McAllen, TX - Starbucks

Description:

SRS National Net Lease is pleased to offer the opportunity to acquire the fee simple interest (land & building ownership) in a NN+ leased, drive-thru equipped, corporate signed, Starbucks investment property located in McAllen, TX. The tenant, Starbucks Corporation, recently signed a brand new 10-year lease with 4 (5-year) option periods to extend, demonstrating their long-term commitment to the site. The lease features a 10% rental increase after year 5 followed by 7.50% rental increases at the beginning of each option period, growing NOI and hedging against inflation. The lease is signed by the corporate entity (NASDAQ: SBUX | S&P: BBB+) and is NN+ with limited landlord responsibilities, making it an ideal, low-management investment opportunity for a passive investor. Founded in 1971, Starbucks is the premier roaster and retailer of specialty coffee with nearly 39,000 operating locations worldwide.

Starbucks is strategically located at the signalized, hard corner intersection of Nolana Avenue and Ware Road, averaging a combined 54,200 vehicles passing by daily. The asset also benefits from nearby access onto Interstate 2 and Interstate 69C, making it a centralized location with easy commutes. The property is ideally situated within a dense retail trade area with many national surrounding tenants including Target, Walmart Supercenter, Dutch Bros Coffee, Chick-fil-A, AutoZone, McDonald’s, and others. The dense trade area drives a loyal, local consumer base to the area, promoting crossover exposure and contributing to the local economy. The property is near numerous single-family communities and multi-family complexes including Orchid Place (78 units), Evergreen Square (80 units), Hibiscus Village (96 units), and others, providing a direct residential consumer base. The 5-mile trade area is supported by over 225,400 residents and 115,700 daytime employees, with a healthy average household income of $87,811.