Anaheim, Calif. (October 31, 2017) – SRS Real Estate Partners, the largest retail focused real estate brokerage and advisory firm in North America specializing in property sales, leasing, and tenant representation, announced today that senior vice president, Michael Walseth of SRS Real Estate Partners’ National Net Lease Group, represented the seller in the sale of a brand new single-tenant Starbucks ground lease in the City of Anaheim, Calif. The purchase price represented a cap rate of 3.5 percent, the lowest recorded closing cap rate for a new construction drive-thru only Starbucks in the U.S. on record, according to CoStar.
The seller, a Los Angeles based real estate investment and development firm, was represented by Walseth. The buyer, a local private 1031 exchange buyer, was represented by Jason Flashman of Peak Commercial.
Built in 2017 on 0.34 acres, the 890-square-foot drive-thru property is located near the signalized intersection of E. Ball Road and S. State College Boulevard, one of the busiest intersections in Anaheim. Starbucks is situated as part of a shopping center that has an extremely high volume In-N-Out Burger adjacent to the Starbucks. According to Walseth, the property benefits from synergy with the In–N-Out as well as excellent exposure at the signalized hard corner intersection of E. Ball Road and S. State College Boulevard with over 65,000 vehicles passing by each day. There are more than 238,900 potential customers residing within three miles of the property with a household income of over $73,000.
According to Walseth the new ground lease is corporate guaranteed by Starbucks Corporation, a publicly-traded company (NYSE:SBUX) and an investment grade-rated company with a Standard & Poor’s rating of A-. The new construction is the company’s latest prototype store drive-thru only format. Starbucks is the world’s leading coffee company and coffeehouse chain with approximately 26,000 locations in over 60 countries.
“Starbucks is a world-class brand and continues to be one of the most sought-after single-tenant retail investments in today’s market,” said Walseth. “We continue to see Starbucks’ trade at record low cap rates. Investors recognize the value of drive through entitlements, especially in infill, high barrier to entry markets.”
“We procured multiple offers while the property was still early in the development stage and closed upon Starbucks’ occupancy in the building. It is a prime example of the incredible demand for Starbucks. This sale affirms the continued strong demand for corporate backed single-tenant triple net investments in a dense, supply-constrained environment,” said Walseth.
About SRS Real Estate Partners
SRS Real Estate Partners is the largest real estate company in the U.S. exclusively dedicated to retail services. Headquartered in Dallas with more than 20 offices worldwide, SRS’ strong reach and international presence provide the company with unparalleled knowledge both globally and domestically. As a result, clients of SRS have a competitive edge through a full range of offerings including brokerage services, corporate services, development services, and investment services. Since its inception in 1986, SRS has built a strong foundation in the retail real estate world and grown into one of the industry’s most influential and respected leaders.Our success is measured in the achievement of our clients’ objectives, satisfaction and trust. For more information, please visit srsre.com.