Panera Bread 3301 Watkins 4,364 SF Retail Building Durham, NC 27707 $5,053,000 ($1,157.88/SF) 4.75% Cap Rate

Northmarq, on behalf of ownership,, is pleased to offer the opportunity to acquire 3301 Watkins Road, Durham, NC (the "property"). The property is positioned at the heart of the Research Triangle in a best-in-class retail corridor with direct frontage along Durham-Chapel Hill Blvd / 15-501 (52K+ VPD) and immediate access to Interstate 40 (99K+ VPD). The property is located at the primary entrance to the Patterson Place Shopping Center, a retail complex anchored by The Home Depot and Kohl's, and the Crowne at 501, a brand-new 297-unit multifamily building. On the north side of Durham-Chapel Hill Blvd is New Hope Commons, a 467K SF shopping center anchored by Walmart and Best Buy and leased at 99.8% occupancy. The surrounding area is densely populated with over 7,000 apartment units within 1.5 miles of the property. AvalonBay Communities is developing a 930-unit community adjacent to New Hope Commons, directly across the highway from the property.
The property consists of a 4,364 SF building that is being redeveloped by Panera Bread with an estimated completion of Q1 2025. Panera Bread will be operating under a new 15-year Absolute NNN lease with zero landlord responsibilities and 10% rental escalations every 5 years. The property will be outfitted with a drive-thru lane and an outdoor patio area.
Panera Bread is a leading fast casual chain featuring chef-curated recipes, with 2,300 locations as of July 2024. Founded in 1987 and headquartered in Saint Louis, MO, Panera employs 140,000 people and generates $5 billion in annual revenue. Acquired by JAB Holding Company for $7.5 billion in 2017, the company has recently confidentially filed to go public via an IPO.
Situated roughly 5-miles from both Duke University and the University of North Carolina at Chapel Hill, the property provides convenient access to downtown Durham and the broader MSA via major highways I-40 and NC-147. The offering presents investors with an opportunity to acquire a trophy asset in an A+ location within the Research Triangle, a vibrant region anchored by Raleigh and Durham, NC, and home to over 2 million residents.