Starbucks Portfolio Net Leased Investment Opportunity · company and coffeehouse chain. Starbucks was founded in Seattle, Washington in 1971. Starbucks began as a roaster and retailer

O F F E R I N G M E M O R A N D U M

Starbucks PortfolioNet Leased Investment Opportunity

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap, Inc.

2Starbucks Investment Portfolio | Marcus Millichap | Activity IDs: ZAA0100010/ZAA0100011/ZAA0100012/ZAA0100014

Client Oriented Results Driven

Ron Duong Senior Vice President Investments Senior Director, National Retail Group (949) 419-3233 direct [email protected] License: CA 01438643

Exclusively Listed By

Brokers of Record

Ryan Nee Broker of Record Ft. Lauderdale, FL License: BK3154667

Michael J. Fasano Broker of Record Atlanta, GA License: CA 01845973

Jody McKibben Broker of Record Memphis, TN License: TN 307629

Craig Elster Net Leased Properties Group (949) 419-3328 direct [email protected] License: CA 01958307


Executive Summary


Financial Analysis

Lease InformationProperty Name / Location Price NOI Cap Expiration Options Lease Type

Starbucks - St. Petersburg, FL (4th) $3,500,000 $181,525.50 5.19% 02/29/2028 Four, Five Year Double Net

Starbucks - St. Petersburg, FL (Central) $1,625,000 $90,744.00 5.58% 09/30/2026 Four, Five Year Double Net

Starbucks - Woodstock, GA $2,775,000 $153,125.00 5.52% 08/31/2027 Four, Five Year Double Net

Starbucks - Memphis, TN $1,475,000 $99,662.76 6.76% 06/30/2027 Four, Five Year Double Net

Loan InformationLoan to Value / Loan Amount 65% / $6,130,000

Interest Rate 5.36%

Amortization 30 Years

Program 10 Year Fixed, 2 Year Interest Only

Assumption Fee 0.25% of Loan Amount

Total Price $9,375,000

Down Payment / % Down 35% / $3,245,000.00

Total NOI $525,057.26

Average Cap 5.60%

Pricing

Portfolio Summary

Annualized Operating DataCash Flow Before Debt Service $525,057.26

Debt Service (I/O @ 5.36%) ($328,568.00)

Cash Flow After Debt Service $196,489.26

Cash on Cash Return (Interest Only) 6.06%

Cash on Cash/Total Return (Amortization)* 3.51% / 6.12%

*Beginning on January 5, 2021, the interest only period will expire and debt service will increase from $328,568 annually to $411,227 annually to include principal paydown.

Loan must be assumed. Please contact Agents for more details.


Portfolio Highlights

6.06% Year 1 Cash on Cash Return

Corporate Starbucks Properties

• Corporate Starbucks Leases with Minimal Management or Maintenance Required - Ideal for Investors Not Local to the Market

• Staggered Lease Expirations with 8-10 Years Remaining on All Leases

• Proven Locations with Long-Term Operating History

• Favorable In-Place Financing with Two Years of Interest Only Remaining, Resulting in a 6.06% Cash on Cash Return in Year 1

Strong Retail Locations with Excellent Fundamentals

• Properties are Located in Dense, Infill Areas

• Excellent Locations with Easy Access on Main Retail Thoroughfares

• All Starbucks Locations are Drive-Thru Locations with Little to No Com-petition in the Immediate Area

• Starbucks (NASDAQ: SBUX) Operates Over 26,696 Locations Worldwide

• Annual Revenue for Starbucks Exceeds $22.39 Billion

Starbucks Portfolio

Portfolio of Four Starbucks Properties with Recently Extended Leases and Recent Renovations on Some Sites

Excellent Locations with Strong Real Estate Fundamentals


Starbucks Corporation is an American coffee company and coffeehouse chain. Starbucks was founded in Seattle, Washington in 1971. Starbucks began as a roaster and retailer of whole bean and ground coffee, tea and spices with a single store in Seattle’s Pike Place Market.

