Starbucks 10-Year Net Lease
For sale to qualified investors is the fee-simple interest in a newly-developed, long-term freestanding Starbucks with drive-thru. Starbucks is relocating from a high volume non-drive-thru store in close proximity, and due to their successful operating history in that store and adding a drive-thru, has waived any right to early termination. This lease, recently signed by Starbucks Corporation (S&P “A”), provides 10 years of guaranteed income from one of the most stable and credit-worthy restaurant corporations in the world. Additionally, rent increases at a rate of 10% every five years during the initial term and options, providing increasing cash flow and a hedge against inflation. Starbucks has taken possession of the new, all-brick building, with anticipated opening date in May 2017. Whereas the former store was mid-block and lacked a drive-thru, the new building is located at the signalized corner of Lorain and Dover Center roads with over 40,000 vehicles per day and features drive-thru service for its customers. There are approximately 64,000 people within a three mile radius, with average incomes of $84,000. Located in perhaps the most dynamic retail market in all of Cleveland, the property is surrounded by retail, residential, and thousands of daytime employees. A few of the nearby retailers include Target, Walmart, Home Depot, Giant Eagle, TJ Maxx, Dick’s, DSW, Babies R Us, Joann, Petsmart, Best Buy, Bed Bath & Beyond, Homegoods, Party City, Ulta, and many, many more.