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STARBUCKS - ABERDEENOFFERING MEMORANDUMSingle Tenant Investment
Opportunity in Aberdeen, WA
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Table of Contents
Contact Information
The information contained in the following Marketing Brochure is
proprietary and strictly confidential. It is intended to be
reviewed only by the party receiving it from Kidder Mathews and
should not be made available to any other person or entity without
the written consent of Kidder Mathews.
This Marketing Brochure has been prepared to provide summary,
unverified information to prospective purchasers, and to establish
only a preliminary level of interest in the subject property. The
information contained herein is not a substitute for a thorough due
diligence investigation. Kidder Mathews has not made any
investigation, and makes no warranty or representation, with
respect to the income or expenses for the subject property, the
future projected financial performance of the property, the size
and square footage of the property and improvements, the presence
or absence of contaminating substances, PCB’s or asbestos, the
compliance with State and Federal regulations, current or past tax
payments, the physical condition of the improvements thereon, or
the financial condition or business prospects of any tenant, or any
tenant’s plans or intentions to continue its occupancy of the
subject property. The information contained in this Marketing
Brochure has been obtained from sources we believe to be reliable;
however, Kidder Mathews has not verified, and will not verify, any
of the information contained herein, nor has Kidder Mathews
conducted any investigation regarding these matters and makes no
warranty or representation whatsoever regarding the accuracy or
completeness of the information provided. All potential buyers must
take appropriate measures to verify all of the information set
forth herein.
This information has been secured from sources we believe to be
reliable. We make no representations or warranties, expressed or
implied, as to the accuracy of the information. References to
square footage or age are approximate. Recipient of this report
must verify the information and bears all risk for any
inaccuracies.
Erik [email protected]
Mike [email protected]
kiddermathews.com
Executive SummaryThe Opportunity
Investment Highlights
Property Summary
Retail Aerial
Site Plan
Financial AnalysisPricing Summary
Tenant Profile
Location & Market OverviewSite Overview
Location Map
Demographics
STARBUCKS - ABERDEEN
01
02
03
04
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Executive Summary
01STARBUCKS - ABERDEEN
The Opportunity
Investment Highlights
Property Summary
Retail Aerial
Site Plan
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KIDDER MATHEWS | OFFERING MEMORANDUM 4STARBUCKS - ABERDEEN
The OpportunityThe Aberdeen Starbucks is a single tenant net
leased investment located in Aberdeen, Washington. This recently
renovated Starbucks includes a busy drive thru exposed to over
20,000 cars per day passing on State Highway 12.
Starbucks has been at this location since the property was built
in 2006. They recently renovated the interior and extended their
lease to 2021.
Highway 12 is the main connector between Interstate 5 Freeway
and Washington’s coastal recreation areas. This Starbucks benefits
from being the only Starbucks on this main route. The next nearest
drive thru Starbucks is 50 miles away in Olympia, Washington.
Aberdeen, Hoquim and Cosmopolis are located at the confluence of
the Chehalis river and Grays Harbor Bay. This triad of cities forms
the commercial and industrial core of the Grays Harbor county and
almost half of Grays Harbor County’s 70,000 residents live
here.
$1,145,000
5.43%
100%
$694.78
2006
Offering Price
Current Cap Rate
Current Occupancy
Price per SF
Year Built
Investment Summary
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KIDDER MATHEWS | OFFERING MEMORANDUM 5STARBUCKS - ABERDEEN
INVESMENT HIGHLIGHTS
TRAFFIC
A-S&P
10years at location
20,000+vehicles per day
CREDIT RATING
STABILITY
Corporate Starbucks Lease
Investment backed by Starbucks Corporation, the world’s largest
Coffee corporation with an S&P rating of A-/Stable. Long Term
TenantThe lease commenced in 2006. Three five year lease options
remain with fair market value increases.
Newer ConstructionThe property is a 2006 build-to-suit for
Starbucks featuring a drive-thru lane.Starbucks recently renovated
the interior
Located in Primary Commercial CorridorLocated on the main
commercial corridor, other retailers in the immediate area include
Walmart, Goodwill, Ross, Taco Bell, KFC, McDonalds.
