STARBUCKS COFFEE 1359 Garnet Avenue, Pacific Beach (San Diego), CA 92109 - InvestCore Commercial
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STARBUCKS COFFEE
1359 Garnet Avenue, Pacific Beach (San Diego), CA 92109
*Property Currently Under Contruction
Exclusively Offered By:
Michael Campbell Ed Colson, Jr. CCIM
619.546.0122 619.546.0121
Michael@InvestCoreCommercial.com Ed@InvestCoreCommercial.com
CA Lic #01843521 CA Lic #01382996 | TX Lic #635820
InvestCoreCommercial.com
OFFERING STATEMENT / DISCLAIMER
InvestCore Commercial presents this Offering which business or affairs of the Property or the Owner since contents to any other entity (except to outside advisors
has been prepared by InvestCore Commercial for use the date of preparation of the package. Analysis and retained by you, if necessary, for your determination of
by a limited number of parties and does not purport verification of the information contained in this package whether or not to make a proposal and from whom you
to provide a necessarily complete summary of the is solely the responsibility of the prospective purchaser. have obtained an agreement of confidentiality) without
Property or any of the documents related thereto, nor Additional information and an opportunity to inspect the the prior written authorization of Owner or InvestCore
does it purport to be all-inclusive or to contain all of Property will be made available upon written request to Commercial, (iv) not use the package or any of the
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nothing contained herein is, or shall be relied on as, a unless and until a written agreement for the purchase
promise or representation as to the future performance of the Property has been fully executed, delivered,
of the Property. Although the information contained and approved by Owner and its legal counsel, and any
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disclaim any and all liability for representations and which is a matter of public record or is provided in sources
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written or oral communication transmitted or made By accepting the package, you agree (i) to hold and
3910 W. Point Loma Blvd, Suite B
San Diego, CA 92110
available to the recipient. This Offering does not constitute treat it in the strictest confidence, (ii) not to photocopy or
a representation that there has been no change in the duplicate it, (iii) not to disclose the package or any of the
2 | Starbucks - Pacific Beach, CA
TABLE OF CONTENTS
INVESTMENT SUMMARY 4
Executive Summary
Investment Highlights
PROPERTY DESCRIPTION 7
Street Map
San Diego Colleges & Universities
Aerials
AREA OVERVIEW 12
About Pacific Beach
About San Diego
Demographics
3 | Stripes - San Antonio, TX
INVESTMENT SUMMARY
PACIFIC OCEAN
Executive Summary San Diego greets 30 million visitors a year
Investment Highlights
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SUBJECT
PROPERTY
4 | Starbucks - Pacific Beach, CA
INVESTMENT SUMMARY
EXECUTIVE SUMMARY
Starbucks Corporation, a Washington corporation
Tenants:
(NASDAQ: SBUX; S&P Rated “A-”)
1359 Garnet Avenue
Address:
Pacific Beach (San Diego), CA 92109
Building Size: ~1,535 SF
Land Size: ~9,374 SF
Year Built: 1979 / 2004 / 2015
Rent Commencement: March 1, 2004
Lease Expiration: February 28, 2025
Two (2) 5-year
Options:
options
Fee Simple NNN Land & Building. Landlord responsible to
Lease Type: maintain, repair and if necessary, replace the foundation,
structure and roof structure of the Building.
Rent Increases: See Rent Schedule
RENT SCHEDULE:
Term Annual Rent % Increase
March 1, 2015 – February 28, 2020 $125,656.32
March 1, 2020 – February 28, 2025 $136,249.44 8.43%
March 1, 2025 – February 28, 2030 (Option 1) $156,005.61 14.50%
March 1, 2030 – February 28, 2035 (Option 2) $177,845.70 14.00%
OFFERING TERMS
Price: $3,350,835
NOI: $125,656.32
Cap Rate: 3.75%
5 | Starbucks - Pacific Beach, CA
INVESTMENT SUMMARY
INVESTMENT HIGHLIGHTS
Rare Southern California Beach Community Investment Newly Renewed Lease
• The subject property is ideally located in the San Diego Beach community • Last year, Starbucks exercised a 10-year option even though they were only
of Pacific Beach and is one of only a few drive thru properties located along obligated to a 5-year options, showing their dedication to the site.
