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Starbucks9052 Telegraph Road, Redford Charter Township, MI 48239
OFFERING MEMORANDUM
CONFIDENTIALITY & DISCLAIMER STATEMENT
This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of Starbucks located at 9052 Telegraph Road, Redford Charter Township, MI 48239 (“Property”) . I t has been prepared by Matthews Retai l Advisors . This Offer ing Memorandum may not be al l - inclusive or contain a l l of the informat ion a prospect ive purchaser may desire. The informat ion contained in th is Offer ing Memorandum is conf ident ia l and furnished solely for the purpose of a review by a prospect ive purchaser of the Property. I t is not to be used for any other purpose or made avai lable to any other person without the wri t ten consent of Sel ler or Matthews Retai l Advisors . The mater ia l is based in part upon informat ion suppl ied by the Sel ler and in part upon f inancial informat ion obtained from sources i t deems rel iable. Owner, nor their of f icers , employees, or agents makes any representat ion or warranty, express or impl ied, as to the accuracy or completweness of th is Offer ing Memorandum or any of i ts contents and no legal l iabi l i ty is assumed or shal l be impl ied with respect thereto. Prospect ive purchasers should make their own project ions and form their own conclusions without rel iance upon the mater ia l contained herein and conduct their own due di l igence.
By acknowledging your receipt of th is Offer ing Memorandum for the Property, you agree:
1 . The Offer ing Memorandum and i ts contents are conf ident ia l ;
2 . You wi l l hold i t and treat i t in the str ictest of conf idence; and
3. You wi l l not , d i rect ly or indirect ly, d isclose or permit anyone else to disclose this Offer ing Memorandum or i ts contents in any fashion or manner detr imental to the interest of the Sel ler.
Owner and Matthews Retai l Advisors expressly reserve the r ight , at their sole discret ion, to reject any and al l expressions of interest or of fers to purchase the Property and to terminate discussions with any person or ent i ty reviewing this Offer ing Memorandum or making an of fer to purchase the Property unless and unt i l a wr i t ten agreement for the purchase and sale of the Property has been ful ly executed and del ivered.
I f you wish not to pursue negot iat ions leading to the acquis i t ion of the Property or in the future you discont inue such negot iat ions, then you agree to purge al l mater ia ls relat ing to th is Property including this Offer ing Memorandum.
A prospect ive purchaser ’s sole and exclusive r ights with respect to th is prospect ive t ransact ion, the Property, or informat ion provided herein or in connect ion with the sale of the Property shal l be l imited to those expressly provided in an executed Purchase Agreement and shal l be subject to the terms thereof. In no event shal l a prospect ive purchaser have any other c la ims against Sel ler or Matthews Retai l Advisors or any of their af f i l iates or any of their respect ive of f icers , Directors , shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion relat ing to th is sol ic i tat ion process or the market ing or sale of the Property.
This Offer ing Memorandum shal l not be deemed to represent the state of af fa i rs of the Property or const i tute an indicat ion that there has been no change in the state of af fa i rs of the Property s ince the date this Offer ing Memorandum.