Highly Visible, Easily Accessible Drive-Through
Fronting State Route 12 situated a signalized intersection,
Starbucks is located directly across from the 150,000 square foot
Olympic Gateway Plaza.
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KIDDER MATHEWS | OFFERING MEMORANDUM 6STARBUCKS - ABERDEEN
PROPERTY SUMMARY
Address 1202 E Wishkah StreetAberdeen, WA
Parcel Number 029600600100
County Grays Harbor County Parking ±15 Surface Spaces are
available
Gross Leaseable Area 1,648 SF Signage Monument Building
Land Area 6,533 SF (0.15 AC) Access Multiple Points
Year Built 2006 Frontage ±50 feet on SR 12
Construction Stick Frame Zoning General Commercial
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KIDDER MATHEWS | OFFERING MEMORANDUM 7STARBUCKS - ABERDEEN
STARBUCKS - ABERDEEN
CHEHALIS RIVER
WISHKA
H RIVER
20,000+ DAILY2
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KIDDER MATHEWS | OFFERING MEMORANDUM 8STARBUCKS - ABERDEEN
SITE PLAN
20,000 ADT
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Financial Analysis
02
Pricing Summary
STARBUCKS - ABERDEEN
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KIDDER MATHEWS | OFFERING MEMORANDUM 10STARBUCKS - ABERDEEN
RENT ROLL
TENANT STORE SIZE % RSF MONTHLY RENT ANNUAL RENT ANNUAL RENT PSF
OPTIONS
Starbucks #9504 1,648 100.00% $5,186 $62,229 $37.76 3 - 5 year
options at fair market value remain
GROSS LEASABLE AREA 1,648 $5,186 $62,229 $37.76
$1,145,000PRICE
5.43%CAP RATE
100%OCCUPANCY
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KIDDER MATHEWS | OFFERING MEMORANDUM 11STARBUCKS - ABERDEEN
Tenant/Guarantor Starbucks Corporation
Lease Type Double Net (NN)
Roof & Structure Landlord Responsibility
HVAC Tenant Responsibility
InsuranceTenant Responsibility (Landlord carries building
insurance which is reimbursed by tenant)
Utilities Tenant Pays Direct
Property Taxes Landlord Responsibility (Reimbursed by
Tenant)
Garbage Landlord Responsibility (Reimbursed by Tenant)
Landscaping Landlord Responsibility (Reimbursed by Tenant)
Current Lease Term 5 Years
Annual Base Rent (Current) $62,229
Annual Rent / SF $37.76
Security Deposit N/A
Lease Commencement 2/1/2016
Current Term Expiration 2/28/2021
Early Termination Right
Starbucks has an ongoing right to terminate the lease with a
$100,000 termination fee. Starbucks remodeled the interior of the
store in 2015 showing theircommitment to the location.
Renewal Options 3 - 5 Year Options at Fair Market Value
Right of First Refusal Tenant Does Not Have A ROFR
Estoppels Tenant to provide with 30 days prior written
notice
STARBUCKS LEASE SUMMARY
The information contained herein has been obtained from sources
deemed reliable. While every reasonable effort has been made to
ensure its accuracy, we cannot guarantee it. No responsibility is
assumed for any inaccuracies. Readers are encouraged to review the
original lease to verify all information contained herein.
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Tenant Profile
03STARBUCKS - ABERDEEN
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KIDDER MATHEWS | OFFERING MEMORANDUM 13STARBUCKS - ABERDEEN
Tenant Profile
Starbucks
Starbucks Corporation was founded in 1971 in Seattle, Washington
and engages in the purchase, roasting, and sale of whole bean
coffees worldwide. Millions of people around the globe visit
Starbucks daily to purchase a multitude of ever-evolving products
including brewed coffees, Italian-Style espresso beverages, blended
beverages, teas, and various food items. Starbucks recently
acquired the San Francisco-based bakery La Boulange and now proudly
serves their artisanal pastries. In fiscal year 2013, Starbucks
revenues soared totaling a record $14.9 billion.
