Starbucks Brand New Construction - CONFIDENTIAL OFFERING MEMORANDUM Spartanburg, SC - Furman Capital Advisors
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REPRESENTATIVE PHOTO
Starbucks Brand New Construction
Spartanburg, SC
CONFIDENTIAL OFFERING MEMORANDUM
TABLE OF CONTEN T S EXC L U S I V E LY LI S T E D B Y
Investment Overview
03 Executive Summary
P ro perty Overview
04 Regional Map
05 Market Map
Peter Couchell Rob Schmidt
06 Submarket Map Managing Director/Shareholder Director/Shareholder
couchell@furmancap.com rschmidt@furmancap.com
07 Aerial Map
864 678 5923 864 678 5995
08 Site Plan
09 Property Renderings
REPRESENTATIVE PHOTO
10 Lease Summary
Te nant Overview
11 Tenant Summary
Ma rket Overview
12 Market Analysis
14 Demographics
INVESTMENT OVERVIEW
E xecu ti ve S u m m a ry
P ROPERTY SUMM A RY FINANCIAL SUMMARY
2220 Chesnee Hwy NOI $122,500
Address
Spartanburg, SC 29303
Cap Rate 5.00%
Ownership Fee Simple
List Price $2,450,000
Class A
Lease Type NNN
Year Built 2021
Remaining Lease Term 10.25 Years
Building Size ±2,500 SF
Remaining Options (4) 5-Year Options
Parcel Size ±.99 Acres
Rent Increases 10% Every 5 Years
Tenancy Single
Occupancy 100%
Road Frontage ±195 Feet NOI & CAP RATE GROWTH
Parking 25 Spaces Yrs 6 Yrs 11 Yrs 16
Traffic Count (Chesnee Hwy) 21,000 VPD NOI $134,750 $148,225 $163,048
Financing Free and Clear Cap Rate Growth 5.50% 6.05% 6.66%
IN V ESTMENT HIGHLIG HTS
• No Early Termination: Tenant has no termination rights throughout the initial term
• Desirable Lease Terms: Brand new 10.25 year lease with 10% rent increases every 5 years
• Brand New Construction: 2021 Build-to-suit for Starbucks Q3 completion
• High Quality Construction: Newest prototype with indoor café, patio seating, and drive-thru
• Access to High Volume Interstate Traffic: Located on I-85 directly between Charlotte and Atlanta
• Corporate Starbucks Lease: Over 33,000 locations in 78 countries with corporate revenues in excess of $26 billion
• Investment Grade Tenant: Starbucks holds an S&P BBB+ credit rating
• Booming Greater Market: The Greenville Spartanburg MSA is one of the fastest growing MSA’s in the U.S.
3. St a rbu c k s | S p a r t a n b u rg, SC
PROPERTY OVERVIEW
Reg ion al M ap
Raleigh
±70 Miles From Site
ASHEVILLE
SITE
CHARLOTTE
SPARTANBRUG ±230 Miles From Site
GREENVILLE
±70 Miles From Site
±35 Miles From Site COLUMBIA
±177 Miles From Site
ATLANTA
±103 Miles From Site
4. St a rbu c k s | S p a r t a n b u rg, SC
PROPERTY OVERVIEW
M a rk et M ap
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5. St a rbu c k s | S p a r t a n b u rg, SC
PROPERTY OVERVIEW
S u b market M ap
±21,000 VPD
SITE
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2 ,10
±7
6. St a rbu c k s | S p a r t a n b u rg, SC
PROPERTY OVERVIEW
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±21,000 VPD
C
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7. St a rbu c k s | S p a r t a n b u rg, SC
PROPERTY OVERVIEW
S i t e P l an
8. St a rbu c k s | S p a r t a n b u rg, SC
PROPERTY OVERVIEW
Ren d e ri n gs
9. St a rbu c k s | S p a r t a n b u rg, SC
PROPERTY OVERVIEW
L e a se Su m m ary
LEASE SUMMA RY RENT SCHEDULE
Tenant Starbucks Corporation Initial Term Monthly Annual
Tenant Trade Name Starbucks Months 1-3* $0 $0
Tenant Classification Corporate Months 6-63 $10,208 $122,500
Lease Type NNN Months 64-132 $11,229 $134,750
Original Lease Term 10.25 Years Option 1 $12,352 $148,225
Commencement Date Est. 09/24/2021 Option 2 $13,587 $163,048
Lease Expiration Date 2031 Option 3 $14,946 $179,352
Term Remaining on Lease 10.25 Years Option 4 $16,441 $197,287
Options (4) 5-Year *Seller will credit buyer for the first three months of rent
Increases 10% Every 5 Years
Property Taxes Tenant Responsible
Property Insurance Tenant Responsible
Starbucks offers more than 30
Roof Landlord Responsible* blends of single-orgin premium
coffees as well as handcrafted
teas, blended beverages,
Structure Landlord Responsible
pasteries, sandwiches and a
variety of other fresh foods.
