Bryan Cifranic Nathan Negri

Bryan CifranicDRE License #01809130

Nathan NegriDRE License #01905421

Direct Line: 559/ 650.1316 [email protected]


FOR SALE | BRAND NEW STARBUCKS SINGLE-TENANT NET-LEASED INVESTMENT | CALIFORNIA

Property Features: • New 10-Year Corporate Lease | Investment Grade Tenant | S&P BBB+• Brand New 2021 Build-to-Suit Construction w/Drive-Thru• Rare “Self-Contained” Lease Provision where Tenant Self-Maintains the Parcel• 10% Rent Increases Every 5-Years | No Early Lease Termination Rights• High Traffic Volume Location | Over 79,000 ADT @ HWY 99 and 8-Mile Road

Price: $3,750,000CAP Rate: 4.0%

*Representative Photo



FOR MORE INFORMATION CONTACT:



EXECUTIVE SUMMARYCommercial Retail Associates, Inc. is pleased to have been selected as the exclusive listing

agent for the sale of this brand new free-standing drive-thru building leased to the Starbucks

Corporation and located right at the on/off ramps to State Highway 99 at Eight Mile Road in

Stockton, California. The subject property is well positioned directly along State Highway 99

in the northern most part of the city of Stockton and is nearby the southern portion of the

city of Lodi. This offering presents an investor with an opportunity to acquire an attractive,

brand-new constructed property that is leased to a corporate, investment grade tenant on a

new long-term lease.

INVESTMENT SUMMARY

Address: 10880 N. Highway 99 Stockton, California

Price: $3,750,000

CAP Rate: 4.0%

Annual Rent: $150,000

Lease Term: 10-Years

Lease Type: Net-Lease

Year Built: 2021 (under construction)

Building Size: ±1,850 Square Feet

Parcel Size: ±1.05 Acres

STRONG FUNDAMENTALS• Investment grade tenant with an S&P credit rating of BBB+ revenue over $22 Billion and a

market cap of $143 Billion.• Ideal for a passive investor, this property has a rare “self-contained” provision in the tenant’s lease

where Starbucks self-maintains the parcel and is responsible for the oversite and payment of the common areas and expenses. Unlike most Starbucks leases where the landlord is responsible for the day-to-day management of the common areas and then has to seek reimbursement from the tenant for those operating expenses, here the Tenant self manages.

• Starbucks has been named by Fortune as one of the “World’s Most Admired Companies” and one of the “World’s Most Valuable Brands” by Forbes.

• Brand new build-to-suit drive-thru prototype construction with a new 10-year lease and no early lease termination right, highly demonstrating the Tenant’s commitment to the site.

• Starbucks is the largest coffeehouse chain globally with over 33,000 stores in 80 markets and recently announced growth plans to open an additional 22,000 locations to bring its total store

count to 55,000 by 2030.

LOCATION HIGHLIGHTS• The nearby trade area services affluent residential neighborhoods with an average household

income of over $147,500 within a 1-mile radius. There are also nearly 160,000 residents within a 5-mile radius.

• 79,000 average daily traffic on State Highway 99 at Eight Mile Road. The subject property sits directly at the on/off ramps to northbound traffic on Highway 99.

• Neighboring commercial tenants in the trade area include: Costco, Wal-Mart Supercenter, Home Depot, Lowe’s, Dick’s Sporting Goods, Sprouts Farmer’s Market, Ross, Burlington, Dollar Tree, several national fast-food restaurants, and the Stockton Auto Mall (comprised of Ford, Chevy, GMC, Cadillac, Dodge, Jeep, Kia, and Nissan dealerships).

• The subject property is located just 50-miles from Sacramento International Airport and lies within the Stockton-Lodi Metropolitan Statistical Area (MSA) which is a major metropolitan

region in Northern California and is comprised by a population of nearly 770,000 people.

