OPENING APRIL 2020 - STARBUCKS - LoopNet
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OPENING APRIL 2020
STARBUCKS
SCOTT BRADY
1158 NORTH UNIVERSITY AVENUE sbrady@mtnwest.com
PROVO, UTAH 84604 direct 801.456.8804
View Profile
TABLE OF CONTENTS
4 EXECUTIVE
SUMMARY
5 PROPERTY
FEATURES AND
6 TENANT TRAFFIC
MAP
8 TENANT
PROFILE
9 DEMOGRAPHICS
LAND OVERVIEW
STARBUCKS
CONFIDENTIALITY
STARBUCKS AND DISCLOSURE
1158 NORTH UNIVERSITY AVENUE Mountain West Commercial Real Estate has been retained on an exclusive basis to market the property
PROVO, UTAH 84604 described as 1158 North University Avenue, Provo, Utah 84604. Broker has been authorized by seller
of the property to prepare and distribute the enclosed information for the purpose of soliciting offers
to purchase from interested parties. More detailed financial, title and tenant lease information may be
made available upon request following the mutual execution of a letter of intent or contract to purchase
PREPARED BY between the Seller and the prospective purchaser. You are invited to review this opportunity and
make an offer to purchase based upon your analysis. If your offer results in the Seller choosing to open
negotiations with you, you will be asked to provide financial references. The eventual purchaser will be
SCOTT BRADY chosen based upon an assessment of price, terms, ability to close the transaction and such other matters
sbrady@mtnwest.com
direct 801.456.8804 as the Seller deems appropriate.
View Profile
The Material is intended solely for the purpose of soliciting expressions of interest from qualified
investors for the acquisition of the Property. The Material is not to be copied and /or used for any other
purpose or made available to any other person without the express written consent of Broker or Seller.
The Material does not purport to be all-inclusive or to contain all of the information that a prospective
buyer may require. The information contained in the material has been obtained from the Seller and
other sources and has not been verified by the Seller or its affiliates, agents, representatives, employees,
parents, subsidiaries, members, managers, partners, shareholders, directors, or officers, makes any
representation or warranty regarding such pro forma. Purchaser must make its own investigation of the
Property and any existing or available financing, and must independently confirm the accuracy of the
projections contained in the pro forma.
Seller reserves the right, for any reason, to withdraw the Property from the Market. Seller has no
obligation, express or implied, to accept any offer. Further, Seller has no obligation to sell the Property
unless and until the Seller executes and delivers a signed agreement of purchase and sale on terms
acceptable to the Seller, in its sole discretion. By submitting an offer, a purchaser will be deemed to
have acknowledged the foregoing and agreed to release Seller and Broker from any liability with respect
thereto.
Property walk-throughs are to be conducted by appointment only. Contact Broker for additional
information.
312 East South Temple l Salt Lake City, UT 84111 l Office 801.456.8800 l www.mtnwest.com 3
EXECUTIVE SUMMARY INVESTMENT HIGHLIGHTS
PRICING
PURCHASE PRICE $2,967,000
INVESTMENT GRADE TENANT WITH NNN LEASE
Starbucks (S&P BBB+) signed an initial 10-year lease with 10% increases every 5-years that
NET OPERATING INCOME $135,000 commenced in January 2020 and runs through December 31, 2029 with four; 5-year extension
CAP RATE 4.55%
options. The Tenant is responsible to pay property taxes, insurance, utilities, and common area
maintenance.
LEASE INFORMATION
RENT INCREASE UPSIDE
TENANT TRADE NAME Starbucks The rent will increase from $135,000 to $148,500 on 1/01/2025, which means the return will jump
from a 4.55% CAP to a 5.01% CAP.
LEASE GUARANTOR Starbucks Corporation
PROXIMITY TO BRIGHAM YOUNG UNIVERSITY
RENT COMMENCEMENT 1/01/2020 The subject property is located within 1 mile from the home of the Cougars; Brigham Young
LEASE EXPIRATION 12/31/2029 University (BYU) with 33,517 students (2017) and 3,850 staff.
