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| Starbucks, Bakersfield, CA |
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| Bill Asher |
BAKERSFIELD, CA – Hanley
Investment Group Real Estate Advisors, a nationally-recognized real estate
brokerage and advisory firm specializing in retail property sales, announced the
firm has completed the sale of a brand-new construction single-tenant corporate
Starbucks with a drive-thru located in Bakersfield, Calif.
The purchase price of
$2.65 million represented a cap rate of 4.09 percent and $1,432 psf. According
to CoStar, this sale achieved a record low cap rate for a single-tenant
Starbucks in Bakersfield and a record high price per square foot in the city.
Hanley Investment Group
Executive Vice President Bill Asher
and Associate Jeff Lefko and
represented the seller, Evergreen Development. Spanning the last 42 years,
Evergreen is a national retail and multi-family development company with heavy
emphasis on developing projects in California, Colorado, Arizona and now Utah.
The buyer, a private
investor from Los Angeles, was represented by Joe Bolognese of Major Properties Real Estate in Los Angeles.
Built in 2017, the
1,850-square-foot building is situated in the southeast quadrant of Colony
Street and Panama Lane in Bakersfield on .81 acres.
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| Jeff Lefco |
The property is in close proximity to the 99
Freeway Panama Lane on/off ramp, benefitting from more than 128,000 cars per
day and nearby national and regional credit tenants including Walmart
Supercenter, Albertsons, Aldi, AutoZone, Carl’s Jr., Family Dollar, In-N-Out,
Jack in the Box, Lowe’s, O’Reilly Auto Parts, McDonald’s, Pizza Hut, Sleep
Train, Vallarta Supermarkets and Walgreens.
Traffic is also driven to
the area by the nearby Bakersfield Auto Mall, made up of 21 different major
auto dealerships. Additionally, there are multiple new housing developments
from builders Lennar, CalAtlantic and Legacy Homes in the surrounding area.
Lefko adds that there are
approximately 223,000 people with an average household income of nearly $62,000
within a five-mile radius of the property.
“We utilized our extensive
database to procure an all-cash 1031 exchange buyer prior to formally marketing
the property,” said Asher. “Additionally, we facilitated a successful pre-sale
strategy and closed escrow approximately one month prior to Starbucks formally
opening for business and paying rent.”
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| Joe Bolognese |
According to Asher,
“Starbucks was originally located at the northeast corner of Panama Lane and
Colony Street since September 2004, without a drive-thru. The new location
(with a drive-thru) is scheduled to formally open at the end of April and will
draw from an established customer base in the trade area for over 12 years.”
Asher commented, “Average
store sales are significantly greater in Starbucks locations that have a
drive-thru, which has created a goal for Starbucks to have drive-thrus in half
of its stores by 2020. By 2019, Starbucks expects to grow from $16 billion to
$30 billion in revenue, with 60 percent of all new locations including a
drive-thru.”
“Single-tenant Starbucks
properties continue to be one of the most sought-after triple-net investments
from private investors across the country,” said Asher. ”Corporate Starbucks
sites typically offer strong underlying real estate fundamentals combined with
a long-term corporate guaranteed lease and rental escalations, providing
investors with a secure income stream and rental escalations as a hedge against
inflation.”
For a complete copy of the company’s news release,
please contact:
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