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1762 Briargate Boulevard - COLORADO SPRINGS, COLORADO 80920

Starbucks (Reclamat ion Dr ive-Thru)

Actual Property

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. All rights reserved. Activity ID:Y0330940


PRICE $1,165,049

CAP RATE 5.15%

NOI $60,000

PRICE PER SQUARE FOOT $3,065.92

RENT PER SQUARE FOOT $157.89

YEAR BUILT 2014

APPROXIMATE LOT SIZE .27 Acres

GROSS LEASEABLE AREA 380 Square Feet

TYPE OF OWNERSHIP Fee Simple

LEASE GUARANTOR Corporate Guaranty

LEASE TYPE NNN Ground Lease

ROOF AND STRUCTURE Tenant Responsible

Financia l Overv iew

Offer ing Summary

Actual Property

LEASE COMMENCEMENT DATE 6/30/2014

LEASE EXPIRATION DATE 6/30/2024

LEASE TERM 10 Years

TERM REMAINING 7+ Years

INCREASESIncreases Every Five Years and in Options

OPTIONS TO RENEW Two, Five-Year Options

OPTIONS TO TERMINATE None

FIRST RIGHT OF REFUSAL Yes

Annualized Operating DataBASE RENT Annual Rent

YEAR 1 Year 5 $60,000.00YEAR 6 Year 10 $65,000.00

OPTIONS

YEAR 11 Year 16 $71,500.00YEAR 16 Year 20 $77,458.33



Investment Overv iew

• Starbuck’s Reclamation Drive Thru in Colorado Springs | Second Most Populated City in Colorado

• More Than Seven Years Remaining on Triple-Net (NNN) Ground Lease

• Strong Rent Escalations over the Base Term and in Two, Five-Year Options | 8 Percent Rent Increase in 2019

• Corporate Guaranty | Starbucks Corporation | NASDAQ: SBUX | Standard & Poor (S&P): A | Number 146 in Fortune 500

• Pad Site to 1.4 Million Square Foot Mall | Anchored by: Sears, Macy’s Dillard’s, Dick’s Sporting Goods, and AMC Colorado Springs 13

• Signalized, Hard Corner Intersection of Briargate Boulevard and the Southeast Entrance to the Chapel Hill Mall | Briargate Boulevard Sees More Than 19,000 Vehicles Per Day

• Dense Regional Retail Corridor | More Than 3.5 Million Square Feet of Retail in Less Than One-Mile of this Asset | Anchored by: Walmart, Home Depot, Sam’s Club, and Whole Foods

• Strong Demographics | More Than 180,000 Residents with an Average Household Income Greater Than $90,000 within the Five-Mile Radius | 12 Percent Population Increase from 2010 to 2016 in Five-Mile Radius

Marcus & Millichap is pleased to present this 380-square foot Starbuck’s Reclamation Drive Thru in Colorado Springs, Colorado’s second most populated city. Starbucks is operating under a triple-net (NNN) ground lease. The lease features 8 percent rent increases every five years over the base term, and a 10 percent escalation in the first five-year renewal option and an 8 percent escalation in the second five-year renewal option. The next rent increase is in 2019. The lease is backed by a corporate guaranty from the Starbucks Corporation, which was ranked number 146 on the Fortune 500 List in June 2016. The company registered $21.3-billion in revenue across more than 25,000 locations worldwide in 2016.

This asset is located on the signalized, hard corner intersection of Briargate Boulevard and the southeast entrance to the Chapel Hill Mall. This 1.4 million-square foot mega-mall is anchored by Sears, Dillard’s, Macy’s, Dick’s Sporting Goods, and AMC Colorado Springs 13. Within one-mile of the subject property, there is over 3.5 million square feet of retail.

Additionally, this asset benefits from strong demographics. There are more than 180,000 residents within five miles of this asset with an average household income greater than $90,000. In the five-mile radius, the population grew 12 percent from 2010 to 2016.

Additional tenants along the retail corridor include: Starbucks, Bed, Bath & Beyond, Marshalls, La-Z-Boy, Buffalo Wild Wings, Old Navy, Best Buy, Verizon, Five Guys, Men’s Warehouse, Michael’s, 24-Hour Fitness, Applebee’s, Chick-fil-A, Chipotle, Burger King, FedEx, McDonald’s, O’Reilly, Gap, J. Crew, Ulta, and more.

Actual Property



Tenant Overview - Starbucks

Wake up and smell the coffee -- Starbucks is everywhere. The world’s number one specialty coffee retailer, Starbucks has more than 25,000 coffee shops in about 60 countries. The outlets offer coffee drinks and food items, as well as roasted beans, coffee accessories, and teas. Starbucks operates more than 12,700 of its own shops, which are located mostly in the United States, while licensees and franchisees operate roughly 12,300 units worldwide (including many locations in shopping centers and airports). In addition, Starbucks markets its coffee through grocery stores, food service customers, and licenses its brand for other food and beverage products. Starbucks ranks number 146 in Fortune 500 and is traded on the NASDAQ under the symbol “SBUX”. In 2016, Starbucks had sales of $21.3 billion and a net worth of $5.88 billion.

