Temecula, CA - Starbucks

Description:

SRS National Net Lease Group is pleased to offer the opportunity to acquire the fee simple interest (land & building ownership) in a freestanding, newly built, NN leased, Starbucks investment property located in Temecula, California. The tenant, Starbucks Corporation (NASDAQ: SBUX | S&P: BBB+), Inc recently signed a brand 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 option periods, thereby growing NOI and hedging against inflation. Minimal landlord responsibilities making it an ideal investment opportunity for a passive investor (see page 18 for more details).

Starbucks is strategically positioned as an outparcel at a signalized entry to a grocery-anchored shopping center. The asset is situated along Ynez Rd., a major retail and commuter thoroughfare, with an average of 35,300 vehicles passing by daily. The property benefits from its proximity to the on/off ramps to Interstate 15 (174,000 VPD). The recently built building features a drive-thru, and, on average, stores with drive-thrus experience higher sales than those without. The asset is directly across from Temecula Town Center, a popular shopping destination serving 3.7 million visitors annually (per Placer.ai). The center’s tenants include Target, Vons, CVS, HomeGoods, and more. Starbucks, located within a dense retail corridor, is in close proximity to various national/credit tenants, including Costco, Albertsons, Lowe’s, Macy’s, Dick’s Sporting Goods, and Big Lots. Strong tenant synergy enhances consumer draw to the immediate trade area and promotes crossover store exposure for the site. The 5-mile trade area is supported by over 166,000 residents and 78,000 employees, providing a direct consumer base from which to draw. Residents within 5 miles of the property boast an affluent average household income of $142,866.