starbucks - loopnet · starbucks via, frappuccino, starbucks doubleshot, starbucks refreshers, and...
TRANSCRIPT
O F F E R I N G
M E M O R A N D U M
S T A R B U C K S
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Patrick K Conway
West LA
(310) 909-2386
I N V E S T M E N T S U M M A R Y
Starbucks is currently operating under a twenty year absolute triple net
ground lease. The asset benefits from its location on Palmdale Road,
which sees daily traffic counts exceeding 28,000 vehicles per day.
Surrounding retailers in the immediate area include Taco Bell, Holiday
Inn, Enterprise Rent-A-Car, Hyundai, Ford and numerous restaurants
and banks.
Victorville is located at the southwestern edge of the Mojave Desert, 81
miles northeast of Los Angeles, 34 miles south of Barstow, 48 miles east
of Palmdale, and 37 miles north of San Bernardino through the Cajon
Pass on Interstate 15. Victorville is the location of offices of the "Mojave
Desert Branch" of the San Bernardino County government. Victorville is
the home of the Southern California Logistics Airport (SCLA). The SCLA is
a 2,500-acre world class aviation and air cargo facility serving
international and domestic needs. The airport can accommodate all
current flying commercial and military aircraft with a 24-hour per day
tower operation and emergency response capabilities comparable to
the world's largest airports. The SCLA employs over 2,000 employees.
I N V E S T M E N T H I G H L I G H T S
• Absolute NNN Lease
• Corporate Guarantee
• Over 100,000 People Within a Three Mile Radius
• Close to the Interstate 15, which sees 89,000 Vehicles Per Day
• 10% Increases Every 5 Years and in Option Periods
I N V E S T M E N T O V E R V I E W
O F F E R I N G S U M M A R Y
P R I C E $2,475,000
N O I $108,900
C A P R A T E 4.4 %
P R I C E / S F $1,289.06
R E N T / S F $56.72
L E A S E T Y P E NNN
G R O S S L E A S A B L E A R E A
( G L A )
1,920 SF
Y E A R B U I L T 2007
L O T S I Z E 0.26 ACRES
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L E A S E S U M M A R Y
Property Subtype Net-Leased Restaurant
Tenant Starbucks
Rent Increases 10% Every Five Years
Guarantor Corporate Guarantee
Lease Type NNN
Lease Commencement 9/1/2007
Lease Expiration 8/31/2027
Lease Term 20 Years
Term Remaining on Lease 9 Years
Renewal Options Three Ten-Year Options
Landlord Responsibility CAM (Gets reimbursed by
tenant)
Tenant Responsibility Insurance, Property Taxes,
Maintenance
Right of First Refusal/Offer Yes
L E A S E S U M M A R Y
P R O P E R T Y S U M M A R Y
Property Starbucks
Address 15327 Palmdale Rd., Victorville, CA 92392
Price $2,475,000
Net Operating Income $108.900
CAP Rate 4.4%
Year Built 2007
Gross Leasable Area 1,920 SF
Zoning N/A
Type of Ownership Ground Lease
Lot Size 0.26 Acres
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T E N A N T P R O F I L E
Tenant Starbucks
Lease Guarantor Corporate
Ownership Public
Years in Business 43 Years
Credit Rating A
Number of Locations 23,187 Worldwide
Headquarters Seattle, WA
Website www.starbucks.com
T E N A N T O V E R V I E W
Starbucks Corporation operates as a roaster, marketer and
retailer of specialty coffee worldwide. The company operates in
four segments: Americas; Europe, Middle East and Africa; China/
Asia Pacific; and Channel Development. The company’s stores
offer coffee and tea beverages, packaged roasted whole bean
and ground coffees, single serve products, and juices and
bottled water. Its stores also provide fresh food offerings; ready-
to-drink beverages; and various food products, such as pastries,
breakfast sandwiches and lunch items, as well as beverage-
making equipment and accessories. In addition, it licenses the
rights to produce and distribute Starbucks branded products to
The North American Coffee Partnership with the Pepsi-Cola
Company, as well as licenses it trademarks through licensed
stores and grocery and national foodservice accounts. The
company offers its products under the Starbucks, Teavana, Tazo,
Seattle’s Best Coffee, Evolution Fresh, La Boulange, Ethos,
Starbucks VIA, Frappuccino, Starbucks Doubleshot, Starbucks
Refreshers, and Starbucks Discoveries Iced Café Favorites brand
names.
