Starbucks Drive-Thru | New 10 Year Lease

5211 W Shaw Avenue, Fresno, CA

$2,855,000

Price

4.3%

Cap Rate

$122,800

NOI

Overview
Cap Rate
4.3%
NOI
$122,800
Building Size
2,100 sqft
Lot Area
0.45 acres
Lease Type
Triple Net
Year Built
2019
Description

●Single-Tenant Corporate Starbucks Drive-Thru:
◦New 10-year lease with 10% rental increases every 5 years
◦Four 5-year options at 10% rental increases
◦Brand new 2019 construction
◦Corporate guaranteed lease (NASDAQ: SBUX; S&P: BBB+); approximately 30,000 stores in 78 countries
◦Rare concrete parking lot and drive-thru

●Favorable Cafe with Drive-Thru Format: Approximately 60%-70% of all business for quick-service restaurants come through the drive-thru; average Starbucks store sales are approximately 50% greater in locations that have a drive-thru

●Dominant Shaw Avenue and Highway 99 Freeway Location:
◦33,000 cars per day along Shaw Avenue, the main east/west thoroughfare in Fresno
◦Adjacent to Highway 99 (80,000 cars per day) with freeway visible signage
◦Highway 99 spans the length of California's Central Valley

●High Barriers to Entry and Limited Competition: The subject property will be the only Starbucks drive-thru east of Highway 99 in a 3-mile radius

●Strong Synergy with Neighboring Drive-Thru Tenants: QSR's in the immediate Vicinity include In-n-Out, McDonalds, Carl's Jr., and Taco Bell (coming soon)

●Close Proximity to Regional Universities: Within 5 miles from California State University, Fresno (24,000 students) and 13 miles from Fresno Pacific University (3,000) students)

●Dense San Joaquin Valley Demographics: Over 187,000 people within a 5-mile radius

●Regional Central Valley Location: Located in the center of the central valley; 200 miles north of Los Angeles and 170 miles south of Sacramento
◦Two of California's major north-south highways intersect the city, Interstate 5 and Highway 99
◦Interstate 5 connects Fresno with Mexico to the south and Canada to the north
◦Highway 99 spans the length of California's Central Valley, connecting Sacramento, Bakersfield, Delano, Tulare, Visalia, Fresno, Madera, Merced, Modesto, and Stockton, among others

●Economic Hub: Fresno is the economic hub of Fresno County and California's Central Valley
◦One of the top agricultural regions in the US
◦The country produces over 350 crops, contributing over $7 billion to the economy in 2018 and supporting 20% of all jobs in the Fresno area
◦Sun-Maid Expansion - Sun-Maid Growers recently announced that they are moving the company's corporate offices from Kingsburg and satellite offices from northern California to a new consolidated headquarters in Fresno this summer

●High Growth Location:
◦The population of Fresno has grown more than 44% since 2000 within a 1-mile radius of the property; projected growth of nearly 9% in the next 5 years
◦Number of households are projected to increase 11% in the next 5 years within a 1-mile radius of the property

●Favorable Nearby Residential Development: The northwest region of Fresno has nearly 5,000 housing units either planned, proposed, or currently under construction






Documents
Title
Offering Memorandum
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Location
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