550 W Lacey Blvd
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STARBUCKS @ 550 W. Lacey Boulevard Hanford, CA 93230 A new construction Starbucks Drive-Thru (2015) located in the South-Central San Joaquin Valley sub-market of Hanford, CA brandonmichaelsgroup.com INVESTMENT ADVISORS Brandon Michaels Senior Managing Director of Investments Senior Director, National Retail Group Tel: 818.212-2794 [email protected] CA License: 01434685 Matthew Luchs First Vice President Investments COO of The Brandon Michaels Group Tel: 818.212.2727 [email protected] CA License: 01948233 Steven Schechter First Vice President Investments Director, National Retail Group Tel: 818.212.2793 [email protected] CA License: 01089464 Contents 06 Executive Summary 12 Property Overview 18 Area Overview 26 FINANCIAL ANALYSIS W LACEY BLVD N 11TH AVE 4 550 W Lacey Boulevard N 11TH AVE Executive Summary 5 Executive Summary 6 550 W Lacey Boulevard The Offering A new construction Starbucks Drive-Thru (2015) located in the South-Central San Joaquin Valley sub-market of Hanford, CA The Brandon Michaels Group of Marcus & Millichap has been selected to exclusively represent for sale 550 West Lacey Boulevard, an approximately 2,020 square foot Starbucks drive thru located on 24,450 square feet of land in the South-Central San Joaquin Valley sub- market of Hanford, CA. The subject property is located on West Lacey Boulevard just east of signalized corner of West Lacey Bouelvard and North 11th Avenue, an intersection that benefits from daily traffic counts north of 15,000 vehicles per day. The property is surrounded by national retailers and is directly adjacent to a new CVS Pharmacy (built in 2014). 550 West Lacey Boulevard is home is currently paying $93,600 annually, to Starbucks, the world’s largest with a 2.56% increase in 2025, and coffeehouse chain. Founded in 1971, approximately 10% increases in each the company has over 31,000 locations option period. This opportunity offers throughout more than 70 countries minimal landlord responsibility, the and employs over 346,000 people. The tenant is responsible for all expenses restaurant serves coffee beverages, except for the increase in property taxes baked goods, tea, and smoothies. from the close of escrow until the end Starbucks has a number of popular of their initial term (July 31, 2025). Seller subsidiaries, such as Ethos Water, La will credit Buyer the difference in taxes Boulange Bakery, Seattle’s Best Coffee, from the close of escrow until July 31, and Teavana. Starbucks annual revenue 2025. exceeds $26 billion. 2020 net sales were reported at $6.2 billion, with total assets The surrounding national retailers north of $19 billion. Starbucks trades on provide ample products and services the NASDAQ under the trading symbol to the surrounding area, including 99 SBUX. Cents Only, Staples, Rite Aid, 7-Eleven, Grocery Outlet, and Baskin Robbins. Starbucks began operating at this The property is located less than one location in 2015 on what was originally half mile from the 86 freeway which sees a ten-year corporate guaranteed NNN north of 33,000 vehicles per day, and lease. Starbucks negotiated an early is located less than one half of a mile extension to their original term which from the Hanford Community Medical now goes through July 31, 2031, with Center, and one mile from Adventist four-5-year options to extend. Starbucks Health Hanford. Executive Summary 7 investment highlights 550 W LACEY BOULEVARD BRAND NEW 2015 CONSTRUCTION STARBUCKS DRIVE-THRU WITH TEN YEARS REMAINING ON THE CORPORATE GUARANTEED LEASE • Brand new 2015 construction • Corporate guaranteed lease • Property includes a drive-thru • Starbucks began operating at this location in 2015 on what was originally a ten-year corporate guaranteed NN lease. Starbucks negotiated an early extension to their original term which now goes through July 31, 2031, with four-5-year options to extend • NNN lease HANFORD CARNEGIE MUSEUM STARBUCKS IS THE WORLD’S LARGEST COFFEE CHAIN • Starbucks features over 31,000 locations throughout more than 70 countries • Starbucks employees over 346,000 people • Starbucks trades on the NASDAQ under the trading symbol SBUX • Starbucks has a number of popular subsidiaries, such as Ethos Water, La Boulange Bakery, Seattle’s Best Coffee, and Teavana • Annual revenue exceeds $26 billion • 2020 net sales were reported at $6.2 billion, with total assets north of $19 billion 8 550 W Lacey Boulevard investment highlights EXCELLENT HANFORD, CA LOCATION • Ideally located on Lacey Boulevard, just east of 11th Avenue • Located less than one half of a mile from the Hanford Community Medical Center, and one mile from Adventist Health Hanford • Ideally located amongst a sea of national retailers including McDonalds, Rite-Aid, 7-Eleven, Arby’s, Staples, CVS Pharmacy, and 99 Cents Only • Strong daily traffic counts exceeding 15,000 vehicles per day AFFLUENT IMMEDIATE DEMOGRAPHICS CIVIC CENTER PARK • There are over 12,400 people located within one mile of the property, 64,900 within three miles of the property, and 70,600 within five miles of the property • There are over 4,000 households within one mile of the property, 20,900 within three miles of the property, and 22,700 within five miles of the property • Average household income eclipses $51,100 within one mile of the property, $65,400 within three miles of the property, and $65,500 within five miles of the property HIDDEN VALLEY PARK Executive Summary 9 NEARBY AMENITIES Retails 1 2 3 4 2 3 5 6 4 7 1 5 6 1 8 2 3 7 N 11TH AVE 8 9 10 9 10 Restaurant 1 W LACEY BLVD 2 3 10 550 W Lacey Boulevard property summary Address 550 W. Lacey Boulevard Hanford, CA 93230 Price $2,463,000 Building Size 2,020 SF Lot Size 24,450 SF Price/SF (Building) $1,219.31 Price/SF (Land) $100.74 Current CAP Rate 3.80% 2025 CAP Rate 3.90% Guarantor Starbucks Corporation Monthly Rent $7,800 Annual Rent $93,600 Rent Per SF $3.86 Per Month Lease Type NNN Lease Start 8/1/2015 Lease Expiration 7/31/2031 Options Four - 5 Year Year Built 2015 APN 010-510-002-000 Property Overview 11 Property Overview 12 550 W Lacey Boulevard property description LOCATION 550 W. Lacey Boulevard Hanford, CA 93230 SITE The property is located on the intersection of W Lacey Boulevard and N 11th Avenue. BUILDING SIZE 2,020 SF LOT SIZE 24,450 SF PARKING 20 parking spaces; a parking ratio of 9.90 parking spaces per 1,000 SF. YEAR BUILT HANFORD CENTER The property was built in 2015. WALMART SUPERCENTER TRAFFIC COUNTS Over 17,000 vehicles per day. Property Overview 13 parcel map 14 550 W Lacey Boulevard Property Overview 15 THE WORLD’S LARGEST COFFEEHOUSE CHAIN STARBUCKS Starbucks Corporation is an American multinational chain of coffeehouses and roastery reserves headquartered in Seattle, Washington. As the world’s largest coffeehouse chain, Starbucks is seen to be the main representation of the United States’ third wave of coffee culture. As of September 2020, the company had 32,660 stores in 83 countries, including 16,637 company operated stores and 16,023 licensed stores. Of these 32,660 stores, 18,354 were in the United States, Canada, and Latin America. 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 (including the annual fall launch of the Pumpkin Spice Latte) are seasonal or specific to the locality of the store. Many stores sell pre-packaged food items, pastries, hot and cold sandwiches, and drinkware including mugs and tumblers. There are also several select “Starbucks Evenings” locations which offer beer, wine, and appetizers. Starbucks-brand coffee, ice cream, and bottled cold coffee drinks are also sold at grocery stores in the United States and other countries. The latest roastery location opened on Chicago’s Magnificent Mile in November 2019, and is the world’s largest Starbucks. The company has received significant and sustained criticism about its business practices, corporate affairs, and role in society. Conversely, its franchise has commanded substantial brand loyalty, market share, and company value.The company is ranked 114th on the Fortune 500 and 288th on the Forbes Global 2000. 16 550 W Lacey Boulevard lease abstract Tenant Starbucks Guarantor Starbucks Corporation Square Footage 2,020 SF Monthly Rent $7,800 Annual Rent $93,600 Rent Per SF $3.86 Per Month Lease Type NNN Options Four - 5 Year Lease Start 8/1/2015 Lease Expiration 7/31/2031 tenant profile Tenant Starbucks Corporation Type Public Traded As Nasdaq: SBUX NASDAQ-100 component S&P 100 component S&P 500 component No. of Locations 32,660 (2020) Revenue US$26.50 billion (2019) Net income US$3.59 billion (2019) No. of Employees 349,000 (September 2020) Website Starbucks.com Property Overview 17 AREA Overview 18 550 W Lacey Boulevard hanford, california Hanford is a commercial and cultural services (31,000 employees), government Hanford is a commercial and cultural center in the south-central San Joaquin (14,400 employees) and farming center in the south-central San Joaquin Valley and the county seat of Kings (6,400 employees) as well as in some Valley and the county seat of Kings County, California, United States. It manufacturing enterprises (5,700 County, California. Hanford is proud of is the principal city of the Hanford- employees). its small-town charm and rich history, Corcoran metropolitan area (MSA Code and offers its residents a high quality of 25260), which encompasses all of Kings Hanford has 15 elementary schools, three living along with larger-city amenities.