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EXCLUSIVE OFFERING | $3,554,000 – 4.5% CAP

Starbucks – Corporate Ground lease

6201 Washington Ave, Houston, TX

Property. New 2,200+ SF building on +0.59 acres.

Tenant. Starbucks Corporation | FY 2017 financials: $22.4 billion in revenue and $4.1 billion in net income | Over 27,000 locations worldwide.

Lease structure. New 20-year, corporate ground lease with 10% rent increases every 5 years in primary term and option periods.

Location. Starbucks is strategically situated along Washington Ave. (19,000 VPD), just south of I-10 (279,000 VPD) in the heart of multiple well known districts of

Houston, TX. The trade area has elevated itself to one of the strongest retail submarkets on the city with one of the highest net absorptions, average rent and average

occupancies. The area has experienced tremendous growth, attributed to the influx of professionals who have chose to live, eat, work, and play. The immediate trade

area features notable national credit tenants such as Walmart, Kroger, Sprouts, Cost Plus World Market, Target, CVS, Walgreens, Staples, PetSmart, Chili’s, Buffalo

Wild Wing’s, ZOE’S, Panda Express, Five Guys, Starbucks, Chipotle, IHOP, Taco Bell, McDonald’s, and countless others. The immediate trade area features above

average demographics and household incomes; within a 3-mile radius of the site, the population is 147,192 people, the total number of employees is 192,199, and the

average household income is $156,047. The subject property is located approximately 4-miles west of downtown Houston.

FILE PHOTO

214.915.8898

JOE CAPUTO

[email protected]

RUSSELL SMITH

[email protected]

ALEX TOWER

[email protected]

Click Here for Property Video:

https://youtu.be/qsp_Dsfzi8c

Trivanta (“Agent”) has been engaged as an agent for the sale of the property located at

6201 Washington Ave., Houston, TX by the owner of the Property (“Seller”). The Property

is being offered for sale in an “as-is, where-is” condition and Seller and Agent make no

representations or warranties as to the accuracy of the information contained in this

Offering Memorandum. The enclosed materials include highly confidential information and

are being furnished solely for the purpose of review by prospective purchasers of the

interest described herein. The enclosed materials are being provided solely to facilitate the

prospective investor’s own due diligence for which it shall be fully and solely responsible.

The material contained herein is based on information and sources deemed to be reliable,

but no representation or warranty, express or implied, is being made by Agent or Seller or

any of their respective representatives, affiliates, officers, employees, shareholders,

partners and directors, as to the accuracy or completeness of the information contained

herein. Summaries contained herein of any legal or other documents are not intended to be

comprehensive statements of the terms of such documents, but rather only outlines of

some of the principal provisions contained therein. Neither the Agent nor the Seller shall

have any liability whatsoever for the accuracy or completeness of the information contained

herein or any other written or oral communication or information transmitted or made

available or any action taken or decision made by the recipient with respect to the Property.

Interested parties are to make their own investigations, projections and conclusions without

reliance upon the material contained herein. Seller reserves the right, at its sole and

absolute discretion, to withdraw the Property from being marketed for sale at any time and

for any reason. Seller and Agent each expressly reserves the right, at their sole and

absolute discretion, to reject any and all expressions of interest or offers regarding the

Property and/or to terminate discussions with any entity at any time, with or without notice.

This offering is made subject to omissions, correction of errors, change of price or other

terms, prior sale or withdrawal from the market without notice. Agent is not authorized to

make any representations or agreements on behalf of Seller. Seller shall have no legal

commitment or obligation to any interested party reviewing the enclosed materials,

performing additional investigation and/or making an offer to purchase the Property unless

and until a binding written agreement for the purchase of the Property has been fully

executed, delivered, and approved by Seller and any conditions to Seller’s obligations

hereunder have been satisfied or waived. By taking possession of and reviewing the

information contained herein, the recipient agrees that (a) the enclosed materials and their

contents are of a highly confidential nature and will be held and treated in the strictest

confidence and shall be returned to Agent or Seller promptly upon request; and (b) the

recipient shall not contact employees or tenants of the Property directly or indirectly

regarding any aspect of the enclosed materials or the Property without the prior written

approval of the Seller or Agent; and (c) no portion of the enclosed materials may be copied

or otherwise reproduced without the prior written authorization of Seller and Agent.

