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Starbucks Ground Lease, Morgan Hill, CA

Starbucks Ground Lease

Morgan Hill, CA

Price $4,616,000
Cap Rate 3.25%
NOI $150,000
Lease Term 20 Years
Lease Type NNN Ground Lease, With Tenant Responsible For All Taxes, Insurance, Maintenance, And Repair, Including Roof, Structure, And Parking Lot
Rental Increases 10% Rental Increases Every Five (5) Years
Year Built 2022
Building Size Contact For Details
Lot Size 1.0 Acres (43,546 SF)
Status Available
Lead Broker Information Vincent Aicale
Executive Managing Director
415.690.5522
vince.aicale@cushwake.com
CA RE License #01728696

Ryan Forsyth
Executive Managing Director
415.413.3005
ryan.forsyth@cushwake.com
CA RE License #01716551

Michael T. Yuras, CCIM
Vice Chairman
415.481.0788
michael.yuras@cushwake.com
CA RE License #01823291

Scott Crowle
Executive Managing Director
415.604.4288
scott.crowle@cushwake.com
CA RE License #01318288

Investment Highlights

NEW 20-YEAR NNN GROUND LEASE WITH SCHEDULED RENTAL INCREASES TO INVESTMENT-GRADE TENANT
» 20-year corporate NNN ground lease to Starbucks Corporation
» 10% fixed rental increases every five years in the initial term and option periods, providing a hedge against inflation
» Investment grade tenant, rated “BBB+” by Standard & Poor’s
» Minimal landlord management, attractive for both local and out-of-area investors
» New 2022 construction featuring latest Starbucks prototype and a drive-thru for added customer convenience

HIGH-VISIBILITY LOCATION IN BRAND NEW EVERGREEN VILLAGE MIXED-USE DEVELOPMENT
» Located in Evergreen Village, a brand new 20-acre mixed-use center currently zoned for retail stores, restaurants, professional offices, medical use establishments, and more
» High-traffic location along Cochrane Road (34,872 ADT), significantly increasing traffic to the site
» Projected 12 percent AHI increase within a one-mile radius of the site in the next five years, poising Evergreen Village for significant growth
» Over 49,000 vehicles per day at the intersection of Cochrane Road and Butterfield Boulevard, increasing visibility to the property (busiest intersection in Morgan Hill)
» Convenient access to U.S. Route 101, a major north-south U.S. thoroughfare which experiences a high traffic count of 147,100 vehicles per day

LOCATED IN DENSELY POPULATED AND AFFLUENT BAY AREA RETAIL CORRIDOR
» $173,359 average household income within a five-mile radius of the location
» Population of 55,034 within five miles of the property
» Located near the only Walmart Supercenter location within a 15-minute drive of the site, increasing traffic to the property
» Irreplaceable infill location that is walking distance from a strong mix of national retailers, including In-N-Out Burger, McDonald’s, Hobby Lobby, Chipotle Mexican Grill, Panda Express, Denny’s, 7-Eleven, and many more
» Within three miles of four high schools, increasing lunch-time traffic to the site (combined enrollment of 2,717 students)


Property Description

This Starbucks is conveniently located along Cochrane Road, which experiences a high traffic count of 34,872 vehicles per day directly in front of the property. The location is strategically placed within Evergreen Village, a brand new 20-acre mixed-use center currently zoned for retail stores, restaurants, professional offices, medical use establishments, and more. Evergreen Village is located at the intersection of Cochrane Road and Butterfield Boulevard, which has a combined traffic count of over 49,000 ADT. The property is primed to grow along with the surrounding area, with a projected 12 percent average annual household income increase within one mile of Evergreen Village in the next five years. The location also maintains convenient access to U.S. Route 101, a major north-south U.S. thoroughfare, which experiences a traffic count of 147,100 vehicles per day.

Visibility to the property is increased by the site’s centralized location in a densely populated and affluent Bay Area retail corridor. The average household income within five miles of the property sits at a robust $173,359, with 55,034 residents living within that same five-mile radius. The property is located near the only Walmart Supercenter location within a 15-minute drive of the site, increasing traffic to the property. The site maintains an irreplaceable infill location that is walking distance from a strong mix of national retailers, including In-N-Out Burger, McDonald’s, Hobby Lobby, Chipotle Mexican Grill, Panda Express, Denny’s, 7-Eleven, and many more. The property also resides within three miles of four high schools (combined enrollment of 2,700+ students), increasing lunch-time traffic to the site.

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