STARBUCKS - LoopNet...Starbucks is currently under construction and is estimated to be ... Starbucks is publically traded on the NASDAQ under the ticker symbol ‘SBUX’ and ... FINANCIAL

Representative Photo

OFFERING MEMORANDUM

CREDIT RATING A2 AMoody's S&P

STARBUCKS

l Brand New Ten Year Leasel S&P Rating “A” (Stable Outlook)l Outparcel to Publixl Home to University of Central Florida (64,318 Enrolled Students)

STARBUCKS (Freestanding)10330 Curry Ford RoadOrlando, FL 32825

Marcus & Millichap is pleased to offer for purchase a 2,200+/- square foot freestanding, fee simple Starbucks investment located at 10330 Curry Ford Road, east of downtown Orlando, FL. The subject property is strategically positioned on a 0.73 +/- outparcel to a Publix anchored Shopping Center. The site benefits from multiple points of ingress and egress as well as superior visibility along Curry Ford Road. Starbucks is currently under construction and is estimated to be delivered in October 2017.

Starbucks is located within a dense residential corridor supported by several nearby national retailers. The estimated population within a 3-mile radius of the subject property is 68,769 and 217,638 within a 5-mile radius of the subject property. Within 1-Mile of Starbucks, the average household income is $85,379.

In addition to several nearby traffic generators, there are 2,497 households within 1-mile which represents a 190% growth since 2000. The population is estimated to increase another 21.92% over the next five years. Some of the surrounding retailers include Publix, Target, The Home Depot, Lowe’s Home Improvement, Kohl’s, Dick’s Sporting Goods, as well as many others. Starbucks is ideally positioned approximately 7.6 miles south of The University of Central Florida. UCF’s student enrollment is comprised of over 64,318 students spread over 1,893 acres throughout the city of Orlando.

This investment is accompanied by a corporately guaranteed lease by Starbucks Corporation. The primary term of the lease is for a period of 10 years with four (4),

INVESTMENT HIGHLIGHTS■ Brand New Freestanding Starbucks with Drive-Thru

■ 10 Year Corporately Guaranteed Lease

■ Investment Grade Credit ♦ S&P ‘A’ Rating

■ Outparcel to Publix anchored shopping center

■ Brand New Construction ♦ Projected Delivery October 2017

■ Ten Percent Rent Escalations in Year Six and Option Periods

■ Curry Ford Hwy | ADTC of 25,500 +/-

■ Home to University of Central Florida ♦ 64,318 Students Enrolled

five-year renewal options. The base term contains a 10% rent escalation following year five of the lease and contains 10% rent escalations in each option period. Starbucks is publically traded on the NASDAQ under the ticker symbol ‘SBUX’ and was just upgraded to an investment grade bond rating of ‘A’ by Standard and Poor’s. In 2016, Starbucks reported annual revenue of $21.315 billion.

This investment opportunity is offered at a purchase price of $2,720,000 which reflects a 5.00% cap rate. Please refer to the Pricing and Financial Analysis section for a full schedule of rents and unlevered return growth chart.

EXECUTIVE SUMMARY1

Investment Highlights

PROPERTY DETAILSSubject Name Starbucks

Subject Address 10330 Curry Ford RoadSubject City, State, Zip Orlando, FL 32825Price $2,720,000.00Rentable Square Feet 2,200Price/SF $1,236.36 CAP Rate 5.00%Year Built 2017Lot Size 0.72 AcresType of Ownership Fee Simple

ANNUALIZED OPERATING DATARent Increases Annual MonthlyLease Years 1-5 $136,000.00 $11,333.33

Lease Years 6-10 $149,600.00 $12,466.67

Option 1 (Years 11-15) $164,560.00 $13,713.33

Option 2 (Years 16-20) $181,016.00 $15,084.67

Option 3 (Years 21-25) $199,117.60 $16,593.13

Option 4 (Years 26-30) $219,029.36 $18,252.45

Net Operating Income (2017) $136,000.00

Return Growth Chart (Unlevered)

5.00%

5.50%

6.05%

6.66%

7.32%

8.05%

Unl

ever

ed R

etur

n

Lease Year

1-5 6-10 Option 1 (Year 11-15) Option 2 (Year 16-20) Option 3 (Year 21-25) Option 4 (Year 26-30)

