Starbucks | 2021 Build-to-Suit With Drive-Thru | 10-Year ...

NW Corner of S Pulaski Rd and W Ann Lurie Pl | Chicago, IL 60632

Subject Property

Starbucks | 2021 Build-to-Suit With Drive-Thru | 10-Year Corporate Guarantee Lease With No Kickout Clause | 10% Base Term Rent IncreaseChicago, IL | Irreplaceable Density with 351K Residents within 3 Miles

Offering Memorandum

Confidentiality and Restricted Use AgreementThis Confidential Offering Memorandum (“COM”) is provided by Stan Johnson Company (“SJC”), solely for your consideration of the opportunity to acquire the commercial property described herein (the “Property”). This COM may be used only as stated herein and shall not be used for any other purpose, or in any other manner, without prior written authorization and consent of SJC.

This COM does not constitute or pertain to an offer of a security or an offer of any investment contract. This COM contains descriptive materials, financial information and other data compiled by SJC for the convenience of parties who may be interested in the Property. Such information is not all inclusive and is not represented to include all information that may be material to an evaluation of the acquisition opportunity presented. SJC has not independently verified any of the information contained herein and makes no representations or warranties of any kind concerning the accuracy or completeness thereof. All summaries and discussions of documentation and/or financial information contained herein are qualified in their entirety by reference to the actual documents and/or financial statements, which upon request may be made available. An interested party must conduct its own independent investigation and verification of any information the party deems material to consideration of the opportunity, or otherwise appropriate, without reliance upon SJC.

The Property may be financed or withdrawn from the market without notice, and its owner(s) reserve(s) the right to negotiate with any number of interested parties at any time. The Property is offered and sold by its owner(s) as is, where is, and with all faults, without representation or warranty of any kind except for any customary warranties of title.

BY ACCEPTING THIS COM, YOU AGREE THAT: (1) all information contained herein, and all other information you have received or may hereafter receive from SJC relating to the Property, whether oral, written or in any other form (collectively, the “Information”), is strictly confidential; (2) you will not copy or reproduce, and claim as your own without attribution to SJC, all or any part of this COM or the Information; (3) upon request by SJC at any time, you will return and/or certify your complete destruction of all copies of this COM and the Information; (4) for yourself and all your affiliates, officers, employees, representatives, agents and principals, you hereby release and agree to indemnify and hold harmless SJC all of its affiliates, officers, employees, representatives, agents and principals, from and with respect to any and all claims and liabilities arising from or related to the receipt or use of this COM and/or any other Information concerning the Property; (5) you will not provide this COM or any of the Information to any other party unless you first obtain such party’s acceptance and approval of all terms, conditions, limitations and agreements set forth herein, as being applicable to such party as well as to you; and (6) monetary damages alone will not be an adequate remedy for a violation of these terms and that SJC shall be entitled to equitable relief, including, but not limited to, injunctive relief and specific performance, in connection with such a violation and shall not be required to post a bond when obtaining such relief.

Stan Johnson Company3340 Peachtree Rd NE | Suite 650 Atlanta, GA 30326 P: 404.823.6360stanjohnsonco.com

Offered Exclusively by

Mike SladichRegional Director & Partner [email protected]: 208.866.9208

Maggie [email protected]

Robert PoirierAssociate Director [email protected]

Michael [email protected]

Austin KleeInvestment [email protected]

In Association With:

Tom FritzIL Lic. #471018602

Point of Contact

World Class Corporate Guarantee – Investment Grade (S&P: BBB+)

• #125 on 2021 Fortune 500

• Market Cap: $129 billion

Chicago Infill Location: 351K Residents within Three Miles• 2.24M visits (past 12 months) to the shopping center

• 551K estimated customer base

• I-55 Proximity (165K VPD)