Investment Summary






Lease Summary / Rent Schedule

RENT SCHEDULE:

YEARS 6-10: $165,000 Annually (10% Increase)

OPTION RENT: 10% Rent Increases in Each Option Period

TENANT: Starbucks Corporation, a Washington corporation

LEASE SUMMARY:

LEASE TERM: 10-Years (estimated commencement September 21, 2021)

OPTION TERMS: Four (4) Periods of Five (5) Years Each

TERMINATION RIGHT: None

ROFR: None

LEASE TYPE: Modified Triple-Net * Property Taxes: Tenant Expense Property Insurance: Tenant Expense Common Area Maintenance: Tenant Self-Maintains

YEARS 1-5: $150,000 Annually

* Landlord is responsible for repairs and maintenance to the roof, structure, and foundation. There is a 20-year transferable roof warranty in place. *Subject Property as of 8/27/21

*Representative Photo






Company Overview:

Starbucks Corporation was founded in Seattle, Washington in 1971, and has grown into the leading coffee retailer in the world with over 33,000 locations and $22 billion in revenue. Starbucks is one of the most recognized brands in the world and has consistently been ranked on Fortune Magazine’s list of the most admired companies. Starbucks is aggressively expanding its drive-thru format which generate 30% - 60% more revenue compared to legacy cafe locations. Starbucks together with its subsidiaries, operates as a roaster, marketer, and retailer of specialty coffee worldwide. The company operates in three segments: Americas; International; and Channel Development. Its stores offer coffee and tea beverages, roasted whole bean and ground coffees, single-serve and ready-to-drink beverages, and iced tea; and various food products, such as pastries, breakfast sandwiches, and lunch items. The company also licenses its trademarks through licensed stores, and grocery and foodservice accounts. It offers its products under the Starbucks, Teavana, Seattle’s Best Coffee, Evolution Fresh, Ethos, Starbucks Reserve, and Princi brand names. This is a Corporate Signature Lease with Starbucks Corporation, a Washington Corporation (NASDAQ: SBUX)

For more information visit: www.starbucks.com

OWNERSHIP: PUBLIC (NASDAQ: SBUX)CREDIT RATING: S&P BBB+ (INVESTMENT GRADE)MARKET CAP: $143.80 BILLIONREVENUE: $22.05 BILLIONNUMBER OF STORES: 33,000LOCATED IN: 80 MARKETS (U.S. AND INTERNATIONALLY)FOUNDED: 1971HEADQUARTERED: SEATTLE, WASHINGTON

Tenant Profile






Site Plan

*site plan not to scale






Aerial






Location

SITESITE

Location Overview - Stockton, CaliforniaStockton is the County seat of San Joaquin County and is one of California’s fastest growing communities. Stockton is currently the 13th largest city in California with a dynamic, multi-ethnic and multicultural population of approximately 315,000. It is situated along the San Joaquin Delta waterway which connects to the San Francisco Bay and the Sacramento and San Joaquin Rivers. Stockton is located 60 miles east of the San Francisco Bay Area, 83 miles east of San Francisco, and 45 miles south of Sacramento, the capital of California.Historically an agricultural community, Stockton’s economy has since diversified into other industries, including telecommunications, manufacturing, and distribution. Stockton’s central location, relative to both San Francisco and Sacramento, as well as its proximity to the state and interstate freeway system, together with its comparatively inexpensive land costs, have prompted several companies to base their regional operations in the city.

Stockton also has outstanding recreational opportunities. Stockton is within close proximity to world famous scenic attractions including the California Coast, San Francisco, Lake Tahoe and Yosemite National Park. The community offers many local recreational opportunities such as professional sports teams, an Olympic size ice rink, and the Delta, which provides thousands of miles of waterways for water skiing, sailing and other water activities. There are also many opportunities to enjoy music, theater, dance, literary events, and other cultural and entertainment activities throughout the year. The City has its own symphony and opera company.The City is home to several well known higher educational institutions including the University of the Pacific, California State University Stanislaus-Stockton, San Joaquin Delta Community College, Humphreys College and School of Law, as well as a variety of private and vocational schools. In 1999, 2004, 2015, 2017, and 2018, Stockton was designated an All-America City by the National Civic League.

