Flagstaff, AZ - Starbucks

Description:

SRS Real Estate Partners-West, LLC is pleased to offer the opportunity to acquire the fee simple interest (land & building ownership) in a NNN leased, investment grade (S&P:BBB+), corporate guaranteed, Starbucks investment property located in Flagstaff, Arizona. The tenant, Starbucks Corporation, recently executed a brand new 10-year lease with 4 (5-year) options to extend. The lease features 10% rental increases in 2024 and at the beginning of each option period, growing NOI and hedging against inflation. The lease is corporate guaranteed by Starbucks Corporation, an investment grade (S&P: BBB+), globally recognized, and established tenant, with over 25,000 locations. The lease is NNN with landlord responsibilities limited to roof and structure. The brand new state-of-the-art property was recently built in 2019. The building will be equipped with a drive-thru, providing ease and convenience to customers. Additionally, the site will be complete with an outdoor patio area.

Starbucks is strategically located at the signalized intersection of N. Cummings Street and U.S. Highway 89, averaging a combined 26,600 vehicles passing by daily. The site is less than 1 mile north of Interstate 40 (36,400 VPD), a major west/east thoroughfare for the state of Arizona. Starbucks is an outparcel to Flagstaff Mall, a 347,000+ square foot mall anchored by Dillard’s, Hobby Lobby, Planet Fitness, and JCPenney, thereby benefitting from crossover traffic. The building is ideally positioned in a dense retail corridor and is within close proximity to The Marketplace (268,000 SF), a shopping center anchored by The Home Depot, Marshalls, Best Buy, Petco, and Harkins Theatres, and the Flagstaff Auto Center, which includes the brand new Mercedes-Benz of Flagstaff dealership. Other nearby national/credit tenants include Safeway, OfficeMax, CVS, Aaron’s, and more, increasing consumer draw and traffic to the trade area. Additionally, Flagstaff has a strong science and technology corridor with employers including Flagstaff Medical Center, W.L. Gore Technologies, and the U.S. Geological Survey Astrology Science Center. Further, the site is less than 5 miles from Northern Arizona University (29,000 students enrolled), providing a strong customer base to draw from. The 5-mile trade area is supported by a population of more than 57,000 residents and 35,000 employees. The 3-mile subject area boasts an average household income of $85,104.