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OFFERING MEMORANDUM STARBUCKS 15327 PALMDALE ROAD, VICTORVILLE, CALIFORNIA 92392 MARCUS & MILLICHAP Activity# Z0380496 Patrick K Conway West LA (310) 909-2386

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Page 1: STARBUCKS - LoopNet · Starbucks VIA, Frappuccino, Starbucks Doubleshot, Starbucks Refreshers, and Starbucks Discoveries Iced Café Favorites brand names. Starbucks Corporation is

O F F E R I N G

M E M O R A N D U M

S T A R B U C K S

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M A R C U S & M I L L I C H A PA c t i v i t y # Z 0 3 8 0 4 9 6

Patrick K Conway

West LA

(310) 909-2386

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I N V E S T M E N T S U M M A R Y

Starbucks is currently operating under a twenty year absolute triple net

ground lease. The asset benefits from its location on Palmdale Road,

which sees daily traffic counts exceeding 28,000 vehicles per day.

Surrounding retailers in the immediate area include Taco Bell, Holiday

Inn, Enterprise Rent-A-Car, Hyundai, Ford and numerous restaurants

and banks.

Victorville is located at the southwestern edge of the Mojave Desert, 81

miles northeast of Los Angeles, 34 miles south of Barstow, 48 miles east

of Palmdale, and 37 miles north of San Bernardino through the Cajon

Pass on Interstate 15. Victorville is the location of offices of the "Mojave

Desert Branch" of the San Bernardino County government. Victorville is

the home of the Southern California Logistics Airport (SCLA). The SCLA is

a 2,500-acre world class aviation and air cargo facility serving

international and domestic needs. The airport can accommodate all

current flying commercial and military aircraft with a 24-hour per day

tower operation and emergency response capabilities comparable to

the world's largest airports. The SCLA employs over 2,000 employees.

I N V E S T M E N T H I G H L I G H T S

• Absolute NNN Lease

• Corporate Guarantee

• Over 100,000 People Within a Three Mile Radius

• Close to the Interstate 15, which sees 89,000 Vehicles Per Day

• 10% Increases Every 5 Years and in Option Periods

I N V E S T M E N T O V E R V I E W

O F F E R I N G S U M M A R Y

P R I C E $2,475,000

N O I $108,900

C A P R A T E 4.4 %

P R I C E / S F $1,289.06

R E N T / S F $56.72

L E A S E T Y P E NNN

G R O S S L E A S A B L E A R E A

( G L A )

1,920 SF

Y E A R B U I L T 2007

L O T S I Z E 0.26 ACRES

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L E A S E S U M M A R Y

Property Subtype Net-Leased Restaurant

Tenant Starbucks

Rent Increases 10% Every Five Years

Guarantor Corporate Guarantee

Lease Type NNN

Lease Commencement 9/1/2007

Lease Expiration 8/31/2027

Lease Term 20 Years

Term Remaining on Lease 9 Years

Renewal Options Three Ten-Year Options

Landlord Responsibility CAM (Gets reimbursed by

tenant)

Tenant Responsibility Insurance, Property Taxes,

Maintenance

Right of First Refusal/Offer Yes

L E A S E S U M M A R Y

P R O P E R T Y S U M M A R Y

Property Starbucks

Address 15327 Palmdale Rd., Victorville, CA 92392

Price $2,475,000

Net Operating Income $108.900

CAP Rate 4.4%

Year Built 2007

Gross Leasable Area 1,920 SF

Zoning N/A

Type of Ownership Ground Lease

Lot Size 0.26 Acres

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T E N A N T P R O F I L E

Tenant Starbucks

Lease Guarantor Corporate

Ownership Public

Years in Business 43 Years

Credit Rating A

Number of Locations 23,187 Worldwide

Headquarters Seattle, WA

Website www.starbucks.com

T E N A N T O V E R V I E W

Starbucks Corporation operates as a roaster, marketer and

retailer of specialty coffee worldwide. The company operates in

four segments: Americas; Europe, Middle East and Africa; China/

Asia Pacific; and Channel Development. The company’s stores

offer coffee and tea beverages, packaged roasted whole bean

and ground coffees, single serve products, and juices and

bottled water. Its stores also provide fresh food offerings; ready-

to-drink beverages; and various food products, such as pastries,

breakfast sandwiches and lunch items, as well as beverage-

making equipment and accessories. In addition, it licenses the

rights to produce and distribute Starbucks branded products to

The North American Coffee Partnership with the Pepsi-Cola

Company, as well as licenses it trademarks through licensed

stores and grocery and national foodservice accounts. The

company offers its products under the Starbucks, Teavana, Tazo,

Seattle’s Best Coffee, Evolution Fresh, La Boulange, Ethos,

Starbucks VIA, Frappuccino, Starbucks Doubleshot, Starbucks

Refreshers, and Starbucks Discoveries Iced Café Favorites brand

names.

