Investment Highlights
Investment Grade Tenant - NASDAQ: SBUX (S&P: BBB+); 10- Year NN Lease
The Asset is a Drive-Thru Only Location, which are Typically more Profitable Locations with Lower Overhead Costs
The Property is 8 Miles from the Cincinnati Northern Kentucky International Airport Passenger Terminal, which saw a 15% Rise in Travelers in 2023
NN Lease Features Starbucks Self-Maintain Language, Making a More Favorable Lease for the Landlord
Less than a Mile from the Industrial Park Employee Entrance of CVG Airport, which Houses Amazon Air's Mega Hub and DHL Express's Global Super Hub
Burlington, in Boone County, Anticipates Substantial Population and Job Growth, with Estimates Projecting an Increase of over 84,000 Residents
Executive Summary
SHOP Companies is pleased to offer for sale to qualified investors the opportunity to purchase a brand-new, 10-year net leased Starbucks located in Burlington, Kentucky ("the property"). The lease includes 7.5% rental escalations every five years and in each of the four (4), five year option periods. There is no early termination option in this lease.The property is a new 1,311 SF drive-thru-only Starbucks, reflecting the trend towards more profitable operations with lower overhead. The property is located less than a mile from the Industrial Park employee entrance of CVG Airport, which Houses Amazon Air's Mega Hub and DHL Express' Global Super Hub, contributing significantly to the local economy with a $9.3 billion annual impact. CVG serves as the 6th largest cargo airport in North America and the 12th largest in the world, according to a fall 2023 fact sheet released by CVG. Additionally, the airport has experienced a notable 15% increase in travelers in 2023, reaching approximately 8.7 million.The property sits within an active retail corridor surrounded by national tenants, including Kroger, Chipotle, Wendy's, Walgreens, Chase Bank, Arby's, and more. Positioned off Kentucky Route 18/Burlington Pike (33,297 VPD), the site benefits from high traffic volumes. Burlington, in Boone County, anticipates substantial population and job growth, with estimates projecting an increase of over 84,000 residents and 64,000 more jobs by 2060. The property is part of the Greater Cincinnati Metropolitan Statistical Area (MSA), renowned for its concentration of Fortune 500 headquarters, and extensive labor pool exceeding 1.1 million.Starbucks is the largest coffee retailer in the world, with over 37,000 locations in 80 countries. On November 2, 2023, Starbucks announced an 11% rise in quarterly revenue to $9.4B and a 39% increase in net income to $1.2B for July-September, crushing Wall Street expectations and leading to a 10% jump in stock price.
