Memphis, TN - Starbucks
$1,913,000
1420 Union Avenue, Memphis, TN 38104
5.75
Cap Rate
110,000
NOI
Details:
Description:
SRS Real Estate Partners is pleased to offer the opportunity to acquire the fee simple interest (land & building ownership) in a NNN leased, drive-thru equipped, investment grade (S&P: BBB+), Starbucks investment property located in Memphis, TN. The tenant, Starbucks Corporation, has over 4 years remaining on their initial term with 4 (5-year) option periods left to extend. The lease features a 10-15% rental increase at the beginning of each option, growing NOI and hedging against inflation. The lease is signed by the corporate entity and is NNN with limited landlord responsibilities, making this an ideal, low-management investment opportunity for a passive investor. Founded in 1971, Starbucks is the premier roaster and retailer of specialty coffee with over 40,000 locations worldwide.
Starbucks is strategically located along Union Avenue with clear visibility and access to an average of 23,600 vehicles passing by daily. The asset is also a quick
7-minute drive into Downtown Memphis via Interstate-69 (98,300 VPD), making this an ideal, centralized location with easy commutes for both employees and customers. The freestanding building is complete with a drive-thru to maximize both sales and convenience to the dense customer base immediately surrounding the site. On average, stores with drive-thrus experience higher sales than those without. The property is ideally situated within a dense retail corridor with many surrounding national/credit tenants including The Home Depot, Kroger, O’Reilly Auto Parts, Walgreens, and others. Strong tenant synergy increases consumer draw
to the immediate trade area and promotes crossover store exposure for the site. In addition, the site is within walking distance to Le Bonheur Children’s Hospital (255 beds), Methodist University Hospital (583 beds), Regional One Health (631 beds), and other medical practices, making this site a convenient lunch option for patients or faculty. Furthermore, the property is within close proximity to numerous single-family communities and multi-family complexes including Azur Tower (118 units), The Bristol on Union (220 units), Madison Midtown Apartments (220 units), and more, providing a direct residential consumer base from which the site can draw. The 5-mile trade area is supported by over 186,600 residents and 136,200 daytime employees, with an average annual household income of $76,629.
Location
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