PRICING AND FINANCIAL ANALYSISInvestment Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2Financial Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3Company Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
PROPERTY DESCRIPTIONProperty Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6Bird’s Eye . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7Tenant Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8Regional Map. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
DEMOGRAPHICSDemographics Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11City Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
TABLE OF CONTENTS
PRESENTED BY
Kyle Matthews Broker of Record
License No. 6505399495
Calvin ShortVP & Senior Director - STNL
License No. 01927216O 949.432.4506M [email protected]
Connor OlandtAssociate
License No. 01985082O 949.432.4504M [email protected]
™
™PRICING AND FINANCIAL ANALYSIS
INVESTMENT HIGHLIGHTS
PROPERTY DETAILS
• Corporate guaranteed lease
• Drive-Thru store prototype with an ideal square footage for Starbucks
• One (1) extension period of five (5) years with a rent escalation of 64% commencing in next option period
LOCATION
• Situated on a major highway in the Detroit MSA with exposure to a massive average daily traffic count of 50,000
• 2016 estimated population count of 112,000 within a 3-mile radius
• Major National tenants within a 1-mile radius include: CVS Pharmacy, ALDI, Walgreens, Redford Inn & Suites, U-Haul Neighborhood Dealer, Valvoline Instant Oil Change, 7-Eleven, & Jimmy John’s
TENANT
• Starbucks is a publicly traded company with investment grade credit, S&P rated A-
• Starbucks’ annual corporate revenues exceed $20 billion. The company is in a period of expansion, opening roughly 1,800 new sites world wide in 2016
• Starbucks is currently ranked as the 6th most admired company in the world by Fortune
2
Investment Overview
EXECUTIVE SUMMARY9052 Telegraph Road Redford Charter Township, MI 48239List Price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $647,058Gross Leasable Area . . . . . . . . . . . . . . . . . . . . . . . . . 1,292 SFCAP Rate - Current. . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.50%Year Built . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1982Lot Size . . . . . . . . . . . . . . . . . . . . . . . . ± 0.41 Acres (17,859 SF)
ANNUALIZED OPERATING DATAMonthly Rent Annual Rent Increases CAP Rate
10/01/2013-09/30/2018 $4,583 $55,000 Flat 8.50%
10/01/2018-09/30/2023 (opt. 1) $7,500 $90,000 64% 13.91%
™3
Financial Overview
TENANT SUMMARYTenant Trade Name Starbucks
Type of Ownership Fee Simple
Lease Guarantor Corporate
Lease Type NN+
Roof and Structure Landlord Responsible
Original Lease Term 10 years
Lease Commencement Date 10/01/2013
Lease Expiration Date 09/30/2018
Term Remaining on Lease ± 1.67 years
Increases 64% in next option period
Options One (1), Five (5) year option
Property Name Starbucks
Property Type Net Leased Quick Service Restaurant
Parent Company Trade Name Starbucks Corporation
Ownership Public
Credit Rating A-
Rating Agency Standard & Poor’s
Revenue $20 B
Net Income $2.76 B
Stock Symbol SBUX
Board NASDAQ
No. of Locations ± 23,570
No. of Employees (All) ± 238,000
Headquartered Seattle, Washington
Web Site www.starbucks.com
Year Founded 1971
The world’s #1 specialty coffee retailer, Starbucks has more than 23,570 coffee shops in about 70 countries. The outlets offer coffee drinks and food items, as well as roasted beans, coffee accessories, and teas. Starbucks operates more than 12,000 of its own shops, which are located mostly in the US, while licensees and franchisees operate roughly 11, 000 units worldwide (including many locations in shopping centers and airports). In addition, Starbucks markets its coffee through grocery stores, food service customers, and licenses its brand for other food and beverage products.
