Overview

Description

• Starbucks recently signed a new 10-year lease with 6 (5-year) options to extend, demonstrating their long-term commitment to the site
• 2023 construction which features high-quality materials, high-level finishes, and distinct Starbucks design elements
• The lease is corporate signed by Starbucks, an investment grade (S&P: BBB+), nationally recognized, and established firm with over 38,000 stores
• The lease features 5% rental increases at the beginning of each option, generating NOI and providing an adequate hedge against inflation
• Tenant pays for taxes, insurance and maintains most aspects of the premises
• Limited landlord responsibilities to roof, structure, foundation, and electrical systems
• Ideal, low-management investment for a passive investor

• Starbucks is ideally located at the signalized intersection of US Highway 321 and 2nd Avenue NW averaging a combined 52,300 VPD
• The immediate trade area is supported by surrounding retailers such as McDonald’s, Dunkin’, Walmart Neighborhood Center, Wendy’s, and more
• The site is equipped with a double drive-thru lane, allowing for Starbucks to maximize efficiency and productivity at this location
• For Q4 2023, net revenues were up 11% to a record $9.4B, while comparable store sales were up 8% globally, 8% in North America, and 5% internationally
• The company opened 816 net new stores in Q4 2023, ending the period with 38,038 stores: 52% company-operated and 48% licensed
• Starbucks’ CEO said, “We finished our fourth quarter and full fiscal year strong, delivering on the higher end of our full-year guidance.”
• Fiscal year 2023:
• Global comparable store sales increased 8%, driven by a 5% increase in average ticket and 3% increase in comparable transactions
• North America and U.S. comparable store sales increased 9%, driven by a
6% increase in average ticket and 3% increase in comparable transactions
• International comparable store sales increased 5%, driven by a 5% increase in comparable transactions
• More than 67,000 residents and 56,000 employees support trade area
• $82,530 average household income

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