LENEXA, KS

SCOOTER’S COFFEE A 15-YEAR ABSOLUTE NNN GROUND LEASE IN THE KANSAS CITY MSA

2,616VPD

QUIVIR

A RO

AD

Retail Aerial

2

W 77TH STREET

27,159VPD

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

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Overview

SCOOTER’S COFFEE

6.25% CAP

$768,000 PRICE

7741 QUIVIRA RD, LENEXA, KS 66216

15-year absolute NNN investment (14.7 years left)

Ground lease ownership - zero landlord maintenance or expense responsibilities

10% rental increases every five years

2018 construction with a drive-thru

High incomes ($87,000) and density (213,000 residents)

Successful tenant with over 200 stores in 15 states

LEASABLE SF450 SF

LEASE TERM 15 Years

LEASE TYPEAbsolute NNN Ground Lease

LAND AREA0.66 Acres

RENTAL INCREASE10% every 5 years

YEAR BUILT2018

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

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Investment Highlights

CAPITAL PACIFIC is pleased to present the opportunity to acquire a Scooter’s Coffee in Lenexa, KS (Kansas City MSA). The subject property is new construction (2018) and features a 15-year NNN ground lease (14.7 years remaining) with 10% rent increases every five years, including through its option periods. The Tenant is a successful drive-thru coffee kiosk with over 200 locations in 15 states, and the lease is backed by Freedom Enterprises, the company’s largest franchisee with more than 45 locations in the Midwest.

Contact the team

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

JOHN ANDREINIjandreini@capitalpacific.comPH: 415.274.2715CA DRE# 01440360

JUSTIN SHARPjsharp@capitalpacific.comPH: 415.274.7392CA DRE# 01895013

IN CONJUNCTION WITH KS LICENSED BROKER: Mark Arensberg Colliers InternationalMark.Arensberg@colliers.comPH: 816.556.1107

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THE FREESTANDING PROPERTY features excellent visibility and curb appeal along Quivira Road, a major thoroughfare that directly connects to the nearby I-35 freeway. As such, the property benefits from daily traffic of nearly 24,000 VPD passing the store. Within the trade area there are a number of retail centers, office, and industrial parks which drive traffic to Scooters Coffee. The surrounding area of Lenexa is one of the most affluent and fastest growing suburbs in the Kansas City metro area, with average household incomes approaching $90,000 and population density over 213,000 within a 5-mile radius.

SCOOTER’S COFFEE HAS NEARLY 200 LOCATIONS IN 15 MIDWESTERN STATES

35

35

QU

IVIRA

ROA

DQ

UIV

IRA RO

AD

W 75TH STREETW 75TH STREET

25,140VPD

SCHOOL

MIDDLE SCHOOL JOHNSON

COUNTY

160,000 VPD

106,000 VPD

27,159VPD

5

AerialKANSAS CITY

(15 MILES)

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

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Surrounding Retail

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Income & Expense

PRICE $768,000 Capitalization Rate: 6.25%

Total Rentable Area (SF): 450

Lot Size (AC): 0.66

STABILIZED INCOMEScheduled Rent $48,000

Effective Gross Income $48,000

LESSTaxes NNN $0.00

Insurance NNN $0.00

Total Operating Expenses NNN $0.00

NET OPERATING INCOME $48,000

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

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Rent Roll

TENANT INFO LEASE TERMS RENT SUMMARY

TENANT NAME SQ. FT. TERM CURRENT RENT

MONTHLY RENT

YEARLY RENT

Scooter’s Coffee 450 9/1/2018 9/30/2033 $48,000 $4,000 $48,000

10/1/2023 10% Increase $4,400 $52,800

10/1/2028 10% Increase $4,840 $58,080

Option 1 10/1/2033 9/30/2038 $5,324 $63,888

Option 2 10/1/2038 9/30/2043 $5,856 $70,277

Option 3 10/1/2043 9/30/2048 $6,442 $77,304

TOTALS: 450 $48,000 $4,000 $48,000

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

BASE RENT

DATE RANGE MONTHLY RENT ANNUAL RENT

9/1/2018 - 9/30/2033 $4,000 $48,00010/1/2023 (10% Increase) $4,400 $52,80010/1/2028 (10% Increase) $4,840 $58,080

OPTION RENTS

DATE RANGE MONTHLY RENT ANNUAL RENT

#1. 10/1/2033 - 9/30/2038 $5,324 $63,888#2. 10/1/2038 - 9/30/2043 $5,856 $70,277#3. 10/1/2043 - 9/30/2048 $6,442 $77,304

RENT

TENANT Scooter’sCoffeeBUILDING SF 450 SFLEASE TYPE Absolute NNN Ground LeaseTERM 15 YearsRENT COMMENCEMENT September 1, 2018EXPIRATION September 30, 2033OPTIONS Three 5-year options

LANDLORD’S OBLIGATIONSZero Landlord obligations. Tenant pays directly for all CAM, tax, and insurance.

