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Starbucks (S&P: A- | New Lease)4116 2nd AvenueKearney, NE
NET LEASE INVESTMENT OFFERING
NET LEASE INVESTMENT OFFERING
TABLE OF CONTENTS
I. Executive Summary
Executive SummaryInvestment HighlightsProperty Overview
II. Location Overview
Site PlanAerialMap
III. Market & Tenant Overview
Tenant ProfileLocation OverviewDemographics
NET LEASE INVESTMENT OFFERING
DISCLAIMER STATEMENT
The information contained in the following Offering Memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from The Boulder Group and should not be made available to any other person or entity without the written consent of The Boulder Group.
This Offering Memorandum 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. The Boulder Group has not made any investigation, and makes no warranty or representation.
The information contained in this Offering Memorandum has been obtained from sources we believe to be reliable;however, The Boulder Group has not verified, and will not verify, any of the information contained herein, nor hasThe Boulder Group conducted any investigation regarding these matters and makes no warranty or representationwhatsoever regarding the accuracy or completeness of the information provided. All potential buyers must takeappropriate measures to verify all of the information set forth herein.
DISCLAIMER STATEMENT:
NET LEASE INVESTMENT OFFERING
EXECUTIVE SUMMARY
The Boulder Group is pleased to exclusively market for sale a single tenant Starbucks property strategically located in Kearney, NE. The property is located in a primary retail destination along the trade area’s primary north-south thoroughfare. The new ten year Starbucks lease commenced on August 16, 2016. The net lease features a 10% rental escalation in the primary term and in each renewal option period.
The Starbucks property is positioned along 2nd Avenue which is the trade area’s primary north-south thoroughfare. 2nd Avenue features traffic counts in excess of 29,000 vehicles per day. The Starbucks property is a hard corner strategically positioned as an outparcel to a Family Fresh Market grocery anchored center within the region’s primary retail destination. Retailers in the immediate area include Walmart Supercenter, Target, JCPenney, Hy-Vee, Walgreens, Menards, Office Max and Ashley Furniture. Further contributing to the strength of this Starbucks is its proximity to CHI Health Good Samaritan hospital and the University of Nebraska-Kearney. CHI Health Good Smaritan hospital is located approximately one mile south of the property and is the region’s largest hospital. The University of Nebraska-Kearney is a public university with enrollment of 7,000 students that is located approximately one mile southwest of the Starbucks. Approximately 35,000 people live within a three mile radius of the property
Starbucks is a publicly traded company on the NASDAQ (SBUX) with a market capitalization in excess of $85 billion. Starbucks is an investment grade rated company with a Standard & Poor’s rating of A-. Starbucks operates as a roaster, marketer, and retailer of specialty coffee worldwide. As of March 27, 2016, it operated 23,921 stores. Starbucks Corporation was founded in 1985 and is based in Seattle, Washington.
EXECUTIVE SUMMARY:
NET LEASE INVESTMENT OFFERING
INVESTMENT HIGHLIGHTS
• Investment grade rated tenant (S&P:A-)
• Tenant is a publicly traded company (NASDAQ: SBUX) with a market capitalization in excess of $85 billion
• Long term brand new ten year lease
• 10% rental escalations every five years throughout the primary term and renewal option periods
• Recently renovated building (2016)
• Located at a hard corner along the trade area’s primary north-south thoroughfare (29,000 VPD)
• Outparcel to a Family Fresh Market grocery anchored center
• Central location within a primary retail destination that includes Walmart Supercenter, Target, JCPenney, Hy-Vee, Walgreens, Menards, Office Max, Ashley Furniture, US Bank, Wells Fargo Bank and Bank of the West
• Approximately one mile northeast of the University of Nebraska-Kearney which has an enrollment in excess of 7,000 students
• One mile north of the CHI Health Good Samaritan hospital which is the largest in the region
• Approximately 35,000 people living within a three mile radius of the property
INVESTMENT HIGHLIGHTS:
NET LEASE INVESTMENT OFFERING
PROPERTY OVERVIEW
Price: $1,472,059
Cap Rate: 5.10%
Net Operating Income: NOI Escalation Date
$75,075
$82,582 08/12/21
$90,840 09/01/26 Option 1
$99,926 09/01/31 Option 2
$109,917 09/01/36 Option 3
$120,909 09/01/41 Option 4
Rent Commencement Date: August 16, 2016
Lease Expiration Date: August 31, 2026*
Rental Escalations: 10% Every Five Years
Renewal Options: Four 5-Year
Tenant: Starbucks
Credit Rating: Investment Grade (S&P: A-)
Year Renovated: 2016
Lease Type: NN (Roof, Structure, Parking & Utility Systems)
Building Size: 1,925 SF
* Tenant has the right to terminate in the 84th Month (7th year) of the lease if sales are not higher than $850,000. Tenant shall pay a termination fee equal to six months base rent plus the unamortized portion of the Tenant Allowance ($150,000), calculated by amortizing such amount on a straight line basis over ten years.