Garnet Avenue.
Corporately Guaranteed Long-Term Lease Recent Remodel
• The lease is guaranteed by Starbucks Corp., an investment grade tenant • Upon exercising the above mentioned lease extension, Starbucks
rated “A-” by Standard & Poor’s. remodeled the subject property at their expense showing further long term
• There are 9.5 years left on the current option period dedication to this location.
Well Located on Major Thoroughfare with High Pedestrian and Traffic Counts Strong Demographics
• The property benefits from its location along Garnet Avenue, the major • Starbucks benefits from the densely populated Pacific Beach with nearly
thoroughfare through Pacific Beach. 275,000 people in the 5-mile radius.
• Ideally located among a number of national restaurants and retailers. • High Average Household Incomes of $90,799, ideal demographics for
Located just 6 blocks from the beach, the property benefits from high Starbucks.
pedestrian traffic throughout the year.
6 | Starbucks - Pacific Beach, CA
PROPERTY DESCRIPTION Street Map San Diego Colleges & Universities Aerial 7 | Starbucks - Pacific Beach, CA
PROPERT Y DESCRIPTION STREET MAP 8 | Starbucks - Pacific Beach, CA
PROPERT Y DESCRIPTION
SAN DIEGO COLLEGES & UNIVERSITIES
33,735 Students
25,972 Students
34,254 Students
8,251 Students
3,480 Students
Pacific Beach is densely populated by a heavy student population from the 5 major colleges and
universities in San Diego. Ideal demographics for a Starbucks Coffee.
9 | Starbucks - Pacific Beach, CA
PROPERT Y DESCRIPTION
AERIAL
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CRYSTAL PIER ENUE
Less than 1 mile D AV
GRAN
from Starbucks
10 | Starbucks - Pacific Beach, CAPROPERT Y DESCRIPTION
AERIAL
PACIFIC BEACH
ELEMENTARY
SCHOOL PACIFIC BEACH
MIDDLE SCHOOL
SUBJECT
PROPERTY
PD
20.366 C
219
EN UE -
E T AV
,00
GARN
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D
,755 CP MISSION BAY MISSION BAY
E - 25
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HIGH SCHOOL GOLF COURSE
VENU
GRA ND A
DEMOGRAPHICS
PACIFIC OCEAN 1 Mile 3 Mile 5 Mile
Less than 1 mile Population 33,099 91,184 278,958
from Starbucks MISSION BAY MISSION BAY Avg. HH Income $92,072 $106,025 $97,417
Households 17,357 42,496 119,223
11 | Starbucks - Pacific Beach, CAAREA OVERVIEW
About Pacific Beach
About San Diego
Demographics
MISSION BEACH
CROWN POINT
MISSION BAY
GRE
SHA
M S
TRE
ET
- 20
,366
SUBJECT
PROPERTY
CPD
12 | Starbucks - Pacific Beach, CAAREA OVERVIEW
ABOUT PACIFIC BEACH
Pacific Beach in San Diego is a young In addition to the after hours scene, there to the Pacific Ocean. The boardwalk is
beach town with the attraction of the surf are various family-friendly restaurants lined with shops and restaurants, and it is
and sand by day and the lure of bars and and plenty of activities for families and always filled with beach cruisers, joggers
restaurants by night. Located south of those just looking for a quiet getaway. and skateboarders zooming along the
La Jolla and north of Mission Beach, this San Diego Pacific Beach has beachfront strip. Garnet Avenue is another attraction
San Diego beach has a popular nightlife property, from San Diego hotels to beach in Pacific Beach, which is packed with
scene from dancing to drinking craft houses, within walking distance of the boutiques providing everything from beach
beers, which attracts a college-aged and sand and sea. Keep an eye on the kids souvenirs to trendy clothing. Also at Garnet
young professionals crowd. San Diego playing on the beach from the ocean view Avenue, on Tuesdays from 2pm until
Pacific Beach hosts a variety of different decks or treat yourself to a massage at 6:30pm, a farmer’s market sets up, where
kinds of clubs and bars from the hip and the hotel spa. visitors can taste smoothie samples and
trendy JRDN Lounge and Raw Bar to the browse local photography. The San Diego
low-key dive bar atmosphere found at San Diego Pacific Beach is also the beach market sells local produce, cuisine
Cass Street Bar and Grill. ideal spot to catch some waves on your and arts and jewelry.
surfboard or bodyboard, while children
splash around in the water and build sand
castles on the beach. San Diego Pacific
Beach visitors are encouraged to try other
water sports popular at the beach such
as kayaking, sailing and paddle boarding.
