Starbucks 215 Stevens Trail Bristol, TN
™ offering memorandum
STARBUCKS 215 STEVENS TRAIL | BRISTOL, TN 37620 CONTENTS
03 EXECUTIVE SUMMARY
04 FINANCIAL OVERVIEW
06 TENANT OVERVIEW
11 AREA OVERVIEW
LISTED BY
Steele Mcdonald Associate [email protected] DIR 214.692.2265 MOB 615.417.3631 LIC # 694333 (TX)
Braden Crockett Associate vp & Director [email protected] DIR 214.692.2040 MOB 714.345.6206 LIC # 01946071 (CA)
BROKER OF RECORD
Kyle Matthews BROKER OF RECORD LIC # 263667 (TN) EXECUTIVE OVERVIEW
INVESTMENT HIGHLIGHTS
• New Construction site completed in 2017
• ±9 years remaining on base term – Four, 5-year options to extend
• Attractive 10% rental increases every 5 years – strong hedge against inflation
• NN Lease – minimal landlord responsibilities
• Guaranteed by Starbucks Corporation – (NYSE SBUX) with 82.51B Market CAP
Location Highlights
• Located at The Pinnacle, the premier shopping, dining and entertainment destination in the Tri-Cities
• The 1,000,000 SF center is anchored by Belk, Bass Pro Shops, Dick’s Sporting Goods and Marquee Cinemas
• Strategically positioned at the intersection of I-81 & Highway 11, directly between Bristol and Kingsport
• The Pinnacle serves a market area of 1,000,000 people in Northeast Tennessee and Southwest Virginia
• Overall, The Pinnacle is home to over 75 retail and restaurant tenants, with more announcements coming soon
3 FINANCIAL OVERVIEW
5
EXECUTIVE SUMMARY ANNUALIZED OPERATING DATA
Monthly Rent Annual Rent Rent/SF Cap Rate Property Name Starbucks Current - 5/24/2022 $6,750.00 $81,000.00 $40.50 5.00% Property Street 215 Stevens Trail 5/25/2022 - 5/24/2027 $7,425.00 $89,100.00 $44.55 5.50% City, State, Zip Bristol, TN 37620 5/25/2027 - 5/24/2032 $8,175.00 $98,100.00 $49.05 6.06% GLA ±2,000 SF 5/25/2032 - 5/24/2037 $8,983.00 $107,796.00 $53.90 6.65% Lot Size ±0.64 AC 5/25/2037 - 5/24/2042 $9,882.00 $118,584.00 $59.29 7.32% Year Built 2017 5/25/2042 - 5/24/2047 $10,871.00 $130,452.00 $65.23 8.05%
4 5
TENANT SUMMARY
Tenant Trade Name Starbucks FINANCIAL HIGHLIGHTS Type of Ownership Fee Simple Lease Guarantor Corporate Lease Type NN+ Roof & Structure Owner Responsibility (Roof Warranty) Original Lease Term 10 years LIST PRICE CAP RATE TERM REMAINING Rent Commencement Date 5/25/2017 $1,620,000 5.00% ±9 YEARS Lease Expiration Date 5/25/2027 Term Remaining ±9 years Increases 10% Every 5 Years Options Four, 5-Year
5 Tenant overview
6 STARBUCKS COMPANY TRADE NAME STARBUCKS CORPORATION
Starbucks Corporation operates as a roaster, marketer, and retailer of specialty coffee worldwide. The company REVENUE operates in four segments: Americas; Europe, Middle $19B East, and Africa; China/Asia Pacific; and Channel Development. Its stores offer coffee and tea beverages, packaged roasted whole bean and ground coffees, HEADQUARTERED single-serve and ready-to-drink coffee and tea products, SEATTLE, WA juices, and bottled water. The company’s stores also provide fresh food and snack offerings; and various food products, such as pastries, and breakfast sandwiches and NO. OF EMPLOYEES ± 157,000 lunch items, as well as serve ware, beverage making equipment, and accessories. In addition, it licenses its trademarks through licensed WEBSITE stores, and grocery and national food-service accounts. WWW.STARBUCKS.COM The company offers its products under the Starbucks, Teavana, Tazo, Seattle’s Best Coffee, Evolution Fresh, La Boulange, Ethos, Starbucks VIA, Seattle’s Best Coffee, # OF LOCATIONS ± 23,921 Frappuccino, Starbucks Doubleshot, Starbucks Refreshers, and Starbucks Discoveries Iced Café Favorites brand names. As of March 27, 2016, it operated 23,921 YEAR FOUNDED cafes. Starbucks Corporation was founded in 1985 and is 1985 based in Seattle, Washington.