StocktonStockton

SacramentoSacramento






Demographics

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FULL PROFILE2000-2010 Census, 2021 Estimates with 2026 ProjectionsCalculated using Weighted Block Centroid from Block Groups

Lat/Lon: 38.0556/-121.2581RF1

10880 N Hwy 991 mi radius 3 mi radius 5 mi radius 10 mi radius

Stockton, CA 95212

POPU

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2021 Estimated Population 3,580 37,731 159,873 440,9772026 Projected Population 4,031 40,607 167,292 457,9802010 Census Population 3,216 34,713 148,571 416,5602000 Census Population 2,033 23,356 121,460 370,733Projected Annual Growth 2021 to 2026 2.5% 1.5% 0.9% 0.8%Historical Annual Growth 2000 to 2021 3.6% 2.9% 1.5% 0.9%

HO

USE

HO

LDS

2021 Estimated Households 1,109 10,574 49,476 142,8942026 Projected Households 1,227 11,216 50,993 146,3692010 Census Households 993 9,646 46,007 134,7822000 Census Households 717 6,984 39,196 123,210Projected Annual Growth 2021 to 2026 2.1% 1.2% 0.6% 0.5%Historical Annual Growth 2000 to 2021 2.6% 2.4% 1.2% 0.8%

MA

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2021 Est. Male Population 49.5% 49.5% 48.9% 49.3%

2021 Est. Female Population 50.5% 50.5% 51.1% 50.7%

2021 Est. Never Married 22.6% 37.3% 38.4% 39.1%

2021 Est. Now Married 59.4% 43.2% 41.8% 40.4%

2021 Est. Separated or Divorced 9.6% 14.3% 14.3% 14.5%

2021 Est. Widowed 8.4% 5.1% 5.5% 5.9%

INC

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2021 Est. HH Income $200,000 or More 27.8% 9.3% 6.4% 6.4%

2021 Est. HH Income $150,000 to $199,999 7.6% 8.4% 6.7% 5.5%

2021 Est. HH Income $100,000 to $149,999 21.1% 18.7% 15.3% 14.0%

2021 Est. HH Income $75,000 to $99,999 8.3% 12.6% 13.4% 13.0%

2021 Est. HH Income $50,000 to $74,999 9.9% 19.9% 20.5% 20.3%

2021 Est. HH Income $35,000 to $49,999 8.6% 9.4% 12.1% 12.7%

2021 Est. HH Income $25,000 to $34,999 9.1% 9.4% 9.8% 9.7%

2021 Est. HH Income $15,000 to $24,999 2.1% 5.5% 7.8% 8.3%

2021 Est. HH Income Under $15,000 5.5% 6.8% 8.0% 10.2%

2021 Est. Average Household Income $147,587 $97,892 $88,798 $85,242

2021 Est. Median Household Income $139,646 $84,291 $68,755 $64,838

2021 Est. Per Capita Income $45,809 $27,529 $27,569 $27,764

2021 Est. Total Businesses 75 650 3,945 12,3932021 Est. Total Employees 551 5,781 37,482 133,199

©2021, Sites USA, Chandler, Arizona, 480-491-1112 page 1 of 3 Demographic Source: Applied Geographic Solutions 5/2021, TIGER Geography

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2021 Est. White2021 Est. Black2021 Est. Asian or Pacific Islander2021 Est. American Indian or Alaska Native2021 Est. Other Races

46.0% 29.1% 37.2% 41.6%5.1% 8.8% 9.1% 9.2%

30.6% 41.5% 29.0% 19.6%0.6% 0.6% 0.9% 1.1%

17.7% 19.9% 23.8% 28.4%

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Business

Stockton, California






DISCLAIMERCommercial Retail Associates, Inc. hereby advises all prospective buyers of property as follows:

The information contained in this Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Commercial

Retail Associates, Inc. and should not be made available to any other person or entity without the written consent of Commercial Retail Associates, Inc. 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. Commercial Retail Associates, Inc. and its Agents 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, 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, Commercial

Retail Associates, Inc. and its Agents has not verified, and will not verify, any of the information contained herein, nor has Commercial Retail Associates, Inc. and its Agents

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.

All property showing are by appointment only. Please consult Commercial Retail Associates or your Agent for more details.

By accepting this Marketing Brochure you agree to release Commercial Retail Associates, Inc. and its Agents and

hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this property.

Bryan Cifranic Nathan Negri

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