Investment Highlights

HIGH-QUALITY, INVESTMENT GRADE SINGLE-TENANT ASSET
» Leased to Starbucks Corporation for ten years plus four five-year options
» Scheduled rental increases every five years in initial term and option periods
» Starbucks is an investment grade tenant, rated “BBB+” by Standard & Poor’s

HIGH-TRAFFIC LOCATION AT KEY GATEWAY INTERSECTION
» Located at the signalized hard corner of Ocean Street and Water Street, with excellent visibility and access—including a dedicated right turn lane on Water Street—to 39,309 vehicles per day
» Ocean Street serves as the primary corridor that brings visitors to the beach from Highway 17, which is the main route north to San Jose and the rest of the San Francisco Bay Area
» Water Street leads to Santa Cruz’s vibrant downtown
» Surrounded by a strong mix of local and national retailers, commercial businesses, and tourist-oriented shops and hotels

LARGE, AFFLUENT CUSTOMER BASE
» Located within walking distance of downtown Santa Cruz and just over a mile from attractions like the Santa Cruz Beach Boardwalk, the Santa Cruz Wharf, and Seabright State Beach, which are popular draws for both local residents and Santa Cruz’s 4 million annual visitors
» Just steps from the Santa Cruz County Governmental Center, headquarters for the second largest employer in the county, with 855 employees at these offices
» 127,778 residents with an average household income of $109,033 live within five miles of the property

NEW 2017 “CALIFORNIA MODERN” UPGRADED CONSTRUCTION
» Upgraded “California Modern” exterior featuring abstract mural pained by a local artist
» Includes bike racks and lockers to serve Santa Cruz’s large population of students and bike commuters
» Two walls of floor-to-ceiling windows and ample outdoor seating
» 27.5-foot tall building with the potential to be retrofitted in the future with a second floor for one or two rental units

Property Description

SOLD

The property is conveniently located at the signalized hard corner of Ocean Street and Water Street, with excellent visibility and access—including a dedicated right turn lane on Water Street—to 39,309 vehicles per day directly in front of the property. The intersection of Ocean and Water streets is a key gateway location. Ocean Street serves as the primary corridor that brings visitors to the beach from Highway 17, which is the main route north to San Jose and the rest of the San Francisco Bay Area. Water Street leads to Santa Cruz’s vibrant downtown, located less than half a mile away. Retailers near the property include a strong mix of local businesses and major national tenants, including Whole Foods, Trader Joe’s, Chase Bank, Firestone, and Regal Cinemas, amongst others. The property is also surrounded by a number of hotels and souvenir shops catering to Santa Cruz’s many tourists. Additionally, the property—which includes bike racks and lockers to serve Santa Cruz’s large population of students and bike commuters—is steps away from the Santa Cruz County Governmental Center, headquarters for the second largest employer in the county.

The property is centrally located within walking distance of downtown Santa Cruz and is just over a mile from attractions like the Santa Cruz Beach Boardwalk, the Santa Cruz Wharf, and Seabright State Beach, which are popular draws for both local residents and Santa Cruz’s 4 million annual visitors. Furthermore, the property is supported by a large, affluent customer base; 127,778 residents with an average household income of $109,033 live within five miles of the property.