As for some physical activity on dry land,
Pacific Beach has the Ocean Front Walk,
which is a boardwalk that stretches parallel
13 | Starbucks - Pacific Beach, CAAREA OVERVIEW
ABOUT SAN DIEGO
Located on the coast of the Pacific Ocean and San Diego are grouped together as
in Southern California, San Diego is widely an international metropolitan area. Many
known as “America’s Finest City.” Famous visitors make their way south to enjoy luxury
for its miles and miles of white-sand spas, beachfront resorts, golf courses,
beaches and amazing weather, the city multicultural festivals and celebrations,
offers an abundance of fun attractions for colorful neighborhoods, and the nightlife.
visitors of all ages.
San Diego’s economy primarily evolves are
Boasting a citywide population of more than military, tourism, research and manufacturing,
1.3 million and more than 3 million residents and biotechnology. San Diego has been
countywide, San Diego is California’s heavily involved in military and defense
second largest city and the United States’ since the days of World War II, and it
eighth largest. San Diego County is made currently hosts the largest naval fleet in the
up of 18 incorporate cities and towns along world. Tourism is also a major industry in
with other charismatic neighborhoods and the city. Annually, the city hosts more than
communities, such as Carlsbad, Coronado, 30 million visitors. The city is also home
Del Mar, Downtown San Diego’s Gaslamp to several major producers of wireless
Quarter, Point Loma, Chula Vista, Old Town, cellular technology, such as Qualcomm
La Jolla, and North Park. and LG Electronics. Because of UCSD and
other research institutions, biotechnology
Another attraction of San Diego is its & life science has made a large presence
immediacy to Mexico. Because they in the county. There are more than 400
share an international border, Tijuana biotechnology companies in the region alone.
14 | Starbucks - Pacific Beach, CAAREA OVERVIEW
Executive Summary
Starbucks - Pacific Beach, CA Prepared By Ed Colson Jr., CCIM
DEMOGRAPHICS 1359 Garnet Ave, San Diego, California, 92109 Latitude: 32.79874
Rings: 1, 3, 5 mile radii Longitude: -117.24528
1 mile 3 miles 5 miles
Population
2000 Population 31,686 87,927 264,160
2010 Population 32,076 88,208 267,880
2016 Population 33,099 91,184 278,958
2021 Population 34,518 95,231 291,965
2000-2010 Annual Rate 0.12% 0.03% 0.14%
2010-2016 Annual Rate 0.50% 0.53% 0.65%
2016-2021 Annual Rate 0.84% 0.87% 0.92%
2016 Male Population 54.4% 51.9% 51.2%
2016 Female Population 45.6% 48.1% 48.8%
2016 Median Age 31.1 35.8 35.6
In the identified area, the current year population is 278,958. In 2010, the Census count in the area was 267,880. The rate of change since
2010 was 0.65% annually. The five-year projection for the population in the area is 291,965 representing a change of 0.92% annually from
2016 to 2021. Currently, the population is 51.2% male and 48.8% female.
Median Age
The median age in this area is 31.1, compared to U.S. median age of 38.0.
Race and Ethnicity
2016 White Alone 85.3% 83.0% 73.4%
2016 Black Alone 1.3% 1.4% 2.7%
2016 American Indian/Alaska Native Alone 0.4% 0.4% 0.5%
2016 Asian Alone 3.8% 5.1% 11.2%
2016 Pacific Islander Alone 0.3% 0.3% 0.3%
2016 Other Race 4.6% 5.3% 6.8%
2016 Two or More Races 4.3% 4.7% 5.2%
2016 Hispanic Origin (Any Race) 13.3% 15.1% 17.9%
Persons of Hispanic origin represent 17.9% of the population in the identified area compared to 17.9% of the U.S. population. Persons of
Hispanic Origin may be of any race. The Diversity Index, which measures the probability that two people from the same area will be from
different race/ethnic groups, is 61.1 in the identified area, compared to 63.5 for the U.S. as a whole.