Starbucks locations serve hot and cold drinks, whole-bean coffee, microground instant coffee

known as VIA, espresso, caffe latte, full- and loose-leaf teas including Tea-vana tea products, Evolution Fresh juices, Frappuccino beverages, La Bou-lange pastries, and snacks including items such as chips and crackers; some offerings are seasonal or specific to the locality of the store. Many stores sell pre-packaged food items, hot and cold sandwiches, and drinkware including mugs and tumblers; select “Starbucks Evenings” locations offer beer, wine, and appetizers. Starbucks-brand coffee, ice cream, and bottled cold coffee drinks are also sold at grocery stores.

Today, they serve millions of customers every day with exceptional products and more than 24,000 retail stores in 70 countries. Starbucks first became profitable in Seattle in the early 1980s, and despite an initial economic downturn with its expansion into the Midwest and British Columbia in the late 1980s, the company experienced revitalized prosperity with its entry into California in the early 1990s. Overseas properties now constitute almost one third of its stores. The company had opened an average of two new locations daily between 1987 and 2007.

Tenant Overview

Type Public

Credit Rating A- by S&P

Traded As SBUX (NASDAQ)

Revenue $22.39 Billion

Annual Operating Income $4.14 Billion

Net Income $2.89 Billion

Tenant Profile

Exchange NASDAQ

Founded 1971

Headquarters Seattle, WA

# of Locations 26,696

Areas Served World Wide

Website starbucks.com


IndividualProperty Summaries


Gross Potential Rent $181,525.50

Total Expenses NNN

Net Operating Income $181,525.50

Annualized Operating Data

Lease InformationInitial Lease Term 20 Years

Lease Commencement Date March 1, 2007

Lease Expiration Date February 29, 2028

Lease Remaining 9.25 Years

Lease Type Double Net

Roof & Structure Responsibility Landlord

Increases In Options (10%)

Options Four, Five-Year @ 10%

Termination Option No

Offering SummaryProperty Name Starbucks

Property Address 8801 4th Street NorthSt. Petersburg, FL 33602

Assessor’s Parcel Number 19-30-17-86385-001-0010

Current Occupancy Fully Occupied

Year Built/Renovated 2007/2019

Gross Leasable Area (GLA) ±3,393 Square Feet

Lot Size ±1.24 Acres (±53,981 Square Feet)

Price $3,500,000

Cap Rate 5.19%

Pricing

Starbucks - St. Petersburg, FL on 4th Street


Tenant has Recently Extended the Lease 10 Years Proving Its Commitment to the Location

Outstanding Real Estate Fundamentals

• The Subject Property is Located Directly on 4th Street with Traffic Counts Exceeding 36,000 Cars Per Day

• The Subject Property Benefits From Access to the Signalized Intersection at 89th Ave and a Also Designated Left Turn Lane

• Strong Retail Corridor – The Subject Property is Located on Busy Retail Corridor Along with Many Credit Tenants Including Wendy’s, Pizza Hut, Taco Bell, Subway, Einstein Bros. Bagles, Krispy Kreme, McDonald’s, Boston Market, and many more.

Corporate Drive-Thru Starbucks

• Successful location with Nearest Starbucks Drive-Thru 4 Miles Away

• Building Footprint Larger than Standard Starbucks

• Easy to own NNN Investment with Minimal Landlord Responsibilities – Ideal for Investors not Local to the Market

• Investors Benefit from Knowledge that it is a Proven Site with an Established Customer Base

Pride of Ownership Location

• Dense, Infill Area with Over 72,224 Residents Within Three Miles

• Pinellas County is the Most Densely Populated County in Florida

• Tampa Bay Metro is a Top 20 Largest U.S. Metro by Population

• Few Existing Undeveloped Tracts of Land in the Area will Continue to Push Rents Upward Over Time


Full Remodel Scheduled for 2019

Located on Busy Retail Corridor with Traffic Counts Exceeding 36,000+ Cars Per Day



DowntownSt. Petersburg

36,000+ Cars Per Day

4th

Stre

et N

orth

Sunlit CoveWaterfront Apartments

Residential Housing Tracts(1,600+ Residences to West)

