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Exclusively Offered By:

Michael Campbell 619.546.0122 [email protected] CA Lic #01843521

Ed Colson, Jr. CCIM 619.546.0121 [email protected] Lic #01382996 | TX Lic #635820

*Property Currently Under Contruction

STARBUCKS COFFEE1359 Garnet Avenue, Pacific Beach (San Diego), CA 92109

InvestCoreCommercial.com

2 | Starbucks - Pacific Beach, CA

InvestCore Commercial presents this Offering which

has been prepared by InvestCore Commercial for use

by a limited number of parties and does not purport

to provide a necessarily complete summary of the

Property or any of the documents related thereto, nor

does it purport to be all-inclusive or to contain all of

the information which prospective investors may need

or desire. All projections have been developed by

InvestCore Commercial, the Owner, and designated

sources and are based upon assumptions relating to

the general economy, competition, and other factors

beyond the control of the Owner and, therefore, are

subject to variation. No representation is made by

InvestCore Commercial or Owner as to the accuracy or

completeness of the information contained herein, and

nothing contained herein is, or shall be relied on as, a

promise or representation as to the future performance

of the Property. Although the information contained

herein is believed to be correct, Owner and its employees

disclaim any responsibility for inaccuracies and expect

prospective purchasers to exercise independent due

diligence in verifying all such information. Further,

InvestCore Commercial, Owner, and its employees

disclaim any and all liability for representations and

warranties, expressed and implied, contained in, or for

omission from, this Investment Offering or any other

written or oral communication transmitted or made

available to the recipient. This Offering does not constitute

a representation that there has been no change in the

business or affairs of the Property or the Owner since

the date of preparation of the package. Analysis and

verification of the information contained in this package

is solely the responsibility of the prospective purchaser.

Additional information and an opportunity to inspect the

Property will be made available upon written request to

interested and qualified prospective investors.

Owner and InvestCore Commercial each expressly

reserve the right, at their sole discretion, to reject any

and all expressions of interest or offers regarding the

Property and/or terminate discussions with any entity

at any time with or without notice. Owner shall have no

legal commitment or obligation to any entity reviewing

this Offering or making an offer to purchase the Property

unless and until a written agreement for the purchase

of the Property has been fully executed, delivered,

and approved by Owner and its legal counsel, and any

conditions to Owner’s obligations thereunder have

been satisfied or waived. InvestCore Commercial is not

authorized to make any representations or agreements

on behalf of Owner.

This Offering and the contents, except such information

which is a matter of public record or is provided in sources

available to the public (such contents as so limited herein

are called the “Contents”), are of a confidential nature.

By accepting the package, you agree (i) to hold and

treat it in the strictest confidence, (ii) not to photocopy or

duplicate it, (iii) not to disclose the package or any of the

contents to any other entity (except to outside advisors

retained by you, if necessary, for your determination of

whether or not to make a proposal and from whom you

have obtained an agreement of confidentiality) without

the prior written authorization of Owner or InvestCore

Commercial, (iv) not use the package or any of the

contents in any fashion or manner detrimental to the

interest of Owner or InvestCore Commercial, and (v) to

return it to InvestCore Commercial immediately upon

request of InvestCore Commercial or Owner.

If you have no further interest in the Property, please

return this Investment Offering forthwith.

OFFERING STATEMENT / DISCLAIMER

InvestCore Commercial, Inc. 3910 W. Point Loma Blvd, Suite B

San Diego, CA 92110

3 | Stripes - San Antonio, TX

TABLE OF CONTENTS

INVESTMENT SUMMARY 4

Executive Summary

Investment Highlights

PROPERTY DESCRIPTION 7

Street Map

San Diego Colleges & Universities

Aerials

AREA OVERVIEW 12

About Pacific Beach

About San Diego

Demographics


INVESTMENT SUMMARYExecutive SummaryInvestment Highlights

GA

RN

ET AV

ENU

E - 20,366 CPD

GRAND AVENU

E - 2

5,755 CPD

PACIFIC OCEANSan Diego greets 30 million visitors a year

SUBJECT PROPERTY


Tenants:Starbucks Corporation, a Washington corporation (NASDAQ: SBUX; S&P Rated “A-”)

Address:1359 Garnet AvenuePacific Beach (San Diego), CA 92109

Building Size: ~1,535 SF

Land Size: ~9,374 SF

Year Built: 1979 / 2004 / 2015

Rent Commencement: March 1, 2004

Lease Expiration: February 28, 2025

Options:Two (2) 5-year options

Lease Type:Fee Simple NNN Land & Building. Landlord responsible to maintain, repair and if necessary, replace the foundation, structure and roof structure of the Building.