7 the offering PARCEL MAP
Property Name Starbucks 215 Stevens Trail Property Address Bristol, TN 37620
Site Description Number of Stories One Year Built 2017 GLA ±2,000 SF Oceanside Blvd ± 31,792 Lot Size ±0.64 Acres (2,000 SF) Type of Ownership Fee Simple Parking ± 10 Surface Spaces Parking Ratio 5 : 1,000 SF Landscaping Professional
Generally Level Topography 40,116 ± Blvd College
8 Click to watch area overview video of Pinnacle Shopping Area (Video Provided by Seller) surrounding tenants 9 10 AREA OVERVIEW
BRISTOL, TN PINNACLE TRADE AREA
Bristol, TN is the twin city of Bristol, VA. The two cities sit directly across from POPULATION 30 Mile 45 Mile 60 Mile one another on the state line between Tennessee and Virginia. The state 2023 Projection 501,483 792,789 1,072,329 line runs through their shared downtown district. Bristol is a principal city the 2018 Estimate 494,674 784,708 1,065,065 Kingsport-Bristol-Bristol, TN-VA Metropolitan Statistical Area. The Johnson City-Kingsport-Bristol, TN-VA Combined Statistical Area is known as the “Tri- Growth 2018 - 2023 1.38% 1.03% 0.68% Cities” region. HOUSEHOLDS 30 Mile 45 Mile 60 Mile Bristol is well known for a number of different reasons. The city is recognized 2023 Projection 213,269 332,258 447,986 by the U.S. Congress as the “Birthplace of Country Music.” They have earned 2018 Estimate 209,647 327,844 443,550 this title because It was where the first commercial recordings of country Growth 2018 - 2023 1.73% 1.35% 1.00% music were recorded in Bristol. The city is also home to Birthplace of Country Music Museum. Bristol is the site of the Bristol Motor Speedway, a NASCAR INCOME 30 Mile 45 Mile 60 Mile 2017 Est. Average short track that has become one of the most well-known motorsports $59,885.73 $57,547.53 $56,104.29 facilities in the country. Household Income 11 Economy
The Bristol Chamber of Commerce represents the economic climate of Bristol Tennessee and Virginia along with the surrounding Tri-cities region. The Bristol Chamber of Commerce is in the top 1.5% of chambers in the United States for strong business practices, leadership, outstanding contributions to the Bristol Community, supporting free enterprise and pro-growth practices, leadership, and supporting free enterprise and pro-growth policies.
Top Employers # of Employees Eastman 6,800
Wellmont Health Systems 6,225
Holston Medical Group 5,300
Sullivan County Department of 1,650 Education Kingsport City Schools 1,100
Pal’s Fast Food 950
CenturyLink Telecommunications 950
BAE Systems 850
Robinette Company 350
Domtar Paper 330
12 CONFIDENTIALITY & DISCLAIMER STATEMENT
This Offering Memorandum contains select information pertaining to the business and affairs of Starbucks located at 215 Stevens Trail, Bristol TN 37620 (“Property”). It has been prepared by Matthews Real Estate Investment Services. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Real Estate Investment Services. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.
By acknowledging your receipt of this Offering Memorandum for the Property, you agree:
1. The Offering Memorandum and its contents are confidential;
2. You will hold it and treat it in the strictest of confidence; and
3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller.
Owner and Matthews Real Estate Investment Services expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.
If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.
A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Real Estate Investment Services or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.
This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum. EXCLUSIVELY LISTED BY ™
Steele Mcdonald Associate [email protected] DIR 214.692.2265 MOB 615.417.3631 LIC # 694333 (TX)
Braden Crockett Associate vp & Director [email protected] DIR 214.692.2040 MOB 714.345.6206 LIC # 01946071 (CA)
BROKER OF RECORD
Kyle Matthews BROKER OF RECORD LIC # 263667 (TN)
STARBUCKS 215 STEVENS TRAIL | BRISTOL, TN 37620