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Transcript of STARBUCKS COFFEE - Investcore Commercialinvestcorecommercial.com/wp-content/uploads/2016/11/... ·...
Exclusively Offered By:
Michael Campbell 619.546.0122 [email protected] CA Lic #01843521
Ed Colson, Jr. CCIM 619.546.0121 [email protected] Lic #01382996 | TX Lic #635820
*Property Currently Under Contruction
STARBUCKS COFFEE1359 Garnet Avenue, Pacific Beach (San Diego), CA 92109
InvestCoreCommercial.com
2 | Starbucks - Pacific Beach, CA
InvestCore Commercial presents this Offering which
has been prepared by InvestCore Commercial for use
by a limited number of parties and does not purport
to provide a necessarily complete summary of the
Property or any of the documents related thereto, nor
does it purport to be all-inclusive or to contain all of
the information which prospective investors may need
or desire. All projections have been developed by
InvestCore Commercial, the Owner, and designated
sources and are based upon assumptions relating to
the general economy, competition, and other factors
beyond the control of the Owner and, therefore, are
subject to variation. No representation is made by
InvestCore Commercial or Owner as to the accuracy or
completeness of the information contained herein, and
nothing contained herein is, or shall be relied on as, a
promise or representation as to the future performance
of the Property. Although the information contained
herein is believed to be correct, Owner and its employees
disclaim any responsibility for inaccuracies and expect
prospective purchasers to exercise independent due
diligence in verifying all such information. Further,
InvestCore Commercial, Owner, and its employees
disclaim any and all liability for representations and
warranties, expressed and implied, contained in, or for
omission from, this Investment Offering or any other
written or oral communication transmitted or made
available to the recipient. This Offering does not constitute
a representation that there has been no change in the
business or affairs of the Property or the Owner since
the date of preparation of the package. Analysis and
verification of the information contained in this package
is solely the responsibility of the prospective purchaser.
Additional information and an opportunity to inspect the
Property will be made available upon written request to
interested and qualified prospective investors.
Owner and InvestCore Commercial each expressly
reserve the right, at their sole discretion, to reject any
and all expressions of interest or offers regarding the
Property and/or terminate discussions with any entity
at any time with or without notice. Owner shall have no
legal commitment or obligation to any entity reviewing
this Offering or making an offer to purchase the Property
unless and until a written agreement for the purchase
of the Property has been fully executed, delivered,
and approved by Owner and its legal counsel, and any
conditions to Owner’s obligations thereunder have
been satisfied or waived. InvestCore Commercial is not
authorized to make any representations or agreements
on behalf of Owner.
This Offering and the contents, except such information
which is a matter of public record or is provided in sources
available to the public (such contents as so limited herein
are called the “Contents”), are of a confidential nature.
By accepting the package, you agree (i) to hold and
treat it in the strictest confidence, (ii) not to photocopy or
duplicate it, (iii) not to disclose the package or any of the
contents to any other entity (except to outside advisors
retained by you, if necessary, for your determination of
whether or not to make a proposal and from whom you
have obtained an agreement of confidentiality) without
the prior written authorization of Owner or InvestCore
Commercial, (iv) not use the package or any of the
contents in any fashion or manner detrimental to the
interest of Owner or InvestCore Commercial, and (v) to
return it to InvestCore Commercial immediately upon
request of InvestCore Commercial or Owner.
If you have no further interest in the Property, please
return this Investment Offering forthwith.
OFFERING STATEMENT / DISCLAIMER
InvestCore Commercial, Inc. 3910 W. Point Loma Blvd, Suite B
San Diego, CA 92110
3 | Stripes - San Antonio, TX
TABLE OF CONTENTS
INVESTMENT SUMMARY 4
Executive Summary
Investment Highlights
PROPERTY DESCRIPTION 7
Street Map
San Diego Colleges & Universities
Aerials
AREA OVERVIEW 12
About Pacific Beach
About San Diego
Demographics
4 | Starbucks - Pacific Beach, CA
INVESTMENT SUMMARYExecutive SummaryInvestment Highlights
GA
RN
ET AV
ENU
E - 20,366 CPD
GRAND AVENU
E - 2
5,755 CPD
PACIFIC OCEANSan Diego greets 30 million visitors a year
SUBJECT PROPERTY
5 | Starbucks - Pacific Beach, CA
Tenants:Starbucks Corporation, a Washington corporation (NASDAQ: SBUX; S&P Rated “A-”)
Address:1359 Garnet AvenuePacific Beach (San Diego), CA 92109
Building Size: ~1,535 SF
Land Size: ~9,374 SF
Year Built: 1979 / 2004 / 2015
Rent Commencement: March 1, 2004
Lease Expiration: February 28, 2025
Options:Two (2) 5-year options
Lease Type:Fee Simple NNN Land & Building. Landlord responsible to maintain, repair and if necessary, replace the foundation, structure and roof structure of the Building.