Investment Highlights

EXECUTIVE SUMMARY2

COMPETITIVE PROPERTY SET

COMPETITIVE PROPERTY SET3

Investment Highlights6.1 Tenant’s Obligations. Subject to the provisions Section 6.2 and 6.3 and Arti-cles 9 and 15, Tenant, at Tenant’s expense, shall keep the non-structural portions of the Building, including the Premises in good order and repair, including the day to day maintenance of all plumbing, HVAC, electrical and lighting facilities and equip-ment within the Premises and exclusively serving the Premises, and the store front, doors, and plate glass of the Building and Premises. Tenant shall also be responsi-ble for the day-to-day maintenance and repair (but not replacement) of all parking areas, driveways, sidewalks, landscaping, and drainage systems, and the outdoor seating area on the Property and all utility systems (including mechanical, electrical, and HVAC systems) and plumbing systems.

6.2 Landlord’s Obligations. Landlord shall, at its sole cost and expenses, main-tain, repair, and make replacements to the Premises, the Building, and the Property (including the Common Areas, if any) that are necessary to maintain the Building and the Property in a condition comparable to other first-class buildings in the Or-lando, Florida metropolitan area. Such repairs, replacements, and maintenance shall include, without limitation: (a) the upkeep of the roof, roof membrane, and roof systems (gutters, downspouts, and the like), foundation, exterior walls, interior structural walls, and all structural components of the Premises, the Building, and the Property; and (b) the capital maintenance, repair and replacement of all parking areas (including resealing, repaving and repainting parking areas), lighting poles, driveways, sidewalks, landscaping and drainage systems on the Property, an all utility systems (including mechanical, electrical, and HVAC systems) and plumbing systems which serve the Building and/or the Property as a whole and are located outside the Building.

7.1 Tenant’s Insurance. Tenant shall obtain and keep in full force and effect the following insurance which may be provided under blanket insurance policies cov-ering other properties as well as the Premises and shall be maintained with an insurance company with an A.M. Best Company (“Best’s”) rating of at least A- and a Best’s financial performance rating of at least VII.

7.2. Landlord Insurance. As of the Effective Date through the expiration or earlier termination of the Term of this Lease, Landlord shall obtain and keep in full force and effect, the following insurance (“Landlord’s Insurance”) from and insurance company with a Best’s rating of at least A- and a Best’s financial performance rating

of at least VII. For each Lease Year (or portion thereof) during the Term, Tenant shall pay Landlord the actual premium costs for Landlord’s Insurance within thirty (30) days after Tenant’s receipt of Landlord’s invoice and the applicable premium bills thereof.

10.3. Personal Property Tax. Tenant shall pay, prior to delinquency, all person-al property taxes assessed against Tenant directly and applicable to its personal property located in the Premises.

10.4. Rent Tax. Tenant shall pay all taxes assessed against this Lease of the Base Rent payable hereunder (including, without limitation, any sales tax, rent tax, or excise tax levied by any federal or state government or any political subdivision thereof).

12. Tenants Prop Rata Share of Common Area Operating Expenses, Insurance and Taxes. Because the Property is “self-contained” and Tenant is maintaining the Property at its own expense in accordance with Section 6.1, Tenant shall not be ob-ligated to pay any common area expense, except with respect to the Annual CAM Fee described below. Tenant shall pay Landlord on the Rent Commencement Date and the first day of each Lease Year thereafter throughout the Term, the sum of Five Hundred Dollars ($500.00) the “Annual CAM Fee”. After the first five (5) Leases Years, the Annual CAM Fee shall increase by ten percent (10%) at the beginning of each five (5) Lease Year period. For example, the Annual CAM Fee for Lease Years 6-10 shall be $550 and for Lease Years 11-15 shall be $605, etc.

13. Assignment and Subletting. Tenant may sublet all or any portion of the Prem-ises or assign this Lease without Landlord’s consent. After any assignment of this Lease or sublease by Tenant, Tenant shall remain secondarily liable only for per-formance of monetary covenants under this Lease (including any non-monetary covenants that have been reduced to a monetary amount by Landlord).

26. Continuing Right of First Offer. Tenant shall have the option, but not the obli-gation, to exercise a right of first offer to purchase the Property from Landlord (the “Right of First Offer”). Tenant shall have the right, for a period of thirty (30) days after its receipt of such written notice from Landlord, to deliver to Landlord a written ac-ceptance of the Landlord’s offering price.

