Starbucks

1993 West Olive Avenue, Merced, CA 95348

$2,900,000

Cap Rate 5.34%

$3,100,000

Cap Rate 5.00%

DOM: 90 Updated: 08.02.24 Posted: 11.07.23 Status: Sold 02.05.24

Summary

Price $2,900,000 $3,100,000	Built/Renov 2023	Tenant Starbucks
Cap Rate 5.34% 5.00%	Lease Type NN+	Guarantor Corp T and Rated
Size/SF 1,000	Lease Start 09-15-2023	#Units 36,000
Price/SF $2,900.00 $3,100.00	Expiration 02-28-2034	Tenant Type Fast Food/QSR
NOI $155,000	R. Term 8.9	Ownership Fee Simple
Rent/SF $155.00	Increases 10.0%/5/yrs	Pop 5Mi 116,640
Lot/AC 0.83	Options 4/5yrs/10%	AHHI 5Mi $83,915

Lease Highlights

Starbucks executed a brand-new 10-year lease in 2023 with 4 (5-year) options to renew
Lease features rental increases of 10% every 5 years in the primary term and in each option
Favorable NN+ lease | Landlord responsible for roof & structure
Corporate guarantee by Starbucks Corporation (NASDAQ: SBUX)
Starbucks is an investment grade tenant (S&P: BBB+)

Location Description

Starbucks is strategically located at the signalized, hard corner intersection of California Highway 59 and Olive Avenue, with a combined traffic count of 38,000 vehicles passing by daily. The property is ideally located along Olive Avenue, which is Merced's primary commercial and retail corridor, and is in close proximity to national retailers such as Walmart, Lowe’s, Hobby Lobby, Target,...

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Key Features

New construction
Signalized intersection
Dense retail corridor
Highway location
Dense 100M+ pop 5 mi
Strong demographics
Brand new lease
Favorable NN+ lease
Traded and rated company
Investment grade tenant

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Links

Starbucks Wikipedia Starbucks Wikipedia Merced, California Zip Code 95348 Broker Site Page

Maps

Local Information

1 Mile
3 Miles
5 Miles

Tenant

Tenant: Starbucks
Guarantor:Corp T and Rated
Company:Starbucks Corporation
# Units:36,000
Tenant S&P: BBB+
Moody’s: Baa1
Stock:NASDAQ: SBUX

About Tenant

Starbucks Corporation is the leading roaster, retailer, and marketer of specialty coffee in the world. In addition to drinks and food, many stores carry Starbucks' official merchandise, such...

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Demographics

	1 Miles	3 Miles	5 Miles
2028 Total Population :	10,303	83,186	119,827
2023 Total Population :	10,225	82,572	118,971
2023 Employed Civilian Pop :	3,830	30,640	44,789
2023 Total Businesses :	301	2,474	2,885
2023 Average Household Income :	$ 59,650	$ 69,287	$ 76,282
2023 Total Consumer Spending :	$ 185 M	$ 1605 M	$ 2452 M
2023 Median Age :	30	30	31
2023 Total Households :	3,525	26,571	36,942
2023 Pop Age 25+: Bachelor's Degree :	877	5,478	9,120
2023 Average Home Value :	$ 276,875	$ 396,337	$ 410,303

*ESRI data is presented for informational purposes only

Traffic

Collection Street	Cross Street	Year	Traffic Vol	Distance
W Olive Ave	Loughborough Dr	2006	35,146	0.07 mi
Snelling Highway	Santa Fe Rd	2021	13,000	0.09 mi
N Santa Fe Ave	Snelling Hwy	2012	19,673	0.19 mi
Loughborough Dr	Conestoga Dr	2006	8,666	0.19 mi
Snelling Hwy	N Santa Fe Ave	2017	12,000	0.23 mi
Snelling Hwy	Willowbrook Dr	2010	21,740	0.26 mi
Cooper Ave	Snelling Hwy	2006	7,083	0.28 mi
W Olive Ave	Austin Ave	2006	31,360	0.34 mi
Loughborough Dr	Olympia Ct	2006	4,953	0.44 mi
W North Bear Creek Dr	Creekside Dr	2006	1,505	0.47 mi

Listing Broker

Jeff Lefko

Hanley Investment Group

Contact

151 Listings
26759 Views
78 Sold

Bill Asher

Hanley Investment Group

Contact

151 Listings
27484 Views
75 Sold

Jeff Lefko

As Executive Vice President at Hanley Investment Group, Jeff Lefko specializes in advising clients in the acquisition and disposition of retail properties nationwide. Jeff is focused on developing meaningful relationships that go beyond a singular transaction by proactively advising his clients to help achieve their long-term financial goals and objectives. Jeff’s commitment to his clients has allowed him to close over $1.5 billion in sales since 2017, which included 114 transactions va

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Bill Asher

Bill Asher specializes in advising clients in the acquisition and disposition of retail properties nationwide. With over 20 years of experience in commercial real estate, his transaction expertise, industry relationships, and unparalleled professionalism have allowed him to close and contribute to more than $2 billion in sales, including over 550 sales in the last 10 years. Bill’s dedication and unwavering commitment to his clients have made him one of the top agents at the company earning him

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