PAGE 3: INVESTMENT | TENANT | LEASE OVERVIEW

PAGE 2: TABLE OF CONTENTS | DISCLAIMER

PAGE 17: DEMOGRAPHICS

Table of contents | Disclaimer Starbucks


PAGE 12-14: LOCATION OVERVIEW

PAGE 15-16: LOCATION MAPS

Disclaimer

PAGE 10: SITE PLAN

PAGE 5-9: AERIAL PHOTOS

2

PAGE 4: TENANT OVERVIEW CONTINUED

PAGE 11: CONSTRUCTION PROGRESS 4.24.18


PRICE: $3,554,000

CAP RATE: 4.5%

NET OPERATING INCOME: $159,900

BUILDING AREA: 2,200+ Square Feet

LAND AREA: 0.59+ Acres

YEAR BUILT 2018

OCCUPANCY: 100%

Investment overviewStarbucks


Lease overview

STARBUCKS | www.starbucks.com | NASDAQ: SBUX

Starbucks Corporation is an international coffee and coffeehouse chain based in Seattle, Washington, United States. Starbucks is the largest coffeehouse

company in the world, with over 27,000 stores globally, including around 13,000 in the United States, followed by nearly 1,000 in Canada and more than 900 in

Japan. Starbucks sells drip brewed coffee, espresso-based hot drinks, other hot and cold drinks, snacks, and items such as mugs and coffee beans. Through the

Starbucks Entertainment division and Hear Music brand, the company also markets books, music, and film. Many of the company’s products are seasonal or

specific to the locality of the store. Starbucks-brand ice cream and coffee are also offered at grocery stores.

Starbucks retail stores are located in high-traffic, high-visibility locations. Its stores are located in or near a variety of settings, including downtown and suburban

retail centers, office buildings and university campuses.

The Company sells whole bean and ground coffees, including the Starbucks and Seattle’s Best Coffee brands, as well as a selection of premium Tazo teas, VIA

and other related products, to institutional foodservice companies that service business and industry, education, healthcare, office coffee distributors, hotels,

restaurants, airlines and other retailers.

From Starbucks founding in later forms as a local coffee bean roaster and retailer, the company has expanded rapidly. In the 1990s, Starbucks was opening a new

store every workday, a pace that continued into the 2000s. The first store outside the United States or Canada opened in the mid-’90s, and overseas stores now

constitute almost one third of Starbucks stores. In fiscal 2017, the company reported revenues of $22.4 billion and net income of $4.1 billion

Tenant overviewStarbucks Corporation, a Washington Corporation.

Projected Lease Expiration: June 2038

Projected Rent Commencement: June 2018

Lease Term: 20-Years, Plus (2), 5-Year Options to Extend

Rent Increases: 10% Every 5 Years In Primary Term & Options

Lease Type: Corporate Ground Lease

3

Annual Rent Yrs 1-5: $159,900




Option 1 | Yrs 21-25: $234,109

Option 2 | Yrs 26-30: $257,520

Early Termination Right: Yes, After Year 15

ROFR: Yes


Tenant overview continuedStarbucks


4Source:starbucks.com

Click Here FOR FY17 Earnings Statement


Aerial photoStarbucks


5

Downtown Houston

Elan Memorial

Park

(297 units)

Pearl at

Washington

(141 units)

District at

Washington

(396 units)




6

Houston Galleria / Uptown

-2.4 Million SF

-30 Million Annual Visitors




7

I-10 (279,000 VPD)

Memorial Park

Golf Course

Downtown

Houston

I-69 (206,000 VP

D)

River Oaks

Houston Central

Business District

(Approx. 4-miles)

Montrose MidtownUptown




8

I-10 (279,000 VPD)

Sh

eph

erd D

r. (21,000 VP

D)

Memorial Park

Golf Course

Budweiser

Distrubition

Trilliant

Surgical LTD.

White Oak

Bayou Trail

Houston

Heights




9

District at

Washington

(396 units)

Pearl at

Washington

(141 units)

Elan Memorial

Park

(297 units)

CubeSmart

Self Storage

TC

J Jester Blvd

. (9,000 VP

D)

Memorial Park

St. Theresa

Catholic Church


Site planStarbucks


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Construction progress (5.1.18)Starbucks


11


GALLERIA | UPTOWN DISTRICT – MARKET OVERVIEWstarbucks


The subject property is strategically located within

close proximity to the thriving Uptown and Galleria

District of Houston, an area located approximately 4-

miles of downtown.

