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Starbucks, Memphis, TN

Starbucks, Memphis, TN


Investment Summary

Price $3,235,000
Cap Rate 5.75%
NOI $186,000
Lease Term 10.5 years
Lease Type NN+ lease, with tenant responsible for all taxes, insurance, and maintenance, excluding roof, structure, and parking lot
Rental Increases 1.5% Annual Increases
Year Built 2024
Building Size 2,234 SF
Lot Size 1.19 acres (51,836 SF)
Status Available
Lead Brokers Michael T. Yuras, CCIM
Vice Chairman
415.481.0788
michael.yuras@cushwake.com
CA RE License #01823291

Ryan Forsyth
Vice Chairman
415.413.3005
ryan.forsyth@cushwake.com
CA RE License #01716551

Vincent Aicale
Vice Chairman
415.690.5522
vince.aicale@cushwake.com
CA RE License #01728696

Scott Crowle
Executive Managing Director
415.604.4288
scott.crowle@cushwake.com
CA RE License #01318288

Investment Highlights

NEW 10.5-YEAR NN+ LEASE TO THE LARGEST COFFEEHOUSE COMPANY IN THE WORLD
» New 10.5-year corporate NN+ lease to Starbucks Corporation (NASDAQ: “SBUX”)
» Investment-grade tenant, rated “BBB+” by Standard & Poor’s
» Rare 1.5% annual rental increases in initial term and option periods
» Starbucks is the world’s premier coffee company, with over 38,038 locations and $35.9 billion in annual revenue
» Per Statista, customers go to Starbucks six times per week on average
» Approximately 60 million Starbucks customers are served every week, while approximately four million coffee-based beverages are sold daily

HIGH VISIBILITY OUTPARCEL LOCATION
» Starbucks is excellently positioned as an outparcel to Home Depot at an infill location, greatly improving the visibility of the site to passing traffic
» The site has direct access to Covington Pike and Stage Road, benefiting from over 42,799 vehicles per day collectively
» This Starbucks is centrally located near several community hubs such as Bartlett High School
(2,839 students), Craigmont High School (903 students), Craigmont Middle School (555 students), Methodist North Hospital (246 beds), and Douglass High School (546 students).
» Prime location in a densely populated suburban area surrounded by single family housing developments, creating a stable customer base for the site

TOURIST DESTINATION WITH HIGH VOLUME OF VISITORS
» Over 11 million people visit Memphis each year, greatly increasing traffic and revenue to the site
» Surrounded by renowned tourist attractions like Graceland, Beale Street, and Sun Studio, the property benefits from a constant flow of visitors seeking quality coffee and refreshments
» 179,000 residents live within five miles of the site, providing a stable customer base for Starbucks
» Annual household income for residents living within one mile of the property is poised to increase approximately 22% over the next five years

NEW 2024 CONSTRUCTION IN A TAX-FREE STATE
» New high-quality 2024 construction to latest Starbucks prototype
» Site features a dual-lane drive-thru for added customer convenience
» Property shares a large pylon sign with The Home Depot on Covington Pike, offering added visibility
» Tennessee is an income tax-free state

Property Description

» This Starbucks is excellently positioned as an outparcel to Home Depot at an infill location, greatly improving the visibility of the site to passing traffic. In addition, the site has direct access to Covington Pike and Stage Road, two of the main thoroughfares in the area, benefiting from over 42,799 vehicles per day collectively
» With its strategic placement and access to prominent attractions, this Starbucks promises sustained success as a focal point for community engagement and exceptional coffee experiences, making it an ideal acquisition for investors keen on tapping into Memphis’s dynamic cultural scene
» The site is located in a retail-dense corridor surrounded by many other top national tenants. Both Covington Pike and Stage Road closely connect Starbucks to retailers such as The Home Depot, McDonald’s, Kroger, Mattress Firm, Marshalls, Burlington, Taco Bell, Walgreens, Sherwin-Williams, Caliber Collision, and others
» The surrounding area is home to many community hubs that will drive traffic to Starbucks such as Bartlett High School (2,839 students), Craigmont High School (702 students), Craigmont Middle School (555 students), Methodist North Hospital (246 beds), and Douglass High School (546 students)
» Located near the heart of Memphis, Tennessee, this Starbucks retail property offers an exceptional investment opportunity. Surrounded by renowned tourist attractions like Graceland, Beale Street, and Sun Studio, the property benefits from a constant flow of visitors seeking quality coffee and refreshments. With its prime location and strong tourist traffic, this Starbucks presents a lucrative opportunity to capitalize on Memphis’s vibrant tourism industry

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