offering memorandum *Actual Property* STARBUCKS 215 STEVENS TRAIL BRISTOL, TN 37620

Transcription

1 offering memorandum *Actual Property* STARBUCKS 215 STEVENS TRAIL BRISTOL, TN 37620

2 *Actual Property* CONTENTS EXECUTIVE SUMMARY FINANCIAL OVERVIEW TENANT OVERVIEW AREA OVERVIEW LISTED BY Steele Mcdonald Associate DIR MOB LIC # (TX) Braden Crockett Associate vp & Director BRADEN.CROCKETT@MATTHEWS.COM DIR MOB LIC # (CA) BROKER OF RECORD Kyle Matthews BROKER OF RECORD LIC # (TN)

3 3 EXECUTIVE OVERVIEW INVESTMENT HIGHLIGHTS New Construction site completed in 2017 ±9 years remaining on base term Four, 5-year options to extend Attractive 10% rental increases every 5 years strong hedge against inflation NN Lease minimal landlord responsibilities Guaranteed by Starbucks Corporation (NYSE SBUX) with 82.51B Market CAP Location Highlights Located at The Pinnacle, the premier shopping, dining and entertainment destination in the Tri-Cities The 1,000,000 SF center is anchored by Belk, Bass Pro Shops, Dick s Sporting Goods and Marquee Cinemas Strategically positioned at the intersection of I-81 & Highway 11, directly between Bristol and Kingsport The Pinnacle serves a market area of 1,000,000 people in Northeast Tennessee and Southwest Virginia Overall, The Pinnacle is home to over 75 retail and restaurant tenants, with more announcements coming soon

4 4 *Actual Property* FINANCIAL OVERVIEW EXECUTIVE SUMMARY Property Name Starbucks Property Street 215 Stevens Trail City, State, Zip Bristol, TN GLA ±2,000 SF Lot Size ±0.64 AC Year Built 2017 ANNUALIZED OPERATING DATA Monthly Rent Annual Rent Rent/SF Cap Rate Current - 5/24/2022 $6, $81, $ % 5/25/2022-5/24/2027 $7, $89, $ % 5/25/2027-5/24/2032 $8, $98, $ % 5/25/2032-5/24/2037 $8, $107, $ % 5/25/2037-5/24/2042 $9, $118, $ % 5/25/2042-5/24/2047 $10, $130, $ %

5 5 TENANT SUMMARY FINANCIAL HIGHLIGHTS LIST PRICE CAP RATE $1,620, % TERM REMAINING ±9 YEARS Tenant Trade Name Starbucks Type of Ownership Fee Simple Lease Guarantor Corporate Lease Type NN+ Roof & Structure Owner Responsibility (Roof Warranty) Original Lease Term 10 years Rent Commencement Date 5/25/2017 Lease Expiration Date 5/25/2027 Term Remaining ±9 years Increases 10% Every 5 Years Options Four, 5-Year

6 6 *Actual Property* Tenant overview

7 STARBUCKS Starbucks Corporation operates as a roaster, marketer, and retailer of specialty coffee worldwide. The company operates in four segments: Americas; Europe, Middle East, and Africa; China/Asia Pacific; and Channel Development. Its stores offer coffee and tea beverages, packaged roasted whole bean and ground coffees, single-serve and ready-to-drink coffee and tea products, juices, and bottled water. The company s stores also provide fresh food and snack offerings; and various food products, such as pastries, and breakfast sandwiches and lunch items, as well as serve ware, beverage making equipment, and accessories. In addition, it licenses its trademarks through licensed stores, and grocery and national food-service accounts. The company offers its products under the Starbucks, Teavana, Tazo, Seattle s Best Coffee, Evolution Fresh, La Boulange, Ethos, Starbucks VIA, Seattle s Best Coffee, Frappuccino, Starbucks Doubleshot, Starbucks Refreshers, and Starbucks Discoveries Iced Café Favorites brand names. As of March 27, 2016, it operated 23,921 cafes. Starbucks Corporation was founded in 1985 and is based in Seattle, Washington. COMPANY TRADE NAME STARBUCKS CORPORATION REVENUE $19B HEADQUARTERED SEATTLE, WA NO. OF EMPLOYEES ± 157,000 WEBSITE # OF LOCATIONS ± 23,921 YEAR FOUNDED