PROPERTY OVERVIEW:
NET LEASE INVESTMENT OFFERING
SITE PLAN
2ND AVENUE (29,000 VPD)
WE
ST 39T
H ST
RE
ET
WE
ST 42N
D ST
RE
ET
NSUBJECT OFFERING
HOUSE OF BARBERS
AERIAL
NET LEASE INVESTMENT OFFERING
N
W
est 39th Street (15,000 V
PD
)
2nd Avenue (29,000 VPD)
HILLTOP MALL
NET LEASE INVESTMENT OFFERING
MAP
N
NET LEASE INVESTMENT OFFERING
PHOTOS
NET LEASE INVESTMENT OFFERING
TENANT PROFILE
Starbucks Corporation operates as a roaster, marketer, and retailer of specialty coffee worldwide. The company operates in four segments: Americas; Europe, Middle East, and Africa; China/Asia Pacific; and Channel Development. Its stores offer coffee and tea beverages, packaged roasted whole bean and ground coffees, single-serve and ready-to-drink coffee and tea products, juices, and bottled water. The company’s stores also provide fresh food and snack offerings; and various food products, such as pastries, and breakfast sandwiches and lunch items, as well as serve ware, beverage-making equipment, and accessories. In addition, it licenses its trademarks through licensed stores, and grocery and national foodservice accounts. The company offers its products under the Starbucks, Teavana, Tazo, Seattle’s Best Coffee, Evolution Fresh, La Boulange, Ethos, Starbucks VIA, Seattle’s Best Coffee, Frappuccino, Starbucks Doubleshot, Starbucks Refreshers, and Starbucks Discoveries Iced Café Favorites brand names. As of March 27, 2016, it operated 23,921 stores. Starbucks Corporation was founded in 1985 and is based in Seattle, Washington.
Starbucks is a publicly traded company on the NASDAQ (SBUX) with a market capitalization in excess of $85 billion. Starbucks is an investment grade rated company with a Standard & Poor’s rating of A-.
Website: www.starbucks.comCredit Rating: Investment Grade (S&P: A-)
Stock Symbol: NASDAQ: SBUX
Market Capitalization: $85 Billion
Headquarters: Seattle, WA
TENANT PROFILE:
NET LEASE INVESTMENT OFFERING
LOCATION OVERVIEW
Kearny is the county seat of Buffalo County, Nebraska. The population was 30,787 at the 2010 census. It is home to the University of Nebraska-Kearney. The westward push of the railroad as the Civil War ended gave birth to the community. The largest employers in Kearney are the Good Samaritan Hospital, the University of Nebraska at Kearney and the Kearney Public Schools. Good Samaritan Hospital is owned by CHI Health which is a non-profit, fait based health organization with headquarters in Omaha, NE.
The University of Nebraska at Kearney was established in 1905. The university has a total enrollment of over 7,000 students. The campus comprises 49 buildings on a 514 acres. Not all buildings are part of the contiguous campus, and many are used for non-academic purposes. The university’s athletic teams are known as the Lopers. UNK participates in intercollegiate athletics at the NCAA at the Division II level and is a member of the Mid-America Intercollegiate Athletics Association (MIAA) for most of its sports.
Kearney is located along Interstate 80 approximately 130 miles west of Lincoln and 180 miles west of Omaha. Kearney is the fifth largest city in the state of Nebraska.
LOCATION OVERVIEW:
NET LEASE INVESTMENT OFFERING
DEMOGRAPHICS
DEMOGRAPHIC REPORT:
Population 1 Mile 3 Mile 5 Mile
Total Population 9,191 34,214 36,801
Total Households 3,842 13,499 14,426
Income 1 Mile 3 Mile 5 Mile
Median Household Income $56,498 $49,661 $50,631
Average Household Income $68,528 $63,598 $64,787
Jimmy [email protected]
John FeeneyVice [email protected]
Kevin StratmanBroker of RecordLicense #: 20110363
666 Dundee Road, Suite 1801Northbrook, IL 60062
www.bouldergroup.com
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