Option to Terminate No Early Termination Rights
*Brand new transferable roof warranty
10. St arb u c k s | S p a r t a n b urg, SCTENANT OVERVIEW
S t a rb ucks Coffee
www.starbucks.com
Founded 1971
REPRESENTATIVE PHOTO
Headquartered Seattle, WA
Credit Rating S&P BBB+
Number of Locations
±33,000 retail stores STARBUCKS | QUICK FACTS
in 78 countries
Market Cap
#5
$97.30 Billion
Annual Revenue $26.51 Billion WORLD’S MOST ADMIRED
COMPANY
Fortune 500 Rank (2020) 227 Fortune (2021)
Stock Symbol NASDAQ: SBUX
#1
• Starbucks is a national investment grade tenant (NASDAQ:
SBUX; S&P: BBB+) with over 33,000 stores globally. WORLD’S MOST VALUABLE
• Fiscal 2019 was highlighted by growth in topline revenue RESTAURANT BRANDS
of $26.51 billion, up 7.24% over the prior year. QSR Magazing (2020)
• Average store sales are approximately 50% greater in
Starbucks locations that have a drive-thru, which has
#30
created a goal for Starbucks to have drive-thrus in half of
its stores by end of year 2020. MOST INNOVATIVE
• The company opened 278 new stores in the first quarter of COMPANY
fiscal 2021, yielding 4% year-over-year unit growth, ending Forbes (2018)
the period with 32,938 stores globally.
11. St arb u c k s | S p a r t a n b urg, SCMARKET OVERVIEW
M a rk et An al ys i s
SPARTANBURG, SC
Morgan Square
Located at the intersection of Interstates 85
and 26, Spartanburg is within driving distance of three
international airports and less than a half-day’s drive from Asheville, Downtown Spartanburg was
designated as the second
Atlanta, Charlotte, Charleston, Greenville and Nashville.
Cultural Arts District
in South Carolina
4th Largest Countyin SC by population
serves as the heart of the arts
320,379 - Spartanburg County community.
39,606 - City of Spartanburg
15,000 - College Students
#1 HOSPITAL
Home to the world headquarters of in SC
Spartanburg Medical Center
and , the ONLY Manufacturing Co. (part of the Spartanburg Regional
plant in the United States, more than 100 international More than 1.1 million passengers served
in 2020 by 6 major airlines offering 50 non-
Healthcare System) was named
the #1 Hospital in South Carolina
businesses, and seven colleges and universities. stop daily departures to 17 major cities and by U.S. News and World Report
23 airports across the country. (2015).
Only summer home of the There are more than 200 miles of walking and biking trails in Spartanburg
County between Croft State Park, the Palmetto Trail, the Mary Black Foundation
Ranked as one of the top five training camps
Rail Trail and the Cottonwood Trail.
in the NFL for fan friendliness.
12. St arb u c k s | S p a r t a n b urg, SCMARKET OVERVIEW
M a rk et An al ys i s
Spartanburg,
South Carolina
LOCATION COMMERCE
• Located at the intersection of Interstates 85 and 26, • Spartanburg has a growing industrial sector of more than 13,000 companies
Spartanburg is within driving distance of three international including many international Fortune 500 companies such as BMW
airports and less than a half-day’s drive from Asheville, Atlanta, Manufacturing Company, LLC, Milliken, Michelin, adidas, Dräxlmaier, Toray
Charlotte, Charleston, Greenville and Nashville. Carbon Fibers, Röchling, Magna, Auriga Polymers, Advance America, and
• Spartanburg is the second-largest city in the greater Denny’s.
