Starbucks Net Leased Drive Thru

Highlights:

• Investment-grade tenant, rated “BBB+” by Standard’s & Poor
• Starbucks Corporation (NASDAQ: “SBUX”) is the world’s premier coffee company with over 30,000 locations and $29.1 billion in annual revenue
• Founded in 1971, Starbucks is the premier roaster and retailer of specialty coffee in the world and is currently operating over 30,000 stores across the world
• The Starbucks is a newly constructed drive-thru building located on the southern side of the shopping center fronting US 50 and Ridge Dr
• New 10-year lease with 4 five-year options to extend with 10% rental increases every 5 years
• Minimal landlord responsibilities including roof and structure
• Strategically located in a high-traffic area with over 41,500 Average Annual Daily Trips (AADT) along US 50
• Out parcel to a grocery-anchored center anchored by Albertsons and a Chic-Fil-A, providing synergy and driving traffic to the site
• Located adjacent to other national retailers including Lowe’s and also in close proximity to the Pueblo Country Club

Description:

CBRE is pleased to offer the opportunity to acquire the fee simple interest in a single-tenant Starbucks asset located in north Pueblo, CO. The property is 100% leased to Starbucks Corporation (S&P BBB+) on a 10-year lease, with 4 years remaining and 4 five-year option periods. The lease features 10% annual rent increases, providing a stable and growing income stream for the investor.
The property is a 2,400 SF drive-thru building situated on a 0.58 AC parcel, located in a high-traffic infill location with over 41,500 AADT at the intersection of US 50 and Ridge Dr. The lease terms are structured as a triple net lease, with minimal landlord responsibilities. The property was built in 2019 and is located in a high-growth market.
The property is an outparcel to a grocery-anchored center anchored by Albertsons, and is adjacent to a Chic-Fil-A, providing synergy and driving traffic to the site. As a fee simple, depreciable asset, the property offers investors a unique opportunity to own a high-quality, single-tenant Starbucks property with a strong anchor tenant and a growing income stream. The 10% annual rent increases also provide a hedge against inflation, ensuring that the investor’s returns keep pace with rising costs. With a going-in capitalization rate of 5.6%, this investment opportunity offers a rare chance to acquire a valuable asset in a growing market.

Documents: