NNN Retail Investment Sale of a Starbucks in Northern California
IRVINE, Calif., November 18, 2022 - Faris Lee Investments is pleased to announce the $3.40 million sale of a triple net lease Starbucks in Stockton, CA. The 3.97% closing cap rate represented the lowest cap rate for a Northern California Starbucks 10 Year leased investment in 2022, per Costar records.
Faris Lee Investments represented the seller in the transaction, a SoCal Developer, and sourced an all Cash 1031 Exchange investor from Northern California.
The property is located at 721 Carolyn Weston Blvd and is part of a new mixed-use development featuring 7 Eleven, McDonald’s, Quick Quack, and 120-unit condominium development. The Starbucks is ideally positioned within one-half mile of Interstate 5 at the entrance to the new Weston Ranch community in the southern part of Stockton.
The listing team highlighted the need for a Starbucks in the trade area. The unique location was the only Starbucks within a 3-mile radius. The team marketed the offering as a pre-sale which helped preserve the low cap rate in a rising interest rate environment.
Although the site was still under construction during the marketing period, the team garnered interest from investors by highlighting Starbucks as the Best In Class operator in the coffee retailing industry, the highly profitable drive thru concept, the modest rent for a drive thru, and the ease of management ownership experience in which an investor will benefit.
The listing team targeted Northern California investors looking to keep investments closer to home. After generating multiple offers, mostly from Northern California based investors, the transaction closed all cash with a 1031 exchange buyer making the pre-sale campaign a success.
About Faris Lee Investments:
Faris Lee Investments is a national leading retail advisory and investment sales firm. The company’s high-level retail investment advisors develop forward-thinking strategies for all retail acquisitions and dispositions and guide clients through complex transactions. Through its recent strategic affiliation with X-Team Retail Advisors, a nationwide partnership of seasoned retail leasing experts, Faris Lee offers a fully integrated platform with disciplined expertise in landlord leasing, tenant representation, and investment sales to maximize value for clients.