One Block to the North:Wendy’s, Pizza Hut, Culver’s, Taco Bell

The Vibe at Gateway250+ Units

Residential Housing Tracts(2,900+ Residences to East)

Subject Property



Total Expenses NNN




Lease Commencement Date October 1, 2006

Lease Expiration Date September 30, 2026








Property Address 6575 Central AvenueSt. Petersburg, FL 33710

Assessor’s Parcel Number 20-31-16-48204-002-0130


Year Built/Renovated 2006/2016



Price $1,625,000

Cap Rate 5.58%

Pricing

Starbucks - St. Petersburg, FL on Central Avenue



• Signalized, Corner Location with Traffic Counts Exceeding 29,000 Cars Per Day

• The Subject Property is Located 2 Miles Away from Beach Access

• The Subject Property is the Only Starbucks Within 2 Miles of the Very Exclusive Neighborhoods of Yacht Club Estates, Paradise Island, and Treasure Island Resort




• Recent Lease Extension Proves Starbucks’ Commitment to the Location


• Highly Populated Area with Over 96,667 Residents Within Three Miles

• Pinellas County is the Most Densely Populated County in Florida

• Tampa Bay Metro is a Top 20 Largest U.S. Metro by Population

• Few Existing Undeveloped Tracts of Land in the Area will Continue to Push Rents Upward Over Time


Tenant has Recently Extended the Lease 10 Years Proving Its Commitment to the Location

The Subject Property Received a Full Remodel in 2016

New $42 Million Central Avenue Bus Rapid Transit will have a Pickup and Drop-Off Location Directly in Front of Property



Subject Property

Central A

venue

CirclePark

Treasure IslandResort

Sunset Beach

Yacht ClubEstates Paradise Island

Walgreens

West CentralShopping Center


1st A

venu

e N

66th Street N

Proposed Pickup/Dropoff Bus Rapid Transit System (BRT)



Total Expenses NNN




Lease Commencement Date September 1, 2007

Lease Expiration Date August 31, 2027








Property Address 12400 Highway 92Woodstock, GA 30188

Assessor’s Parcel Number 15N24 041 G


Year Built 2007



Price $2,775,000

Cap Rate 5.52%

Pricing

Starbucks - Woodstock, GA



• Signalized, Corner Location with Traffic Counts Exceeding 45,000 Cars Per Day

• Located on Major Retail Corridor with Kroger, McDonald’s, Arby’s, Bojangles’, ALDI, Zaxby’s, Sam’s Club, Del Taco, Chick-fil-A, Wendy’s, Subway, and many more


• Tenant has Recently Extended the Lease 10 Years Showing its Commitment to the Location




• Highly Populated Area with Over 148,000 Residents within Five Miles

• Affluent Area with an Average Household Income Over $104,000 Within Five Miles

• Projected One-Mile Population Growth of 22% by 2022

• Metro Atlanta Economy is the 8th Largest in the U.S.


Successful location with Nearest Standalone Starbucks Drive-Thru Over 4 Miles Away

Outparcel to Walmart Anchored Shopping Center

Located on Busy Retail Corridor with Traffic Counts Exceeding 45,000 Cars Per Day


Centre at Woodstock

Subject Property

Highway 92 45,000+ Cars Per Day

LakestoneSubdivision

Merrill GardensSenior Community

AdditionalSingle Family

Residences


Shoppes @ Trickum



Subject Property

Shoppes @ Trickum

Highw

ay 92 (45,000 Cars Per Day)



Total Expenses NNN




Lease Commencement Date May 31, 2007

Lease Expiration Date June 30, 2027





Options Four, Five-Year

Termination Option Yes - June 30, 2022


Property Address 1615 Sycamore View RoadMemphis, TN 38134

Assessor’s Parcel Number 089-001-00076


Year Built 2007



Price $1,475,000

Cap Rate 6.76%

Pricing

Starbucks - Memphis, TN



• Located on Sycamore View Road with Traffic Counts Exceeding 31,000 Cars Per Day

