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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The Property may be financed or withdrawn from the market without notice, and its owner(s) reserve(s) the right to negotiate with any number of interested parties at any time.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
Starbucks • Chicago, IL 4
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
Starbucks • Chicago, IL 5
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
Starbucks • Chicago, IL 6
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
Starbucks • Chicago, IL 7
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
Starbucks • Chicago, IL 8
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
Starbucks • Chicago, IL 11
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