Jones Lang LaSalle Americas, Inc. (“JLL”) is pleased to present for sale a brand-new construction Starbucks drive-thru (the “Property” or “Asset”) located in Laurel, Mississippi. The property, set to commence rent in September 2022, will be leased on a double-net lease structure that features ten years of primary term, attractive rental increases every five years, and four, 5-year renewal options. Future ownership will benefit from Starbucks’ investment-grade ‘BBB+’ credit guaranteeing the lease, with the Property fitting into their national drive-thru location expansion efforts.
With excellent visibility and frontage along North 16th Avenue (32,000 VPD) and proximity to US Highway 84 East (16,000 VPD), this property benefits from being located on a highly trafficked retail corridor that features national tenants. The Asset is also down the road from a Walmart Supercenter that is in the 98th percentile of Walmart stores in the nation by visits, attracting 3.2+ million shoppers annually per Placer.ai. Starbucks will be the go-to site for residents in Pendorff neighborhood, which is adjacent to the Property and the most affluent neighborhood in Laurel, MS.
Additional Broker: Barry Brown
License #: MS-B17703
PROXIMATE TO A TOP PERFORMING WALMART
- The property is surrounded by national retail tenants, including a Walmart Supercenter in the 98% percentile of Walmart stores in the nation by annual visits, drawing in 3.2+ million shoppers annually per Placer.ai.
NEWLY-CONSTRUCTED STARBUCKS DRIVE-THRU
- The Asset is a build-to-suit drive-thru Starbucks that is estimated to be open for business in September 2022. 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 demand for convenience.
- The NPD group reported a 20% increase in drive-thru orders from February 2020 – February 2022 across QSR tenants.
INVESTMENT GRADE TENANCY WITH FAVORABLE LEASE ECONOMICS
- The Property is leased to Starbucks Corporation with ten years of primary lease term, favorable rental escalations, and four, five-year renewal options.
- Starbucks is the world’s largest specialty coffee retailer with over 34,630 locations, $29.1B in annual revenue, and an investment grade ‘BBB+’ credit rating from S&P.