Rent Increases: See Rent Schedule

RENT SCHEDULE:

EXECUTIVE SUMMARY

OFFERING TERMS

Price: $3,866,348

NOI: $125,656.32

Cap Rate: 3.25%

INVESTMENT SUMMARY

Term Annual Rent % Increase

March 1, 2015 – February 28, 2020 $125,656.32

March 1, 2020 – February 28, 2025 $136,249.44 8.43%

March 1, 2025 – February 28, 2030 (Option 1) $156,005.61 14.50%

March 1, 2030 – February 28, 2035 (Option 2) $177,845.70 14.00%


INVESTMENT SUMMARY

INVESTMENT HIGHLIGHTS

Rare Southern California Beach Community Investment

• The subject property is ideally located in the San Diego Beach community of Pacific Beach and is one of only a few drive thru properties located along Garnet Avenue.

Corporately Guaranteed Long-Term Lease

• The lease is guaranteed by Starbucks Corp., an investment grade tenant rated “A-” by Standard & Poor’s.

• There are 9.5 years left on the current option period

Well Located on Major Thoroughfare with High Pedestrian and Traffic Counts

• The property benefits from its location along Garnet Avenue, the major thoroughfare through Pacific Beach.

• Ideally located among a number of national restaurants and retailers. Located just 6 blocks from the beach, the property benefits from high pedestrian traffic throughout the year.

Newly Renewed Lease

• Last year, Starbucks exercised a 10-year option even though they were only obligated to a 5-year options, showing their dedication to the site.

Recent Remodel

• Upon exercising the above mentioned lease extension, Starbucks remodeled the subject property at their expense showing further long term dedication to this location.

Strong Demographics

• Starbucks benefits from the densely populated Pacific Beach with nearly 275,000 people in the 5-mile radius.

• High Average Household Incomes of $90,799, ideal demographics for Starbucks.


PROPERTY DESCRIPTIONStreet MapSan Diego Colleges & UniversitiesAerial


PROPERTY DESCRIPTION

STREET MAP



SAN DIEGO COLLEGES & UNIVERSITIES

33,735 Students

25,972 Students

34,254 Students

8,251 Students

3,480 Students

Pacific Beach is densely populated by a heavy student population from the 5 major colleges and universities in San Diego. Ideal demographics for a Starbucks Coffee.



AERIAL

GARNET AVENUE - 20.366 CPD

GRAND AVENUE - 25,755 CPD

ING

RA

HA

M S

TR

EE

T

MIS

SIO

N B

OU

LEV

AR

D

CA

SS

ST

RE

ET

EV

ER

TS

ST

RE

ET

CRYSTAL PIERLess than 1 mile from Starbucks

SUBJECT PROPERTY



AERIAL

SUBJECT PROPERTY

GARNET AVENUE - 20.366 CPD

GRAND AVENUE - 25,755 CPD

PACIFIC OCEANLess than 1 mile from Starbucks MISSION BAY MISSION BAY

219

,00

0 C

PD

PACIFIC BEACH MIDDLE SCHOOL

PACIFIC BEACH ELEMENTARY

SCHOOL

MISSION BAY HIGH SCHOOL

MISSION BAY GOLF COURSE

DEMOGRAPHICS

1 Mile 3 Mile 5 Mile

Population 33,099 91,184 278,958

Avg. HH Income $92,072 $106,025 $97,417

Households 17,357 42,496 119,223


AREA OVERVIEWAbout Pacific BeachAbout San DiegoDemographics

GR

ES

HA

M S

TR

EE

T - 2

0,3

66

CP

D

MISSION BAY

MISSION BEACH

CROWN POINT

SUBJECT PROPERTY


Pacific Beach in San Diego is a young

beach town with the attraction of the surf

and sand by day and the lure of bars and

restaurants by night. Located south of

La Jolla and north of Mission Beach, this

San Diego beach has a popular nightlife

scene from dancing to drinking craft

beers, which attracts a college-aged and

young professionals crowd. San Diego

Pacific Beach hosts a variety of different

kinds of clubs and bars from the hip and

trendy JRDN Lounge and Raw Bar to the

low-key dive bar atmosphere found at

Cass Street Bar and Grill.

