STARBUCKS

LAKE FOREST, CA

$2,480,000

Starbucks Lake forest

AT A GLANCE

  • Credit income stream from Starbucks Coffee, best in class category leader in the coffee retailing industry

  • True pride of ownership, brand new construction

  • Long-term 10 year lease with 10% rent increases every 5 years

CHALLENGES

  • Lease contains Prop 13 protection

  • Lease contains an early termination clause

  • Lease contains CAM caps

MARKETING STRATEGY

  • Targeted foreign investors

  • Highlighted irreplaceable South Orange County location

  • Showcased the strength of the tenant and the rare opportunity for a brand new single tenant Starbucks in Orange County

RESULTS

  • Closed at a national record low cap rate of 3.48% for a single tenant Starbucks

  • Received multiple offers within the first week of marketing

  • Buyer secured financing with full price appraisal, despite recording price