PROPERTYP R O P E R T Y O V E R V I E W

PROPERTY DESCRIPTIONPROPERTY DESCRIPTION

PROPERTY OVERVIEW5

Location

Curry Ford Rd. (25,500 +/- VPD)

Dean Rd. (1

5,500 +/- VPD)

Residental Communities+- 23,693 Single FamilyHomes in 3-Mile Radius

± 25,500 Daily

Residential Communities± 23,693 Single Family

Homes in 3-Mile Radius

± 73,000 Daily

± 15,500 Daily

McDonald’sPROPERTY DESCRIPTION

PROPERTY DESCRIPTION

PROPERTY OVERVIEW6

Surrounding Retail

± 25,500 Daily

Residential Communities± 23,693 Single Family

Homes in 3-Mile Radius

± 73,000 Daily

± 15,500 Daily

McDonald’s


PROPERTY OVERVIEW7

Surrounding Retail

Residential Communities± 80,164 Single Family Homes

in 5-Mile RadiusAverage HH Income: $85,379

± 73,000 Daily

± 55,500 Daily

McDonald’s

± 25,500 Daily

Andover Elementary School

± 1,300 Students

Valencia College East Campus

± 42,631 Students

Florida Hospital East Orlando

± Beds

McDonald’s

Orlando ExecutiveAirport

± 10 Miles

University of Central Florida

± 64,318 Students± 7.6 Miles


PROPERTY OVERVIEW8

Surrounding Retail

PROPERTY DESCRIPTION

PROPERTY OVERVIEW9

Elevations


PROPERTY OVERVIEW10

Site PlanC

URR

Y FO

RD R

D. (

AD

TC: ±

25,

000)

TENANTT E N A N T O V E R V I E W

FINANCIAL ANALYSIS12

FINANCIAL ANALYSISStarbucksStarbucks Corporation is an American coffee company and coffeehouse chain. Starbucks was founded in Seattle, Washington in 1971. Today it operates over 23,768 locations worldwide.

Today, Starbucks is the world’s largest coffee retailer and is considered the main representative of “second wave coffee,” initially distinguishing itself from other coffee-serving venues in the US by taste, quality, and customer experience, while popularizing darkly roasted coffee. Since the 2000s, third wave coffee makers have targeted quality-minded coffee drinkers with hand-made coffee based on lighter roasts, while Starbucks nowadays uses automated espresso machines for efficiency and safety reasons.

Selling over 2 billion cups of coffee every year, Starbucks locations serve more than just hot and cold drinks. They also sell whole-bean coffee, micro ground instant coffee, espresso, cafe latte, full- and loose-leaf teas including Teavana tea products, Evolution Fresh juices, Frappuccino beverages, pastries, and snacks including items such as chips and crackers and some of their products are seasonal or specific to the locality of the store. Many stores sell pre-packaged food items, hot and cold sandwiches, and drinkware including mugs and tumblers; select “Starbucks Evenings” locations offer beer, wine, and appetizers.

TENANT OVERVIEW2016 Annual Revenue $21.315 BillionNet Worth $5.890 BillionCredit Rating A (Outlook: Stable)Rating Agency S&PStock Symbol SBUXBoard NASDAQRank #146 on Fortune 500 (2016)No. of Locations 24,395Headquarters Seattle Washington


TENANT SUMMARYTenant Trade Name Starbucks CoffeeOwnership PublicTenant Corporate StoreLease Guarantor Starbucks CorporationLease Type Double NetRoof and Structure LandlordLease Term 10 YearsLease Commencement (Projected) October 1, 2017Rent Commencement (Projected) October 1, 2017Lease Expiration (Projected) September 29, 2027Term Remaining on Lease 10 YearsIncreases 10% Every 5 YearsOptions Four (4), 5 Year Options

Starbucks

Starbucks Reports Record Holiday and Record Q1 FY17 Results Global comparable store sales increased 3% comprised of a 3% increase in the Americas, a 5% increase in CAP, and a 1% decrease in EMEA

Record Q1 consolidated operating income increased 7% to $1.1 billion

GAAP EPS of $0.51 increased 11% over Q1 FY16

Record $2.1 billion loaded on Starbucks Cards in the U.S. and Canada in Q1, up 15% year-over-year; Starbucks Card transactions reached 40% of U.S. company-operated transactions

Active membership in Starbucks Rewards grew 16% year-over-year to 12.9 million members in the U.S.

