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Ziggi's Coffee | 20 Year NNN Lease | Portland MSA

Rare Corporate Guarantee | Neighboring Safeway, Target & Walmart

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Active

Asking Price: $2,180,107
Address 

21003 SW Pacific Hwy, Sherwood, OR 97140

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Date Added
Feb 14, 2025
Days on Market
29 days
Time Since Last Update
8 days

Details

Property TypeRetail
SubtypeQSR/Fast Food, Restaurant
Investment TypeNet Lease
Investment Sub TypeAbsolute Triple Net (NNN)
Lease TypeAbsolute NNN
Tenant CreditCorporate Guarantee
TenancySingle
Brand/TenantZiggi's Coffee
Lease Term20 years
Lease Commencement10/01/2024
Lease Expiration09/30/2044
Remaining Term19.6 years
Square Footage633
Net Rentable (sq ft)633
Price/Sq Ft$3,444.09
Cap Rate6.50%
Occupancy100%
NOI$141,707
Units1
Year Renovated2024
Buildings1
Lot Size (acres)0.51
Rent Bumps7.50% every 5 years
Lease OptionsSix 5-Year Options
OwnershipPrivate
Sale ConditionFor sale by owner

Marketing Description

ZIGGI’S COFFEE

Ziggi’s Coffee offers a wide range of products to cater to various tastes and preferences.​ Their menu includes traditional coffee and espresso drinks such as lattes, cappuccinos, Americanos, and mochas.​ They also provide an assortment of blended drinks, including smoothies and frappes, as well as hot and iced teas, featuring specialty blends.​ In addition to beverages, Ziggi’s Coffee serves a variety of food items like breakfast sandwiches, pastries, muffins, and bagels.​ Customers can also enjoy specialty and seasonal drinks, such as flavored lattes and cold brews.​ For those looking to bring the Ziggi’s experience home, the chain offers retail products, including coffee beans and branded merchandise.​


LOCAL MARKET


SHERWOOD, OREGON

Sherwood, Oregon, is a family-friendly community known for its excellent public schools, scenic parks, and strong sense of community.​ Located about 17 miles southwest of Portland, it offers easy access to the metropolitan area’s amenities and job opportunities while maintaining a small-town charm.​ The city hosts popular annual events like the Robin Hood Festival and features numerous parks and recreational facilities, as well as proximity to the Tualatin River National Wildlife Refuge.​ Sherwood’s economy includes a mix of small businesses and retail shops, with many residents commuting to Portland.​ Additionally, it serves as a convenient base for exploring Oregon’s renowned wine country.​

SHERWOOD WINERIES

Sherwood, Oregon, situated in the heart of the Willamette Valley, is a prime location for wine enthusiasts, known for its high-quality Pinot Noir and other varietals.​ Notable wineries include Ponzi Vineyards, with its modern tasting room and stunning views; Hawks View Winery, offering sustainable wines and panoramic vistas of Mount Hood; Blakeslee Vineyard Estate, known for its estate-grown wines and welcoming tasting room; and Alloro Vineyard, a boutique winery with Italian-inspired charm.​ The diverse wine scene includes both established and family-owned vineyards, offering tours, events, and wine clubs.​ Sherwood’s proximity to other renowned wine regions like Dundee Hills enhances its appeal as a wine-tasting destination.​

PORTLAND MSA

Portland, Oregon, the state’s largest city, is known for its vibrant culture, progressive values, and scenic beauty.​ Located at the confluence of the Willamette and Columbia Rivers, it offers a dynamic urban experience with a thriving arts scene, extensive parks like Forest Park, and a renowned food and drink culture featuring numerous food trucks and craft breweries.​ Portland is celebrated for its environmental consciousness, featuring extensive bike lanes and public transportation.​ With a diverse economy and educational institutions like Portland State University, the city maintains a high quality of life while embracing growth and innovation.​

Investment Highlights

ZIGGI’S COFFEE | OVER 92 LOCATIONS | 200+ UNITS IN PIPELINE | SIGNIFICANT GROWTH PIPELINE

  • System-wide sales exceeded $40 million in 2023, demonstrating the brand’s robust market presence and financial health.

  • Ziggi’s Coffee currently operates over 92 locations and is expanding rapidly, reflecting strong growth and increasing brand recognition.

  • With over 200 new units in the construction pipeline, Ziggi’s Coffee is poised for substantial future expansion.

  • Same store sales are on the rise, indicating growing popularity and customer loyalty as the brand gains wider recognition.


LONG TERM 20 YEAR LEASE | CORPORATE GUARANTEE | ZERO LANDLORD RESPONSIBILITIES | HEDGE AGAINST INFLATION

  • The Tenant has a robust growth strategy, with over 200+ units planned for development indicating a strong commitment to the tenant's business model and expansion plans.

  • The lease is guaranteed by Ziggi's Coffee Corporate which is a rapidly expanding company with more than 92 current units and 200 units within the pipeline.

  • The tenant demonstrates healthy unit economics, with an average EBITDA margin of more than 18%, indicating efficient operations and strong profitability.

  • The Coffee Business Model is significantly more profitability than compared to the standard fast food restaurant profitability, thus committing to the success the tenant will have at the subject property. 

RARE CORPORATE GUARANTEE | FAST GROWING COFFEE BRAND WITHIN THE STATE OF OREGON | 200+ UNIT GROWTH PLAN

  • The lease is guaranteed by Ziggi's Coffee Corporate which is a rapidly expanding company with more than 92 current units and 200 units within the pipeline.

  • The property is secured with a brand new 20-year lease agreement, offering stability and long-term security for investors.

  • Rent Commencement in October of 2024. This commencement date ensures that the property is tenant-ready and revenue-generating from the outset.

  • The lease structure offers a hands-off investment, as the tenant is responsible for property maintenance, insurance, and taxes.

PORTLAND, OR MSA | SHERWOOD HIGHEST POPULATION GROWTH | HIGH AVERAGE HOUSEHOLD INCOME

  • Average household incomes are north of $124,000 in a 3-mile radius.

  • Average annual population increase of 3.05% from 2000 to 2022 higher than the national average.

  • The increasing cost of living in Portland is driving residents out of Portland and into surrounding markets like Sherwood as home prices are more affordable.

Valuation Calculator

Valuation Calculator

Loan Amount
$0.00
Annual Debt Service
$--
$--
Annual Cash Flow
$141,707.00
$11,808.92/mo

Valuation Metrics

0
DSCR
6.5%
Cap Rate
6.5%
ROI

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