Starbucks Corporation is an American coffee company and
coffeehouse chain. Starbucks was founded in Seattle,
Washington in 1971. As of 2018, the company operates 28,218
locations worldwide. Starbucks is considered the main
representative of "second wave coffee", initially distinguishing
itself from other coffee-serving venues in the US by taste, quality,
and customer experience while popularizing darkly roasted
coffee. Since the 2000s, third wave coffee makers have targeted
quality-minded coffee drinkers with hand-made coffee based on
lighter roasts, while Starbucks nowadays uses automated
espresso machines for efficiency and safety reasons.
T E N A N T P R O F I L E
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L O C A T I O N A E R I A L
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A R E A O V E R V I E W
V I C T O R V I L L E , C A L I F O R N I A
Victorville is located at the southwestern edge of the Mojave Desert, 1 milesnortheast of Los Angeles, 34 miles south of Barstow, 48 miles east of Palmdale and37 miles north of San Bernardino through the Cajon Pass on Interstate 15. Victorvilleis the location of offices of the “Mojave Desert Branch” of the San BernardinoCounty government. Victorville is bordered by Apple Valley on the east, Hesperiaon the south, and Adelanto on the west. The Mojave River flows sporadicallythrough Victorville. The elevation at City Hall is approximately 2,950 feet above sealevel.
Victor Valley College is a community college in the southeast corner of Victorville,CA. The Victor Valley Community College district includes Victorville, Hesperia,Apple Valley, Phelan, and Adelanto. The campus has approximately 12,000students enrolled and offers nearly 40 major courses of study. According to theUnited States Census Bureau, the city has a total area of 73.7 square miles- 73.2square miles of land and 0.6 square miles of water. The total area is 0.76%of water.
Southern California Logistics Airport (SCLA), also known as the Victorville Airport islocated in the city of Victorville in San Bernardino County, California,approximately 20 miles north of San Bernardino. The SCLA is a 2,500-acre world-class aviation and air cargo facility serving international and domestic needs. Theairport can accommodate all current-flying commercial and military aircraft with a24-hour per day tower operation and emergency response capabilitiescomparable to the world’s largest airports. The airport is also home of the SouthernCalifornia Aviation, large transitional facility for commercial aircraft.
U.S. Route 66 (US 66 or Route 66), also known as the Will Rogers Highway andcolloquially known as Main Street of America or the Mother Road, was one of theoriginal highways within the U.S. Highway System. Route 66 was established onNovember 11, 1926, with road signs erected the following year. The highway,which became one of the most famous roads in America, originally ran fromChicago, Illinois through Missouri, Kansas, Oklahoma, Texas, New Mexico, andArizona before ending at Santa Monica, California, covering a total of 2,448 miles.
A R E A D E M O G R A P H I C S
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1 Miles 3 Miles 5 Miles
POPULATION
2022 Projection 10,112 102,865 201,731
2017 Estimate 8,863 90,683 177,930
2010 Census 8,318 85,746 166,409
2000 Census 5,873 55,069 98,435
INCOME
Average $47,442 $54,472 $61,881
Median $33,872 $42,807 $49,770
Per Capita $17,041 $16,339 $18,033
HOUSEHOLDS
2022 Projection 3,630 30,963 59,159
2017 Estimate 3,161 27,043 51,638
2010 Census 2,967 25,642 48,060
2000 Census 2,324 18,151 32,175
HOUSING
2017 $111,096 $138,284 $160,474
EMPLOYMENT2017 Daytime Population
11,083 87,231 157,339
2017 Unemployment
7.84% 7.61% 7.06%
2017 Median Time Traveled
31 34 36
RACE & ETHNICITY
White 44.74% 45.09% 50.03%
Native American 0.45% 0.39% 0.43%
African American 18.72% 15.72% 13.67%
Asian/Pacific Islander
3.34% 4.16% 4.03%
Net Leased DisclaimerMarcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows:
The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of thisinformation, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about theaccuracy or completeness of any information provided.
As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase.This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a duediligence examination of this Property for Buyer.
Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The valueof a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors.
Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with thesuitability of the property for your needs.
Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documentsrelated to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the leaserate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, orcomparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material termsof the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer isresponsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating areplacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenantconsidering the location of the property, and Buyer’s legal ability to make alternate use of the property.
By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost, expense, or liability arisingout of your investigation and/or purchase of this net leased property.
Confidentiality and DisclaimerThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichapand should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary,unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for athorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for thesubject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminatingsubstances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects ofany tenant, or any tenant's plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources webelieve to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigationregarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must takeappropriate measures to verify all of the information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus &Millichap. All rights reserved.
Non-Endorsement NoticeMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation's logo orname is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product,service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.
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