Austin, TX - Starbucks (2023)

Description:

SRS National Net Lease Group is pleased to offer the opportunity to acquire the fee simple interest (land & building ownership) in a NN leased, investment grade (S&P), drive-thru equipped Starbucks investment property located in Austin, Texas. The tenant, Starbucks Corporation, recently signed a brand new 15-year lease with 4 (5-year) options to extend, demonstrating their long-term commitment to the site. The lease features 8% rental increases every 5 years throughout the initial term and at the beginning of each option period, steadily growing NOI and hedging against inflation. The lease is NN with limited landlord responsibilities making it an ideal, low-management investment opportunity for a passive investor in a state with no state income taxes. Founded in 1971, Starbucks is the premier roaster and retailer of specialty coffee with over 33,000 locations worldwide.

Starbucks is strategically at the intersection of Farm to Market Road 620 and Steiner Ranch Boulevard, which serves over 45,000 vehicles per day. Located in a dense retail corridor, Starbucks is within close proximity to multiple national/credit tenants including Home Depot, Target, CVS, Walgreens, and more. Strong tenant synergy increases consumer draw to the immediate subject trade area and promotes crossover tenant exposure to the site. Furthermore, the asset is ideally positioned near multiple apartment complexes including Bridget at Ribelin Ranch (350 units), Bridge at Steiner Ranch, (302 units), Ellwood at Lake Travis (451 units), and more, providing a direct residential consumer base from which to draw. Moreover, the asset is located less than 3-miles south from Concordia University Texas (2,658 students), further increasing consumer traffic to the immediate trade area. Located just 14 miles from downtown Austin, the 5-mile subject trade area is supported by more than 76,000 residents and 23,000 daytime employees. Residents with in a 1-mile radius boast an extremely affluent average household income of more than $212,000.