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JLL is pleased to offer for sale the fee simple interest in a newly-built Starbucks drive-thru (the “Property” or “Asset”) located in Huntsville, Alabama. The Property will be 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 will operate 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 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 is scheduled to be completed in March 2021.
- 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 will be leased to Starbucks with ten years of firm, 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 Memorial Parkway (±50,000 VPD), Huntsville’s main retail corridor that runs North-South through the town.
- The Asset is located across the street from a Wal-Mart Supercenter Store and less than 7 miles from downtown Huntsville, where the U.S. Space & Rocket Center, Redstone Arsenal, and the University of Alabama-Huntsville campus are located.
- An average household income of almost $100,000 and projected population growth north of 1.0% within a five-mile radius of the Property support the tenant’s target demographic.