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Restaurant

Starbucks

550 W Lacey Blvd, Hanford, CA 93230

Listing Price: $2,463,000

Cap Rate
3.80%
Tenant Name
Starbucks
Years Remaining On Lease
10.1
Gross SF
2,020
Guarantor
Corporate Guarantee
Rentable SF
2,020
Price/Gross SF
$1,219.31
Lease Type
Triple Net (NNN)
Rent Per Square Feet
$46.34

Investment Overview

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 to Starbucks, the world’s largest coffeehouse chain. Founded in 1971, the company has over 31,000 locations throughout more than 70 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, La Boulange Bakery, Seattle’s Best Coffee, and Teavana. Starbucks annual revenue exceeds $26 billion. 2020 net sales were reported at $6.2 billion, with total assets north of $19 billion. Starbucks trades on the NASDAQ under the trading symbol SBUX. Starbucks began operating at this location in 2015 on what was originally a ten-year corporate guaranteed NNN lease. Starbucks negotiated an early extension to their original term which now goes through July 31, 2031, with four-5-year options to extend. Starbucks is currently paying $93,600 annually, with a 2.56% increase in 2025, and approximately 10% increases in each option period. This opportunity offers minimal landlord responsibility, the tenant is responsible for all expenses except for the increase in property taxes from the close of escrow until the end of their initial term (July 31, 2025). Seller will credit Buyer the difference in taxes from the close of escrow until July 31, 2025. The surrounding national retailers provide ample products and services to the surrounding area, including 99 Cents Only, Staples, Rite Aid, 7-Eleven, Grocery Outlet, and Baskin Robbins. The property is located less than one half mile from the 86 freeway which sees north of 33,000 vehicles per day, and is located less than one half of a mile from the Hanford Community Medical Center, and one mile from Adventist Health Hanford.

Investment Highlights

  • Brand new 2015 construction
  • Corporate guaranteed lease
  • Property includes a drive-thru

Exclusively Listed By

Listing Price: $2,463,000

Cap Rate
3.80%
Tenant Name
Starbucks
Years Remaining On Lease
10.1
Gross SF
2,020
Guarantor
Corporate Guarantee
Rentable SF
2,020
Price/Gross SF
$1,219.31
Lease Type
Triple Net (NNN)
Rent Per Square Feet
$46.34

Investment Highlights

  • Brand new 2015 construction
  • Corporate guaranteed lease
  • Property includes a drive-thru

Investment Overview

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 to Starbucks, the world’s largest coffeehouse chain. Founded in 1971, the company has over 31,000 locations throughout more than 70 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, La Boulange Bakery, Seattle’s Best Coffee, and Teavana. Starbucks annual revenue exceeds $26 billion. 2020 net sales were reported at $6.2 billion, with total assets north of $19 billion. Starbucks trades on the NASDAQ under the trading symbol SBUX. Starbucks began operating at this location in 2015 on what was originally a ten-year corporate guaranteed NNN lease. Starbucks negotiated an early extension to their original term which now goes through July 31, 2031, with four-5-year options to extend. Starbucks is currently paying $93,600 annually, with a 2.56% increase in 2025, and approximately 10% increases in each option period. This opportunity offers minimal landlord responsibility, the tenant is responsible for all expenses except for the increase in property taxes from the close of escrow until the end of their initial term (July 31, 2025). Seller will credit Buyer the difference in taxes from the close of escrow until July 31, 2025. The surrounding national retailers provide ample products and services to the surrounding area, including 99 Cents Only, Staples, Rite Aid, 7-Eleven, Grocery Outlet, and Baskin Robbins. The property is located less than one half mile from the 86 freeway which sees north of 33,000 vehicles per day, and is located less than one half of a mile from the Hanford Community Medical Center, and one mile from Adventist Health Hanford.

Exclusively Listed By

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