Offering Memorandum STARBUCKS & MATTRESSONE...840 East Eau Gallie Blvd, Melbourne, FL 32937 Price:...

STARBUCKS & MATTRESSONEOffering Memorandum

Indian Harbour Beach, FL(Melbourne)

Nearest Mattress Firm and

MattressOne are 9 Miles Away;

Nearest Starbucks is 3.5 Miles

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 Marcus & Millichap Investment Survices of Florida and should not be made available to any other person or entity without the written consent of Marcus & Millichap. 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. Marcus & Millichap 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, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap 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.

Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

CONFIDENTIALITY AND DISCLAIMER

NON-ENDORSEMENT NOTICE

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. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services of Florida© 2018. All rights reserved.

SUBJECT PROPERTY

SUBJECT PROPERTY

Starbucks is a Relocation Store

- Sales at the New Location

Have Increased Significantly


SUBJECT PROPERTY


Drive Thru

SUBJECT PROPERTY

Eau Gallie Boulevard


FINANCIAL OVERVIEW

Property Name840 East Eau Gallie Blvd, Melbourne, FL 32937

Price: $3,680,000Cap Rate: 5.75%Rentable Square Feet: 6,100Net Operating Income: $211,550Price PSF: $603.28Land Area: 1.00 AcreYear Built: 2018

Tenant Square Feet Annual Rent Rent

PSFLease

CommenceLease

Expiration Lease Term Option Periods Increases

Starbucks 2,200 $116,000 $52.72 1/12/2018 1/31/2028 10 Years 4, 5-Year Options 10% Every 5 YearsMattressOne 3,900 $95,550 $24.50 1/18/2018 1/31/2028 10 Years 3, 5-Year Options 10% Every 5 Years

Totals 6,100 $211,550

• Two Brand New, Free-Standing Buildings, Occupied by Two National Tenants - Starbucks and MattressOne

• Both Tenants Have New, 10-Year Leases With Over Nine Years Remaining

• Starbucks has Four, Five-Year Renewal Options with 10 Percent Increases Every Five Years

• MattressOne has Three, Five-Year Renewal Options with 10 Percent Increases Every Five Years

• Surrounding Retailers Include Walmart Supercenter, Publix, Winn Dixie, Bealls, Ross, Office Depot, Panera Bread, Wendy's, McDonald's, Bank of America, Wells Fargo and Many More

• Within Walking Distance to Canova Beach Park• Six Miles from Orlando Melbourne International Airport• Nearest Mattress Firm and MattressOne are Nine Miles Away

from Subject Property; Nearest Starbucks is 3.5 Miles• This MattressOne Location is Considered One of the Top

Performing Units in the Chain• Starbucks is a Relocation Store from a Unit that was Less

Than 1.5 Miles Away. That Unit Did Not Have a Drive-Thru and Sales in This Location Have Increased Significantly

Investment Highlights


Base Term Monthly Annual Rent PSF

Current-1/31/2023: $9,667 $116,000 $52.732/1/2023-1/31/2028: $10,633 $127,600 $58.00

Option Periods Monthly Annual Rent PSF

2/1/2028-1/31/2033: $11,697 $140,360 $63.802/1/2033-1/31/2038: $12,863 $154,360 $70.162/1/2038-1/31/2043: $14,153 $169,836 $77.202/1/2043-1/31/2048: $15,568 $186,819 $84.92

Base Term Monthly Annual Rent PSF

Current-1/31/2023: $7,963 $95,550 $24.502/1/2023-1/31/2028: $8,759 $105,105 $26.95

Option Periods Monthly Annual Rent PSF

2/1/2028-1/31/2033: $9,635 $115,616 $29.652/1/2033-1/31/2038: $10,598 $127,177 $32.602/1/2038-1/31/2043: $11,658 $139,895 $35.87

FINANCIAL OVERVIEW


SUBJECT PROPERTY


TENANT SUMMARY

Back when they first started in 1971, Starbucks (NASDAQ: SBUX) just a roaster and retailer of whole bean and ground coffee, tea and spices with a single store in Seattle’s Pike Place Market. The company opened an average of two new locations daily between 1987 and 2007. Today, Starbucks is privileged to connect with millions of customers every day with exceptional products and as of September 2018, Starbucks is present on six continents and in 76 countries and territories, with a total of 27,340 locations.