LEASE TYPE NNN HIGH TRAFFIC COUNTS
The subject property is located on North University Avenue, south of Bulldog Boulevard with traffic
LEASE TERM 10 Years counts exceeding 35,000 AADT.
RENTAL INCREASES 10% Every 5-Years SUPERIOR DEMOGRAPHICS
EXTENSION OPTIONS Four, 5-Year Options
There are 199,561 people within the 3-mile radius of the property and is expected to grow by
1.47% by 2023. The average household income is $70,715 and expected to grow to $81,255 by
PROPERTY TAXES Tenant Responsible 2023.
INSURANCE Tenant Responsible
UTILITES Tenant Responsible
OPTIONS & ESCALATIONS
OPERATING EXPENSES Tenant Responsible
LEASE TERM START EXPIRATION MONTHLY RENT ANNUAL RENT % INCREASE CAP RATE
Roof, Roof Membrane,
Foundation, Exterior Walls, INITIAL TERM 1/01/2020 12/31/2024 $11,250.00 $135,000.00 4.55%
LANDLORD MAINTENANCE Interior Structural Walls, INITIAL TERM 1/01/2025 12/31/2029 $12,375.00 $148,500.00 10.00% 5.01%
Parking Lot, Sidewalks,
Landscaping, Drainage Systems OPTION 1 1/01/2030 12/31/2034 $13,612.50 $163,350.00 10.00% 5.51%
Plumbing, HVAC, Electrical & OPTION 2 1/01/2035 12/31/2039 $14,973.75 $179,685.00 10.00% 6.06%
TENANT MAINTENANCE Lighting Facilites, Equipment
within the Premises OPTION 3 1/01/2040 12/31/2044 $16,471.13 $197,653.50 10.00% 6.66%
PROPERTY INFORMATION OPTION 4 1/01/2045 12/31/2049 $18,118.24 $217,418.92 10.00% 7.33%
1158 N University Ave, Provo,
PROPERTY ADDRESS
UT
GROSS LEASABLE AREA (SF) 2,400 SF
LAND SIZE (AC) 0.61
2019 - Currently Under
YEAR BUILT
Construction
STARBUCKS
PROPERTY FEATURES &
LAND OVERVIEW
PROPERTY DESCRIPTION
Location: Parking:
1158 North University Avenue, The subject property will provide
Provo, UT 84604 approximately 24 regular parking
Site: stalls, with 2 ADA stall, totaling 26
Located on North University Avenue, parking stalls, which equates to 10.8
south of Bulldog Boulevard spaces per 1,000 SF parking ration.
Land Area: Traffic Counts 2016:
Consists of 0.61 Acres or 26,571.6 SF University Ave - 35,000 AADT
,
+ 189 of land area. Canyon Rd - 12,000 AADT
Zoning:
Building Area:
The subject property consists CU - COMM UNKNOWN-MISC
of 1 retail building totaling Year Built:
approximately 2,400 SF of gross 2019 - Currently Under Construction
190750012
leasable area.