Signalized Hard Corner with over 42k VPD and a Drive-Thru• Signalized hard corner of South Pulaski Rd and W Ann Lurie Pl

with 42,800 VPD

• Outparcel with Drive-Thru access

Limited Landlord Responsibilities – 15-Year Roof Warranty• NN – Roof & Structure, reimbursed for 100% of taxes, CAM, and

insurance

• 15-year roof warranty & 2021 construction

Organic Growth with 10% Base Term Rent Increase• 10% bumps every five (5) years

• Improves yield & hedges against inflation

Brand New 2021 Build-to-Suit• Opened 10/1/2021

No Kickout Clause• Rarity for most Starbucks leases

Investment Highlights Price:$2,617,000

Cap Rate:4.50%

Limited Landlord Responsibilities

(15-Year Roof Warranty)

Hard Corner Location with 43K VPD

10% Rent Increases

3-Mile Population of 351,863

No KickoutClause

Outparcel to Class A Shopping Center (2.24M Visitors Annually)

Drive-ThruAccess

Brand New Build-to-Suit

World ClassCorporate Guaranty

Starbucks • Chicago, IL 3

Rent ScheduleTenant Starbucks Corporation

Property AddressNW Corner of S Pulaski Rd and W Ann Lurie PlChicago, IL 60632

Ownership Type Fee Simple

Building Size (SF) 2,265

Land Size (AC) 0.75

Year Built 2021

Rent Commencement October 1st, 2021

Term Expiration February 29th, 2032

Term Remaining 10.2 years

Current Annual Rent $117,780

Rent Increases 10% every five (5) years

Renewal Options Four (4), five (5) year options

Lease Type NN

Landlord Responsibilities Roof & Structure, Reimbursed for CAM, Insurance, Taxes

Lease AbstractTerm Years Annual

RentMonthly

Rent RPSF Rent Increase

BasePresent – 02/28/2027 $117,780 $9,815 $52.00 -

03/01/2027 - 02/29/2032 $129,558 $10,797 $57.20 10%

Option 1 03/01/2032 - 02/28/2037 $142,514 $11,876 $62.92 10%

Option 2 03/01/2037 - 02/28/2042 $156,761 $13,063 $69.21 10%

Option 3 03/01/2042 - 02/28/2047 $172,434 $14,370 $76.13 10%

Option 4 03/01/2047 - 02/29/2052 $189,694 $15,808 $83.75 10%

Subject Property


Tenant OverviewStarbucks Corporation (NASDAQ: SBUX) is an American

global coffee company and coffeehouse chain based in

Seattle, Washington. Starbucks was founded in 1971 as a

local coffee bean roaster and retailer and has grown into

the largest coffeehouse company in the world. As of June 2021, there

are 33,295 Starbucks locations open across six continents and 79

countries and territories.

Starbucks locations serve hot and cold beverages, whole-bean coffee,

micro-ground instant coffee, full-leaf teas, pastries, and snacks. Most

stores also sell packaged food items, hot and cold sandwiches, and

items such as mugs and tumblers.

Many of the company’s products are seasonal or specific to the locality

of the store, while Starbucks-brand ice cream and coffee are also

offered at grocery stores. Through Starbucks Entertainment division

and its Hear Music brand, the company also markets books, music, and

films.

Starbucks has a strong presence both in the U.S. and in the global

marketplace due in part to its rapid growth over the last few decades.

In the 1990s, Starbucks was opened 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-1990s, and overseas stores now

constitute almost one third of Starbucks’ stores.

Financial AnalysisAs of 2020, Starbucks had annual revenue of $23.5 billion and a net

income of $928 million. The company currently has an S&P rating of

“BBB+” which is top tier investment grade.

Tenant Name Starbucks Corporation

Doing Business As Starbucks

Entity Type Public (NASDAQ: SBUX)

Business Type Retail; Quick Service Restaurant

Industry Food and Beverage

Credit Rating BBB+ (S&P)

FY 2020 Revenue $23.5 billion

FY 2020 Net Income $928 million

No. of Locations 33,295

No. of Countries 79

CEO Kevin Johnson

Founded 1971

Headquarters Seattle, WA

Website www.starbucks.com

Tenant Profile

33,295 Locations Worldwide

$23.5 BillionRevenue

Subject Property


Location OverviewChicago is a city in and the county seat of Cook County in northeast Illinois. With over 2.7 million

residents, it is the third-most populous city in the United States. The metropolitan area, often referred

to as Chicagoland, is home to nearly 10 million people and is the third-largest in the country.

