OFFERING MEMORANDUM Brand New Construction Starbucks Drive-Thru 16404 Crenshaw Blvd | Torrance, CA 90504 - Sands Investment Group
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OFFERING MEMORANDUM
Brand New Construction Starbucks Drive-Thru
16404 Crenshaw Blvd | Torrance, CA 90504
OPENING JULY 2018
Concept Rendering
03 INVESTMENT SUMMARY
• Investment Summary
• Investment Highlights
• Site Plan & Renderings
07 AREA OVERVIEW
• Location Map
• Aerial & Retail Maps
Actual Property Image
• City Overview
Exclusively Marketed By: Sands Investment Group
Dan Hoogesteger
12 TENANT OVERVIEW
• Tenant Profile Lic. # 01376759
310.853.1419 | DIRECT
dan@SIGnnn.com
13 LEASE ABSTRACT
• Lease Summary
• Rent Roll © 2018 Sands Investment Group (SIG). The information contained in this ‘Offering Memorandum,’ has been obtained from sources believed to be reliable. Sands Investment
Group does not doubt its accuracy, however, Sands Investment Group makes no guarantee, representation or warranty about the accuracy contained herein. It is the
responsibility of each individual to conduct thorough due diligence on any and all information that is passed on about the property to determine it’s accuracy and completeness.
Any and all projections, market assumptions and cash flow analysis are used to help determine a potential overview on the property, however there is no guarantee or assurance
these projections, market assumptions and cash flow analysis are subject to change with property and market conditions. Sands Investment Group encourages all potential
In Cooperation with Sands Investment Group, Inc – Lic # 01768950 interested buyers to seek advice from your tax, financial and legal advisors before making any real estate purchase and transaction.
INVESTMENT SUMMARY
OFFERING SUMMARY
PRICE $5,280,000
CAP 3.75%
NOI $198,000
LEASE TERM 15 Years
LEASE GUARANTY Corporate
PROPERTY SUMMARY
ADDRESS 16404 Crenshaw Blvd
Torrance, CA 90504
COUNTY Los Angeles
1,280 SF (Includes Open Air
BUILDING AREA
Seating Area)
LAND AREA 0.35 Acres (15,454 SF)
BUILT 2018 (Under Construction)
3
INVESTMENT HIGHLIGHTS
ABSOLUTE NET LEASE CORPORATE STARBUCKS DRIVE-THRU
• Rare New Construction 15-Year Lease Term (No Early Termination)
• Absolute Net Ground Lease – Zero Landlord Responsibilities
• Corporate Guaranteed Lease – Investment Grade Security
(NASDAQ:SBUX)
• Strong Rental Increases – 10% Every 5 Years Through 1st Option
Period, and FMV Not to be Less Than 110% or More Than 130%
Through Options 2-4
• Drive-Thru Location with Large Outdoor Patio
INFILL SOUTH BAY LOS ANGELES COUNTY LOCATION
• Located Directly Across from El Camino College (Enrolling Over
25,000 Students Per Semester)
• Extremely Dense Population Base – Over 250,000 People Within a
3-Mile Radius
• High Income Demographics – Average Household Income Over
$80,000 Within a 1-Mile Radius
• Strong Traffic Counts – Approximately 34,000+ Cars Per Day
• Convenient Location and Close Proximity to I-405, I-105 and I-110
• Less Than 10-Miles from LAX International Airport
44
SITE PLAN
1,280 SF
(Includes Open Air
Seating Area)
5
6
RENDERINGS
57
LOCATION MAP
58
AERIAL MAP
59
RETAIL MAP
AERA OVERVIEW
SUBJECT PROPERTY DEMOGRAPHICS
1 Mile 3 Mile 5 Mile
Population 29,287 254,291 712,816
Average Household Income $80,751 $91,559 $89,410
10
9 Actual Property ImageAREAOVERVIEW
OVERIEW
ABOUT THE CITY
Torrance is a city in the South Bay region of Los Angeles County, California. Torrance has 1.5
miles of beaches on the Pacific Ocean. Torrance has a moderate year-round climate with warm
temperatures, sea breezes, low humidity and an average rainfall of 12.55 inches per year. This
residential and light high-tech industries city has 90,000 street trees and 30 city parks. Torrance is
AERA
a part of Greater Los Angeles, the second-largest urban region in the United States with an
estimated population of 18.7 million.
ECONOMY
Torrance is home to the U.S. headquarters of Japanese automaker American Honda Motor
Company. Robinson Helicopters are designed and built in Torrance as
are Honeywell's Garrett turbochargers, used on automobile engines worldwide. Alcoa Fastening
Systems (now known as Arconic) is headquartered in Torrance, producing aerospace
fasteners. Pacific Sales, Pelican Products, and Rapiscan Systems are among the other companies
based in Torrance. Top employers include American Honda Motor Co Inc., Torrance Memorial
Medical Center, Arconic and Exxon Mobil Refinery.