0.61 AC
35,000 ADT
UNIVERSITY AVE
LAND OVERVIEW
T
AD
,0 00
12
APN # ADDRESS ACRES SF
RD
ON
A NY 1158 North
RD
C 190750012 0.61 Acres 26,571.6
University Ave
ON
NY
CA
F:\Projects\SL\Brady\Starbucks\Provo\Parcel.mxd - 7/1/2019 lplant
312 East South Temple l Salt Lake City, UT 84111 l Office 801.456.8800 l www.mtnwest.com 5
1720 N
0 N 20,000 ADT
UN
28,000 ADT
IV
9,400 ADT
ER
S
IT
Y
1625 N KW
P
Y
44,0
00 ADT 19,000 ADT 1650 N 22,000 ADT
THE LODGES
AT GLENWOOD
196 UNITS
BRENTWOOD PARK
APARTMENTS
E
DR
56 UNITS
AV
34,000 ADT
ER
E
ID
RIV
RS
ST
1500 N THE RIVIERA
VE
AT
APARTMENTS
ON
RI
137 UNITS
16,000 ADT
26,154 SF
E
MO
ST
10,000 ADT
+
,
189
300 W
P AUL REAM AVE
CAMBRIDGE
COURT
380 W
161 UNITS
48
FREEDOM BLVD
,000
ALPINE
AD
VILLAGE
UNIVERSITY AVE
168 UNITS
T
69,740 SF
CANYON RD
+
,
89
CO CINAMON TREE H
LU 1300 N APARTMENTS
EL
M BI 65 UNITS
AM
A
LN
AN
15 R
,0
D
00
AD
T
BULLDOG BLVD 27,000 ADT 20,000 ADT 20,000 ADT 18,000 A
37,000 ADT
35,000 ADT
SITE
DT Brigham Young
18,000 ADT
A
500 W
1150 N 00
University
,0
12
100 E
RD
125,804 SF PROVO HIGH
1,889
ON
RIVERWOOD HOSPITAL STUDENTS
AREA RETAIL 36 BEDS
NY
CA
STARBUCKS 312 East South Temple l Salt Lake City, UT 84111 l Office 801.456.8800 l www.mtnwest.com 7
TENANT PROFILE
WEBSITE www.starbucks.com
OWNERSHIP Public (NASDAQ: SBUX)
LOCATIONS 28,218
HEADQUARTERS Seattle, WA
STARBUCKS CORPORATION operates as a roaster, marketer, and
retailer of specialty coffee worldwide. The company operates in
four segments: Americas; Europe, Middle East, and Africa; China/
Asia Pacific; and Channel Development. Its stores offer coffee and
tea beverages, packaged roasted whole bean and ground coffees,
single-serve and ready-to-drink coffee and tea products, juices, and
bottled water. The company’s stores also provide fresh food and snack
offerings; and various food products, such as pastries, and breakfast
sandwiches and lunch items, as well as serve ware, beverage-making
equipment, and accessories. In addition, it licenses its trademarks
through licensed stores, and grocery and national foodservice
accounts. The company offers its products under the Starbucks,
Teavana, Tazo, Seattle’s Best Coffee, Evolution Fresh, La Boulange,
Ethos, Starbucks VIA, Seattle’s Best Coffee, Frappuccino, Starbucks
Doubleshot, Starbucks Refreshers, and Starbucks Discoveries Iced
Café Favorites brand names. As of September 27, 2015, it operated
23,043 stores. Starbucks Corporation was founded in 1985 and is
based in Seattle, Washington. - Yahoo Finance.
STARBUCKS
8 312 East South Temple l Salt Lake City, UT 84111 l Office 801.456.8800 l www.mtnwest.com
STARBUCKS
DEMOGRAPHICS
POPULATION BUFFERS - 1, 3, 5 MILES
Lindon
1 MILE 3 MILES 5 MILES
40,692 139,870 199,561
2018 EST. 2018 EST. 2018 EST. Vineyard
POPULATION POPULATION POPULATION
Orem
1 MILE 3 MILES 5 MILES ,
+
189
5 Miles
42,886 149,588 214,688
2023 EST. 2023 EST. 2023 EST. +
,
89
POPULATION POPULATION POPULATION 3 Miles
&
'
%
15
1 Mile
HOUSEHOLDS & MEDIAN INCOME
^
^ Provo
1 MILE 3 MILES 5 MILES
10,067 39,995 57,396 RO
F
N T RUNNE
2018 EST. 2018 EST. 2018 EST.
R SOU
TH
HOUSEHOLDS HOUSEHOLDS HOUSEHOLDS
1 MILE 3 MILES 5 MILES +
,
89
$30,619 $46,667 $51,533
2018 EST. 2018 EST. 2018 EST.
INCOME INCOME INCOME
Springville
Palmyra
Lake Shore F:\Projects\SL\Brady\Starbucks\Provo\DemoRings.mxd - 7/1/2019 lplant
312 East South Temple l Salt Lake City, UT 84111 l Office 801.456.8800 l www.mtnwest.com 9
PREPARED BY SCOTT BRADY sbrady@mtnwest.com direct 801.456.8804 View Profile 312 East South Temple l Salt Lake City, UT 84111 l Office 801.456.8800 l Fax 801.578.5500 l www.mtnwest.com
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