Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, today announced the sale of Panera Bread, a 4,332-square foot net-leased property located in Chandler, AZ in the Chandler Viridian PRIMEGATE Fashion Center development by Arizona based WINLEE Development, according to Ryan Sarbinoff, regional manager of the firm’s Phoenix office. The asset sold for $4,315,000 which set national records for highest sale price, highest price per square foot and lowest cap rate for a Panera Bread. Panera is scheduled to open in July, 2017
Jamie Medress, Mark Ruble and Chris Lind, investment specialists in Marcus & Millichap’s Phoenix office, had the exclusive listing to market the property on behalf of the seller, WINLEE Development, the development arm of Winfield Lee Investments (Peter Nelson & Gary Emery, Principals). The buyer, a private investor, was secured and represented by Alexander Pildes, Michael Lombardi and Richard Gatto, investment specialists in Marcus & Millichap’s New Jersey office.
Panera Bread is located at 3141 W Frye Rd in Chandler, AZ and is a portion of the Chandler Viridian PRIMEGATE Fashion Center project. PRIMEGATE is the 24,000 sf collection of restaurants and retail that is a part of the $150,000,000, 25-acre Chandler Viridian mixed-use project being developed by the consortium of WINLEE, Hines, Alliance Residential & Concord Hospitality. The project is located at the NWC of the freeway Loops 101 & 202 interchange and prominently at the east main entrance to Macerich’s Chandler Fashion Center.
Jamie Medress commented, “The many records set by this sale, together with the number of offers received and a closing that took less than 30 days, validates not only the spectacular location of the underlying real estate, but also the developer’s idea to design something different featuring sleek architecture. We represent a lot of deals in more than 40 states, and I can tell you it’s not often one finds a project like this. You don’t usually see a development that has the confluences of being at the entrance to great super-regional luxury mall, being part of a massive mixed-use project with class-A office, polished limited-service hospitality, 10 acres of posh apartments, having exposure to more than 200,000 cars per day, being at the intersection of regional freeways, and yet still being anchored by adjacent big boxes like Costco and Super-Target and entertainment like the Harkins 20 Movie Theatres. You just don’t see an opportunity like this very often.”
Medress continues, “Everyone knows how the neighborhood demographics of Chandler and the Southeast Valley now rival that of Scottsdale and Paradise Valley, and most are aware of the explosive office growth in the surrounding Tempe Tech Center and Silicon Desert/Price Road Corridor areas, but many people may not realize that PRIMEGATE’s central location is at the bullseye of over 400,000 high-paying employment jobs and over 7,000 hotel rooms. All these together translate to compelling sales for restaurants and retailers, and for stable long-term real estate investment. We are excited that we were able to work with the WINLEE team on this deal.”
WINLEE’s Peter Nelson relayed, “We are obviously pleased with this transaction, and are very excited about the other users with whom we are working to round out the project. Given the high-profile nature of the real estate, we set out to do something somewhat architecturally unconventional in an effort to create a more unique experience and satisfy that void in the trade area. But the architecture and the great location just sets the tone, it is just the platform, the offering of diverse and unique users we are assembling is what really creates the energy and completes the vision of an amenity that is more satisfying and elevated than the typical offerings one might find elsewhere along the other mall frontages.”
LeDonna Spongberg of CBRE, the project’s leasing agent elaborates, “Panera is quite real estate savvy and quickly understood what the developer was accomplishing. While Panera is a large company, we felt that Panera Bread still fit within the project narrative given its focus on technology and Panera’s renowned dedication to a superior customer experience in an innovative and socially responsible fashion. They will be a great draw and will complement the other users with whom we are working, which I can’t wait to announce. ”
Architect: Reigle & Associates
Contractor: Wespac Construction
Leasing: CBRE, LeDonna Spongberg & Elaine Beeson
Financing: Alliance Bank
Counsel: Jason Donkersley, Berry Riddell, LLC