The undisputed economic powerhouse of central North America, the Chicago Metro has the 3rd-

largest gross domestic product in the U.S. at $709 billion, making it equivalent to the 21st-largest

economy in the world. It is an international hub for finance, commerce, industry, technology,

telecommunications and transportation. Its economy and population are diverse, productive and

affluent, and the city is widely considered one of the most important business centers in the world.

In 2012, it was listed as an alpha global city by the Globalization and World Cities Research Network.

In 2014, it was ranked seventh in the world in the Global Cities Index, a bi-annual published ranking of

global cities based on a city’s ability to help set global agendas, weather transnational dangers and

serve as hubs of global integration.

Additionally, Chicago is the third-largest inter-modal port in the world after Hong Kong and Singapore

and more U.S. highways and railroad freight lines run through the metropolitan area than any other

city in the country. Seven mainline and four auxiliary interstate highways run through the area, while

six of the seven class I railroads meet in Chicago.

Chicago, IL

State Illinois

Counties Cook & Dupage

City Area 234 sq mi

Metro Area 10,874 sq mi

Population 2,746,388 (2020 estimate)

Population Density 11,626/sq mi

MSA Chicago-Naperville-Elgin

MSA Population 9,406,638 (2020 estimate)

Website www.cityofchicago.org

3rd Most Populous City

in the US

3rd Largest GDP in US

City Profile

New Or Expanded HQsin Chicagoland


N

Mansueto High School512 Students

Curie Metropolitan High School

3,000+ StudentsChristopher Elementary1,150 Students

Carson Elementary445 Students

Solorio Academy Hernandez Middle School

Sandoval Elementary3,200 Total Students

Kelly High School2,150 Students

James Shields Middle School

700 Students

Saint Anthony

Community Clinic

Access Kedzie Family Health

Center

Lawndale Christian

Health Clinic

Orange Line

Hearst Elementary 318 Students

WesternTrain StopKedzie

Train Stop

PulaskiTrain Stop

MidwayTrain Stop

Chicago Midway International Airport

S California Ave16,500 VPD

S Pulaski Rd42,800 VPD

S Cicero Ave49,100 VPD

S Western Ave28,000 VPD

S Kedzie Ave28,700 VPD

S Archer Ave21,700 VPD

I-55/Stevenson Expwy165,930 VPD

W 47th St21,000 VPD

Coming Soon


ChicagoChicago

Shopping Center Customer Traffic

Source: Placer.ai

5 Miles# of Visits (Min. of 3 Visits)

748 - 2.2K

561 - 747

375 - 560

188 - 374

< 187

Subject Property

N


Site Plan - National Tenant Anchors

W


Subject Property


N

1 mile

3 miles

5 miles

NW Corner of S Pulaski Rd and W Ann Lurie Pl | Chicago, IL 60632

Demographics

Population 1 mile 3 miles 5 miles

2021 Population 16,600 351,863 841,245

Households

2021 Total Households 4,621 92,941 254,743

Household Income

2021 Average Household Income $66,889 $59,571 $64,348

$67K2021 1-Mile

Avg. Household Income

ChicagoChicago

Source: Esri - 2021

841K2021 5-MilePopulation


FedEx Express • Wilson, NC 12

The information contained herein was obtained from sources believed reliable, however, Stan Johnson Company makes no guaranties, warranties or representations as to the completeness thereof. The presentation of this property for sale, rent or exchange is submitted subject to errors, omissions, change of price or conditions, or withdrawal without notices.

Stan Johnson Company3340 Peachtree Rd NE | Suite 650 Atlanta, GA 30326P: 404.823.6360stanjohnsonco.com

going beyondOffered Exclusively by

Mike SladichRegional Director & Partner [email protected]: 208.866.9208

Maggie [email protected]

Robert PoirierAssociate Director [email protected]

Michael [email protected]

Austin KleeInvestment [email protected]

In Association With:

Tom FritzIL Lic. #471018602

Starbucks | 2021 Build-to-Suit With Drive-Thru | 10-Year ...

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