Investment Overview

NEW 10-YEAR CORPORATE LEASE– The Tenant, Starbucks Corporation, is subject to a new 10-year corporate lease with a store opening scheduled for October 2025. The lease features a rental increase of 21 percent (21%) in its first option period, and 10% every option thereafter, providing revenue growth and a hedge against inflation. Starbucks is the world’s premier coffee company, rated “BBB+” by Standard & Poor’s and publicly traded on the NASDAQ. This location is the renovation of a former Chevy Chase Bank building which was constructed in 2008. The landlord recently renovated the building to allow for nine (9) car stacking in the drive-thru, and contributed only $57 PSF to the TI package. It is notable that the tenant is paying $38 PSF which is a market rental rate for this location’s quality.