CULTURE & CONTEMPORARY LIFE
The Armed Forces Day Parade in Torrance, which was first produced in 1960, is the longest
running military parade sponsored by a city. It is held annually on Armed Forces Day, and runs
down Torrance Boulevard. The Torrance Cultural Arts Center hosts cultural events year-round. In
partnership with the City of Torrance, the Torrance Cultural Arts Foundation (TOCA) provides
diverse cultural, educational and entertainment experiences. Additional performances are
provided by the Torrance Performing Arts Consortium, including The Aerospace
Players, Torrance Art Museum, Los Cancioneros Master Chorale, South Bay Ballet, South Bay
Conservatory, and The Torrance Symphony.
11
9
11TENANT OVERVIEW Starbucks Corporation is an American coffee company and
coffeehouse chain. Starbucks was founded in Seattle,
Washington in 1971. Today it operates more than 27,000
retail stores in 75 countries.
Starbucks is considered the main representative of "second
wave coffee," initially distinguishing itself from other coffee-
serving venues in the U.S by taste, quality, and customer
experience, while popularizing darkly roasted coffee. Since
the 2000’s, third wave coffee makers have targeted quality-
minded coffee drinkers with hand-made coffee based on
lighter roasts, while Starbucks nowadays uses automated
espresso machines for efficiency and safety reasons.
Starbucks locations serve hot and cold drinks, whole-bean
coffee, micro-ground instant coffee known as VIA, espresso,
cafe latte, full and loose-leaf teas including Teavana tea
products, Evolution Fresh juices, Frappuccino beverages, La
Boulange pastries, and snacks including items such as chips
and crackers; some offerings are seasonal or specific to the
locality of the store. Many stores sell pre-packaged food
items, hot and cold sandwiches, and drinkware including
mugs and tumblers; select "Starbucks Evenings" locations
offer beer, wine and appetizers. Starbucks-brand coffee, ice
cream and bottled cold coffee drinks are also sold at grocery
stores.
Representative Image
COMPANY TYPE HEADQUARTERS # OF LOCATIONS MARKET CAP FOUNDED WEBSITE
12
10
11 NASDAQ: SBUX Seattle, WA 27,000+ $91.8 Billion 1971 www.starbucks.comLEASE ABSTRACT LEASE SUMMARY
TENANT Corporate Guarantee
NASDAQ: SBUX;
S&P A- Investment Grade
BUILDING 1,280 SF (Includes Open
Air Seating Area)
LAND 0.35 Acres (15,454 SF)
LEASE COMMENCEMENT September 30, 2018
LEASE EXPIRATION September 29, 2033
LEASE TERM 15 Years
RENEWAL OPTIONS 3 x 5 Years & 1 x 4.5 Years
RENT INCREASES Option 1: 10% Every 5 Years;
Options 2-4: FMV Not to be Less
Than 110% or More Than 120%
LEASE TYPE Absolute Net Ground Lease
USE Restaurant
PROPERTY TAXES Tenant’s Responsibility
INSURANCE Tenant’s Responsibility
COMMON AREA Tenant’s Responsibility
ROOF & STRUCTURE Tenant’s Responsibility
REPAIRS & MAINTENANCE Tenant’s Responsibility
HVAC Tenant’s Responsibility
UTILITIES Tenant’s Responsibility
13
12RENT ROLL
TENANT SQUARE % OF ANNUAL INCREASE LEASE LEASE
OPTIONS
NAME FOOTAGE TOTAL BASE RENT DATES BEGIN END
1,280 SF (Includes Open 3 x 5 Years &
Starbucks 100% $198,000 10% Every 5 Years 09/30/2018 09/29/2033
Air Seating Area) 1 x 4.5 Years
14
13CONFIDENTIALLY AGREEMENT
The information contained in the following Offering Memorandum is proprietary and strictly confidential. It is intended to be reviewed
only by the party receiving it from Sands Investment Group and should not be made available to any other person or entity without the
written consent of Sands Investment Group.
This Offering Memorandum has been prepared to provide summary, unverified information to prospective purchasers, and to establish
only a preliminary level of interest in the subject property.
The information contained herein is not a substitute for a thorough due diligence investigation, and makes no warranty or representation,
with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and
square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the
compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business
prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property.
The information contained in this Offering Memorandum has been obtained from sources we believe to be reliable; however, Sands
Investment Group has not verified, and will not verify, any of the information contained herein, nor has Sands Investment Group conducted
any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness
of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.
By receipt of this Memorandum, you agree that this Memorandum and its contents
are of confidential nature, that you will hold and treat it in the strictest confidence and
that you will not disclose its contents in any manner detrimental to the interest of the
Owner. You also agree that by accepting this Memorandum you agree to release
Sands Investment Group and hold it harmless from any kind of claim, cost, expense,
or liability arising out of your investigation and/or purchase of this property.
14Exclusively Marketed By:
Dan Hoogesteger
Lic. # 01376759
310.853.1419 | DIRECT
dan@SIGnnn.com
Sands Investment Group
2701 Ocean Park Blvd, Suite 140
Santa Monica, CA 90405
844.4.SIG.NNN
www.SIGnnn.com
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