Business District

At more than 28 Million SF of commercial office space,

the Uptown District is the 14th largest business district

in the U.S., comparable in size to downtowns of

Denver and Pittsburgh. The district is home to

approximately 2,000 companies and represents more

than 15% of Houston's total office space.

Galleria Snapshot

• 4th Largest Retail Complex in U.S.

• #1 Shopping & Tourist Attraction in Houston & the

Southwest

• 30+ Million Annual Visitors

• Sales of $1,000+ PSF

Retail Snapshot

• Annual Gross Sales of $3.63+ Billion in 2014

• Accounts for 10%+ of Houston Taxable Sales

• 5+ Million SF of Retail Space

• 1,000+Stores & 100+ Restaurants

• 99.9% Occupancy (Q2 2015)

Office Snapshot

• Five-Star, Class A International Community

• 90.4% Occupancy Rate (Q2 2015)

• Home to 2,000 Companies

• 28+million SF of Commercial Office Space

• 14th Largest Business District in U.S.

• 15.25% of Houston’s Total Class A Office Space

Source: Grubb & Ellis

Houston’s Uptown District is the 14th-largest business district

in the United States

Uptown Houston’s Major Employers

• Air Liquide

• Aon International Energy

• Apache Corporation

• Bechtel Corporation

• BHP Billiton

• Blue Cross Blue Shield of Texas

• Cameron International Corporation

• Christus Health

• Clear Channel Communications

• GE Energy

• GDF SUEZ Energy

• Hines REIT

• Landry’s Restaurants, Inc.

• NetIQ Corporation

• Panhandle Energy

• Spectra Energy Corporation

• Stewart Title Company

• Symantec Corporation

• Weatherford International Ltd.

• Williams

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Location overviewStarbucks


IMMEDIATE TRADE AREA

Starbucks is strategically situated along Washington Ave. (19,000 VPD), just

south of I-10 (279,000 VPD) in the heart of multiple well known districts of

Houston, TX (River Oaks, Uptown, Midtown, Montrose, and Heights). The

subject property is surrounded by several high rise residential properties,

totaling 834 units within a minutes walk. The trade area has elevated itself to

one of the strongest retail submarkets on the city with one of the highest net

absorptions, average rent and average occupancies. The area has

experienced tremendous growth, attributed to the influx of professionals who

have chose to live, eat, work, and play.

The immediate trade area features notable national credit tenants such as

Walmart, Kroger, Sprouts, Cost Plus World Market, Target, CVS, Walgreens,

Staples, PetSmart, Chili’s, Buffalo Wild Wing’s, ZOE’S, Panda Express, Five

Guys, Starbucks, Chipotle, IHOP, Taco Bell, McDonald’s, and countless others.

The immediate trade area features above average demographics and

household incomes; within a 3-mile radius of the site, the population is 147,192

people, the total number of employees is 192,199, and the average household

income is $156,047. The subject property is located approximately 4-miles

west of downtown Houston.

RIVER OAKS / UPTOWN / MIDTOWN / MONTROSE / HEIGHTS

River Oaks is a residential community located in the center of Houston, Texas.

Located within the 610 loop between downtown and uptown, the community

spans 1,200-acres. Established in the 1920’s by brothers William and Michael

Hogg, the community became a well-publicized national model for community

planning. Real Estate values range from $1 million to over $20 million.

Shiny chrome rings suspended above intersections welcome visitors to

Houston's premier shopping district. More than 30 million visitors each year

seek the dynamic & fine shopping environment uniquely offered by The

Galleria, Texas’ largest shopping center and fourth largest domain nationally.

Midtown Houston is a model of urban living in the center of Houston.

Residents, businesses, and visitors enjoy a sustainable, walkable community

with a thriving arts and entertainment scene and green oases. Since 2012,

Midtown Houston has experienced 50% population growth with almost 10,000

Houstonians now calling it home. Homes in the Museum District of Houston

and Montrose neighborhood offer the best of both convenience and culture.

With close proximity to some of Houston’s best art, entertainment, dining, and

shopping attractions, this area is also within close proximity from downtown

Houston and the Texas Medical Center.

Houston Heights is located just northwest of downtown and is one of the hottest

inner loop neighborhoods for accessibility and real estate appreciation.

Houston Heights is amongst the most walkable Houston areas with excellent

commute ability to major highways, downtown, Medical Center, and Galleria. In

2016 the Heights neighborhood recorded top home prices in the Houston

Metro.

