Drive-Thrus Remain High Performers During COVID
Drive-thru properties continue to perform well amid the restriction requirements put in place by COVID-19. One recent example is the single-tenant net lease Panera Bread located at 6439 Garth Rd. in Baytown that recently sold for $3 million.
This Panera Bread property has 12 years remaining on the primary lease. There are also four five-year renewal option periods with 10 percent rental escalations at the start of each.
The 4,552-square-foot net lease Panera Bread benefits from its location on a signalized hard corner along Hunt Road and Garth Road (33,580 vehicles per day) which is a primary north-south thoroughfare and has direct access to the Interstate 10 interchange (82,340 vehicles per day). The property is across from H-E-B and positioned directly south of San Jacinto Mall, currently under redevelopment to become a 1 million-plus-square-foot open air shopping center that will be anchored by Macy’s and JC Penney. There are 106,286 people living within five miles of the property with an average annual household income in excess of $76,157.
Randy Blankstein and John Feeney of The Boulder Group represented both sides in the transaction. The seller was a West Coast-based investment group and the buyer was a Texas-based real estate fund.
“The market for e-commerce resistant properties remains active,” says Feeney.