STARBUCKS - ABERDEEN...The Aberdeen Starbucks is a single tenant net leased investment located in...

STARBUCKS - ABERDEENOFFERING MEMORANDUM

Single Tenant Investment Opportunity in Aberdeen, WA

Table of Contents

Contact Information

The 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 Kidder Mathews and should not be made available to any other person or entity without the written consent of Kidder Mathews.

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 a thorough due diligence investigation. Kidder Mathews has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, current or past tax payments, the physical condition of the improvements thereon, or the financial condition or business prospects of any 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 we believe to be reliable; however, Kidder Mathews has not verified, and will not verify, any of the information contained herein, nor has Kidder Mathews conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

This information has been secured from sources we believe to be reliable. We make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Recipient of this report must verify the information and bears all risk for any inaccuracies.

Erik [email protected]

Mike [email protected]

kiddermathews.com

Executive SummaryThe Opportunity

Investment Highlights

Property Summary

Retail Aerial

Site Plan

Financial AnalysisPricing Summary

Tenant Profile

Location & Market OverviewSite Overview

Location Map

Demographics

STARBUCKS - ABERDEEN

01

02

03

04

Executive Summary

01STARBUCKS - ABERDEEN

The Opportunity

Investment Highlights

Property Summary

Retail Aerial

Site Plan

KIDDER MATHEWS | OFFERING MEMORANDUM 4STARBUCKS - ABERDEEN

The OpportunityThe Aberdeen Starbucks is a single tenant net leased investment located in Aberdeen, Washington. This recently renovated Starbucks includes a busy drive thru exposed to over 20,000 cars per day passing on State Highway 12.

Starbucks has been at this location since the property was built in 2006. They recently renovated the interior and extended their lease to 2021.

Highway 12 is the main connector between Interstate 5 Freeway and Washington’s coastal recreation areas. This Starbucks benefits from being the only Starbucks on this main route. The next nearest drive thru Starbucks is 50 miles away in Olympia, Washington.

Aberdeen, Hoquim and Cosmopolis are located at the confluence of the Chehalis river and Grays Harbor Bay. This triad of cities forms the commercial and industrial core of the Grays Harbor county and almost half of Grays Harbor County’s 70,000 residents live here.

$1,145,000

5.43%

100%

$694.78

2006

Offering Price

Current Cap Rate

Current Occupancy

Price per SF

Year Built

Investment Summary


INVESMENT HIGHLIGHTS

TRAFFIC

A-S&P

10years at location

20,000+vehicles per day

CREDIT RATING

STABILITY

Corporate Starbucks Lease

Investment backed by Starbucks Corporation, the world’s largest Coffee corporation with an S&P rating of A-/Stable. Long Term TenantThe lease commenced in 2006. Three five year lease options remain with fair market value increases.

Newer ConstructionThe property is a 2006 build-to-suit for Starbucks featuring a drive-thru lane.Starbucks recently renovated the interior

Located in Primary Commercial CorridorLocated on the main commercial corridor, other retailers in the immediate area include Walmart, Goodwill, Ross, Taco Bell, KFC, McDonalds.

Highly Visible, Easily Accessible Drive-Through

Fronting State Route 12 situated a signalized intersection, Starbucks is located directly across from the 150,000 square foot Olympic Gateway Plaza.


PROPERTY SUMMARY

Address 1202 E Wishkah StreetAberdeen, WA

Parcel Number 029600600100

County Grays Harbor County Parking ±15 Surface Spaces are available

Gross Leaseable Area 1,648 SF Signage Monument Building

Land Area 6,533 SF (0.15 AC) Access Multiple Points

Year Built 2006 Frontage ±50 feet on SR 12

Construction Stick Frame Zoning General Commercial



CHEHALIS RIVER

WISHKAH RIVER

20,000+ DAILY2


SITE PLAN

20,000 ADT

Financial Analysis

02

Pricing Summary



RENT ROLL

TENANT STORE SIZE % RSF MONTHLY RENT ANNUAL RENT ANNUAL RENT PSF OPTIONS

Starbucks #9504 1,648 100.00% $5,186 $62,229 $37.76 3 - 5 year options at fair market value remain

GROSS LEASABLE AREA 1,648 $5,186 $62,229 $37.76

$1,145,000PRICE

5.43%CAP RATE

100%OCCUPANCY


Tenant/Guarantor Starbucks Corporation

Lease Type Double Net (NN)

Roof & Structure Landlord Responsibility

HVAC Tenant Responsibility

InsuranceTenant Responsibility (Landlord carries building insurance which is reimbursed by tenant)

Utilities Tenant Pays Direct

Property Taxes Landlord Responsibility (Reimbursed by Tenant)

Garbage Landlord Responsibility (Reimbursed by Tenant)

Landscaping Landlord Responsibility (Reimbursed by Tenant)

Current Lease Term 5 Years

Annual Base Rent (Current) $62,229

Annual Rent / SF $37.76

Security Deposit N/A

Lease Commencement 2/1/2016

Current Term Expiration 2/28/2021

Early Termination Right

Starbucks has an ongoing right to terminate the lease with a $100,000 termination fee. Starbucks remodeled the interior of the store in 2015 showing theircommitment to the location.

