fullerton, ca 92832 now open starbucks...fullerton, the seventh largest city in orange county, sits...

O F F E R I N G M E M O R A N D U M

BRAND NEW 2020CONSTRUCTION

NEW 20-YEAR ABSOLUTE NNN GROUND LEASE

ACTUAL STORE

±3,000 SQUARE FOOT BUILDING WITH DRIVE-THRU

1101SOUTH HARBOR BOULEVARDF U L L E R T O N , C A 9 2 8 3 2

Starbucks

RARE OVERSIZED LOT OF ±39,817 SQUARE FEET

CLICK HERE TO VIEW VIDEOOFFERING MEMORANDUM

NOW OPEN

RELOCATION STORE FROM TWO NEARBY LOCATIONS

https://youtu.be/qvJX6b7On98

ContentsInvestment Highlights

Tenant Overview

Financial

Aerial Photo

Property Photos

Site Plan

Market Overview

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OFFERING MEMORANDUM DISCLAIMERThis Confidential Offering Memorandum (“Memorandum”) is being delivered subject to the terms of the Confidentiality Agreement (the “Confidentiality Agreement”) signed by you and constitutes part of the Confidential Information (as defined in the Confidentiality Agreement). It is being given to you for the sole purpose of evaluating the possible investment in the subject property mentioned herein (“the “Project”), and is not to be used for any other purpose or made available to any other party without the prior written consent of the Seller of Record (“Managing Member”), or its exclusive broker, Cushman & Wakefield. This Memorandum was prepared by Cushman & Wakefield based primarily on information supplied by Managing Member. It contains select information about the Project and the real estate market but does not contain all the information necessary to evaluate the Project. The financial projections contained herein (or in any other Confidential Information) are for general reference only. They are based on assumptions relating to the overall economy and local competition, among other factors. Accordingly, actual results may vary materially from such projections. Various documents have been summarized herein to facilitate your review; these summaries are not intended to be a comprehensive statement of the terms or a legal analysis of such documents. While the information contained in this Memorandum and any other Confidential Information is believed to be reliable, neither Cushman & Wakefield nor Managing Member guarantees its accuracy or completeness. Because of the foregoing and since the investment in the Project is being offered on an “As Is, Where Is” basis, a prospective investor or other party authorized by the prospective investor to use such material solely to facilitate the prospective purchaser’s investigation, must make its independent investigations, projections and conclusions regarding the investment in the Project without reliance on this Memorandum or any other Confidential Information. Although additional Confidential Information, which may include engineering, environmental or other reports, may be provided to qualified parties as the marketing period proceeds, prospective purchasers should seek advice from their own attorneys, accountants, engineers and environmental experts. Neither Cushman & Wakefield nor Managing Member guarantees the accuracy or completeness of the information contained in this Memorandum or any other Confidential Information provided by Cushman & Wakefield and Managing Member. Managing Member expressly reserves the right, at its sole discretion, to reject any offer to invest in the Project or to terminate any negotiations with any party at any time with or without written notice. Managing Member shall have no legal commitment or obligations to any prospective investor unless and until a written sale agreement has been fully executed, delivered and approved by Managing Member and any conditions to Managing Member’s obligations thereunder have been satisfied or waived. Managing Member has retained Cushman & Wakefield as its exclusive broker and will be responsible for any commission due to Cushman & Wakefield in connection with a transaction relating to the Project pursuant to a separate agreement. Cushman & Wakefield is not authorized to make any representation or agreement on behalf of Managing Member. Each prospective investor will be responsible for any claims for commissions by any other broker in connection with an investment in the Project if such claims arise from acts of such prospective investor or its broker. This Memorandum is the property of Managing Member and all parties approved by Managing Member and may be used only by parties approved by Managing Member. No portion of this Memorandum may be copied or otherwise reproduced or disclosed to anyone except as permitted under the Confidentiality Agreement.

Table of EXCLUSIVELY LISTED BY

Ron Duong Executive Managing Director Capital Markets Investment Sales - Retail +1 949 350 5431 [email protected] Lic. CA 01438643

Adam Friedlander Vice President JLL Capital Markets +1 949 527 4978 [email protected] Lic. CA 01806555

STARBUCKS 20-YEAR LEASE / 1101 SOUTH HARBOR BOULEVARD / 2

Summary

CUSHMAN & WAKEFIELD / 1101 SOUTH HARBOR BOULEVARD / 3

SummaryTrophy Southern California Asset

f Extremely Rare Orange County Starbucks Asset

f Brand New Construction - Rare 3,000 Square Foot Starbucks with Drive-Thru | Located on an Oversized 39,817 Square Foot Lot

f Prime Corner Location with Unparalleled Visibility on Harbor Boulevard (75,700+ Cars Per Day), a Major Retail Corridor with Direct Access to the 91 Freeway (281,000+ Cars Per Day)

f Brand New 20-Year Absolute NNN Ground Lease with No Management or Maintenance Responsibilities - Ideal for Investors Not Local to the Market

f 10% Increases Every Five Years Provides a Strong Hedge Against Inflation

f Close Proximity to the Area’s Major Traffic Generators, such as

— Downtown Fullerton - Over 350,000 Square Feet of Retail, Bars, and Restaurants and Over 250,000 Square Feet of Office Space