Starbucks store designers are creating experiences that honor the integrity of the neighborhoods where they operate, while ensuring they meet the evolving needs customers around the world. The company’s latest inspiration came from the view outside its Seattle headquarters – a busy port overlooking the Puget Sound, sprawling with shipping containers from around the world. Recognizing that its own supply chain relies on such containers to transport coffee and tea, Starbucks wanted to find a way to reconfigure containers into an innovative store design. The result was the Starbuck’s Reclamation Drive-Thru, a 450-square foot drive-thru and walk-up store made from four end-of-life-cycle shipping containers. Built to LEED certification standards, like all new company-owned Starbucks stores around the world, the store is a modular structure. One small 20-foot container holds garbage, recycling and storage, but other than that, the whole store is contained within the shells of four containers that have been reclaimed, refurnished, renewed and revived. Consistent with the company’s goal to build a drive thru window into 60 percent of the 1,500 new United States locations planned for the next five years – this new concept is giving the company an opportunity to create locally relevant and more sustainably designed stores.

TENANT TRADE NAME StarbucksOWNERSHIP Public

TENANT Corporate Store

LEASE GUARANTOR Corporate Guaranty

NUMBER OF LOCATIONS 25,000+

HEADQUARTERED Seattle, Washington

WEB SITE www.starbucks.com

SALES VOLUME $21.3 Billion (2016)

NET WORTH $5.88 Billion (2016)

STOCK SYMBOL SBUX

BOARD NASDAQ

CREDIT RATING A

RATING AGENCY Standard & Poor (S&P)

RANK Number 146 in Fortune 500 (June 2016)

TENANT PROFILE



Aer ia l Overv iew



Area Overview & Demographics

1 Mile 3 Mile 5 Mile

P o p u l a t i o n

2000 Population 6,318 66,867 144,827

2010 Population 6,268 74,341 168,617

2017 Population 6,606 81,406 188,496

2021 Population 7,008 86,897 201,859


H o u s e h o l d s

2000 Households 2,443 24,044 52,943

2010 Households 2,628 28,316 65,085

2017 Households 2,774 31,070 72,743


H o u s e h o l d ( H H ) I n c o m e s

2017 Average HH Income $78,948 $97,320 $91,681

2017 Median HH Income $68,407 $81,141 $73,813

2017 Per Capita Income $33,152 $37,144 $35,381



Colorado Springs, located in the Rocky Mountains just east of Pikes Peak and 66 miles south of Denver, is the second largest city in Colorado. Founded as a resort community in 1871, Colorado Springs saw its population rise with the discovery of gold in nearby Cripple Creek in the 1890s. A view of the surrounding area from atop Pikes Peak in 1893 inspired Katharine Lee Bates to compose the lyrics of America the Beautiful. During and after World War II, the United States Army built Fort Carson and the United States Air Force set up the Air Force Academy and several bases in Colorado Springs. The city remains a popular tourist destination and a military center, but the arrival of Hewlett-Packard in 1962 established Colorado Springs as a high-tech mecca. The city’s beauty and strong economy attract many high-tech firms and young professionals to the area. With a population of 370,000, Colorado Springs is one of the country’s fastest-growing cities.

Outdoor sports dominate the themes of the city’s top museums. Colorado Springs is home to the World Figure Skating Museum and Hall of Fame, as well as the Pro Rodeo Hall of Fame and Museum of the American Cowboy. The arts are also well represented. The Fine Arts Center has a first-class art museum, a performing arts theatre, and school of art. Theater works, at the University of Colorado, offers a Shakespeare Festival each summer. The city also hosts a Jazz Festival in July and a Wine and Music Festival in September.

In minor league baseball, the Colorado Springs SkySox are the AAA-affiliate of the Colorado Rockies. Pikes Peak International Raceway, just 15 miles south, hosts NASCAR events. For major league sports, Denver is an hour drive north, with baseball’s Colorado Rockies, the NFL’s Denver Broncos, the NBA’s Denver Nuggets, and the NHL’s Colorado Avalanche.

For the outdoor enthusiast, the real draw is the magnificent outdoor paradise of the Rocky Mountains. Rafting, horseback riding, and ballooning are all spectacular. Dozens of hiking trails are available within the city. The New Santa Fe Regional Trail, Pikes Peak Greenway, and the Fountain Creek Regional Trail form a 35-mile pathway popular among hikers, runners and bicyclists. But nothing beats the area’s skiing. Within a two-hour drive is Vail, the most visited ski resort in the United States. For year-round skiing, a permanent snowfield at 11,000-feet, St Mary’s Glacier is just a few hours away. Also within that distance is Aspen, the popular and celebrated ski getaway for the wealthy, filled with 14,000-foot peaks and a heavy dose of culture.

A large student population and a growing economy contribute to the city’s hopping nightlife, with many bars and dance clubs clustered along North Academy Boulevard. With so much to see and do, Colorado Springs is one of America’s up-and-coming places for young people.

Market Overview

Actual Property



Broker of RecordBob Kaplan

Denver, CO 80202Tel : (303) 328-2000Fax: (303) 328-2010

License: ER100052334

Starbucks (Reclamation Drive-Thru)

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