In addition to the after hours scene, there

are various family-friendly restaurants

and plenty of activities for families and

those just looking for a quiet getaway.

San Diego Pacific Beach has beachfront

property, from San Diego hotels to beach

houses, within walking distance of the

sand and sea. Keep an eye on the kids

playing on the beach from the ocean view

decks or treat yourself to a massage at

the hotel spa.

San Diego Pacific Beach is also the

ideal spot to catch some waves on your

surfboard or bodyboard, while children

splash around in the water and build sand

castles on the beach. San Diego Pacific

Beach visitors are encouraged to try other

water sports popular at the beach such

as kayaking, sailing and paddle boarding.

As for some physical activity on dry land,

Pacific Beach has the Ocean Front Walk,

which is a boardwalk that stretches parallel

to the Pacific Ocean. The boardwalk is

lined with shops and restaurants, and it is

always filled with beach cruisers, joggers

and skateboarders zooming along the

strip. Garnet Avenue is another attraction

in Pacific Beach, which is packed with

boutiques providing everything from beach

souvenirs to trendy clothing. Also at Garnet

Avenue, on Tuesdays from 2pm until

6:30pm, a farmer’s market sets up, where

visitors can taste smoothie samples and

browse local photography. The San Diego

beach market sells local produce, cuisine

and arts and jewelry.

AREA OVERVIEW

ABOUT PACIFIC BEACH


Located on the coast of the Pacific Ocean

in Southern California, San Diego is widely

known as “America’s Finest City.” Famous

for its miles and miles of white-sand

beaches and amazing weather, the city

offers an abundance of fun attractions for

visitors of all ages.

Boasting a citywide population of more than

1.3 million and more than 3 million residents

countywide, San Diego is California’s

second largest city and the United States’

eighth largest. San Diego County is made

up of 18 incorporate cities and towns along

with other charismatic neighborhoods and

communities, such as Carlsbad, Coronado,

Del Mar, Downtown San Diego’s Gaslamp

Quarter, Point Loma, Chula Vista, Old Town,

La Jolla, and North Park.

Another attraction of San Diego is its

immediacy to Mexico. Because they

share an international border, Tijuana

and San Diego are grouped together as

an international metropolitan area. Many

visitors make their way south to enjoy luxury

spas, beachfront resorts, golf courses,

multicultural festivals and celebrations,

colorful neighborhoods, and the nightlife.

San Diego’s economy primarily evolves are

military, tourism, research and manufacturing,

and biotechnology. San Diego has been

heavily involved in military and defense

since the days of World War II, and it

currently hosts the largest naval fleet in the

world. Tourism is also a major industry in

the city. Annually, the city hosts more than

30 million visitors. The city is also home

to several major producers of wireless

cellular technology, such as Qualcomm

and LG Electronics. Because of UCSD and

other research institutions, biotechnology

& life science has made a large presence

in the county. There are more than 400

biotechnology companies in the region alone.

ABOUT SAN DIEGO

AREA OVERVIEW


AREA OVERVIEW

DEMOGRAPHICS

Executive SummaryStarbucks - Pacific Beach, CA Prepared By Ed Colson Jr., CCIM1359 Garnet Ave, San Diego, California, 92109 Latitude: 32.79874Rings: 1, 3, 5 mile radii Longitude: -117.24528

1 mile 3 miles 5 milesPopulation

2000 Population 31,686 87,927 264,1602010 Population 32,076 88,208 267,8802016 Population 33,099 91,184 278,9582021 Population 34,518 95,231 291,9652000-2010 Annual Rate 0.12% 0.03% 0.14%2010-2016 Annual Rate 0.50% 0.53% 0.65%2016-2021 Annual Rate 0.84% 0.87% 0.92%2016 Male Population 54.4% 51.9% 51.2%2016 Female Population 45.6% 48.1% 48.8%2016 Median Age 31.1 35.8 35.6

In the identified area, the current year population is 278,958. In 2010, the Census count in the area was 267,880. The rate of change since 2010 was 0.65% annually. The five-year projection for the population in the area is 291,965 representing a change of 0.92% annually from 2016 to 2021. Currently, the population is 51.2% male and 48.8% female.

