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204 N. Water St., Burnet, TX 78611 (Austin MSA)
STARBUCKS (S&P BBB+ RATING)
$2,038,850 | 5.15% CAP
10 Year Net Lease with No Early Termination
New Construction in Strong Retail Trade Area
10% Rental Increases in Primary Term and Options
High Traffic Location (+45,000 VPD)
Within 1-Hour from Downtown Austin, TX
Starbucks Corporation is an American coffee company andcoffeehouse chain. As of 2019, the company operates over
30,000 locations worldwide with a revenue ofapproximately 26.51 billion dollars.
2 | SECURE NET LEASE
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INVESTMENT OVERVIEW
$2,038,850| 5.15%CAP
STARBUCKS | BURNET, TEXAS
CONTACT FOR DETAILS
EDWARD BENTONVICE PRESIDENT(713) [email protected]
This information has been secured from sourceswe believe to be reliable but we make norepresentations or warranties, expressed or implied,as to the accuracy of the information. Buyer mustverify the information and bears all risk for anyinaccuracies.
*LL responsible for roof, structure and parking lot. 10 Year Roof Warranty.
New construction Starbucks property with drive thru: featuring a new 10 year netlease with no early termination clause and 10% rental increases every five years.
Minimal landlord responsibilities: corporate net lease with new 10 year roof warranty.Landlord responsible for roof structure and parking lot.
Strong retail trade area next door to McDonald's and surrounded by national retailersincluding; HEB Grocery, Walgreen's, Dollar General, Whataburger, Domino's Pizza andmany others.
Lease guaranteed by Starbucks Corporation: S&P Rated BBB+ | Ranked #121 on theFortune 500 list | Over 26,000 locations globally.
High Traffic Location with over 45,000 vehicles per day at the intersection of N. WaterSt. & Buchanan Dr.
Healthy income demographics with average household incomes of $61,573, $59,409and $62,608 within a 1, 3 and 5 mile radius respectively.
Prime Texas Hill Country location with close proximity to Lake Buchanan, HorseshoeBay, Lake Travis and Balcones Canyonlands National Wildlife Refuge. 1-mile fromBurnet Municipal Airport.
SECURE NET LEASE | 3
$105,000
2020
±2,252 SF
100%
±0.99 ACRES
CORPORATE NET
NOI
YR BUILT
BUILDING AREA
OCCUPANCY
LAND AREA
LEASE TYPE
TENANT OVERVIEW
STARBUCKS (starbucks.com)
TOTAL LOCATIONS
Starbucks Corporation is an international coffee and coffeehouse chain based inSeattle, Washington. Starbucks is the largest coffeehouse company in the world.Starbucks sells drip brewed coffee, espresso-based hot drinks, other hot and colddrinks, snacks, and items such as mugs and coffee beans. Many of the company'sproducts are seasonal or specific to the locality of the store. Starbucks retail storesare located in high-traffic, high-visibility locations. Its stores are located in or near avariety of settings, including downtown and suburban retail centers, office buildingsand university campuses. In the 1990's, Starbucks was opening a new store everyworkday, a pace that continued in to the 2000's. In fiscal 2019, the company reportedan increase in net revenues of 7% and global comparable store sales by 5% over theprevious year.
STARBUCKS | BURNET, TEXAS
$26.51BREVENUE
30,000
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4 | SECURE NET LEASE
LESSEE: STARBUCKS CORPORATION
BBB+CREDIT RATING
IN THE NEWSSTARBUCKS | BURNET, TEXAS
CLICK HERE TO READ MORE
THE PURSUIT OF DOING GOODAugust 12, 2019 (Starbucks Stories & News)
From the first time Starbucks opened its doors in Seattle’s Pike Place Market in 1971, we have been dedicatedto exceptional coffee and customer service – and something more.
It started with our early travels to the places where our coffee is grown, understanding that our future isinextricably tied to the futures of farmers and their families. We nurtured personal relationships and built aglobal network of support to create a new way to produce coffee: one that is sustainable, transparent and goodfor people and the planet. As the threats of climate change have grown, we have been working to help coffee
farms adapt and find innovative solutions in how we build and operate our stores, while reducing theenvironmental impact of our cups, straws and lids.
