Arizona s Playground SINGLE TENANT RETAIL INVESTMENT Brand New Super Store Prototype - Corporate Guarantee 1881 Kiowa, Lake Havasu City, AZ REPRESENTATIVE PHOTO COLLIERS INTERNATIONAL 3 PARK PLAZA, SUITE 1200 IRVINE, CA 92814 SNYDER/CARLTON TEAM
Table of Contents Property Summary Lease Abstract Investment Highlights Aerial Overview Parcel Details Renders Tenant Overview Surrounding Retail Lake Havasu City MSA Regional Map Demographics Daytime Population Map Household Income Map Confidentiality Agreement Pg. 3 Pg. 4 Pg. 5 Pg. 8 Pg. 9 Pg. 10 Pg. 11 Pg. 12 Pg. 14 Pg. 15 Pg. 16 Pg. 17 Pg. 18 Pg. 19 Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. This publication is the copyrighted property of Colliers International and /or its licensor(s) 2015. All rights reserved
PROPERTY SUMMARY Property Summary We are pleased to offer to qualified investors an opportunity to purchase a newly developed, single tenant asset that is 100% leased to Starbucks on a new 10 year fixed term. The building is approximately 3,000 square feet, plus over 750 SF of patio, and is positioned on approximately 0.92 acres of land; the building is Starbucks new Super Store prototype and comes with all warranties in place, including roof and structure. The lease contains 4-5 year option periods. There are 8% rental increases every 5 years, including the option periods, presenting a strong inflation hedge to an investor. The subject property is ideally located as an outparcel along HWY 95 within the area s strongest retail trade area and is flanked by national retailers such as Hobby Lobby, 99 Cent Only, Goodwill, Food City, Big Lots, Chase Bank, Ashley Furniture and Staples. The property also enjoys excellent ingress / egress and unobstructed street visibility along I-95. Starbucks, Inc (NASDAQ: SBUX) is the lease guarantor and holds an investment grade credit rating of A- by S&P and A3 by Moody s (investment grade). Starbucks is an America global coffee company and chain based in Seattle, WA, and is the largest coffeehouse company in the world with approximately 21,000 locations across 64 countries. There are over 13,000 locations in the US alone. It s market capitalization is approximately $53 Billion. This is an excellent opportunity to purchase a newly developed drive-thru Starbucks with strong site fundamentals, fixed rental increases, a long term lease (with no kickout options), and investment grade credit. List Price $2,955,000 NOI $130,000 CAP Rate 4.40% Annual Rent $130,000 Operating Expense Taxes Insurance CAM Pricing Summary Operating Expense Data NNN NNN NNN Net Operating Income $130,000 Landlord Responsibility Roof & Structure (New Roof - 10 Yr. Warranty) STARBUCKS P. 3
LEASE SUMMARY Lease Abstract Tenant Trade Name Starbucks Lease Commencement April 1, 2017 Lease Expiration March 31, 2027 Lease Term Term Remaining On Lease 10 Years 10 Years Base Rent $130,000 Rental Adjustments 04/01/2022 $140,400 Options 4-5 YR Options with 8% Increases Each Option 04/01/2027 $151,632.00 04/01/2032 $163,762.56 04/01/2037 $176,863.56 04/01/2042 $191,012.56 Lease Type NN Lease Roof And Structure* Landlord Responsible (10 Yr. Warranty) * Build To Suit LL Responsible for Roof, Structure and CAM Maintenance, Subject to Reimbursement from Tenant STARBUCKS P. 4
INVESTMENT HIGHLIGHTS REPRESENTATIVE PHOTO INVESTMENT GRADE CREDIT Starbucks Inc (NASDAQ: SBUX) - Rated A- by S&P, A3 by Moody s Valued Over $53 Billion - Largest Coffeehouse Chain in the World 21,000 Location Across 64 Countries - 13,000 Location in the US One of the World s Most Innovative Companies - Fast Company One of the 100 Best Companies To Work For - Zagat Survey One of the Most Admired Companies In America - Fortune STARBUCKS P. 5
BRAND NEW CONSTRUCTION Ownership Includes Land and Building - Appreciable Asset New Super Store Prototype - Situated on Approximately 0.92 Acres 10 Year Fixed Term (No Kickouts) - Includes 4-5 Year Option Periods Attractive 8% Rental Increases Every 5 Years, including Options - Inflation Hedge Tenant Reimburses All Expenses - Limited LL Responsibilities - Brand New Bldg Warranties REPRESENTATIVE PHOTO STARBUCKS P. 6
IDEAL 1031 EXCHANGE ASSET Fee Simple Ownership - Includes Land and Building Brand New Drive Thru Development - Corporate Guarantee - Investment Grade Credit 10 Year Fixed Term with Attractive Fixed Rental Increases - Inflation Hedge NN Lease - All Expenses Reimbursed - Minimal LL Involvement - 10 Yr. Warranty Strong Fundamentals - Infill Trade Area - Growing Trade Area Available Free and Clear of Existing Debt Available to Close Escrow Now STARBUCKS P. 7
Average Household Income of $50,216 within a 3-Mile Radius HAVASU NORTH SHOPPING CENTER MOTOR VEHICHLE DIVISION SUBJECT PROPERTY 2,937 Businesses within a 3-Mile Radius LAKE HAVASU MUNICIPAL COURT 95 14,430 CPD LAKE HAVASU STATE PARK KIOWA AVE. NORTHERN ARIZONA UNIVERSITY EXCELLENT LOCATION Infill Location along I-95 - Area s Primary Retail Trade Area Adjacent to Retailers such as Hobby Lobby, 99 Cent Store, Ashley Furniture, Big Lots, Staples, Tuesday Morning, Chase Bank, Circle K, Goodwill and Aaron s Outparcel to the Havasu North Shopping Center along I-95 Approximately 28,866 Residents Within a 3-Mile Radius Average Household Income of $50,216 Within a 3-Mile Radius AERIAL OVERVIEW High Traffic Counts - Over 14.430 CPD on I-95 Southernmost Area of Greater Las Vegas S T A R B U C K S P. 8