The company opened 649 net new stores in the quarter, bringing total stores to 25,734 in 75 countries worldwide

SEATTLE--(BUSINESS WIRE)-- Starbucks Corporation (NASDAQ: SBUX) today reported financial results for its 13-week fiscal first quarter ended January 1, 2017. Fiscal 2017 and fiscal 2016 GAAP results include items which are excluded from non-GAAP results. Please refer to the recon-ciliation of GAAP measures to non-GAAP measures at the end of this release for more information.


StarbucksS&P Lifts Starbucks’ (SBUX) Rating on Solid Performance

Coffee chain giant Starbucks Corporation SBUX was upgraded by S&P Global Ratings to A from A- on solid operating performance and financial stability.

The agency remains impressed with Starbucks’ performance and credit protection metrics that are expected to continue over the long term. The firm does not expect the company’s strategies for growth and financial policy plans to change following the recent announce-ment of a repositioning of its management team.

The agency also remains hopeful about Starbucks’ expansion strategy, both domestically and internationally. The company has successfully expanded its overseas presence with significant store growth in China. Notably, Starbucks international stores now account for 46% of the total store count, up from 38% four years ago.

Apart from the growth strategies, the agency was positive on the company’s inorganic drive. It believes that the acquisitions of La Boulange and Teavana have widened its exposure to food products, particularly in the U.S. market, where food revenues account for nearly 20% of the U.S. revenues.

Further, Starbucks’ stable outlook boosted the views of the agency, allowing it to look at these factors contributing to solid margin and cash flow growth. The agency added, “We expect the company to use modest amounts of debt to offset absolute profit growth, the proceeds of which will be used to buy back shares.”

What’s Going on at Starbucks?

It is worth mentioning that Starbucks concluded fiscal 2016 on a solid note. The company reported better-than-expected results in the fourth quarter with earnings and revenues in-creasing 30.2% and 16% year over year, respectively, buoyed by strong sales and margin expansion (up 180 bps), partially offset by increased partner investments. Higher sales in the U.S. and China/Asia Pacific division have counterbalanced a slowdown in the Europe, Middle East, and Africa (“EMEA”) segment.

We note that Starbuck’s shares have been outperforming the broader Zacks categorized Retail-Food & Restaurant industry over the past three months. While the stock has gained nearly 9.3%, the broader market had witnessed 4.7% growth in the same time period.

Starbucks is one of the most recognized coffee brands in the world. The company’s solid execution of several initiatives in the U.S., potential to be an international powerhouse in CPG and retail, along with best-in-class loyalty programs and digital offerings are expected to drive profits in fiscal 2017.

Zacks Rank & Key Picks

Starbucks currently has a Zacks Rank #3 (Hold). Better-ranked stocks in this sector include The Cheesecake Factory Incorporated CAKE, Cracker Barrel Old Country Store, Inc. CBRL and Domino’s Pizza, Inc. DPZ. All these stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Cheese-cake Factory’s 2016 earnings moved up 3.3% over the last 60 days. For the full year, earn-ings are expected to improve 19.5%.

The Zacks Consensus Estimate for Cracker Barrel’s fiscal 2017 earnings climbed 2.1% over the last 60 days. The company’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, with an average beat of 2.96%.

Domino’s earnings surpassed the Zacks Con-sensus Estimate in three of the last four quar-ters, with an average beat of 1.39%. Further, for 2016, EPS is expected to grow 23.1%.


Fiscal 2016 Financial Highlights

COMPETITIVEC O M P E T I T I V E P R O P E R T Y S E T

Recent Sales

Subject - Starbucks - Orlando, FL

1 Starbucks - Mount Pleasant, SC

2 Starbucks - Chattanooga, TN

6

2

3

1

7

4

5

3 Starbucks - Stuart, FL

8

4 Starbucks - Aberdeen, NC

5 Starbucks - Bradenton, FL

6 Starbucks - Seminole, FL

7 Starbucks - Valdosta, GA

8 Starbucks - Tuscaloosa, AL

Starbucks



Recent Sales Map

Starbucks10330 Curry Ford Road

Orlando, Florida 32825

Price $2,720,000.00

Rentable Square Feet 2,200

Price/SF $1,236.36

CAP Rate 5.00%

Year Built 2017

Lot Size .073 Acres

Type of Ownership Fee Simple

List Price $1,474,509

Percent Down 100%

Rentable SF 1,880

Price/SF $784.31

Cap Rate 5.10%

Year Built 2016

1

The Market at Oakland3051 Ironclad Alley

Mount Pleasant, SC

2


Percent Down 100%

Rentable SF 3,660

Price/SF $650.53

Cap Rate 5.25%

Year Built 1997

Starbucks2217 Hamilton Place Blvd.

