Starbucks,
Lubbock, TX Investment Summary
| Price | $2,900,000 |
| Cap Rate | |
| NOI | |
| Lease Term | 10+ Years |
| Lease Type | Net, With Tenant Responsible For All Taxes, Insurance, And Maintenance, Excluding Roof, Structure, And Parking Lot |
| Rental Increases | 10% Rental Increase In Year Six And 7.5% Rental Increases In Option Periods |
| Year Built | 2021 |
| Building Size | 2,200 SF |
| Lot Size | 1.09 Acres (47,480 SF) |
| Status | Sold |
| Lead Brokers | Ryan Forsyth Executive Director 415.413.3005 ryan.forsyth@cushwake.com CA RE License #01716551 Vincent Aicale Executive Director 415.690.5522 vince.aicale@cushwake.com CA RE License #01728696 Michael T. Yuras, CCIM Executive Managing Director 415.481.0788 michael.yuras@cushwake.com CA RE License #01823291 Scott Crowle Executive Director 415.604.4288 scott.crowle@cushwake.com CA RE License #01318288 Jack Hinson Brokerage 704.572.9921 jack.hinson@cushwake.com CA RE License #02059267 |
Investment Highlights
CORPORATE NET LEASE TO HIGH-QUALITY, INVESTMENT GRADE, SINGLE-TENANT ASSET
» Leased to Starbucks Corporation for ten years plus four five-year options
» Starbucks handles all landscape maintenance directly
» 10% rental increase in year six and 7.5% fixed rental increases every five years in extension terms, providing a hedge against inflation
» No Early Termination Right by Starbucks
» Investment grade tenant, rated “BBB+” by Standard & Poor’s
» New building featuring dedicated drive-thru, providing additional customer convenience and boosting sales revenue
» Starbucks Corporation (NASDAQ: “SBUX”) is the world’s premier coffee company, with over 29,000 locations and $24.7 billion in annual revenue
» Full concrete parking lot and drive-way
HIGH-TRAFFIC LOCATION IN DENSELY POPULATED RETAIL CORRIDOR
» Dense population of 221,015 residents within a five-mile radius
» Strong one-mile AHHI of $72,889
» High-visibility location on frontage road just off U.S. Route 62 (57,326 AADT)
INFILL LOCATION NEAR RETAILERS, SCHOOLS, AND COMMUNITY HUBS
» Less than one mile from the largest employer in Lubbock, Texas Tech University (38,803 students, 11,848 employees, $1.9 billion annual economic impact)
» Adjacent to Covenant Health System (394 beds, 6,931 employees, $3.3 billion annual total patient revenue)
» Less than one mile from Coronado High School (2,113 students) and surrounded by 10 other schools (combined 5,800+ students)
» Directly adjacent to the 132-room, 4-star Hawthorn Suites by Wyndham Hotel
Property Description
SOLD
The property is located near the signalized hard corner of U.S. Route 62 Frontage Road and Quaker Avenue (22,473 AADT), directly east of the 4-star, 132 room Hawthorn Suites by Wyndham hotel. The site also has convenient access to U.S. Route 62, which experiences 57,326 AADT. The location strategically resides in a densely populated area surrounded by new neighborhoods and apartments (221,015 residents within a five mile radius) and is also adjacent to Covenant Health System.
Covenant Health System has 394 beds, 6,931 employees, and $3.3 billion annual total patient revenue, providing a major traffic driver to the site. Visibility is increased by the site’s proximity (less than one mile) to the largest employer in Lubbock, Texas Tech University, which features 38,803 students, 11,848 employees, and generates $1.9 billion in annual economic impact. The property also benefits from being less than one mile from Coronado High School (2,113 students, and the immediate adjacency of 10 more surrounding schools with a combined 5,800+ students.