Starbucks is considered the main representative of "second wave coffee", initially distinguishing itself from other coffee-serving venues in the US by taste, quality, and customer experience while popularizing darkly roasted coffee. Since the 2000s, third wave coffee makers have targeted quality-minded coffee drinkers with hand-made coffee based on lighter roasts, while Starbucks nowadays uses automated espresso machines for efficiency and safety reasons.

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 Teavana tea products, Evolution Fresh juices, Frappuccino beverages, La Boulange pastries, and snacks including items such as chips and crackers; some offerings are seasonal or specific to the locality of the store. Starbucks-brand coffee, ice cream, and bottled cold coffee drinks are also sold at grocery stores.

Mattress One is among the largest mattress retailers in the USA, with over 300 locations throughout Texas, Florida, and Georgia. With a wide selection of the top brands, as well as other perks such as their price match guarantee, 120 day in-home trial, financing options, and free fast delivery, Mattress One is a strong and dynamic retailer in the mattress industry. The company sells a wide line of Tempur-Pedic, Sealy, Serta, Stearns & Foster, and Simmons mattresses.

Nearest Mattress Firm and

MattressOne are 9 Miles Away;

Nearest Starbucks is 3.5 Miles



McDonald's

21,000Daily

AERIAL | FACING EAST


AERIAL | FACING SOUTH


AERIAL | FACING WEST


Within Walking Distance to

Canova Beach Park

AERIAL | FACING EAST


AERIAL

21,000Daily


McDonald's


LOCAL & REGIONAL MAPS

Click to View in Google Maps


https://www.google.com/maps/place/840+E+Eau+Gallie+Blvd,+Melbourne,+FL+32937/@28.1388794,-80.5880332,1019m/data=!3m1!1e3!4m5!3m4!1s0x88de108ad4825e99:0xeb29287fb5ec92ca!8m2!3d28.1388794!4d-80.5858445

MARKET OVERVIEW

OVERVIEW

MELBOURNE

DEMOGRAPHICS

ECONOMY

METRO HIGHLIGHTS

* Forecast

Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s Analytics; U.S. Census Bureau

The Melbourne area is nicknamed the Space Coast since all ofNASA’s manned space flights have launched from eitherKennedy Space Center or Cape Canaveral. Tourists flock to thearea for its beautiful beaches, cruise port and space industry,adding billions of dollars to the local economy every year. Themetro comprises all of Brevard County. The city of Melbourne is70 miles southeast of Orlando and 180 miles north of Miami.

SPACE COAST

Space X, NASA and other organizations are advancing the future of space exploration, providing many employment opportunities.

PORT CANAVERAL

Several cruise lines operate out of busy Port Canaveral, approximately 55 miles east of Orlando, drawing many visitors to the area every year.

TOURISM INDUSTRY

Warm winter weather, sandy beaches and an abundance of activities and attractions support a thriving tourism industry that brings in billions of dollars every year.

▪ Kennedy Space Center and Cape Canaveral Air Station are large drivers to the economy, drawing companies such as Space X and Boeing to the area, which creates many high-paying technically skilled jobs.

▪ Port Canaveral, a top-of-the-line cruise and cargo port, is the homeport to several of the industry’s top cruise lines. Fishing charters operate out of the port as well, bringing an abundance of travelers to the metro for dining, entertainment and lodging.

▪ Brevard County is home to a large retiree population with roughly 23 percent of residents being 65 or older, leading to a high homeownership rate of 71 percent.

