The Boulder Group is pleased to exclusively market for sale a single tenant net leased Starbucks property located in a densely populated part of Chicago, Illinois. The 1,696 square foot retail building was developed in 2004 at a heavily trafficked signalized intersection. Starbucks is committed to this location as evidenced by their recent decision to extend the lease for an additional ten years. Starbucks is an investment grade rated company with a Standard and Poor’s rating of A-.
The Starbucks property is located at the signalized intersection of South Stony Island Avenue and East 71st Street approximately ten miles south of downtown Chicago. South Stony Island Avenue is a primary north-south thoroughfare with traffic counts in excess of 42,000 vehicles per day and is the only road with access to the Chicago Skyway Toll Road (Interstate 90) in Illinois. The property is located approximately one-half mile north from Interstate 90 and two miles east of Interstate 94, which experiences traffic counts in excess of 34,000 and 250,000 respectively. Additionally, there is a Metra train stop located across the street from the Starbucks property. Metra is the commuter rail division that serves the Chicago metropolitan area and over 80 million people per year. The Starbucks is located in a densely populated urban infill part of the city with over 250,000 people living within three miles and over 515,000 people living within five miles. The University of Chicago, one of the countries’ most prestigious universities and home to approximately 15,000 total students, is located ten blocks to the north of the Starbucks.
Starbucks is committed to this location as evidenced by their decision to recently extend the lease for an additional ten years. The closest Starbucks location to the subject property is over 2.5 miles away. Furthermore, the closest Starbucks location with a drive thru is located over 4.5 miles away. There is a Bank of America located adjacent to the Starbucks property. Other retailers in the immediate vicinity include Jewel-Osco, Family Dollar, PNC Bank, Fifth Third Bank, Walgreens, Save-A-Lot, and AutoZone.
There are 10 years remaining on the recently extended Starbucks lease that expires July 31, 2024. The lease features an 8.3% rental escalation in the primary term and 7.5% in each renewal option period. There are four 5-year renewal options remaining. Starbucks is an investment grade rated company (S&P: A-) and is publicly traded (NASDAQ: SBUX) with a market capitalization in excess of $53 billion.