4
Company Overview
™PROPERTY DESCRIPTION
THE OFFERINGProperty Name . . . . . . . . . . . . . . . . . . . . . . . . . . . . StarbucksProperty Address . . . . . . . . . . . . . . . . . . . 9052 Telegraph Road Redford Charter Township, MI 48239Assessor’s Parcel Number . . . . . . . . . . . . . . . 79-050-03-0011-000Zoning. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C-1
SITE DESCRIPTIONNumber of Stories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . OneYear Built . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1982Gross Leasable Area (GLA) . . . . . . . . . . . . . . . . . . . . . . 1,292 SFLot Size . . . . . . . . . . . . . . . . . . . . . . . . ± 0.41 Acres (17,859 SF)Type of Ownership. . . . . . . . . . . . . . . . . . . . . . . . . Fee SimpleParking . . . . . . . . . . . . . . . . . . . . . . . . . . ± 11 Surface SpacesParking Ratio . . . . . . . . . . . . . . . . . . . . . . . . . . .8.51 : 1,000 SFLandscaping . . . . . . . . . . . . . . . . . . . . . . . . . . . . ProfessionalTopography. . . . . . . . . . . . . . . . . . . . . . . . . . . Generally Level
CONSTRUCTIONFoundation . . . . . . . . . . . . . . . . . . . . . . . . . . . .Concrete SlabFraming . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . SteelExterior . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .WoodParking Surface . . . . . . . . . . . . . . . . . . . . . . . . . . . . .AsphaltRoof . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Flat
6
Property Overview
PROPERTY DESCRIPTION
Telegraph Rd ± 50,000 ADT
™7
Bird’s Eye
8
Tenant Map
PROPERTY DESCRIPTION
™9
Regional Map
™DEMOGRAPHICS
Population 1-Mile 3-Mile 5-Mile
2021 Projection 14,679 112,745 320,161
2016 Estimate 15,034 116,065 329,753
2010 Census 15,498 121,395 345,679
2000 Census 15,848 135,467 393,606
Households
2021 Projection 5,807 44,296 125,846
2016 Estimate 5,893 45,239 128,396
2010 Census 5,974 46,583 132,160
2000 Census 6,260 52,143 148,035
Income
$0 - $15,000 16.13% 18.46% 18.57%
$15,000 - $24,999 10.75% 12.55% 12.84%
$25,000 - $34,999 12.31% 11.71% 11.30%
$35,000 - $49,999 16.39% 15.50% 14.52%
$50,000 - $74,999 21.75% 18.00% 17.63%
$75,000 - $99,999 11.83% 10.98% 11.02%
$100,000 - $124,999 5.89% 5.60% 6.49%
$125,000 - $149,999 1.94% 2.75% 3.10%
$150,000 - $199,999 2.39% 2.89% 2.90%
$200,000 - $249,999 0.42% 0.84% 0.89%
$250,000 - $499,999 0.17% 0.61% 0.63%
$500,000+ 0.01% 0.10% 0.10%
2016 Est. Average Household Income $52,820 $54,293 $55,326
2016 Est. Median Household Income $44,887 $42,040 $42,524
11 DEMOGRAPHICS
Demographics Report
™12
City Overview
REDFORD TOWNSHIP, MIRedford Township is a charter township in Wayne County located on the western border of Michigan’s largest city; Detroit. Redford is home to 15 different parks. These areas can easily be considered one of Redford’s most valuable resources. There is everything from a splash park, skate park, ball diamonds, tot lots, walking paths and more. Redford parks have something for everyone.
DETROITThe Metro Detroit area is a major metropolitan area located in Southeast Michigan. Metro Detroit is known for its automotive heritage, arts, entertainment, popular music, and sports. The area includes a variety of natural landscapes, parks, and beaches, with a recreational coastline linking the Great Lakes. It is one of the nation’s largest metropolitan economies, with seventeen Fortune 500 companies.
Detroit and the surrounding region constitute a major center of commerce and global trade, most notably as home to America’s ‘Big Three’ automobile companies: General Motors, Ford, and Chrysler. Firms in the region pursue emerging technologies including biotechnology, nanotechnology, information technology, and hydrogen fuel cell development.
Metro Detroit is one of the leading health care economies in the U.S., according to a 2003 study measuring health care industry components, with the region’s hospital sector ranked fourth in the nation.
Casino gaming plays an important economic role, with Detroit the largest US city to offer casino resort hotels. Caesars Windsor, Canada’s largest, complements the MGM Grand Detroit, MotorCity Casino, and Greektown Casino in the city. Gaming revenues have grown steadily, with Detroit ranked as the fifth largest gambling market in the United States for 2007.
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Starbucks9052 Telegraph Road, Redford Charter Township, MI 48239
OFFERING MEMORANDUM
Kyle Matthews Broker of Record
License No. 6505399495
Calvin ShortVP & Senior Director - STNL
License No. 01927216O 949.432.4506M [email protected]
Connor OlandtAssociate
License No. 01985082O 949.432.4504M [email protected]