8 the offering PARCEL MAP Property Name Property Address Site Description Number of Stories Starbucks 215 Stevens Trail Bristol, TN One Year Built 2017 GLA Lot Size Type of Ownership ±2,000 SF ±0.64 Acres (2,000 SF) Fee Simple Oceanside Blvd ± 31,792 College Blvd ± 40,116 8

9 Click to watch area overview video of Pinnacle Shopping Area (Video Provided by Seller) surrounding tenants 9

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12 PROPOSED 7,000-SEAT AMPITHEATER The Overlook At The Pinnacle PROPOSED HOTEL SITE Site Plan Provided by seller 12 12

13 AREA OVERVIEW 13 BRISTOL, TN PINNACLE TRADE AREA Bristol, TN is the twin city of Bristol, VA. The two cities sit directly across from one another on the state line between Tennessee and Virginia. The state line runs through their shared downtown district. Bristol is a principal city the Kingsport-Bristol-Bristol, TN-VA Metropolitan Statistical Area. The Johnson City-Kingsport-Bristol, TN-VA Combined Statistical Area is known as the Tri- Cities region. Bristol is well known for a number of different reasons. The city is recognized by the U.S. Congress as the Birthplace of Country Music. They have earned this title because It was where the first commercial recordings of country music were recorded in Bristol. The city is also home to Birthplace of Country Music Museum. Bristol is the site of the Bristol Motor Speedway, a NASCAR short track that has become one of the most well-known motorsports facilities in the country. POPULATION 30 Mile 45 Mile 60 Mile 2023 Projection 501, ,789 1,072, Estimate 494, ,708 1,065,065 Growth % 1.03% 0.68% HOUSEHOLDS 30 Mile 45 Mile 60 Mile 2023 Projection 213, , , Estimate 209, , ,550 Growth % 1.35% 1.00% INCOME 30 Mile 45 Mile 60 Mile 2017 Est. Average Household Income $59, $57, $56,104.29

14 Economy The Bristol Chamber of Commerce represents the economic climate of Bristol Tennessee and Virginia along with the surrounding Tri-cities region. The Bristol Chamber of Commerce is in the top 1.5% of chambers in the United States for strong business practices, leadership, outstanding contributions to the Bristol Community, supporting free enterprise and pro-growth practices, leadership, and supporting free enterprise and pro-growth policies. Top Employers # of Employees Eastman 6,800 Wellmont Health Systems 6,225 Holston Medical Group 5,300 Sullivan County Department of 1,650 Education Kingsport City Schools 1,100 Pal s Fast Food 950 CenturyLink Telecommunications 950 BAE Systems 850 Robinette Company 350 Domtar Paper

15 CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering Memorandum contains select information pertaining to the business and affairs of Starbucks located at 215 Stevens Trail, Bristol TN ( Property ). It has been prepared by Matthews Real Estate Investment Services. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Real Estate Investment Services. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence. By acknowledging your receipt of this Offering Memorandum for the Property, you agree: 1. The Offering Memorandum and its contents are confidential; 2. You will hold it and treat it in the strictest of confidence; and 3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller. Owner and Matthews Real Estate Investment Services expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered. If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum. A prospective purchaser s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Real Estate Investment Services or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property. This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.

16 EXCLUSIVELY LISTED BY Steele Mcdonald Associate DIR MOB LIC # (TX) Braden Crockett Associate vp & Director BRADEN.CROCKETT@MATTHEWS.COM DIR MOB LIC # (CA) BROKER OF RECORD Kyle Matthews BROKER OF RECORD LIC # (TN) STARBUCKS 215 STEVENS TRAIL BRISTOL, TN *Actual Property*