Greenville–Spartanburg–Anderson Combined Statistical • Spartanburg Regional Healthcare System has emerged as one of the most
Area, and the 4th largest county in SC by population. dynamic healthcare systems in the region, with more than 5,000 employees
and plans for a multi-million dollar capital expansion on the drawing board.
• The population of Spartanburg County: 320,379 (2019), and
• There are over 25,106 jobs within a 1.5 mile radius of Downtown
the city of Spartanburg: 39,606 (2019).
Spartanburg.
• Some of the top employeers in Spartanburg County include: BMW
Manufacturing Corporation, Draexlmaier Automotive, Michelin North
HIGHER EDUCATION America, Spartanburg Regional Healthcare System, Adidas, and Magna
International
• Spartanburg is a major center for higher education, with seven
colleges and universities that have a collective enrollment of
nearly 15,000 students. ACCOLADES
• These institutions are a major economic driver for the City
and a number of partnerships between the schools and • 9th on Matador Network’s 2019 list of the 25 coolest towns in America
businesses are creating significant strategic advantages in (cities with populations under 100,000)
workforce training, research, and economic development. • 15th on The Milken Institute’s 25 best-performing large cities in the US
• Schools include: Converse College, Edward Via College of • 4th Leading Metro Location in 2019—Economic Strength: by Area
Osteopathic Medicine, Sherman College of Chiropractic, Development
Spartanburg Community College, Spartanburg Methodist • 8th Small Metro Nationwide for millennial population growth
College, University of South Carolina Upstate, and Wofford (OneSpartanburg)
College.
13. St arb u c k s | S p a r t a n b urg, SCMARKET OVERVIEW
D e mograph i cs
1
Summary 2010 2020 2025
Population 581 616 637
Daytime Population 1,321
Households 245 260 269
Families 166 172 177
MILE Average Household Size
Owner Occupied Housing Units
2.33
185
2.33
196
2.33
202
RADIUS
Renter Occupied Housing Units 60 65 66
Median Age 47.5 49.1 49.7
Average Household Income $65,785 $69,672
Summary 2010 2020 2025
3
Population 10,117 11,443 12,129
Daytime Population 10,810
Households 4,092 4,608 4,869
Families 2,727 3,011 3,166
Average Household Size 2.46 2.47 2.48
MILE Owner Occupied Housing Units 2,696 3,009 3,203
RADIUS
Renter Occupied Housing Units 1,396 1,599 1,666
Median Age 39.5 40.7 41.5
Average Household Income $61,411 $66,340
Summary 2010 2020 2025
5
Population 50,361 58,589 62,590
Daytime Population 68,160
Households 20,438 23,756 25,429
Families 12,409 14,182 15,089
Average Household Size 2.30 2.32 2.33
Owner Occupied Housing Units 12,593 14,544 15,499
Renter Occupied Housing Units 7,845 9,212 9,930
Median Age 36.5 37.8 38.6
Average Household Income $67,214 $73,033
14. St arb u c k s | S p a r t a n b urg, SCDISCLAIMER
This Offering Memorandum contains select information pertaining to the business and affairs of the property located at I-85 and Hwy
221, Spartanburg, SC 29307 (“Property”). It has been prepared by Furman Capital Advisors (“Agent”). This Offering Memorandum
may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in the 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 Owner or Agent. The material is based in
part upon information supplied by the Owner and in part upon financial information obtained from sources it deems reliable. The Owner,
nor their officers, employees, or agents make any representation or warranty, express or implied, as to the accuracy or completeness of
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 for the Property, 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 Owner.
Owner and Agent 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 by all parties and delivered.
If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then
you agree to purge all materials relating to the 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 Agent or any
of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or
cause 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 creation of this Offering Memorandum.
15. St arb u c k s | S p a r t a n b urg, SC101 E. Washington Street, Suite 400 | Greenville, SC 29601
864.235.6855 FurmanCapital.com
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