• Designated Left Turn Lane Provides Additional Access to the Subject Property from Northbound Traffic

• Located on Major Retail Corridor with Bass Pro Shops, Cracker Barrel Old Country Store, McDonald’s, Popeyes, IHOP, AutoZone, Walgreens, and many more


• Successful location with Nearest Starbucks Drive-Thru Over 3 Miles Away

• Tenant has Recently Extended the Lease 10 Years Showing its Commitment to the Location



• Highly Populated Area with Over 202,000 Residents within Five Miles

• Affluent Area with an Average Household Income Over $74,902 Within Five Miles

• Tax-Free State, Providing Additional Benefits to Potential Investors


Easy to own NNN Investment with Minimal Landlord Responsibilities – Ideal for Investors not Local to the Market

Located on a Major Retail Corridor with Designated Left Turn Access

Located Near Interstate 40 with Traffic Counts Exceeding 168,000 Vehicles Per Day



Subject Property Sycamore View Rd.


Interstate 40


Walgreens

Southwest TennesseeCommunity College

AdditionalSingle Family

Residences



Subject Property

Walgreens


Syca

mor

e Vi

ew R

oad


DemographicSummaries

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap, Inc.


Regional Map - Portfolio

StarbucksMemphis, TN

StarbucksWoodstock, GA

Two Starbucks LocationsSt. Petersburg, FL


POPULATION 1-MILE 3-MILES 5-MILES

2000 Population 12,165 64,556 158,498

2010 Population 13,697 69,408 161,646

2014 Population 13,804 70,803 164,382

2019 Population 13,752 72,224 166,586

HOUSEHOLDS 1-MILE 3-MILES 5-MILES

2000 Households 5,950 31,317 72,890

2010 Households 6,450 33,642 73,817

2014 Households 6,515 34,452 75,375

2019 Households 6,537 35,377 76,759

2014 Average Household Size 2.08 2.03 2.15

2014 Daytime Population 6,997 34,417 95,343

2000 Owner Occupied Housing 54.09% 55.68% 59.01%

2000 Renter Occupied Housing 37.57% 33.06% 30.28%

2000 Vacant 8.34% 11.25% 10.71%



2014 Vacant 11.50% 13.02% 12.07%



2019 Vacant 11.96% 13.32% 12.32%

INCOME 1-MILE 3-MILES 5-MILES

$0 - $14,999 14.4% 12.6% 13.5%

$15,000 - $24,999 12.4% 12.5% 13.3%

$25,000 - $34,999 14.7% 13.7% 12.8%

$35,000 - $49,999 16.8% 16.9% 16.4%

$50,000 - $74,999 16.6% 19.4% 19.0%

$75,000 - $99,999 11.6% 10.6% 10.4%

$100,000 - $124,999 4.8% 5.8% 5.9%

$125,000 - $149,999 3.0% 2.9% 3.0%

$150,000 - $199,999 2.9% 2.9% 2.8%

$200,000 - $249-999 1.2% 1.1% 1.2%

$250,000+ 1.7% 1.6% 1.8%

2014 Median Household Income $42,588 $44,526 $44,115

2014 Per Capita Income $29,240 $30,691 $29,063

2014 Average Household Income $61,350 $62,692 $62,940

Demographic Summary - St. Petersburg, FL on 4th Street

72,224 Three-MilePopulation



2000 Population 11,643 99,325 216,900

2010 Population 11,510 95,917 210,434

2014 Population 11,604 96,818 212,558

2019 Population 11,579 96,667 212,499


2000 Households 5,303 45,811 97,431

2010 Households 5,310 44,233 93,742

2014 Households 5,368 44,743 94,955

2019 Households 5,381 44,953 95,413





2000 Vacant 7.99% 13.88% 15.87%



