Single Tenant Starbucks | Wilkes-Barre, PA
NOW OPEN - AUGUST 16TH, 2024!
The Opportunity
Summary
- Price: $2,716,000
- Cap Rate: 6.00%
- NOI: $163,000
- Lease Type: Fee Simple: NN
- Building Size: 2,100 SF
- Parcel Size: 0.89 Acres (Denotes an estimate)
- Year Built: 2024
- Remaining Lease Term: 10 Years
- Options: Three (3), Five (5) Year Options & One (1), Four (4) Year, Eleven (11) Month Option
- Rental Increases: 10% Every Five (5) Years
STORE NOW OPEN - AUGUST 16TH, 2024
Forged Real Estate is pleased to exclusively offer the opportunity to acquire the fee simple interest in a single tenant property leased to Starbucks, (the “Property”) in Wilkes-Barre, Pennsylvania, the largest city by population and the county seat of Luzerne County. Starbucks recently commenced a 10-year firm corporate lease that features ten percent (10%) rental increases every five (5) years, including in the option periods. Additionally, there is no early termination right option in the lease. This was a former Long John Silver's restaurant which was leveled and the Starbucks was built brand new in 2024. The property sits just 1 mile from Exit 170 A & B off Interstate 81, a major interstate highway boasting over 60,400 VPD. Starbucks is situated along Kidder Street (12,700 VPD), within a bustling retail corridor featuring national retailers who rank as some of the best performing locations within their respective chains.
The Walmart Supercenter in Wilkes-Barre ranks in the top 98% of Walmart Supercenters in the United States and Pennsylvania. The Target in Wilkes-Barre ranks in the top 90% of Targets in Pennsylvania and the top 88% of Targets in the United States. Additionally, both the Lowe’s (74% in U.S.) and Home Depot (79% in PA) located in Wilkes-Barre are some of the top ranked locations within their respective chains (Placer.ai). The 5-mile area surrounding the Property exhibits excellent demographics with a population of over 118,000 and over 51,000 households, both of which are projected to continue growing through 2028. Starbucks (NASDAQ: SBUX) is an investment grade credit tenant (S&P: BBB+) and the world’s largest coffeehouse chain with over 38,000 locations. Starbucks ranks #125 on the Fortune 500 list and in Full Fiscal Year 2023, the company reported consolidated net revenues up 12% to a record $36.0 billion.
Investment Highlights:
Tenant
Ownership: PUBLIC - STARBUCKS CORP. (NASDAQ: SBUX)
Credit Rating: BBB+ (S&P)
Headquarters: SEATTLE, WA
#of Locations: 38,038 (As of 10/1/2023)
Starbucks, founded in 1971 in Washington, is the premier roaster and retailer of specialty coffee in the world. The company sells rich-brewed coffees, Italian-style espresso beverages, cold blended beverages, a selection of premium teas, a variety of complementary food items, and coffee-related accessories and equipment primarily through Company-operated retail stores. Starbucks currently operates over 16,350 stores in the U.S. and over 6,800 stores in China making up almost 61% of the company’s global portfolio. Starbucks is ranked #125 on the 2023 Fortune 500 list and maintains a BBB+ investment grade credit rating (S&P).
Starbucks retail stores are typically located in high-traffic, highly visible locations. Because the company has such a large footprint spanning across more than 80 markets, its stores are in a variety of different settings, including downtown and suburban retail centers, office buildings and university campuses.
In Full Year Fiscal 2023 Starbucks performed well as global comparable store sales increased 8%, driven by a 5% increase in average ticket and 3% increase in comparable transactions. Additionally, consolidated net revenues were up 12%, to a record $36.0 billion. As of Q4 Fiscal 2023, the company’s net stores increased 6.5% bringing the company total to 38,038.
Tenant Accolades:
• RANKED #1 World’s Most Admired Company (Food Services Industry) - Fortune, 2023
• RANKED #12 Top 50 Companies for Diversity - Diversity, 2023
• RANKED #125 - Fortune 500, 2023