568K

2017POPULATION:

240K

2017HOUSEHOLDS:

47.3

2017MEDIAN AGE:

$49,200

2017 MEDIAN HOUSEHOLD INCOME:

U.S. Median:

37.8U.S. Median:

$56,3008.2%

Growth2017-2022*:

6.9%

Growth2017-2022*:

DEMOGRAPHICS

POPULATION 1 MILE 3 MILES 5 MILES

2010 Population 8,307 28,387 75,9712017 Population 8,526 29,109 78,4682022 Population 8,935 29,759 78,8992017 Male Population 4,132 14,271 38,2022017 Female Population 4,394 14,838 40,2662017 Median Age 51.1 51.0 48.3

RACE & ETHNICITY 1 MILE 3 MILES 5 MILES

American Indian, Eskimo 0.2% 0.2% 0.4%Asian 2.5% 2.2% 2.4%Black 1.0% 1.2% 4.7%Hawaiian/Pacific Islander 0.1% 0.1% 0.1%White 93.1% 93.1% 87.7%Other 1.1% 1.1% 1.8%Multi-Race 2.0% 2.1% 3.0%Hispanic Ethnicity 6.5% 6.5% 8.5%Not of Hispanic Ethnicity 93.5% 93.5% 91.5%

HOUSEHOLDS 1 MILE 3 MILES 5 MILES

2010 Households 4,058 12,942 34,7212017 Households 4,168 13,300 35,8912022 Households 4,422 13,738 36,649

HOUSEHOLD INCOME 1 MILE 3 MILES 5 MILES

2010 Avg Household Income $75,317 $79,032 $65,4512017 Avg Household Income $80,732 $85,013 $69,3422022 Avg Household Income $93,326 $97,874 $79,4702010 Med. Household Income $49,255 $51,361 $44,2472017 Med. Household Income $55,103 $57,844 $47,7852022 Med. Household Income $64,522 $68,451 $55,9722010 Per Capita Income $36,794 $36,037 $30,0292017 Per Capita Income $39,465 $38,848 $31,8182022 Per Capita Income $46,189 $45,188 $37,013


The Wolfe Retail Group of Marcus & Millichap specializes in the sale of single-tenant properties and shopping centers and has successfully assisted clients in selling over 450 separate commercial properties with a market value exceeding $1.25 billion. Having closed sales in more than 40 states, our track record is evidence that we are one of the premier brokerage teams in the United States.

With our experience and background in various fields such as law and finance, we have proved to be invaluable to our clients, earning their trust and exceeding their expectations while best assisting them in their real estate transactions.

For more about the Wolfe Retail Group or to view all of our available listings, visit www.WolfeRetailGroup.com

About Marcus & MillichapWith over 1,800 investment professionals located throughout the United States and Canada, Marcus & Millichap (NYSE: MMI) is a leading specialist in commercial real estate investment sales, financing, research and advisory services. The firm closed nearly 9,000 transactions in 2017 with a value of approx $42.2 billion.

Marcus & Millichap has been a pioneer in the real estate investment industry and has established a reputation for maximizing value for its clients while fostering long-term relationships built on integrity, trust and service. The company has perfected a powerful system for marketing properties that combines investment specialization, local market expertise, the industry’s most comprehensive research, state-of-the-art technology, and relationships with the largest pool of qualified investors. Marcus & Millichap also offers clients access to the most competitive real estate financing through Marcus & Millichap Capital Corporation (MMCC), which maintains relationships with the industry’s leading national, regional and local lenders.

The Wolfe Retail Group has sold over

450 properties in more than

40 states

Barry M. WolfeSenior Managing Director Investments

[email protected](954) 245-3493

Alan LipskyVice President Investments


Evan WhelanAssociate


Catie JacksonMarketing Coordinator


Angelica ArrousTransaction Coordinator


Charles “Chas” MoodyAssociate


Michael TalbertAssociate


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Offering Memorandum STARBUCKS & MATTRESSONE...840 East Eau Gallie Blvd, Melbourne, FL 32937 Price:...

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