Starbucks Portfolio (2)

2520 S Ferdon Blvd & 2424 HWY 77, Crestview & Lynn Haven, Florida



Price : $4,361,000
Cap Rate : 5.5%
NOI : 239,900
Lease Type : NN
Lease Expiration : 10+ Years
Renewal Options : 4, 5-Year
Rental Increases : 10% in Year 16 and Each Option
Status : Available
Property Type : Retail

Investment Highlights

Committed Long-Term Tenant: Starbucks recently extended its net lease by 10 years, plans to remodel the premises and removed the termination clause from its lease.
Attractive Net Lease with Increases: Minimal landlord responsibilities. Starbucks will incur a 10% rent increase in Year 16 and 10% increases in each four, 5-year renewal options.
Strong Tenant: Headquartered in Seattle, Washington, Starbucks Corporation (NASDAQ Symbol: SBUX, S&P: A-) is the premier roaster, marketer and retailer of specialty coffee in the world, operating 25,085 stores in 75 countries. As of October 2017, the company had a net worth in excess of $5.4 billion, TTM revenue of $22.3 billion, and TTM net income of $2.8 billion.
Excellent Access/Visibility: The Crestview site is strategically located with excellent access and visibility along S. Ferdon Blvd (Traffic Count: 48,000 VPD) and just north of Interstate I-10 (Traffic Count: 72,000 VPD), which operates as the main interstate between Pensacola and Tallahassee. The Lynn Haven site (Panama City) is also a high traffic location with over 40,000 VPD and is 15 miles from Panama Beach.
Strong Corridor: The Crestview property benefits from its location within the area’s primary retail and medical corridor. Other retailers with a presence in the immediate vicinity include Publix, Walgreens, Staples, Lowe’s, Home Depot, Long John Silver’s, Wendy’s, Burger King, Steak ‘n Shake, Chipotle, Panera Bread, Taco Bell, AutoZone, among several others. Lynn Haven is also surrounded by major national retailers including Super Walmart, Publix and many others.
Built-in Customer Base: Starbucks Crestview benefits from its proximity to North Okaloosa Medical Center, a 110-bed hospital with more than 600 employees as well as numerous ancillary medical providers, surgery centers and clinics, Eglin Air Force Base which houses over 8,000 people and employs more than 8,500 civilians and approximately 4,500 military as well as Northwest Florida State College which serves over 10,000 resident students, all of which provide a substantial customer base and are strong economic drivers for the area.


NNN Investment Advisors is pleased to present the opportunity to purchase a portfolio of two (2) Starbucks drive-thru locations in northern Florida. Evidencing its commitment to these sites, Starbucks recently extended its net lease by 10 years with four (4), 5-year renewals with 10% rent increases in the op-tions and removed the typical termination clause from the leases. A complete in-store remodel is planned in 2018 at tenant’s expense further illustrating its commitment to the locations.

Due to in place financing these locations must be purchased together. The 5-year, $3,000,000 loan which originated in October 2016 features an attractive 3.95% interest rate with 25-year amortization can be assumed or extinguished upon purchase.

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