Starbucks,
Salinas, CA Investment Summary
| Price | $3,000,000 |
| Cap Rate | 5.00% |
| NOI | $150,000 |
| Lease Term | 15 Years |
| Lease Type | Net, With Tenant Responsible For All Taxes, Insurance, And Maintenance, Excluding Roof, Structure, And Parking Lot |
| Rental Increases | 10% Rental Increases Every Five Years Through Initial Term, 7.5% Rental Increases in Option Periods |
| Year Built | 2022 |
| Building Size | 965 SF |
| Lot Size | 0.53 Acres (23,086 SF) |
| Status | Under Contract |
| Lead Brokers | 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 Michael T. Yuras, CCIM Vice Chairman 415.481.0788 michael.yuras@cushwake.com CA RE License #01823291 Scott Crowle Executive Managing Director 415.604.4288 scott.crowle@cushwake.com CA RE License #01318288 |
Investment Highlights
15-YEAR CORPORATE NET LEASE TO HIGH-QUALITY, INVESTMENTGRADE SINGLE-TENANT ASSET
» Rare 15-year net lease with extended commitment by Tenant, demonstrating their success at this location
» Starbucks Corporation (NASDAQ: “SBUX”) is the world’s premier coffee company, with over 35,711 locations and $32.3 billion in annual revenue
» 72% of Starbucks orders now come from the drive-thru, mobile app, and delivery, which this location specializes in with a drive-thru and walkup window
» Starbucks Corporation is rated “BBB+” by Standard & Poor’s
» 10% fixed rental increases every five years in the initial term
» New 2022 construction with dedicated drive-thru and walk-up window with mobile ordering
HIGH-TRAFFIC LOCATION IN DENSELY POPULATED AND GROWING CALIFORNIA CORRIDOR
» Signalized hard-corner location at the intersection of Williams Road and East Market Street (18,035 AADT)
» Proximity to major California thoroughfares, including U.S. Route 101 (74,100 AADT)
» 160,803 residents live within a five-mile radius
» Projected population and income increase within 5-, 10-, and 15-mile radii over the next five years, poising Starbucks and Salinas for steady concurrent growth
INFILL LOCATION NEAR LARGE EMPLOYERS, SCHOOLS, AND SALINAS COMMUNITY HUBS
» 3.5 miles from Hartnell College (17,000 students) and 10 miles from Cal State University Monterey Bay (7,634 students), establishing a strong customer base
» Immediately surrounded by large, single family housing complexes
» Walking distance from Salinas Fairways Golf Course
» Located near major California tourist attractions and community hubs, including Monterey Bay, Laguna Seca Raceway, and Carmel-By-The-Sea
» Common gateway to San Jose and the Bay Area, home to 7.75 million people
Property Description
This Starbucks has a signalized hard-corner location at the intersection of Williams Road and East Market Street (18,035 AADT). The property provides proximity to major California thoroughfares, including U.S. Route 101 (74,100 AADT). 160,803 residents live within a five-mile radius, and with projected population and income increase within 5-, 10-, and 15-mile radii over the next five years, Starbucks and Salinas are poised for steady concurrent growth.
The site is surrounded by large employers and community hubs. The property is 3.5 miles from Hartnell College (17,000 students) and 10 miles from Cal State University Monterey Bay (7,634 students), establishing a strong customer base. The location is also immediately surrounded by large, single family housing complexes and is walking distance from Salinas Fairways Golf Course. This Starbucks is located near major California tourist attractions and community hubs, including Monterey Bay, Laguna Seca Raceway, and Carmel-By-The-Sea, and serves as a common gateway to San Jose and the Bay Area, home to 7.75 million people.