Households
2000 Households 17,195 42,590 116,822
2010 Households 17,078 41,743 116,173
2016 Total Households 17,357 42,496 119,223
2021 Total Households 17,986 44,092 124,189
2000-2010 Annual Rate -0.07% -0.20% -0.06%
2010-2016 Annual Rate 0.26% 0.29% 0.42%
2016-2021 Annual Rate 0.71% 0.74% 0.82%
2016 Average Household Size 1.89 2.13 2.26
The household count in this area has changed from 116,173 in 2010 to 119,223 in the current year, a change of 0.42% annually. The five-
year projection of households is 124,189, a change of 0.82% annually from the current year total. Average household size is currently 2.26,
compared to 2.23 in the year 2010. The number of families in the current year is 58,011 in the specified area.
15 | Starbucks - Pacific Beach, CAAREA OVERVIEW
Executive Summary
Starbucks - Pacific Beach, CA Prepared By Ed Colson Jr., CCIM
DEMOGRAPHICS 1359 Garnet Ave, San Diego, California, 92109 Latitude: 32.79874
Rings: 1, 3, 5 mile radii Longitude: -117.24528
1 mile 3 miles 5 miles
Median Household Income
2016 Median Household Income $67,594 $74,219 $67,851
2021 Median Household Income $76,671 $82,260 $77,658
2016-2021 Annual Rate 2.55% 2.08% 2.74%
Average Household Income
2016 Average Household Income $92,072 $106,025 $97,417
2021 Average Household Income $100,898 $115,849 $106,221
2016-2021 Annual Rate 1.85% 1.79% 1.75%
Per Capita Income
2016 Per Capita Income $48,165 $49,746 $42,356
2021 Per Capita Income $52,430 $53,958 $45,849
2016-2021 Annual Rate 1.71% 1.64% 1.60%
Households by Income
Current median household income is $67,851 in the area, compared to $54,149 for all U.S. households. Median household income is
projected to be $77,658 in five years, compared to $59,476 for all U.S. households
Current average household income is $97,417 in this area, compared to $77,008 for all U.S. households. Average household income is
projected to be $106,221 in five years, compared to $84,021 for all U.S. households
Current per capita income is $42,356 in the area, compared to the U.S. per capita income of $29,472. The per capita income is projected to
be $45,849 in five years, compared to $32,025 for all U.S. households
Housing
2000 Total Housing Units 18,397 45,658 123,383
2000 Owner Occupied Housing Units 4,536 19,465 56,060
2000 Renter Occupied Housing Units 12,659 23,125 60,763
2000 Vacant Housing Units 1,202 3,068 6,560
2010 Total Housing Units 18,753 45,955 125,786
2010 Owner Occupied Housing Units 4,240 18,224 53,709
2010 Renter Occupied Housing Units 12,838 23,519 62,464
2010 Vacant Housing Units 1,675 4,212 9,613
2016 Total Housing Units 19,173 47,095 129,810
2016 Owner Occupied Housing Units 4,046 17,879 52,961
2016 Renter Occupied Housing Units 13,311 24,616 66,262
2016 Vacant Housing Units 1,816 4,599 10,587
2021 Total Housing Units 19,881 48,889 135,153
2021 Owner Occupied Housing Units 4,122 18,388 54,571
2021 Renter Occupied Housing Units 13,865 25,703 69,618
2021 Vacant Housing Units 1,895 4,797 10,964
Currently, 40.8% of the 129,810 housing units in the area are owner occupied; 51.0%, renter occupied; and 8.2% are vacant. Currently, in
the U.S., 55.4% of the housing units in the area are owner occupied; 32.9% are renter occupied; and 11.7% are vacant. In 2010, there
were 125,786 housing units in the area - 42.7% owner occupied, 49.7% renter occupied, and 7.6% vacant. The annual rate of change in
housing units since 2010 is 1.41%. Median home value in the area is $631,325, compared to a median home value of $198,891 for the U.S.
In five years, median value is projected to change by 0.97% annually to $662,611.
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