Our stores are often the heart of a neighborhood, and we strive to make each one a welcoming and inclusiveThird Place. As we have grown, so too has our opportunity to make a positive impact, from alleviating hungerthrough our food donation program to making investments in local partnerships and coffee- and tea-origincommunities through The Starbucks Foundation.
Stitching all these efforts together is a common thread – a green thread – one that is woven in the fabric of ourcompany by the more than 300,000 men and women who proudly wear the green apron. We are dedicated tomaking our partners proud, providing pay equity and investing in their success. And we are working to hireveterans and military spouses, refugees, Opportunity Youth and those formerly incarcerated, and helping thembuild their futures once they are with us.
As it has been from the beginning, our purpose goes far beyond profit. We believe in the pursuit of doing good.
Each year since 2001, Starbucks has reported on its efforts to make a positive impact in the communitiesit serves.
SECURE NET LEASE | 5
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LESSEE Starbucks Corporation, a Washington corporation
INITIAL LEASE TERM 10-Years, Plus (4), 5-Year Options to Extend
PROJECTED RENT COMMENCEMENT Early April 2020
PROJECTED LEASE EXPIRATION Early April 2030
LEASE TYPE Corporate Net Lease
RENT INCREASES 10% Every 5 Years, In Primary Term & Options
ANNUAL RENT YRS 1-5 $105,000.00
ANNUAL RENT YRS 6-10 $115,500.00
OPTION 1 $127,050.00
OPTION 2 $139,755.00
OPTION 3 $153,730.50
OPTION 4 $169,103.55
LEASE OVERVIEWSTARBUCKS | BURNET, TEXAS
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed orimplied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
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SECURE NET LEASE | 7
BURNETMIDDLE SCHOOL
(717 STUDENTS)
R J RICHEYELEMENTARY SCHOOL
(559 STUDENTS)
QUESTHIGH SCHOOL(24 STUDENTS)
BURNETMUNICIPAL AIRPORT
SHADY GROVEELEMENTARY SCHOOL
(544 STUDENTS)
BAYLOR SCOTT & WHITE CLINIC -BURNET(46 BEDS)
SECURE NET LEASE | 7
SITE OVERVIEWSTARBUCKS | BURNET, TEXAS
NEIGHBORING RETAILERS
2020
±2,252 SF
±0.99 ACRES
YR BUILT
BUILDING AREA
LAND AREA
McDonald's Walgreens
Domino's Pizza Bealls
Dollar General H-E-B
NAPA True Value Hardware
Sonic Dairy Queen Store
O'Reilly Auto Parts Pizza Hut
Subway Whataburger
Captain D's Chicken Express
Burger King Wells Fargo
U-Haul Re/Max
This information has been secured from sources we believeto be reliable but we make no representations or warranties,expressed or implied, as to the accuracy of the information.Buyer must verify the information and bears all risk for anyinaccuracies.
8 | SECURE NET LEASE
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BRIERSTREE
T
NWEST
STREET
NWATER
STREET
PYLON SIGN
8 | SECURE NET LEASE
Panda Restaurant Group (1,300) Shop Lc Global Inc. (525) Home Depot U.S.A. Inc. (200)
Accentcare, Inc. (894) Martin-Decker Totco, Inc. (400) Texas Department of Criminal Justice (146)
DLS Enterprises, Inc. (800) Horseshoe Bay Resort Inc. (400) G&R Electrical Construction, Inc. (200)
Ets-Lindgren L.P. (650) Welltowner Om Group LLC (390) Certified Tree Group, LLC (150)
American Eagle Protective Services Corporation (600) Zebra Technologies Corporation (383) D&W Painting, Inc. (150)
LOCATION OVERVIEW
ECONOMIC DRIVERS (# of Employees in Burnet)
STARBUCKS | BURNET, TEXAS
SECURE NET LEASE | 9
DEMOGRAPHICS 1-MILE 3-MILE 5-MILE
POPULATION 4,862 7,424 10,010
HOUSEHOLDS 1,675 2,677 3,764
AVG. HH INCOME $61,573 $59,409 $62,608
TOTAL HH EXPENDITURE $83.93 M $130.99 M $191.16 M
VIEW MAP
SECURE NET LEASE | 9
Burnet, Texas is nestled in the heart of Texas Hill Country, just 50 miles northwestof Austin at the junction of State Highways 281 and 29 (30,936 VPD). Burnet has acurrent population of 7,045, located near the Highland Lakes and boasts a variety
