Investment Overview

Marcus & Millichap has been selected to exclusively market for sale Glendale Crossing, a 5,678 square foot Starbucks anchored multi-tenant strip center situated on 0.44 acres of land (19,064 SF) located on the signalized corner of Canada Blvd and Verdugo Rd, in the east San Fernando Valley Submarket of Glendale, CA. Glendale Crossing is ideally located adjacent to Glendale Community College, which is home to over 19,000 students. Glendale Crossing is currently 100% occupied by five tenants, all restaurants, with notable national tenants including Starbucks & Flame Broiler. Founded in 1971, Starbucks has over 34,000 locations throughout more than 84 countries and employs over 346,000 people. The restaurant serves coffee, beverages, baked goods, tea, and smoothies. Starbucks has a number of popular subsidiaries, such as Ethos Water, Evolution Fresh, La Boulange Bakery, Seattle’s Best Coffee, and Teavana. The multinational coffee shop has achieved annual net revenues of over $29 billion and total assets north of $31 billion in 2021, showing a significant recovery from 2020 net revenues of $23.5 billion and total assets over $29 billion during the peak of COVID-19. The company trades on the NASDAQ under the ticker symbol SBUX and has a BBB+ credit rating from Standard & Poor’s. As a new tenant to the center on 1500 Canada Blvd, Starbuck’s 10-year NNN lease will provide $4,312.75 per month on their 1,327 SF leased space ($3.25/SF and approximately 24% of the total gross leasable area) with 10% rent bumps every 5 years. Glendale Crossing benefits from excellent asset fundamentals, with ideal unit sizes averaging 1,106 square feet. These units are easily leasable with minimal tenant improvement costs between tenants. The current stable and seasoned tenant mix has an average length of tenancy of 6.13 years, and over 40% of the existing tenant base has operated at this location for longer than 12 years. The existing tenants all have term remaining, with an average remaining term of 5.33 years. All tenants excluding Flame Broiler possess at least one five-year option to extend their lease. All leases are NNN with annual rental bumps of 3% (excluding Starbucks’ rent increase structure). Glendale Crossing benefits from excellent visibility and frontage along both Canada Blvd and Verdugo Rd, with 251’ of frontage along Canada Blvd and 272’ of frontage on Verdugo Rd. The well parked site offers 28 surface parking spaces, a parking ratio of 4.93 per 1,000 square feet.