— Disneyland Theme Park & Resort - 18.6+ Million Visitors Annually

— California State University, Fullerton - 41,000+ Students Enrolled

Prime Retail Location f Strategically Situated Along Harbor Boulevard in the Area’s Main Retail

Corridor with Major Nearby Shopping Centers, Including:

— Fullerton Town Center (Directly Across the Street) - Anchored by Costco, AMC Dine-In Theaters, Chuck E. Cheese, Office Depot, In N Out, Chik Fil A, and Many More

— Fullerton Metrocenter (One Block South) - Anchored by Target, Sprouts, PetSmart, and Tilly’s

— Orangefair Marketplace (One Block Southeast) - Anchored by Best Buy, Marshalls, Michaels, Burlington Coat Factory, and Chuze Fitness

f Located Across from 142 Newly Constructed Luxury Apartment Units

f Dense, Infill Location with Population Counts Exceeding 615,000 Within a Five Mile Radius

Investment Grade Tenant f Starbucks Corporation (NASDAQ: SBUX) is By Far the World’s Largest

Coffee House Chain, With Over 30,000 Locations in 70 Countries

— The Subject Property is a Relocation Store from Two Nearby Starbucks Locations, Proving a Strong Commitment to the Site


ACTUAL STORE STARBUCKS 20-YEAR LEASE / 1101 SOUTH HARBOR BOULEVARD / 4


Tenant OverviewStarbucks Corporation OverviewStarbucks Corporation is an American coffee company and coffeehouse chain. Starbucks was founded in Seattle, Washington in 1971. Starbucks began as a roaster and retailer of whole bean and ground coffee, tea and spices with a single store in Seattle’s Pike Place Market. As of early 2019, the company operates over 30,000 locations worldwide.

Starbucks locations serve hot and cold drinks, whole-bean coffee, microground instant coffee known as VIA, espresso, caffe latte, full- and loose-leaf teas including Teavana tea products, Evolution Fresh juices, Frappuccino beverages, La Boulange pastries, and snacks including items such as chips and crackers; some offerings are seasonal or specific to the locality of the store. Many stores sell pre-packaged food items, hot and cold sandwiches, and drinkware including mugs and tumbles; select “Starbucks Evenings” locations offer beer, wine, and appetizers. Starbucks-brand coffee, ice cream, and bottled cold coffee drinks are also sold at grocery stores.

In July 2019, Starbucks reported fiscal third-quarter net income of $1.37 billion, or $1.12 per share, up from $852.5 million, or 61 cents per share, a year earlier. The company’s market value of $101.2 billion increased by 41% in the mid of 2019. The earnings per share in quarter three were recorded 78 cents, much more than the forecast of 72 cents.

Tenant ProfileWebsite www.starbucks.com

Company Type: Public (NASDAQ: SBUX)

Market Cap: $101.61 Billion

Number of Locations 30,000+ Worldwide (As of 2019)

Credit Rating A- by S&P

Revenue $24.72 Billion (2018)

Operating Income $5.62 Billion (2018) STARBUCKS 20-YEAR LEASE / 1101 SOUTH HARBOR BOULEVARD / 5

Property Summary

PRICING

OFFERING PRICE $6,925,000

CAP RATE 3.25%

LEASE INFORMATION

CURRENT NOI $225,000

LEASE TYPE Absolute NNN Ground Lease

COMMENCEMENT Approximately March 12, 2020

TERMINATION Approximately March 31, 2040

REMAINING TERM 20 Years

INCREASES 10% Every Five Years

OPTIONS Four, Five-Year

PROPERTY INFORMATION

OWNERSHIP Leased Fee (Ground Lease)

TOTAL GLA ±3,000 Square Feet

TOTAL LAND AREA ±0.91 Acres (±39,817 Square Feet)

PARKING ±35 Spaces (11.67:1,000 SF)

ZONING Commercial

APN 032-284-08

TRAFFIC COUNTS ±75,700 Cars Per Day

ACTUAL STORE

Financial Overview

ACTUAL STORE


SUBJECT PROPERTY

Orangethorpe AvenueOrangethorpe Avenue

Downtown FullertonDowntown FullertonOver 700,000 SFOver 700,000 SF

Retail, Restaurants, & OfficeRetail, Restaurants, & Office

Fullerton MetrocenterFullerton Metrocenter Orangefair MarketplaceOrangefair Marketplace