Rent Increases: See Rent Schedule
RENT SCHEDULE:
EXECUTIVE SUMMARY
OFFERING TERMS
Price: $3,866,348
NOI: $125,656.32
Cap Rate: 3.25%
INVESTMENT SUMMARY
Term Annual Rent % Increase
March 1, 2015 – February 28, 2020 $125,656.32
March 1, 2020 – February 28, 2025 $136,249.44 8.43%
March 1, 2025 – February 28, 2030 (Option 1) $156,005.61 14.50%
March 1, 2030 – February 28, 2035 (Option 2) $177,845.70 14.00%
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INVESTMENT SUMMARY
INVESTMENT HIGHLIGHTS
Rare Southern California Beach Community Investment
• The subject property is ideally located in the San Diego Beach community of Pacific Beach and is one of only a few drive thru properties located along Garnet Avenue.
Corporately Guaranteed Long-Term Lease
• The lease is guaranteed by Starbucks Corp., an investment grade tenant rated “A-” by Standard & Poor’s.
• There are 9.5 years left on the current option period
Well Located on Major Thoroughfare with High Pedestrian and Traffic Counts
• The property benefits from its location along Garnet Avenue, the major thoroughfare through Pacific Beach.
• Ideally located among a number of national restaurants and retailers. Located just 6 blocks from the beach, the property benefits from high pedestrian traffic throughout the year.
Newly Renewed Lease
• Last year, Starbucks exercised a 10-year option even though they were only obligated to a 5-year options, showing their dedication to the site.
Recent Remodel
• Upon exercising the above mentioned lease extension, Starbucks remodeled the subject property at their expense showing further long term dedication to this location.
Strong Demographics
• Starbucks benefits from the densely populated Pacific Beach with nearly 275,000 people in the 5-mile radius.
• High Average Household Incomes of $90,799, ideal demographics for Starbucks.
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PROPERTY DESCRIPTIONStreet MapSan Diego Colleges & UniversitiesAerial
8 | Starbucks - Pacific Beach, CA
PROPERTY DESCRIPTION
STREET MAP
9 | Starbucks - Pacific Beach, CA
PROPERTY DESCRIPTION
SAN DIEGO COLLEGES & UNIVERSITIES
33,735 Students
25,972 Students
34,254 Students
8,251 Students
3,480 Students
Pacific Beach is densely populated by a heavy student population from the 5 major colleges and universities in San Diego. Ideal demographics for a Starbucks Coffee.
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PROPERTY DESCRIPTION
AERIAL
GARNET AVENUE - 20.366 CPD
GRAND AVENUE - 25,755 CPD
ING
RA
HA
M S
TR
EE
T
MIS
SIO
N B
OU
LEV
AR
D
CA
SS
ST
RE
ET
EV
ER
TS
ST
RE
ET
CRYSTAL PIERLess than 1 mile from Starbucks
SUBJECT PROPERTY
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PROPERTY DESCRIPTION
AERIAL
SUBJECT PROPERTY
GARNET AVENUE - 20.366 CPD
GRAND AVENUE - 25,755 CPD
PACIFIC OCEANLess than 1 mile from Starbucks MISSION BAY MISSION BAY
219
,00
0 C
PD
PACIFIC BEACH MIDDLE SCHOOL
PACIFIC BEACH ELEMENTARY
SCHOOL
MISSION BAY HIGH SCHOOL
MISSION BAY GOLF COURSE
DEMOGRAPHICS
1 Mile 3 Mile 5 Mile
Population 33,099 91,184 278,958
Avg. HH Income $92,072 $106,025 $97,417
Households 17,357 42,496 119,223
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AREA OVERVIEWAbout Pacific BeachAbout San DiegoDemographics
GR
ES
HA
M S
TR
EE
T - 2
0,3
66
CP
D
MISSION BAY
MISSION BEACH
CROWN POINT
SUBJECT PROPERTY
13 | Starbucks - Pacific Beach, CA
Pacific Beach in San Diego is a young
beach town with the attraction of the surf
and sand by day and the lure of bars and
restaurants by night. Located south of
La Jolla and north of Mission Beach, this
San Diego beach has a popular nightlife
scene from dancing to drinking craft
beers, which attracts a college-aged and
young professionals crowd. San Diego
Pacific Beach hosts a variety of different
kinds of clubs and bars from the hip and
trendy JRDN Lounge and Raw Bar to the
low-key dive bar atmosphere found at
Cass Street Bar and Grill.