2014 Vacant 11.80% 17.22% 18.92%



2019 Vacant 12.19% 17.67% 19.27%


$0 - $14,999 17.9% 14.1% 16.5%

$15,000 - $24,999 11.5% 14.3% 15.0%

$25,000 - $34,999 10.8% 13.1% 13.0%

$35,000 - $49,999 16.1% 16.3% 16.1%

$50,000 - $74,999 19.4% 18.6% 17.8%

$75,000 - $99,999 11.7% 10.0% 9.1%

$100,000 - $124,999 5.6% 5.5% 5.2%

$125,000 - $149,999 2.2% 2.6% 2.4%

$150,000 - $199,999 2.3% 2.4% 2.3%

$200,000 - $249-999 1.0% 1.2% 1.0%

$250,000+ 1.6% 2.0% 1.7%




Demographic Summary - St. Petersburg, FL on Central Avenue

96,667 Three-MilePopulation



2000 Population 2,798 40,970 115,132

2010 Population 5,724 48,614 132,198

2014 Population 6,146 51,918 139,780

2019 Population 7,414 56,014 148,072


2000 Households 1,081 14,244 39,133

2010 Households 2,499 18,159 47,660

2014 Households 2,685 19,461 50,496

2019 Households 3,306 21,322 54,182





2000 Vacant 2.78% 2.71% 2.92%



2014 Vacant 2.50% 3.36% 2.64%



2019 Vacant 2.47% 3.49% 2.67%


$0 - $14,999 5.0% 5.1% 4.8%

$15,000 - $24,999 6.0% 4.5% 4.4%

$25,000 - $34,999 7.9% 7.5% 6.7%

$35,000 - $49,999 14.6% 11.8% 10.4%

$50,000 - $74,999 22.7% 20.8% 19.3%

$75,000 - $99,999 15.8% 16.6% 16.5%

$100,000 - $124,999 12.7% 12.2% 12.8%

$125,000 - $149,999 7.8% 9.6% 9.2%

$150,000 - $199,999 5.1% 7.3% 9.0%

$200,000 - $249-999 0.8% 2.0% 3.1%

$250,000+ 1.5% 2.5% 3.9%




Demographic Summary - Woodstock, GA

$104,058 Five-Mile Average Household income



2000 Population 7,197 61,332 188,422

2010 Population 6,916 67,565 197,468

2014 Population 7,039 69,256 202,847

2019 Population 7,039 71,187 207,227


2000 Households 2,323 23,505 75,179

2010 Households 2,153 25,045 77,902

2014 Households 2,219 25,829 80,446

2019 Households 2,226 26,688 82,880





2000 Vacant 3.72% 4.45% 4.70%



2014 Vacant 16.21% 6.42% 6.55%



2019 Vacant 16.95% 6.56% 6.78%


$0 - $14,999 12.1% 10.5% 10.5%

$15,000 - $24,999 17.3% 12.5% 11.1%

$25,000 - $34,999 12.5% 12.9% 11.8%

$35,000 - $49,999 16.3% 17.4% 14.7%

$50,000 - $74,999 19.6% 21.5% 19.6%

$75,000 - $99,999 10.1% 11.7% 12.3%

$100,000 - $124,999 5.2% 6.6% 7.8%

$125,000 - $149,999 1.8% 2.5% 3.9%

$150,000 - $199,999 3.3% 2.4% 4.0%

$200,000 - $249-999 0.6% 0.8% 1.5%

$250,000+ 1.1% 1.2% 2.8%




Demographic Summary - Memphis, TN

$74,902 Five-Mile Average Household income

Exclusively ListedStarbucks Portfolio

O F F E R I N GM E M O R A N D U M

Ron Duong Senior Vice President Investments Senior Director, National Retail Group (949) 419-3233 direct [email protected] License: CA 01438643

Craig Elster Net Leased Properties Group (949) 419-3328 direct [email protected] License: CA 01958307

Brokers of Record

Ryan Nee Broker of Record Ft. Lauderdale, FL License: BK3154667

Michael J. Fasano Broker of Record Atlanta, GA License: CA 01845973

Jody McKibben Broker of Record Memphis, TN License: TN 307629

Documents

Starbucks Portfolio Net Leased Investment Opportunity · company and coffeehouse chain. Starbucks was founded in Seattle, Washington in 1971. Starbucks began as a roaster and retailer