SOURCE: STARBUCKS.COM/ABOUT-US/COMPANY-INFORMATION
Locations 21,000+
Type Public (NASDAQ: SBUX)
Credit Rating S&P A -
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KIDDER MATHEWS | OFFERING MEMORANDUM 14STARBUCKS - ABERDEEN
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KIDDER MATHEWS | OFFERING MEMORANDUM 15STARBUCKS - ABERDEEN
Location & Market Overview
04
Site Overview
Location Map
Demographics
STARBUCKS - ABERDEEN
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KIDDER MATHEWS | OFFERING MEMORANDUM 16STARBUCKS - ABERDEEN
Site Overview
SITE CHARACTERISTICS
• Drive thru site at signalized intersection
• High traffic location with combined traffic counts over
20,000 cars per day
• Situated near 150,000 square foot Olympic Gateway Plaza
and other major retailers such as Walmart, McDonalds,
Taco Bell and KFC.
• 2 ingress / egress points at a signalized intersection
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KIDDER MATHEWS | OFFERING MEMORANDUM 17STARBUCKS - ABERDEEN
LOCATION MAP
Bainbridge Island
STARBUCKS - ABERDEEN
SEATTLE 2 HOURS
OLYMPIA 52 MINS
Seattle
Olympia
Tacoma
Aberdeen
Centralia
Olympic National Park
TACOMA 1 HOUR 20 MINS
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KIDDER MATHEWS | OFFERING MEMORANDUM 18STARBUCKS - ABERDEEN
DEMOGRAPHICS
1 MILE 3 MILES 5 MILES
Population
Projected Population (2018) 7,157 20,685 29,999
Estimated Population (2013) 7,422 21,500 31,249
Census Population (2010) 6,860 20,139 29,346
Projected Annual Growth (2013-2018) 265 815 1,250
Historical Annual Growth (2010-2013) 297 546 653
Population by Race
White 5,513 16,451 24,424
Black or African American 74 212 312
American Indian or Alaska Native 228 636 890
Asian 123 450 553
Hawaiian or Pacific Islander 25 52 66
Other Race 736 1,743 2,164
Two or More Races 458 1,142 1,590
Hispanic or Latino Population 1,520 3,438 4,339
Households
Estimated Households (2013) $44,899 $52,333 $52,072
Projected Households (2018) $47,499 $55,322 $55,045
Census Households (2010) $41,765 $52,660 $51,080
Projected Annual Growth (2015-2020) 83 407
Historical Annual Change (2000-2015) 85 184
Housing Units Owner-Occupied 1,356 4,608 6,972
Housing Units Renter-Occupied 1,521 3,457 4,889
Estimated Average Household Income (2015) $44,899 $52,333
$52,072
Estimated Median Household Income (2015) $35,612 $41,744
$40,666
Estimated Per Capita Income (2015) $18,436 $20,594 $20,752
Census Per Capita Income (2010) $16,643 $20,354 $20,027
2013 Households by Income distribution
HH Income $200,000 or More 17 82 117
HH Income $150,000 to $199,999 51 169 215
HH Income $125,000 to $149,999 49 163 238
HH Income $100,000 to $124,999 142 465 722
HH Income $75,000 to $99,999 258 805 1,200
HH Income $50,000 to $74,999 347 1,458 2,007
HH Income $35,000 to $49,999 562 1,320 1,888
HH Income $25,000 to $34,999 416 1,139 1,700
HH Income $15,000 to $24,999 396 989 1,537
HH Income $10,000 to $14,999 172 559 833
29,346
31,249
$51,080
5-MILE TRADE AREA DEMOGRAPHICS
Population (2010)
Estimated Population (2020)
Average Household Income (2010)
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Contact Information
Erik [email protected]
Mike [email protected]
Kidder Mathews 601 Union Street, Suite 4720 Seattle, WA
98101
kiddermathews.com
