Investment Overview

Marcus & Millichap is pleased to present the opportunity to purchase the fee simple interest in a 7,105 square foot Drive-Thru Starbucks Anchored Retail Center located in Streamwood, Illinois. The property’s income stream is diversified across a four-tenant rent roll, and each tenant operates on strong NNN leases. In addition to Starbucks, the tenants include the UPS Store, May’s Gaming and AT&T Wireless. Both UPS and Starbucks are original tenants to the center, with a history of renewing their leases at this location over the last more than 20 years. AT&T recently converted their formerly gross lease to triple-net, as well as agreeing to sizable future annual rent increases that helps push the cap rate approximately 35 basis points from year one to year two, and another 30 basis points from year two to year three of the next owner’s hold period. These AT&T rent increases alone will account for over $200,000 in value creation over the next two years. The property is located just off the signalized intersection of Sutton and Irving Park Road. There’s monument signage on both Sutton and Irving Park, as well as access to the center from these two thoroughfares. Traffic counts at this intersection exceed 50,000 vehicles per day, and the asset is positioned on the morning side of traffic, drawing commuters from the dense subdivisions of Streamwood on their way to Interstate-90. Area density is strong, with close to 80,000 people living within a three-mile radius and average household incomes of over $116,000 annually within the same radius. This is an opportunity to purchase a stable retail property with long-term tenants who have repeatedly demonstrated their commitment to the location. The property is offered at a reasonable acquisition basis and, with strong built in rent increases, a new owner can anticipate near-term NOI growth that will more than outpace inflation and create additional value.