TAXESTenant pay taxes directly Tenant is responsible for all maintenance and repair to the entirety of the Premises, including all interior and exterior, structural and nonstructural repairs and replacement.

INSURANCETenant directly responsible for maintaining insurance policy with sufficient coverage (per lease).

UTILITIESTenant is responsible for direct payment of all utilities to the appropriate billing authority.

EXPENSES

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

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Lease Abstract

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Tenant Overview

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 10

Tenant Overview

A

Freedom Enterprises, LLC is the largest franchisee in the Scooter’s Coffee franchisee system. They have successfully built and operated more than 45 Scooter’s Coffee locations in Missouri, Kansas, Nebraska, and Iowa. The franchisee specializes in the drive-thru kiosk model, one of two proven store formats that Scooters Coffee has developed.

ABOUT THE FRANCHISEE

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Scooter’s Coffee, a chain of drive-thru coffee houses, began as a single location in Bellevue, Nebraska in 1998, and began franchising in 2001. Most of Scooter’s locations are drive-thru only, with no inside business, and only 450 square feet.The company offers a typical selection of coffee shop fare, with coffee and espresso-based drinks, served hot or cold, along with smoothies and teas. The chain also sells a selection of pastries, such as cinnamon rolls and muffins. Scooter’s roasts its own coffee and bakes its own pastries. 85% to 90% of Scooter’s sales come from beverages.As of today, Scooter’s Coffee is quickly approaching 200 locations in 15 states and has over 150 franchise commitments to build new stores. Scooter’s Coffee’s success over many years of history is very simple: Stay committed to the original business principles and company core values.

ABOUT SCOOTER’S COFFEE

LOCATIONS IN 15 STATES200

PYLON SIGN

QUIVIRA ROADQUIVIRA ROAD QUIVIRA ROAD

W 7

5TH

STR

EET

W 77TH STREET

27,159 VPD

160,000 VPD

25,140 VPD

35

35

ELEMENTARY SCHOOL

MIDDLE SCHOOL

Site Plan

11This site plan is a rendering that has been created based on sources we believe to be reliable. We make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

5SPACES

450RENTABLE SF

0.66ACRES

LENEXA

KANSAS CITY (21 MIN, 15 MILES)

POPULATION

1-MILE 3-MILES 5-MILES

2010 12,676 97,574 200,948

2018 13,611 101,468 213,019

2023 14,339 105,387 223,716

2018 HH INCOME

1-MILE 3-MILES 5-MILES

Average $79,107 $81,153 $87,000

THE AVERAGE HOUSEHOLD INCOME WITHIN A 5-MILE RADIUS

IS OVER $87K

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

Demographics

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KANSAS CITY MSA TOP EMPLOYERS

EMPLOYER # OF EMPLOYEES

Federal Government 18,744

Cerner Corporation 13,964

Children’s Mercy Hospitals & Clinics 8,123

Internal Revenue Service 4,600

City of Kansas City, MO 4,521

OVERLAND PARK

SHAWNEE

LEE’S SUMMIT

INDEPENDENCE

LIBERTY

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Location Overview

LENEXA, KANSAS

LENEXA is an affluent suburb 15 miles south of downtownKansas City, is located in Johnson County, Kansas. Lenexa is at the crossroads of four major highways. With access to Interstates 35, 435, US Highway 69, and Kansas State Highway 10, transportation in and out of the city is easy.

Johnson County has one of the highest levels of education attainment of any county in the nation. Johnson County ranked 1st among all U.S. counties with populations exceeding 250,000 in the percentage of adults with at least a high school education, 4th in percentage with at least a bachelor’s degree, and 19th with a graduate or professional degree. Each year, over 40,000 graduates from the area’s colleges and universities enter the labor force.

JOHNSON COUNTY’S population and economic growth rank in the top half of growing countiesasidentifiedbyFortunemagazineandin the top 2% of counties nationally. For the

past 50 years, Johnson County has led growth and development in the state of Kansas and the greater Kansas City area. Over the last decade, Johnson County has attracted over 120,000 jobs, 4,200 businesses and nearly 100,000 new residents.

ECONOMIC GROWTH

2.1 MILLION

KANSAS CITY MSA POPULATION (ESTIMATED)

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

KANSAS CITY

We’d love to hear from you.

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

JOHN ANDREINIjandreini@capitalpacific.comPH: 415.274.2715CA DRE# 01440360

JUSTIN SHARPjsharp@capitalpacific.comPH: 415.274.7392CA DRE# 01895013

IN CONJUNCTION WITH KS LICENSED BROKER: Mark Arensberg Colliers InternationalMark.Arensberg@colliers.comPH: 816.556.1107

CAPITAL PACIFIC COLLABORATES. CLICK HERE TO MEET OUR SAN FRANCISCO TEAM:

JOE CACCAMOJOHN ANDREINI

ZANDY SMITH

DAVE LUCAS

RICK SANNER JACK NAVARRA

CHRIS KOSTANECKIZEB RIPPLE CHRIS PETERS

JUSTIN SHARP JUSTIN STARK

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