Recent Houston Accolades Include:

• The Brookings Institution ranked Houston as the fastest growing economy

in North America; Houston posted 118,200 new jobs in 2012 and added

more than 87,600 new jobs in 2013

• The Association of Foreign Investors in Real Estate (“AFIRE”), recently

named Houston the 5th best city in the world for commercial real estate

investment

• Perennial Outperformer: Houston led all other major metropolitan area with

4.7% Gross Metropolitan Product growth (GMP) since 2000

• With 3,700 energy-related establishments, Houston is known as the

“Energy Capital of the World”

• Houston ranks number 1 for health care and manufacturing careers,

number 2 for engineering, finance and accounting careers, and number 3 in

green jobs and number 6 in computer science careers

13

Click Here for Property Video:


Location overviewStarbucks


14

HOUSTON-SUGAR LAND-BAYTOWN METROPOLITAN AREA

The Houston-Sugar Land-Baytown Metropolitan Statistical Area (MSA), colloquially known as Greater Houston, is the 5th largest in the United States with a population of

6,772,852 as of 2016. From 2000 to 2030, the metropolitan area is projected by Woods & Poole Economics to rank 5th in the nation in population growth—adding 2.66

million people. In 2006, Greater Houston ranked 1st in Texas and 3rd in the U.S. within the category of "Best Places for Business and Careers" by Forbes. The Greater

Houston Gross Metropolitan Product (GMP) in 2005 was $308.7 billion, up 5.4 percent from 2004 in constant dollars. By 2016, the GMP rose to $491 billion, 6th in the

nation. Only 26 nations other than the United States have a GDP exceeding the Greater Houston GMP. Mining, which in Houston is almost entirely oil and gas exploration

and production, accounts for 11 percent of Greater Houston's GMP.

Houston is 2nd to New York City in Fortune 500 headquarters. Galveston Bay and the Buffalo Bayou together form one of the most important shipping hubs in the world,

and the Port of Houston, the Port of Texas City, and the Port of Galveston are all major seaports located in Greater Houston. The area is one of the leading centers of the

energy industry, particularly petroleum processing, and many companies have large operations in this region. The MSA comprises the largest petrochemical manufacturing

area in the world, including for synthetic rubber, insecticides, and fertilizers. Much of metro area's success as a petrochemical complex is enabled by the Houston Ship

Channel. The area is also the world's leading center for building oilfield equipment, and is a major center of biomedical research, aeronautics, and high-technology.

Houston is home to the Texas Medical Center—the largest medical center in the world—several universities (including Rice University, Texas Southern University, and The

University of Houston), and two of the largest systems of higher learning in the United States (The Houston and Lone Star Community College systems). The University of

Houston’s annual impact on the Houston-area's economy alone equates to that of a major corporation: $1.1 billion in new funds attracted annually to the Houston area,

$3.13 billion in total economic benefit, and 24,000 local jobs generated. CNN/Money and Money Magazine have recognized 5 cities in the Greater Houston area the past

3-years as part of its 100 Best Places to Live in the United States.


Location mapStarbucks


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Location mapStarbucks


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2017 Estimated Population 17,621 53,082 147,198