PARCEL DETAILS SUBJECT PROPERTY HAVASU NORTH SHOPPING CENTER 14,430 CPD 95 NATIONAL BANK OF ARIZONA Address: Market: 1881 Kiowa, Lake Havasu City, AZ Lake Havasu MSA Price: $2,955,000 Cap Rate: 4.40% Current NOI: $130,000 Building Area: 3,000 SF Parcel: 115-19-003B Land Area: 40,075 SF (0.92 Acres) Year Built: 2017 Construction STARBUCKS P. 9
STARBUCKS RENDERS STARBUCKS P. 10
TENANT OVERVIEW Starbucks Corporation NYSE: SBUX A- by S&P and A3 by Moody s 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 foodservice accounts. The company offers its products under the Starbucks, Teavana, Tazo, Seattles Best Coffee, Evolution Fresh, La Boulange, Ethos, Starbucks VIA, Seattles 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. NYSE: SBUX Starbucks Corporation Price $53.69 52WK Range $42.05-$64.00 Volume 7,218,964 Market Cap 80.35B 06/28/2016-4:30PM As of June 9, 2016, Starbucks is present in 72 countries and territories. Market Capitalization Is Approximately $83 Billion STARBUCKS P. 11
SURROUNDING RETAIL
SURROUNDING RETAIL
AREA OVERVIEW Lake Havasu City, CA Lake Havasu City is a city in Mohave County, Arizona, United States. According to 2010 census, the population of the town is 52,527 people. It is served by Lake Havasu City Airport. Lake Havasu City is geographically isolated from the other cities in Mohave County and is the southernmost community of Greater Las Vegas. The community first started as an Army Air Corps rest camp during World War II on the shores of Lake Havasu. In 1958, Robert P. McCulloch purchased 3,353 acres (13.57 km2) of property on the east side of Lake Havasu along Pittsburgh Point, the peninsula that eventually would be transformed into the Island. After four years of planning, McCulloch Properties acquired another 13,000 acres of federal land in the surrounding area. Lake Havasu City was established on September 30, 1963 by a resolution of the Mohave County Board of Supervisors as the Lake Havasu Irrigation and Drainage District, making it a legal entity. The city was incorporated in 1978. The London Bridge crosses a narrow channel that leads from Lake Havasu (a segment of the Colorado River) to Thompson Bay (also on the Colorado River). It was bought for US $2.5 million from the City of London when the bridge was replaced in 1968. The bridge was disassembled, and the marked stones were shipped to Lake Havasu City and reassembled for another US $7 million. Since its inauguration on October 5, 1971, it has attracted thousands of visitors each year. Lake Havasu City is an active destination for a wide range of people. During the spring months, the community is joined by university students during Spring Break. With its reputation as a party community, Lake Havasu has twice been featured during MTV s Spring Break coverage. For boaters, March to September are the prime months on Lake Havasu. The city is also home to the International World Jet Ski Final Races, multiple professional fishing tournaments, custom boat regattas, the Western Winter Blast pyrotechnics convention, Havasu 95 Speedway, the Chilln-n-Swilln Beer Festival annual charity event, the Havasu Triathlon, the Havasu Half Marathon and the Havasu Island Hot Air Balloon Fest & Fair. STARBUCKS P. 14
REGIONAL MAP REPRESENTATIVE PHOTO STARBUCKS P. 15
DEMOGRAPHICS Population 1-MILE 3-MILE 5-MILE Estimated Population (2016) 3,546 28,866 49,972 Projected Population (2021) 3,636 29,167 50,199 Households 1-MILE 3-MILE 5-MILE Estimated Households (2016) 1,529 12,915 22,179 Projected Households (2021) 1,568 13,053 22,282 $$ Income 1-MILE 3-MILE 5-MILE Avg. Household Income (2016) $51,836 $50,216 $53,730 Median Household Income (2016) $41,344 $38,461 $40,732 Business Facts 1-MILE 3-MILE 5-MILE Total # of Businesses (2016) 673 2,937 3,376 Total # of Employees (2021) 5,320 19,815 23,096 Estimated Population Growth of 1.07% within a 3-Mile Radius (2016-2021) STARBUCKS P. 16
POPULATION DENSITY MAP Approximately 28,866 Residents Within a 3-Mile Radius STARBUCKS P. 17
HOUSEHOLD INCOME MAP Average Household Income $69,122 Within a 3-Mile Radius STARBUCKS P. 18
This Offering Memorandum contains select information pertaining to the business and affairs of Starbucks, Lake Havasu, AZ. It has been prepared by Colliers International. 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 Colliers International. 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 or 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 from Colliers, 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 Colliers International 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 Starbucks, Lake Havasu, AZ 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 Colliers International 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. Colliers International 3 Park Plaza, Suite 1200 Irvine, CA 92814 Snyder/Carlton Team Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. This publication is the copyrighted property of Colliers International and /or its licensor(s) 2015. All rights reserved STARBUCKS P. 19
For More Information Contact: John Barnes Vice President License No. BRO26952000 602.222.5042 john.barnes@colliers.com REPRESENTATIVE PHOTO THE SNYDERCARLTON TEAM WWW.THENNNETWORK.COM