of recreational activities such as golfing, boating, fishing and camping. In additionto the Highland Lakes, attractions in the Burnet area include Longhorn Cavern, InksLake State Park, Historic Burnet Square and Hamilton Creek Park. While tourismplays a large role in Burnet's economy, agriculture, mining, manufacturing andhealthcare are also important industries in the region. The Burnet MunicipalAirport (143 acres) is located less than a mile away from Starbucks withapproximately 40,000 aircraft operations annually. Located near the Texas capital
of Austin, the city is currently ranked 11th most populous city in the United States.In addition, Austin is the fastest growing large city in the United States and thesecond most populous state capital. The proliferation of technology companieshas led to the region's nickname, " The Silicon Hills," and spurred the developmentthat greatly expanded the city. The area is home to many companies, including theheadquarters of four Fortune 500 corporations: Whole Foods Market, FreescaleSemiconductor, Forestar Group and Dell. The city is also home to The Universityof Texas at Austin, the flagship institute of the University of Texas System withover 50,000 students and over 24,000 faculty and staff.
LOCATION OVERVIEWSTARBUCKS | BURNET, TEXAS
2.7%2.7% JOB MARKETINCREASE OVERPREVIOUS YEAR
#1AUSTIN THE #1PLACE TO LIVE(2017, 2018 - U.S.NEWS)
The hill country has emerged as the center of Texas wine industry andthe region’s economy is one the fastest growing in the United States.
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TEXASBURNET
2.17MPOPULATION
$76,925MEDIAN HOUSEHOLD INCOME
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IN THE NEWSSTARBUCKS | BURNET, TEXAS
IN THE NEWS
CLICK HERE TO READ MORECLICK HERE TO READ MORE
SMALL TOWN ALLURE SPURS SUBURBANGROWTH IN CENTRAL TEXAS, CENSUS DATASHOWS
BOOMING AUSTIN TOPPLES REST OF TEXAS TOBECOME A TOP ECONOMIC POWERHOUSE INU.S.
Mary Huber & Shonda Novak , May 23, 2019 (Statesman) John Egan, June 22, 2018 (Culture Map,Austin)
Bartlett, a 58-year-old technology executive, said he became familiar with thearea while commuting for two years to Austin from Atlanta, where the twocurrently live. Bartlett said he and Lane “love the small-town, quaint feeling” ofNew Braunfels and Gruene, the historic shopping, dining and entertainmentdistrict by the Guadalupe River. He’s also a fan of Willie Nelson, fly-fishing andthe Gristmill restaurant, next to the legendary Gruene Hall.
“Nothing goes better with a cold beer than barbecue,” he said.
The scenic Hill Country beauty and other attractions drawing Bartlett and Laneto New Braunfels have inspired an influx of other newcomers, too. NewBraunfels ranked second in growth last year among U.S. cities with a populationof 50,000 or more, according to U.S. Census Bureau estimates releasedThursday. New Braunfels’ population grew at a rate of 7.2% from July 2017 toJuly 2018, the figures show.
Among the top 15 cities with the highest growth rate, about half were in Texas,including two Austin-area suburbs in Williamson County. Georgetown came inat No. 7, with an annual growth rate of 5.2%, and Round Rock was No. 15 andgrew by 4.3%.
I think its affordability, but it is also lifestyle that is drawing people tooutlying areas.
The analysis shows the San Jose, California, metro area — better known asSilicon Valley — ranks as the top economy among the country’s 40 largestmetro areas, followed in second place by the San Francisco metro area, itsnext-door neighbor. Coming in at No. 3 is the Austin metro area.
Business Insider says Austin had the second highest rate of job growth amongthe 40 largest metro areas, with employment rising 3.7 percent betweenFebruary 2017 and February 2018. The region’s February 2018 unemployment
rate of 3 percent was tied for third lowest, and its 4.9 percent growth rate forGDP (a key measure of economic output) was the third highest in 2016. WilliamMellor, vice president of Austin-based economic development consulting firmAngelouEconomics, says he views the Austin area as being No. 2 in therankings, since the San Francisco and San Jose metros are essentially lumpedtogether as one giant Silicon Valley.