In addition to the after hours scene, there
are various family-friendly restaurants
and plenty of activities for families and
those just looking for a quiet getaway.
San Diego Pacific Beach has beachfront
property, from San Diego hotels to beach
houses, within walking distance of the
sand and sea. Keep an eye on the kids
playing on the beach from the ocean view
decks or treat yourself to a massage at
the hotel spa.
San Diego Pacific Beach is also the
ideal spot to catch some waves on your
surfboard or bodyboard, while children
splash around in the water and build sand
castles on the beach. San Diego Pacific
Beach visitors are encouraged to try other
water sports popular at the beach such
as kayaking, sailing and paddle boarding.
As for some physical activity on dry land,
Pacific Beach has the Ocean Front Walk,
which is a boardwalk that stretches parallel
to the Pacific Ocean. The boardwalk is
lined with shops and restaurants, and it is
always filled with beach cruisers, joggers
and skateboarders zooming along the
strip. Garnet Avenue is another attraction
in Pacific Beach, which is packed with
boutiques providing everything from beach
souvenirs to trendy clothing. Also at Garnet
Avenue, on Tuesdays from 2pm until
6:30pm, a farmer’s market sets up, where
visitors can taste smoothie samples and
browse local photography. The San Diego
beach market sells local produce, cuisine
and arts and jewelry.
AREA OVERVIEW
ABOUT PACIFIC BEACH
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Located on the coast of the Pacific Ocean
in Southern California, San Diego is widely
known as “America’s Finest City.” Famous
for its miles and miles of white-sand
beaches and amazing weather, the city
offers an abundance of fun attractions for
visitors of all ages.
Boasting a citywide population of more than
1.3 million and more than 3 million residents
countywide, San Diego is California’s
second largest city and the United States’
eighth largest. San Diego County is made
up of 18 incorporate cities and towns along
with other charismatic neighborhoods and
communities, such as Carlsbad, Coronado,
Del Mar, Downtown San Diego’s Gaslamp
Quarter, Point Loma, Chula Vista, Old Town,
La Jolla, and North Park.
Another attraction of San Diego is its
immediacy to Mexico. Because they
share an international border, Tijuana
and San Diego are grouped together as
an international metropolitan area. Many
visitors make their way south to enjoy luxury
spas, beachfront resorts, golf courses,
multicultural festivals and celebrations,
colorful neighborhoods, and the nightlife.
San Diego’s economy primarily evolves are
military, tourism, research and manufacturing,
and biotechnology. San Diego has been
heavily involved in military and defense
since the days of World War II, and it
currently hosts the largest naval fleet in the
world. Tourism is also a major industry in
the city. Annually, the city hosts more than
30 million visitors. The city is also home
to several major producers of wireless
cellular technology, such as Qualcomm
and LG Electronics. Because of UCSD and
other research institutions, biotechnology
& life science has made a large presence
in the county. There are more than 400
biotechnology companies in the region alone.
ABOUT SAN DIEGO
AREA OVERVIEW
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AREA OVERVIEW
DEMOGRAPHICS
Executive SummaryStarbucks - Pacific Beach, CA Prepared By Ed Colson Jr., CCIM1359 Garnet Ave, San Diego, California, 92109 Latitude: 32.79874Rings: 1, 3, 5 mile radii Longitude: -117.24528
1 mile 3 miles 5 milesPopulation
2000 Population 31,686 87,927 264,1602010 Population 32,076 88,208 267,8802016 Population 33,099 91,184 278,9582021 Population 34,518 95,231 291,9652000-2010 Annual Rate 0.12% 0.03% 0.14%2010-2016 Annual Rate 0.50% 0.53% 0.65%2016-2021 Annual Rate 0.84% 0.87% 0.92%2016 Male Population 54.4% 51.9% 51.2%2016 Female Population 45.6% 48.1% 48.8%2016 Median Age 31.1 35.8 35.6
In the identified area, the current year population is 278,958. In 2010, the Census count in the area was 267,880. The rate of change since 2010 was 0.65% annually. The five-year projection for the population in the area is 291,965 representing a change of 0.92% annually from 2016 to 2021. Currently, the population is 51.2% male and 48.8% female.
