net leased to Panera Bread for $3.2 million. The 0.93-acre pad is located at 200 Town Center Blvd., directly adjacent to In-N-Out Burger. It is situated at the entrance to Firewheel Town Center, a more than 1-million-square-foot, main-street-style shopping center owned by Simon Property Group.
Panera Bread recently opened on Feb. 8. The popular fast-casual bakery-café holds a 15-year ground lease, with three, five-year options to extend at the property. Rent schedules include increases of up to 7.32 percent.
An out-of-state investor purchased the brand-new asset from Next Play Firewheel LLC in an all-cash, 1031 exchange transaction. The deal closed at a 4.25 percent cap rate. The seller was represented by Michael Campbell and Ed Colson, Jr, CCIM, co-founders and principals at San Diego-based InvestCore Commercial.
“This property is a prime example of a core asset selling at a competitive cap rate,” Campbell said. “There is still a large pool of investors seeking long-term security. The fast-casual restaurant segment in growing markets can provide the perfect opportunity for such an investment.”
Panera Bread earned the top spot on the “2015 Fast Casual Top 100,” a list of top restaurant chains, trends and technologies shaping the fast-casual segment. Garland ranks as the 12th largest population in Texas, with a projected annual growth of 1.22 percent from 2015 through 2020.
Notable neighboring tenants at the trophy Firewheel Town Center include Macy’s, AMC Theatres, Dillard’s and Dick’s Sporting Goods.