Chattanooga, TN 37421

Representative Photo



Recent Sales

Starbucks2294 SE Federal Hwy.

Stuart, FL 34994


Percent Down 100%

Rentable SF 1,547

Price/SF $1,422.11

Cap Rate 4.89%

Year Built 2005

Starbucks110 Columbus, NC 28315

Aberdeen, NC 28315


Percent Down 100%

Rentable SF 1,812

Price/SF $910.60

Cap Rate 5.25%

Year Built 2006

Starbucks-Creekwood Crossing7386 52nd Place NE

Bradenton, FL 34203


Percent Down 100%

Rentable SF 2,135

Price/SF $1,334.89

Cap Rate 5.20%

Year Built 2003

3 4 5


19COMPETITIVE PROPERTY SET

Recent Sales

Starbucks7398 Seminole Blvd.

Seminole, FL 33596


Percent Down 100%

Rentable SF 2,100

Price/SF $1,285.71

Cap Rate 5.12%

Year Built 2016

6

StarbucksNEC 15th St. & McFarland Blvd.

Tuscaloosa, AL


Percent Down 100%

Rentable SF 1,920

Price/SF $1,005.21

Cap Rate 5.00%

Year Built 2016

Year Built 2015

8

Starbucks1305 N. Saint Augustine Rd.

Valdosta, FL 31601


Percent Down 100%

Rentable SF 1,750

Price/SF $1,000.00

Cap Rate 5.00%

Year Built 2005

7



Recent Sales

MARKETM A R K E T O V E R V I E W

19

MARKET OVERVIEW

EconomyKey industries in the region include aerospace and defense systems, modeling,simulation and training, digital media and biotechnology. Orlando is quicklytransforming into a center for digital media, fueled by an expanding number ofsoftware, simulation and entertainment companies. Today, hundreds of digitalmedia companies are located in the metro.

Orlando is a top vacation destination and is home to many theme parks andtourist attractions. It has also become a popular site for business meetings, withone of the nation’s largest convention centers. Millions of visitors travel toOrlando each year.

The local life sciences, biotech and medical technology industries also arestrengthening. Lake Nona Medical City is a 650-acre health and life sciencespark where medical care, research and education are the primary emphases ofbusinesses located in the park.

University of Central Florida (UCF) offers top-ranked programs for engineeringand computer sciences, and its Technology Incubator helps emergingtechnology companies, further enhancing the climate for high-tech growth.Adjacent to UCF are Lake Nona Medical City, the Central Florida Research Parkand the Quadrangle Office Park, the latter of which is recognized as one of thetop research parks in the world.

EmployersOrlando is also one of the fastest-growing high-tech centers in the country,led by efforts at the University of Central Florida. The Florida AdvancedManufacturing Research Center in Osceola County is expected to open in2017, generating tens of thousands of jobs. The region is also home to a largeconcentration of laser and optics manufacturers. Companies produceeverything from tattoo-removal lasers to laser-guided systems that maneuverfighter planes.

The local manufacturing industry includes Lockheed Martin Missiles and FireControl, Siemens AG and Harris. The area is also home to the National Centerof Simulation, internationally renowned for its research in laser and optics, aswell as for its unique microelectronics technology training programs.

For more than 40 years, Orlando has been home to Disney World. In additionto six Disney theme parks, the area contains other attractions such asSeaWorld and Universal Orlando. Many of the area’s major employers aretourism related.

The region is an ideal place to film television shows and motion pictures.State-of-the-art soundstages, inimitable venues, year-round filmingcapabilities, a highly skilled local crew base and supportive communities haveall helped the industry grow into a multi-million-dollar annual market.Creative local talent is also helping to grow a digital media sector.

ECONOMY

Key industries in the region include aerospace and defense systems, mod-eling, simulation and training, digital media and biotechnology. Orlando is quickly transforming into a center for digital media, fueled by an expanding number of software, simulation and entertainment companies. Today, hun-dreds of digital media companies are located in the metro.

Orlando is a top vacation destination and is home to many theme parks and tourist attractions. It has also become a popular site for business meetings, with one of the nation’s largest convention centers. Millions of visitors travel to Orlando each year.