Median Age
The median age in this area is 31.1, compared to U.S. median age of 38.0.Race and Ethnicity
2016 White Alone 85.3% 83.0% 73.4%2016 Black Alone 1.3% 1.4% 2.7%2016 American Indian/Alaska Native Alone 0.4% 0.4% 0.5%2016 Asian Alone 3.8% 5.1% 11.2%2016 Pacific Islander Alone 0.3% 0.3% 0.3%2016 Other Race 4.6% 5.3% 6.8%2016 Two or More Races 4.3% 4.7% 5.2%2016 Hispanic Origin (Any Race) 13.3% 15.1% 17.9%
Persons of Hispanic origin represent 17.9% of the population in the identified area compared to 17.9% of the U.S. population. Persons of Hispanic Origin may be of any race. The Diversity Index, which measures the probability that two people from the same area will be from different race/ethnic groups, is 61.1 in the identified area, compared to 63.5 for the U.S. as a whole.
Households2000 Households 17,195 42,590 116,8222010 Households 17,078 41,743 116,1732016 Total Households 17,357 42,496 119,2232021 Total Households 17,986 44,092 124,1892000-2010 Annual Rate -0.07% -0.20% -0.06%2010-2016 Annual Rate 0.26% 0.29% 0.42%2016-2021 Annual Rate 0.71% 0.74% 0.82%2016 Average Household Size 1.89 2.13 2.26
The household count in this area has changed from 116,173 in 2010 to 119,223 in the current year, a change of 0.42% annually. The five-year projection of households is 124,189, a change of 0.82% annually from the current year total. Average household size is currently 2.26, compared to 2.23 in the year 2010. The number of families in the current year is 58,011 in the specified area.
Data Note: Income is expressed in current dollarsSource: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2016 and 2021. Esri converted Census 2000 data into 2010 geography.
October 04, 2016
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AREA OVERVIEW
DEMOGRAPHICS
Executive SummaryStarbucks - Pacific Beach, CA Prepared By Ed Colson Jr., CCIM1359 Garnet Ave, San Diego, California, 92109 Latitude: 32.79874Rings: 1, 3, 5 mile radii Longitude: -117.24528
1 mile 3 miles 5 milesMedian Household Income
2016 Median Household Income $67,594 $74,219 $67,8512021 Median Household Income $76,671 $82,260 $77,6582016-2021 Annual Rate 2.55% 2.08% 2.74%
Average Household Income
2016 Average Household Income $92,072 $106,025 $97,4172021 Average Household Income $100,898 $115,849 $106,2212016-2021 Annual Rate 1.85% 1.79% 1.75%
Per Capita Income2016 Per Capita Income $48,165 $49,746 $42,3562021 Per Capita Income $52,430 $53,958 $45,8492016-2021 Annual Rate 1.71% 1.64% 1.60%
Households by IncomeCurrent median household income is $67,851 in the area, compared to $54,149 for all U.S. households. Median household income is projected to be $77,658 in five years, compared to $59,476 for all U.S. households
Current average household income is $97,417 in this area, compared to $77,008 for all U.S. households. Average household income is projected to be $106,221 in five years, compared to $84,021 for all U.S. households
Current per capita income is $42,356 in the area, compared to the U.S. per capita income of $29,472. The per capita income is projected to be $45,849 in five years, compared to $32,025 for all U.S. households Housing
2000 Total Housing Units 18,397 45,658 123,3832000 Owner Occupied Housing Units 4,536 19,465 56,0602000 Renter Occupied Housing Units 12,659 23,125 60,7632000 Vacant Housing Units 1,202 3,068 6,560
2010 Total Housing Units 18,753 45,955 125,7862010 Owner Occupied Housing Units 4,240 18,224 53,7092010 Renter Occupied Housing Units 12,838 23,519 62,4642010 Vacant Housing Units 1,675 4,212 9,613
2016 Total Housing Units 19,173 47,095 129,8102016 Owner Occupied Housing Units 4,046 17,879 52,9612016 Renter Occupied Housing Units 13,311 24,616 66,2622016 Vacant Housing Units 1,816 4,599 10,587
2021 Total Housing Units 19,881 48,889 135,1532021 Owner Occupied Housing Units 4,122 18,388 54,5712021 Renter Occupied Housing Units 13,865 25,703 69,6182021 Vacant Housing Units 1,895 4,797 10,964
Currently, 40.8% of the 129,810 housing units in the area are owner occupied; 51.0%, renter occupied; and 8.2% are vacant. Currently, in the U.S., 55.4% of the housing units in the area are owner occupied; 32.9% are renter occupied; and 11.7% are vacant. In 2010, there were 125,786 housing units in the area - 42.7% owner occupied, 49.7% renter occupied, and 7.6% vacant. The annual rate of change in housing units since 2010 is 1.41%. Median home value in the area is $631,325, compared to a median home value of $198,891 for the U.S. In five years, median value is projected to change by 0.97% annually to $662,611.
Data Note: Income is expressed in current dollarsSource: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2016 and 2021. Esri converted Census 2000 data into 2010 geography.
October 04, 2016
©2016 Esri Page 2 of 2