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.
3
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 [email protected]: 415.274.2715CA DRE# 01440360
JUSTIN [email protected]: 415.274.7392CA DRE# 01895013
IN CONJUNCTION WITH KS LICENSED BROKER: Mark Arensberg Colliers [email protected]: 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
7
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 [email protected]: 415.274.2715CA DRE# 01440360
JUSTIN [email protected]: 415.274.7392CA DRE# 01895013
IN CONJUNCTION WITH KS LICENSED BROKER: Mark Arensberg Colliers [email protected]: 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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