2022 Projected Population 18,585 56,189 156,651

2010 Census Population 13,497 45,025 126,688

2000 Census Population 9,917 37,395 110,427

Projected Annual Growth 2017 to 2022 1.1% 1.2% 1.3%

Historical Annual Growth 2000 to 2017 4.6% 2.5% 2.0%

2017 Estimated Households 9,051 27,630 80,765

2022 Projected Households 9,774 29,887 87,839

2010 Census Households 6,749 22,770 67,833

2000 Census Households 4,046 16,735 54,920

Projected Annual Growth 2017 to 2022 1.6% 1.6% 1.8%

Historical Annual Growth 2000 to 2017 7.3% 3.8% 2.8%

2017 Est. Population Under 10 Years 11.3% 11.2% 10.0%

2017 Est. Population 10 to 19 Years 7.5% 8.0% 7.6%





2017 Est. Population 75 Years or Over 3.1% 4.0% 4.8%

2017 Est. Median Age 35.0 36.1 36.5

2017 Est. Male Population 52.4% 51.5% 51.1%

2017 Est. Female Population 47.6% 48.5% 48.9%

2017 Est. Never Married 36.5% 40.1% 41.5%

2017 Est. Now Married 48.9% 43.7% 40.1%

2017 Est. Separated or Divorced 13.0% 13.4% 14.9%

2017 Est. Widowed 1.5% 2.8% 3.5%

2017 Est. HH Income $200,000 or More 30.9% 26.5% 23.1%

2017 Est. HH Income $150,000 to $199,999 16.7% 11.9% 10.4%

2017 Est. HH Income $100,000 to $149,999 19.6% 17.7% 16.6%

2017 Est. HH Income $75,000 to $99,999 8.5% 10.7% 11.1%

2017 Est. HH Income $50,000 to $74,999 7.3% 11.6% 13.5%

2017 Est. HH Income $35,000 to $49,999 5.3% 7.4% 7.7%

2017 Est. HH Income $25,000 to $34,999 4.3% 5.6% 5.9%

2017 Est. HH Income $15,000 to $24,999 3.0% 3.7% 5.4%

2017 Est. HH Income Under $15,000 4.4% 4.8% 6.3%

2017 Est. Average Household Income $179,645 $175,734 $156,047

2017 Est. Median Household Income $142,167 $122,923 $107,137

2017 Est. Per Capita Income $92,374 $91,594 $85,757

2017 Est. Total Businesses 1,109 3,608 15,964

2017 Est. Total Employees 10,334 44,807 192,199

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6201 Washington Ave1 mi radius 2 mi radius 3 mi radius

Houston, TX 77007

2017 Est. Labor Population Age 16 Years or Over 14,804 44,498 125,725

2017 Est. Civilian Employed 81.7% 79.3% 76.7%

2017 Est. Civilian Unemployed 1.6% 1.7% 2.0%

2017 Est. in Armed Forces - - -

2017 Est. not in Labor Force 16.7% 19.0% 21.3%

2017 Labor Force Males 52.6% 51.6% 51.1%

2017 Labor Force Females 47.4% 48.4% 48.9%

2010 Occupation: Population Age 16 Years or Over 11,896 35,000 96,158

2010 Mgmt, Business, & Financial Operations 35.2% 30.0% 29.1%

2010 Professional, Related 30.4% 31.9% 32.5%

2010 Service 6.9% 9.1% 9.4%

2010 Sales, Office 19.0% 19.4% 20.0%

2010 Farming, Fishing, Forestry - - -

2010 Construction, Extraction, Maintenance 4.5% 4.6% 3.9%

2010 Production, Transport, Material Moving 4.0% 5.0% 5.0%

2010 White Collar Workers 84.6% 81.4% 81.6%

2010 Blue Collar Workers 15.4% 18.6% 18.4%

2010 Drive to Work Alone 82.5% 81.5% 79.8%

2010 Drive to Work in Carpool 8.0% 6.8% 6.0%

2010 Travel to Work by Public Transportation 1.8% 2.8% 2.9%

2010 Drive to Work on Motorcycle 0.3% 0.2% 0.2%

2010 Walk or Bicycle to Work 0.9% 2.3% 3.8%

2010 Other Means 0.2% 1.0% 1.0%

2010 Work at Home 6.3% 5.4% 6.2%

2010 Travel to Work in 14 Minutes or Less 33.8% 36.5% 37.2%

2010 Travel to Work in 15 to 29 Minutes 66.2% 55.3% 54.7%

2010 Travel to Work in 30 to 59 Minutes 36.0% 37.6% 34.1%

2010 Travel to Work in 60 Minutes or More 3.5% 4.1% 4.1%

2010 Average Travel Time to Work 20.7 20.4 20.0

2017 Est. Total Household Expenditure $984 M $2.98 B $7.92 B

2017 Est. Apparel $35.0 M $106 M $280 M

2017 Est. Contributions, Gifts $88.7 M $260 M $667 M

2017 Est. Education, Reading $50.2 M $147 M $380 M

2017 Est. Entertainment $56.4 M $170 M $450 M

2017 Est. Food, Beverages, Tobacco $138 M $424 M $1.14 B

2017 Est. Furnishings, Equipment $36.2 M $109 M $286 M

2017 Est. Health Care, Insurance $79.0 M $243 M $652 M

2017 Est. Household Operations, Shelter, Utilities $304 M $923 M $2.45 B

2017 Est. Miscellaneous Expenses $13.6 M $41.6 M $112 M

2017 Est. Personal Care $12.5 M $38.1 M $101 M

2017 Est. Transportation $170 M $523 M $1.40 B

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6201 Washington Ave1 mi radius 2 mi radius 3 mi radius

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DemographicsStarbucks


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