Pegasus Investments Real Estate Advisory Inc. and ParaSell, Inc., as exclusive investment sale advisors to Seller, are excited to offer the opportunity to acquire a fully leased, three-tenant asset in Columbus (Etna), Ohio (the “Property”). With nearly eight years of weighted average lease term (WALT) and anchored by high-quality national tenants [Chipotle, Jersey Mike’s, and Starbucks], the investment opportunity ensures long-term stability and consistent cash flow. The Property consists of two high-performing buildings: a standalone Starbucks with a drive-thru and a second, adjacent building housing both Chipotle and Jersey Mike’s, which also features a drive-thru. Both Chipotle and Starbucks are corporate-operated locations (NYSE: CMG and NASDAQ: SBUX), offering creditworthy, reliable tenants. One of the key advantages of this investment is the staggered lease expirations, with the earliest lease not set to expire until 2032. This staggered tenant rollover structure reduces rollover risk, enhancing the long-term security of the investment. Additionally, scheduled rent increases for both Chipotle and Starbucks within the next two years provide built-in revenue growth, further strengthening the Property’s NOI.
Columbus, Ohio, continues to demonstrate impressive growth, making it an attractive market for investment. The most recent U.S. Census population estimates highlight the region’s rapid expansion, with the Columbus metro area gaining 30,348 new residents in 2024, representing a 1.38% year-over-year growth rate. This growth rate outpaces both the national average (1.0%) and the Midwest average (0.6%), positioning Columbus as a standout city in the region. The 2024 growth rate was the highest recorded since 2017, placing Columbus among the fastest-growing cities in the U.S. This upward trend in population is further supported by major expansions from both local and global companies, contributing to the area’s continued economic development. With six of Ohio’s ten fastest-growing counties located in the Columbus region, including the top six statewide, the metro area is poised for sustained growth in both residential and commercial sectors.
In addition to its strong demographic growth, Columbus has become a major hub for tech and data center development. Microsoft’s recent acquisition of 623 acres of land in Pataskala, just three miles from the Property, further solidifies the region’s growing importance in the data center industry. Microsoft’s ongoing development of multiple data center campuses in the region, including a five-building campus near Columbus and another in Hebron, is part of a broader trend of tech companies investing heavily in the area. Other major tech firms, such as Amazon, Google, Meta, and CyrusOne, are also expanding their operations in Columbus, contributing to its emergence as a leading data center market. The Property benefits from its prime location along Hazelton-Etna Road, just off Exit 118 of I-70, a major east-west interstate connecting Columbus to Indianapolis and Pittsburgh. Furthermore, the Property is strategically positioned across from the $400+ million, 155-acre “310 Mixed-Use” development, which will introduce significant new commercial retail space, 800 residential units, and over 2.5 million square feet of flex industrial space. The project is expected to be fully completed by 2031.