Renewal Options 3 - 5 Year Options at Fair Market Value

Right of First Refusal Tenant Does Not Have A ROFR

Estoppels Tenant to provide with 30 days prior written notice

STARBUCKS LEASE SUMMARY

The information contained herein has been obtained from sources deemed reliable. While every reasonable effort has been made to ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to review the original lease to verify all information contained herein.

Tenant Profile

03STARBUCKS - ABERDEEN


Tenant Profile

Starbucks

Starbucks Corporation was founded in 1971 in Seattle, Washington and engages in the purchase, roasting, and sale of whole bean coffees worldwide. Millions of people around the globe visit Starbucks daily to purchase a multitude of ever-evolving products including brewed coffees, Italian-Style espresso beverages, blended beverages, teas, and various food items. Starbucks recently acquired the San Francisco-based bakery La Boulange and now proudly serves their artisanal pastries. In fiscal year 2013, Starbucks revenues soared totaling a record $14.9 billion.

SOURCE: STARBUCKS.COM/ABOUT-US/COMPANY-INFORMATION

Locations 21,000+

Type Public (NASDAQ: SBUX)

Credit Rating S&P A -


Location & Market Overview

04

Site Overview

Location Map

Demographics



Site Overview

SITE CHARACTERISTICS

• Drive thru site at signalized intersection

• High traffic location with combined traffic counts over

20,000 cars per day

• Situated near 150,000 square foot Olympic Gateway Plaza

and other major retailers such as Walmart, McDonalds,

Taco Bell and KFC.

• 2 ingress / egress points at a signalized intersection


LOCATION MAP

Bainbridge Island


SEATTLE 2 HOURS

OLYMPIA 52 MINS

Seattle

Olympia

Tacoma

Aberdeen

Centralia

Olympic National Park

TACOMA 1 HOUR 20 MINS


DEMOGRAPHICS

1 MILE 3 MILES 5 MILES

Population

Projected Population (2018) 7,157 20,685 29,999

Estimated Population (2013) 7,422 21,500 31,249

Census Population (2010) 6,860 20,139 29,346

Projected Annual Growth (2013-2018) 265 815 1,250

Historical Annual Growth (2010-2013) 297 546 653

Population by Race

White 5,513 16,451 24,424

Black or African American 74 212 312

American Indian or Alaska Native 228 636 890

Asian 123 450 553

Hawaiian or Pacific Islander 25 52 66

Other Race 736 1,743 2,164

Two or More Races 458 1,142 1,590

Hispanic or Latino Population 1,520 3,438 4,339

Households

Estimated Households (2013) $44,899 $52,333 $52,072

Projected Households (2018) $47,499 $55,322 $55,045

Census Households (2010) $41,765 $52,660 $51,080

Projected Annual Growth (2015-2020) 83 407

Historical Annual Change (2000-2015) 85 184

Housing Units Owner-Occupied 1,356 4,608 6,972

Housing Units Renter-Occupied 1,521 3,457 4,889

Estimated Average Household Income (2015) $44,899 $52,333 $52,072

Estimated Median Household Income (2015) $35,612 $41,744 $40,666

Estimated Per Capita Income (2015) $18,436 $20,594 $20,752

Census Per Capita Income (2010) $16,643 $20,354 $20,027

2013 Households by Income distribution

HH Income $200,000 or More 17 82 117

HH Income $150,000 to $199,999 51 169 215

HH Income $125,000 to $149,999 49 163 238

HH Income $100,000 to $124,999 142 465 722

HH Income $75,000 to $99,999 258 805 1,200

HH Income $50,000 to $74,999 347 1,458 2,007

HH Income $35,000 to $49,999 562 1,320 1,888

HH Income $25,000 to $34,999 416 1,139 1,700

HH Income $15,000 to $24,999 396 989 1,537

HH Income $10,000 to $14,999 172 559 833

29,346

31,249

$51,080

5-MILE TRADE AREA DEMOGRAPHICS

Population (2010)

Estimated Population (2020)

Average Household Income (2010)

Contact Information

Erik [email protected]

Mike [email protected]

Kidder Mathews 601 Union Street, Suite 4720 Seattle, WA 98101

kiddermathews.com

STARBUCKS - ABERDEEN...The Aberdeen Starbucks is a single tenant net leased investment located in...

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