Hanley Investment Group Real Estate Advisors has arranged the sale of a new construction, single-tenant, drive-through location occupied by a relocated Panera Bread at East Peoria, Illinois’s The Levee District. The sale price was $3.5 million, representing a record price for a single-tenant Panera Bread in the Midwest.
Hanley Investment Group executive vice presidents Jeff Lefko and Bill Asher represented the seller, Cullinan Properties, based in East Peoria. David Rush of CBRE in Oxnard, California, represented the buyer, a private investor from Santa Barbara, California.
Panera occupies a new 4,380-square-foot, drive-through prototype building with a new, long-term triple-net lease with increases every five years. Built in 2020, the building is shadow-anchored by Target, situated on 0.80 acres at 460 West Washington Street at the corner of West Washington Street and Clock Tower Drive in The Levee District.
In addition to Target, the 650,000-square-foot, mixed-use center and major shopping destination is home to anchor retailers Costco, ULTA Beauty, Ross Dress for Less and ALDI. There are a variety of dining options at The Levee District besides Panera Bread including Red Robin, Potbelly Sandwich Shop, Chipotle Mexican Grill, Jersey Mike’s and Panda Express. The development is also comprised of a 137-room Holiday Inn & Suites.
“Store sales for Panera Bread are substantially higher in locations with a drive- through, which was a significant characteristic of the property that made the investment very attractive given the current market conditions due to COVID-19,” Asher said. “According to industry reports, 65 to 70 percent of business for quick-serve restaurants is now generated via the drive-through and has continued to increase in the last five months during the pandemic.”
“We procured multiple qualified offers and ultimately secured a California-based 1031 exchange buyer that paid a premium price and opened escrow prior to Panera Bread formally opening for business,” Lefko said.