Starbucks Corporation is an American coffee company and

coffeehouse chain. Starbucks was founded in Seattle,

Washington in 1971. As of 2018, the company operates 28,218

locations worldwide. Starbucks is considered the main

representative of "second wave coffee", initially distinguishing

itself from other coffee-serving venues in the US by taste, quality,

and customer experience while popularizing darkly roasted

coffee. Since the 2000s, third wave coffee makers have targeted

quality-minded coffee drinkers with hand-made coffee based on

lighter roasts, while Starbucks nowadays uses automated

espresso machines for efficiency and safety reasons.

T E N A N T P R O F I L E

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L O C A T I O N A E R I A L

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A R E A O V E R V I E W

V I C T O R V I L L E , C A L I F O R N I A

Victorville is located at the southwestern edge of the Mojave Desert, 1 milesnortheast of Los Angeles, 34 miles south of Barstow, 48 miles east of Palmdale and37 miles north of San Bernardino through the Cajon Pass on Interstate 15. Victorvilleis the location of offices of the “Mojave Desert Branch” of the San BernardinoCounty government. Victorville is bordered by Apple Valley on the east, Hesperiaon the south, and Adelanto on the west. The Mojave River flows sporadicallythrough Victorville. The elevation at City Hall is approximately 2,950 feet above sealevel.

Victor Valley College is a community college in the southeast corner of Victorville,CA. The Victor Valley Community College district includes Victorville, Hesperia,Apple Valley, Phelan, and Adelanto. The campus has approximately 12,000students enrolled and offers nearly 40 major courses of study. According to theUnited States Census Bureau, the city has a total area of 73.7 square miles- 73.2square miles of land and 0.6 square miles of water. The total area is 0.76%of water.

Southern California Logistics Airport (SCLA), also known as the Victorville Airport islocated in the city of Victorville in San Bernardino County, California,approximately 20 miles north of San Bernardino. The SCLA is a 2,500-acre world-class aviation and air cargo facility serving international and domestic needs. Theairport can accommodate all current-flying commercial and military aircraft with a24-hour per day tower operation and emergency response capabilitiescomparable to the world’s largest airports. The airport is also home of the SouthernCalifornia Aviation, large transitional facility for commercial aircraft.

U.S. Route 66 (US 66 or Route 66), also known as the Will Rogers Highway andcolloquially known as Main Street of America or the Mother Road, was one of theoriginal highways within the U.S. Highway System. Route 66 was established onNovember 11, 1926, with road signs erected the following year. The highway,which became one of the most famous roads in America, originally ran fromChicago, Illinois through Missouri, Kansas, Oklahoma, Texas, New Mexico, andArizona before ending at Santa Monica, California, covering a total of 2,448 miles.

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A R E A D E M O G R A P H I C S

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1 Miles 3 Miles 5 Miles

POPULATION

2022 Projection 10,112 102,865 201,731

2017 Estimate 8,863 90,683 177,930

2010 Census 8,318 85,746 166,409

2000 Census 5,873 55,069 98,435

INCOME

Average $47,442 $54,472 $61,881

Median $33,872 $42,807 $49,770

Per Capita $17,041 $16,339 $18,033

HOUSEHOLDS

2022 Projection 3,630 30,963 59,159

2017 Estimate 3,161 27,043 51,638

2010 Census 2,967 25,642 48,060

2000 Census 2,324 18,151 32,175

HOUSING

2017 $111,096 $138,284 $160,474

EMPLOYMENT2017 Daytime Population

11,083 87,231 157,339

2017 Unemployment

7.84% 7.61% 7.06%

2017 Median Time Traveled

31 34 36

RACE & ETHNICITY

White 44.74% 45.09% 50.03%

Native American 0.45% 0.39% 0.43%

African American 18.72% 15.72% 13.67%

Asian/Pacific Islander

3.34% 4.16% 4.03%

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Net Leased DisclaimerMarcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows:

The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of thisinformation, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about theaccuracy or completeness of any information provided.

As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase.This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a duediligence examination of this Property for Buyer.

Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The valueof a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors.

Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with thesuitability of the property for your needs.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documentsrelated to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the leaserate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, orcomparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material termsof the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer isresponsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating areplacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenantconsidering the location of the property, and Buyer’s legal ability to make alternate use of the property.

By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost, expense, or liability arisingout of your investigation and/or purchase of this net leased property.

Confidentiality and DisclaimerThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichapand should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary,unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for athorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for thesubject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminatingsubstances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects ofany tenant, or any tenant's plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources webelieve to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigationregarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must takeappropriate measures to verify all of the information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus &Millichap. All rights reserved.

Non-Endorsement NoticeMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation's logo orname is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product,service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

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