Johnson City, TN - Starbucks

Overview

Highlights

• BRAND NEW DRIVE-THRU EQUIPPED BUILDING ON RARE 1.26 ACRE PARCEL
• JOHNSON CITY, TENNESSEE: THE HIGHEST GROWTH % IN NORTHEAST TENNESSEE
• ADJACENT TO THE ONLY SAM’S CLUB LOCATION IN NORTHEAST TENNESSEE, #1 VISITED IN STATE (Placer.ai)
• STRATEGICALLY POSITIONED ON JOHNSON CITY’S MAIN RETAIL CORRIDOR & ACCESS TO INTERSTATE 26 (+44,000 VPD)
• CORPORATE SBUX (BBB+) LEASE
• LONG TERM LEASE WITH NO EARLY TERMINATION RIGHTS

Description

Faris Lee Investments is pleased to present the rare opportunity to acquire fee simple interest (land

& building) in a brand-new, drive-thru equipped, 1.26-acre, freestanding Starbucks property located

in the pro-business state of Tennessee. Johnson City TN is a highly coveted / high-barrier-to-enter

market with impressive retailer traffic and population growth. The subject property strategically

services one of Johnson City’s primary corridors, Franklin Road (38,000 VPD) and sits adjacent to

access points for the Interstate 26 freeway (44,000 VPD). Starbucks signed a 10+ year lease with 10%

rental increases occurring every 5 years of lease term. Starbucks does not have the right to terminate

the lease early, which adds security and stability for an investor. Additionally, this location is proximate

to many national retailers including: Sam’s Club, Walmart Supercenter, Home Depot, Hobby Lobby,

Lowe’s, At Home, and more. This brand new Starbucks property is the ideal investment opportunity

for a passive investor looking for a drive-thru QSR property with a premier, investment-grade tenant

(BBB+) and excellent real estate fundamentals.

Starbucks (NASDAQ: SBUX) is a QSR tenant highly desired by investors and property owners across

the globe. With more than 38,000 locations in the world and a $82 Billion dollar market cap, they are

the dominant brand in coffee and quick service restaurants. The company reported an impressive

11% increase in revenue during their most recent fiscal year ($35.97 Billion). Starbucks was founded in

1971, near the Pike Place Market in Seattle WA. Today, Starbucks has pioneered the drive-thru coffee

concept, and created a neighborhood-gathering place with quality service, inviting atmosphere, and

exceptional food & beverage selections.

Location

Johnson City, TN, is a dynamic city located in the northeastern part of the state, surrounded by the picturesque Appalachian Mountains. As one of the three major cities in the Tri-

Cities region—alongside Kingsport and Bristol—Johnson City has a rich heritage that dates back to the late 19th century. Originally a railroad town, it has grown into a regional hub with

a population of over 66,000 residents.

The city is characterized by its vibrant downtown area, which features an eclectic mix of local shops, restaurants, and cultural venues. The revitalization of this district has made it a

popular gathering place for both locals and visitors, showcasing a variety of events throughout the year, including music festivals and art shows.

Johnson City is also home to East Tennessee State University, which contributes to the city’s youthful energy and offers a range of educational opportunities. The university is known

for its strong programs in healthcare and the arts, and its presence enriches the cultural landscape of the area.

Outdoor enthusiasts will appreciate the abundant recreational options available nearby. The city is close to several parks, including Winged Deer Park and Buffalo Mountain Park, as

well as the stunning Appalachian Trail and Cherokee National Forest. These areas provide opportunities for hiking, biking, fishing, and camping, appealing to those who enjoy an active

lifestyle.

Economically, Johnson City boasts a diverse landscape with key industries such as healthcare, education, and manufacturing. Major employers include the Mountain States Health

Alliance and the local university, which play significant roles in the community’s economy.

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