Jones Lang LaSalle Americas, LP. is pleased to offer for sale the fee simple interest in a newly-built Starbucks drive-thru (the “Property” or “Asset”) located in Jacksonville, Alabama. The Property is leased to Starbucks Corporation (“Starbucks”), the largest specialty coffee retailer in the world with over 32,000 locations and annual revenues of $26.5 billion. Starbucks operates on a double-net lease structure that features ten years of primary lease term, ten percent rental increases every five years, minimal landlord responsibilities, and four five-year renewal options. This offering presents the opportunity to acquire a newly constructed, drive-thru asset located within an established and growing retail corridor and leased to an investment-grade, industry-leading tenant with minimal landlord responsibilities.
BUILD-TO-SUIT STARBUCKS DRIVE-THRU
- The Asset is a build-to-suit Starbucks that recently opened for business
- This drive-thru location is part of Starbucks’ future retail strategy, which includes an aggressive expansion of drive-thru store formats to meet the growing customer preference toward convenience and safety.
INDUSTRY-LEADING, CORPORATE TENANCY
- Starbucks is the world’s largest specialty coffee retailer with over 32,000 locations, $26.5 billion in annual revenue, and an investment-grade ‘BBB+’ credit rating from S&P.
- The Property is leased to Starbucks with ten years of primary lease term, minimal landlord responsibilities, and ten percent rental escalations in each of the four, five-year renewal options.
HIGHLY TRAFFICKED RETAIL CORRIDOR
- The Property is located along Pelham Road South (±27,000 VPD), a bustling commercial corridor that leads to Jacksonville’s charming Public Square 0.25 miles north of the Asset. Deemed the heart of the city, Jacksonville’s Public Square contains unique, locally owned retailers and hosts community events.
- Just beyond the Public Square is Jacksonville State University (“JSU”), a major market driver that enrolls more than 9,200 undergraduate and graduate students and employs over 340 full-time faculty members. The town’s large student population is attractive to retailers.