Median Age

The median age in this area is 31.1, compared to U.S. median age of 38.0.Race and Ethnicity

2016 White Alone 85.3% 83.0% 73.4%2016 Black Alone 1.3% 1.4% 2.7%2016 American Indian/Alaska Native Alone 0.4% 0.4% 0.5%2016 Asian Alone 3.8% 5.1% 11.2%2016 Pacific Islander Alone 0.3% 0.3% 0.3%2016 Other Race 4.6% 5.3% 6.8%2016 Two or More Races 4.3% 4.7% 5.2%2016 Hispanic Origin (Any Race) 13.3% 15.1% 17.9%

Persons of Hispanic origin represent 17.9% of the population in the identified area compared to 17.9% of the U.S. population. Persons of Hispanic Origin may be of any race. The Diversity Index, which measures the probability that two people from the same area will be from different race/ethnic groups, is 61.1 in the identified area, compared to 63.5 for the U.S. as a whole.

Households2000 Households 17,195 42,590 116,8222010 Households 17,078 41,743 116,1732016 Total Households 17,357 42,496 119,2232021 Total Households 17,986 44,092 124,1892000-2010 Annual Rate -0.07% -0.20% -0.06%2010-2016 Annual Rate 0.26% 0.29% 0.42%2016-2021 Annual Rate 0.71% 0.74% 0.82%2016 Average Household Size 1.89 2.13 2.26

The household count in this area has changed from 116,173 in 2010 to 119,223 in the current year, a change of 0.42% annually. The five-year projection of households is 124,189, a change of 0.82% annually from the current year total. Average household size is currently 2.26, compared to 2.23 in the year 2010. The number of families in the current year is 58,011 in the specified area.

Data Note: Income is expressed in current dollarsSource: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2016 and 2021. Esri converted Census 2000 data into 2010 geography.

October 04, 2016

©2016 Esri Page 1 of 2


AREA OVERVIEW

DEMOGRAPHICS

Executive SummaryStarbucks - Pacific Beach, CA Prepared By Ed Colson Jr., CCIM1359 Garnet Ave, San Diego, California, 92109 Latitude: 32.79874Rings: 1, 3, 5 mile radii Longitude: -117.24528

1 mile 3 miles 5 milesMedian Household Income

2016 Median Household Income $67,594 $74,219 $67,8512021 Median Household Income $76,671 $82,260 $77,6582016-2021 Annual Rate 2.55% 2.08% 2.74%

Average Household Income

2016 Average Household Income $92,072 $106,025 $97,4172021 Average Household Income $100,898 $115,849 $106,2212016-2021 Annual Rate 1.85% 1.79% 1.75%

Per Capita Income2016 Per Capita Income $48,165 $49,746 $42,3562021 Per Capita Income $52,430 $53,958 $45,8492016-2021 Annual Rate 1.71% 1.64% 1.60%

Households by IncomeCurrent median household income is $67,851 in the area, compared to $54,149 for all U.S. households. Median household income is projected to be $77,658 in five years, compared to $59,476 for all U.S. households

Current average household income is $97,417 in this area, compared to $77,008 for all U.S. households. Average household income is projected to be $106,221 in five years, compared to $84,021 for all U.S. households

Current per capita income is $42,356 in the area, compared to the U.S. per capita income of $29,472. The per capita income is projected to be $45,849 in five years, compared to $32,025 for all U.S. households Housing

2000 Total Housing Units 18,397 45,658 123,3832000 Owner Occupied Housing Units 4,536 19,465 56,0602000 Renter Occupied Housing Units 12,659 23,125 60,7632000 Vacant Housing Units 1,202 3,068 6,560




Currently, 40.8% of the 129,810 housing units in the area are owner occupied; 51.0%, renter occupied; and 8.2% are vacant. Currently, in the U.S., 55.4% of the housing units in the area are owner occupied; 32.9% are renter occupied; and 11.7% are vacant. In 2010, there were 125,786 housing units in the area - 42.7% owner occupied, 49.7% renter occupied, and 7.6% vacant. The annual rate of change in housing units since 2010 is 1.41%. Median home value in the area is $631,325, compared to a median home value of $198,891 for the U.S. In five years, median value is projected to change by 0.97% annually to $662,611.

Data Note: Income is expressed in current dollarsSource: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2016 and 2021. Esri converted Census 2000 data into 2010 geography.

October 04, 2016

©2016 Esri Page 2 of 2

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