Mellor says the Austin area is benefiting economically from an exodus ofbusinesses and people from high-cost Northern California.“Austin is stillrelatively affordable compared with Silicon Valley, both in terms of cost of livingas well as the tax and operating environment,” he says.
The San Francisco Bay Area may be the economic king of America, butAustin is next in line to the economic throne.
AUSTIN-ROUND ROCK MSASTARBUCKS | BURNET, TEXAS
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SXSW CONFERENCE& FESTIVAL
$350.6 Million in Annual Revenue for the cityof Austin417,400 Attendees Annually
50,950 StudentsRanked #8 BestColleges forBusiness in America
18,000 Seating CapacityHome of the San Antonio FC
TOYOTA FIELD
METRO STATISTICS
TOTAL POPULATION 2.17M
GDP $149B
NATIONAL ECONOMY RANKING 15
FORTUNE 500 COMPANIES 4
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Texas law requires all real estate licensees to give the following information aboutbrokerage services to prospective buyers, tenants, sellers and landlords.
INFORMATION ABOUT BROKERAGE SERVICES
Before working with a real estate broker, you should know that the duties of a brokerdepend on whom the broker represents. If you are a prospective seller or landlord(owner) or a prospective buyer or tenant (buyer), you should know that the brokerwho lists the property for sale or lease is the owner’s agent. A broker who acts as asubagent represents the owner in cooperation with the listing broker. A broker whoacts as a buyer’s agent represents the buyer. A broker may act as an intermediarybetween the parties if the parties’ consent in writing. A broker can assist you inlocating a property, preparing a contract or lease, or obtaining financing withoutrepresenting you. A broker is obligated by law to treat you honestly.
IF THE BROKER REPRESENTS THE OWNER:
The broker becomes the owner’s agent by entering into an agreement with theowner, usually through a written – listing agreement, or by agreeing to act as asubagent by accepting an offer of subagency from the listing broker. A subagentmay work in a different real estate office. A listing broker or subagent can assist thebuyer but does not represent the buyer and must place the interests of the ownerfirst. The buyer should not tell the owner’s agent anything the buyer would not wantthe owner to know because an owner’s agent must disclose to the owner anymaterial information known to the agent.
IF THE BROKER REPRESENTS THE BUYER:
The broker becomes the buyer’s agent by entering into an agreement to representthe buyer, usually through a written buyer representation agreement. A buyer’s agentcan assist the owner but does not represent the owner and must place the interests
of the buyer first. The owner should not tell a buyer’s agent anything the ownerwould not want the buyer to know because a buyer’s agent must disclose to thebuyer any material information known to the agent.
IF THE BROKER ACTS AS AN INTERMEDIARY:
A broker may act as an intermediary between the parties if the broker complies withThe Texas Real Estate License Act. The broker must obtain the written consent ofeach party to the transaction to act as an intermediary. The written consent muststate who will pay the broker and, in conspicuous bold or underlined print, set forththe broker’s obligations as an intermediary. The broker is required to treat each partyhonestly and fairly and to comply with The Texas Real Estate License Act. A brokerwho acts as an intermediary in a transaction:
▷ shall treat all parties honestly;
▷ may not disclose that the owner will accept a price less than the asking pricesubmitted in a written offer unless authorized in writing to do so by the owner;
▷ may not disclose that the buyer will pay a price greater than the price submittedin a written offer unless authorized in writing to do so by the buyer; and
▷ may not disclose any confidential information or any information that a partspecifically instructs the broker in writing not to disclose unless authorized inwriting to disclose the information or required to do so by The Texas RealEstate License Act or a court order or if the information materially relates to thecondition of the property.
With the parties’ consent, a broker acting as an intermediary between the partiesmay appoint a person who is licensed under The Texas Real Estate License Act andassociated with the broker to communicate with and carry out instructions of oneparty and another person who is licensed under that Act and associated with thebroker to communicate with and carry out instructions of the other party.
TEXAS DISCLAIMERSTARBUCKS | BURNET, TEXAS
