Like Panera Bread? Here’s a Taste of Its Real Estate

Panera Bread restaurants are among the hottest fast casual properties to own.

The chain has more than 2,000 locations in the U.S and Canada and continues to expand. Panera typically signs net leases for freestanding property, but has been broadening out its search of late. Under those leases, tenants cover most of the property operating expenses and pay the owner rent that produces an annual return on investment known as a capitalization, or cap, rate.

Barry Wolfe, a net least broker with Marcus & Millichap said he has 10 Panera properties under contract now, a few of which that haven’t opened yet.

“It’s a brand people really understand and respect,” Wolfe said.

Here’s a sampling of the Panera properties on the market now:

1001 S. Beacon Blvd., Grand Haven, Michigan: $2.7 million, 5% cap rate

The location is under construction and replacing a Great Lakes Greek Chili Dogs in a shopping center. Grand Haven is on the eastern shore of Lake Michigan roughly 35 miles west of Grand Rapids.

Panera is already in the center but moving to the freestanding building, which is scheduled to open in January.

On this deal, an investor is buying the real estate underneath the building and getting a 15-year initial lease with 10% rent bumps every five years. The lease is guaranteed by the franchisee, which owns 26 Panera restaurants in Michigan and Indiana.

5158 state Highway 42., Garner, North Carolina: $3.53 million, 4.75% cap rate

The Panera Bread is scheduled to open next month in place of an Applebee’s. Panera bought the site in May for $1.7 million from Applebee’s and bulldozed the building to construct a new one.

With this location, the investor would own both the building and the dirt under it. It comes with a 15-year lease backed by Panera Bread with 8% increases every five years.

Garner is about 17 miles south of Raleigh along Interstate 40.

815 N. Westover Blvd., Albany, Georgia: $2.5 million, 5.35% cap rate

The 3-year-old location involves a ground lease that has about 10 years remaining on it. There are three options to renew.

It’s an outparcel in the Albany Square Shopping Center, which includes Publix, Hobby Lobby, Petsmart and Target.

Albany is in southwest Georgia, home to a MillerCoors brewery and Marine Corps Logistics Base Albany.

2400 W. Jefferson St., Joliet, Illinois: $4.45 million, 5.25% cap rate

This is another former Applebee’s location. Panera Bread’s 20-year lease is set to start on Jan. 1, with 10% rent bumpers every five years.

The property sits in a big retail area. A Walmart store is behind it, and a Menards grocery store is close. Saint Joseph Medical Center is about half a mile away.