Scooter's Coffee

Investment Overview

Prime Net Lease is pleased to offer the opportunity to acquire the fee simple interest in a Scooter’s Coffee. The subject property was originally built in 2019. Due to its excellent location, Scooter’s Coffee decided to build the structure and sign a brand new 10-year ground lease. The original lease has almost 7 years remaining on its initial term, which commenced on January 12, 2019. This gross land lease has 10% rental increases every 5 years and grants the Tenant four successive options to extend the lease. Each option is for five years and includes the aforementioned 10% annual rental increases. The Property has excellent visibility and is conveniently situated on a large corner lot along the U.S 183 Hwy and U.S-34. U.S Route 34 and Hwy 183 are main corridors in the area and see very heavy traffic on a daily basis. Nationally recognized tenants such as McDonald’s, Family Dollar, Subway, Dairy Queen, Sonic Drive-In, O’Reilly Auto Parts, and Dollar General surround the property, further driving consumers to the area. This specific location offers a healthy amount of time remaining on the lease, excellent corner lot visibility, and minimal landlord responsibility. Scooter’s Coffee, headquartered in Omaha, NE has close to 500 locations across 24 states. Founded in 1998, Scooter’s Coffee now employs over 110,000 people across its many locations.

Investment Highlights

• LONG TERM LEASE – Approximately 13.5+ years remain on the initial lease term with three additional 5-year renewal options, providing long-term income potential through 2055.
• ABSOLUTE NNN GROUND LEASE – Tenant is responsible for taxes, insurance, CAM, maintenance and all aspects of the premises, providing zero landlord responsibilities and a passive investment.
• RENTAL INCREASES – The lease features 10% rental increases every five years throughout the initial term and at the beginning of each renewal option, providing a hedge against inflation.
• STRONG MULTI-UNIT FRANCHISEE – Lease is signed by Freedom Enterprises, LLC, an established Scooter’s Coffee franchisee operating more than 50 locations.
• HIGH TRAFFIC LOCATION – Strategically positioned along E Santa Fe Street with 40,000+ VPD and approximately half a mile from Interstate 35, which sees 106,000+ VPD.
• DENSE RETAIL CORRIDOR – Located across from the 625,000 SF Olathe Landing shopping center and surrounded by national retailers including Lowe’s, Planet Fitness, McDonald’s and more.
• STRONG DEMOGRAPHICS – More than 196,000 residents and 107,000 employees are located within five miles of the property, with average household incomes exceeding $135,000.
• MARKET DOMINANT COFFEE CHAIN – Scooter’s Coffee has been in business for more than 25 years, operates 900+ locations across 32 states, and has aggressive expansion plans for the next several years.