7 Brew (Ground Lease) - Lafayette, LA
7-Brew Ground Lease - $77,000 Rent | Outparcel to Kohl's and Albertsons
Marketing description
Porthaven Partners, on behalf of Ownership as its exclusive advisor, is pleased to offer for sale the ground lease located at 4310 Ambassador Caffery Parkway, Lafayette, LA (the "Property"). Encompassing ±510 SF, the Property represents brand-new 2025 construction and is occupied by 7 Brew Coffee, operating under a 15-year absolute NNN lease with zero landlord responsibilities.
The Lease also includes 10% rental increases every 5 years. This provides a significant boost to yield and hedge against inflation with two rental increases in the base term. The Lease carries a personal guaranty from the franchisee. 7 Brew is one of the nation's fastest growing drive thru coffee franchises with over 350 locations in 26 states since its founding in 2017. The company has contracted to open as many as 3,500 stores in the coming years.
The Property is ideally located in Lafayette, the 3rd largest MSA in Louisiana. It serves as a prominent outparcel in a shopping center anchored by Albertsons and Kohl's. The site is situated along Ambassador Caffery Parkway, which has a traffic volume of 45,842 vehicles per day, and connects to the Kaliste Saloom Road, where the traffic volume is 27,764 vehicles per day. The demographics within a 3-mile radius of the Property are outstanding, with over 63,000 residents and an average household income of $115,356. This income level is projected to grow by nearly 3% annually over the next five years within both the 3- and 5-mile radii.
Investment highlights
- Long-Term Absolute NNN Ground Lease – The Tenant is operating under a brand new 15-year absolute NNN ground lease with with over 13 years remaining and zero landlord responsibilities, providing long-term, passive cash flow in investors.
- Attractive Rent Increases – The Lease features rent increases of 10% every 5 years. These increases provide a hedge against inflation and a boost to overall equity recovery in the base term and options. Additionally, because of the 15-year term, this provides two rental increases in the base term.
- Personal Guaranty and Established Operator – The Property is operated by Flavored Ops Brew Krewe, LLC, which is part of the Brew Team operations. Flavored Ops Brew Krewe operates 9 units today with plans to open a total of 20 over the next few years. The Lease also includes a full personal guarantee from the operator.
- New 2025 Construction with Latest Drive-Thru Prototype – The Property represents brand new 2025 construction with 7 Brew's latest drive-thru prototype and an 18-car drive thru stack to serve a high-volume of customer traffic.
- Low Price and Exceptional Residual Value – The small price point allows investors entry into the coffee space for a smaller initial investment than competing concepts. Additionally, the low rent in combination with the affluent Lafayette MSA location, outparcel to Kohl's, and high-traffic frontage along Ambassador Caffery Parkway provide exceptional long-term residual value to investors.
- Prominent Outparcel to Crossroads Annex – The Property sits within the Crossroads Annex shopping center. The center is anchored by Kohl's and Albertsons and enjoys high visibility with multiple easy access points off Ambassador Caffery Parkway (46,842 VPD) including two signalized intersections at each end of the center. One of these intersections crosses with Kaliste Saloom Road (27,764 VPD).
- Near Major Traffic Drivers – The Property is an outparcel to Kohl's and is further surrounded by many national retailers such as Target (97th percentile nationally per Placer), Academy (97th percentile nationally per Placer), Albertsons (63rd percentile nationally per Placer), Kohl's (52nd percentile nationally and first within Louisiana per Placer), Ross, Starbucks (72nd percentile nationally per Placer), Checkers, Wendy's, and many more.
- Dense and Affluent Demographics – The Property is surrounded by 63K+ residents within 3 miles earning an average household income of $115K+. Over the next 5 years, Lafayette income growth is expected to be 3.27% within 1 mile.
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