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 - Sands Investment Group
OFFERING MEMORANDUM
Brand New Construction Starbucks Drive-Thru
 16404 Crenshaw Blvd | Torrance, CA 90504

         OPENING JULY 2018
OFFERING MEMORANDUM Brand New Construction Starbucks Drive-Thru 16404 Crenshaw Blvd | Torrance, CA 90504 - Sands Investment Group
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.
OFFERING MEMORANDUM Brand New Construction Starbucks Drive-Thru 16404 Crenshaw Blvd | Torrance, CA 90504 - Sands Investment Group
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)
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OFFERING MEMORANDUM Brand New Construction Starbucks Drive-Thru 16404 Crenshaw Blvd | Torrance, CA 90504 - Sands Investment Group
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

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OFFERING MEMORANDUM Brand New Construction Starbucks Drive-Thru 16404 Crenshaw Blvd | Torrance, CA 90504 - Sands Investment Group
SITE PLAN

               1,280 SF
            (Includes Open Air
               Seating Area)

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OFFERING MEMORANDUM Brand New Construction Starbucks Drive-Thru 16404 Crenshaw Blvd | Torrance, CA 90504 - Sands Investment Group
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    RENDERINGS
OFFERING MEMORANDUM Brand New Construction Starbucks Drive-Thru 16404 Crenshaw Blvd | Torrance, CA 90504 - Sands Investment Group
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     LOCATION MAP
OFFERING MEMORANDUM Brand New Construction Starbucks Drive-Thru 16404 Crenshaw Blvd | Torrance, CA 90504 - Sands Investment Group
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     AERIAL MAP
OFFERING MEMORANDUM Brand New Construction Starbucks Drive-Thru 16404 Crenshaw Blvd | Torrance, CA 90504 - Sands Investment Group
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     RETAIL MAP
OFFERING MEMORANDUM Brand New Construction Starbucks Drive-Thru 16404 Crenshaw Blvd | Torrance, CA 90504 - Sands Investment Group
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

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9                                                              Actual Property Image
AREAOVERVIEW
      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.
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TENANT 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
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11                    NASDAQ: SBUX         Seattle, WA       27,000+      $91.8 Billion                  1971                   www.starbucks.com
LEASE 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
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RENT 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

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CONFIDENTIALLY 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.

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Exclusively 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

In Cooperation with Sands Investment Group, Inc – Lic # 01768950
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