Fullerton Town CenterFullerton Town Center

Har

bor

Boul

evar

dH

arbo

r Bo

ulev

ard

Aspect Aspect 350+ Luxury Apartments350+ Luxury Apartments

Aerial Photo

770 S. Harbor770 S. Harbor142 Newly Constrcuted142 Newly Constrcuted

Luxury ApartmentsLuxury Apartments

Portico VillasPortico Villas

Fullerton Fullerton Industrial Industrial

CenterCenter

Meredith ManorMeredith ManorCondominiumsCondominiums

WoodcrestWoodcrestElementaryElementary

RichmanRichmanElementaryElementary

RichmanRichmanCommunity CenterCommunity Center

Lem

on S

tree

tLe

mon

Str

eet

Commonwealth AvenueCommonwealth Avenue

281,000+ Cars Per Day281,000+ Cars Per Day

Metrolink RailroadMetrolink RailroadFullerton Fullerton Metrolink Metrolink

StationStation




Close-Up Aerial Photo

Property Under Redevelopment

SUBJECT PROPERTY

Harbor Boulevard - 39,300+ Cars Per Day

Harbor Boulevard - 39,300+ Cars Per Day

Orangethorpe AvenueOrangethorpe Avenue

W. Hill Avenue

W. Hill Avenue


Site Plan

SUBJECT PROPERTY±3,000 SF BUILDING

TRASH

OUTDOORSEATING

WALKWAY

DRIVE-THRU

MULTIFAMILYAPARTMENTS

COMMERCIAL BUILDING(UNDER REDEVELOPMENT)

W. HILL AVENUE

S. H

ARBO

R BO

ULE

VARD

(39,

300+

CAR

S PE

R D

AY)

Note: Site plan is for representation purposes only and is not to scale.


Market Overview

CUSHMAN & WAKEFIELD / 1101 SOUTH HARBOR BOULEVARD / 10

Regional Map

0.5 MilesFROM THE 91 FREEWAY ENTRANCE

AT HARBOR BOULEVARD

0.5 MilesFROM FULLERTON

METROLINK STATION

4.2 MilesFROM DISNEYLAND THEME PARK

AND RESORT

281,000+CARS PER DAY ON THE HARBOR

BOULEVARD 91 FREEWAY INTERCHANGE

SUBJECT PROPERTY

AnaheimAnaheim

Buena ParkBuena Park

PlacentiaPlacentia

Downtown FullertonDowntown Fullerton


The City Of FullertonFullerton, the seventh largest city in Orange County, sits approximately 20 miles southeast of Los Angeles.

Home to a population exceeding 140,000, the city is an affluent community with an average household income exceeding $105,000 with over 33% of its population earning an average annual household incomes above $100,000. Fullerton is home to a vibrant music and theater scene and

houses over 50 city parks as the cultural and educational hub of North County.

Fullerton was incorporated in 1887 and possesses a unique mix of residential, commercial and industrial, educational, and cultural environments, which provide an outstanding quality of life for both residents and businesses alike.

One mile north of the subject property, the SOCO (South of Commonwealth) District of Fullerton is home to businesses, restaurants, and lounges on Santa Fe Avenue, both east and west of Harbor Boulevard.

Anchored by the Fullerton Transportation Center on the east and Heroes restaurant on the west, the area is the focus of plans designed to extend the city’s successful economic revitalization underway in the downtown. The plans also include those businesses on Commonwealth who back up to the alley separating them from the businesses on Santa Fe.

Commute & EconomicsFullerton is positioned in Orange County to capitalize on the traffic of L.A.’s ports; consequently, the industrial and service sectors play a prominent role. Cal State Fullerton’s presence provides a pipeline of educated employees, and a few office tenants can boast a significant footprint headlined by Raytheon, St. Jude Medical Group, and Beckman Coulter. Overall, the city features a flourishing economy. With an unemployment rate of 4.1% and anticipated job growth, the community projects sustained opportunity. The city is home to Cal State University Fullerton with a student population of nearly 39,000 and Fullerton College with over 22,000 students. As a city with two higher education facilities, Fullerton offers large opportunity for retailers with an opportunity gap of $591.7 million. The city is currently home to over 6.4 million square feet of retail space. The city is easily accessed by three major Southern California freeways and is only 15 miles from John Wayne Airport. Its transit system also accommodates an average of 3,000 commuters a day.

Distance toAnaheimLos Angeles San Diego San Clemente Riverside

26 MILES

3 MILES

99 MILES

40 MILES

37 MILES

Downtown Fullerton

Fullerton Metrolink



EXCLUSIVELY LISTED BY

Ron Duong Executive Managing Director Capital Markets Investment Sales - Retail +1 949 350 5431 [email protected] Lic. CA 01438643

Adam Friedlander Vice President JLL Capital Markets +1 949 527 4978 [email protected] Lic. CA 01806555


Starbucks - 2020 ConstructionNew 20-Year Ground Lease


fullerton, ca 92832 now open starbucks...fullerton, the seventh largest city in orange county, sits...

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