Overview

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, newly constructed, investment grade (S&P: BBB+), corporate guaranteed (NYSE: SBUX) Starbucks investment property located in Barstow, California. The tenant, Starbucks Corporation, recently signed a new 10 year lease with 4 (5-year) options to extend, demonstrating their commitment to the site. The lease features 10% 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 minimal landlord responsibilities making it an ideal, limited-management investment opportunity for a passive investor.

The asset is located at the signalized, hard corner intersection of East Main Street and Interstate Highway 15 with a combined 130,000 vehicles passing daily. Starbucks will benefit tremendously from nearby access to points of ingress/egress to Interstate-15 (80,000 VPD), a major north-south highway. Barstow is one of the top markets in the nation for QSR performance due to the frequency of commuter traffic passing through daily. The city boasts multiple fast food retailers scoring in the 98th percentile in the nation, including Popeyes, McDonald’s, Del Taco, and Denny’s (per Placer.ai). The property is nearby the Sunrise Vista Apartments (156 units), Sunset Pointe Apartments (144 units), Villa Vista Apartments (136 units), 10 hotels, and the Barstow Community Hospital. Starbucks will be equipped with a drive-thru, providing easy access and convenience for customers. The 5-mile trade area is supported by a population of over 29,700 and 8,000 employees with an average household income of $73,971.

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