The local life sciences, biotech and medical technology industries also are strengthening. Lake Nona Medical City is a 650-acre health and life sci-ences park where medical care, research and education are the primary emphases of businesses located in the park.

University of Central Florida (UCF) offers top-ranked programs for engineer-ing and computer sciences, and its Technology Incubator helps emerging technology companies, further enhancing the climate for high-tech growth. Adjacent to UCF are Lake Nona Medical City, the Central Florida Research Park and the Quadrangle Office Park, the latter of which is recognized as one of the top research parks in the world.

EMPLOYERS

Orlando is also of the fastest-growing high-tech centers in the country, led by efforts at the University of Central Florida. The Florida Advanced Manu-facturing Research Center in Osceola County is expected to open in 2017, generating tens of thousands of jobs. The region is also home to a large concentration of laser and optics manufacturers. Companies produce ev-erything from tattoo-removal lasers to laser-guided systems that maneuver fighter planes.

The local manufacturing industry includes Lockheed Martin Missiles and Fire Control, Siemens AG and Harris. The area is also home to the National Center of Simulation, internationally renowned for its research in laser and optics, as well as for its unique microelectronics technology training pro-grams.

For more than 40 years, Orlando has been home to Disney World. In addi-tion to six Disney theme parks, the area contains other attractions such as SeaWorld and Universal Orlando. Many of the area’s major employers are tourism related.

The region is an ideal place to film television shows and motion pictures. State-of-the-art soundstages, inimitable venues, year-round filming capabil-ities, a highly skilled local crew base and supportive communities have all helped the industry grow into a multi-million-dollar annual market. Creative local talent is also helping to grow a digital media sector.

Orlando, Florida

MARKET OVERVIEW22

MARKET OVERVIEW23

Orlando, FloridaQUALITY OF LIFE

20

MARKET OVERVIEWQuality of Life

Orlando provides its residents with a remarkable quality of life, highlightedby a sunny climate, professional sporting opportunities, outdoorrecreational activities, cultural venues, world-famous attractions andbeaches nearby. The region offers outstanding healthcare facilities andexceptional community services such as Orlando Health and FloridaHospital. In addition, Florida residents are not required to pay a personalstate income tax.

Orlando features dozens of cultural opportunities, including the new Dr.Phillips Center for the Performing Arts, Civic Theatre of Central Florida, theOrlando Opera Company, the Orlando Ballet Company and the BachFestival Society. Also, the Shakespeare Festival is held downtown everyyear. For art lovers, there are a number of galleries, the Morse Museumand the Orlando Museum of Art.

Amway Center in downtown Orlando is the arena for the Orlando Magic.Nearby, the Orlando City Soccer Club’s new stadium is set for completionin 2017. Other sports venues are at the many local universities. TheOrlando region provides numerous higher-education opportunities. Thelargest institutions are the University of Central Florida and ValenciaCommunity College, each enrolling tens of thousands of students.

Orlando provides its residents with a remarkable quality of life, highlighted by a sunny climate, professional sporting opportunities, outdoor recreation-al activities, cultural venues, world-famous attractions and beaches nearby. The region offers outstanding healthcare facilities and exceptional com-munity services such as Orlando Health and Florida Hospital. In addition, Florida residents are not required to pay a personal state income tax.

Orlando features dozens of cultural opportunities, including the new Dr. Phillips Center for the Performing Arts, Civic Theatre of Central Florida, the Orlando Opera Company, the Orlando Ballet Company and the Bach Fes-tival Society. Also, the Shakespeare Festival is held downtown every year. For art lovers, there are a number of galleries, the Morse Museum and the Orlando Museum of Art.

Amway Center in downtown Orlando is the arena for the Orlando Magic. Nearby, the Orlando City Soccer Club’s new stadium is set for completion in 2017. Other sports venues are at the many local universities. The Orlan-do region provides numerous higher-education opportunities. The largest institutions are the University of Central Florida and Valencia Community College, each enrolling tens of thousands of students.

The University of Central Florida, founded in 1963, is the second-largest university in the nation. Located in Orlando, Florida, UCF and its 12 colleges provide opportunities to 61,000 students, offering 210 degree programs from UCF’s main campus, hospitality campus, health sciences campus and its 10 regional locations.

UCF was ranked as the nation’s No. 3 “Up-and-Coming” university in the 2015 U.S. News & World Report’s Best Colleges rankings. Last year, Kiplinger’s and The Princeton Review ranked UCF as one of the nation’s best values for a college education. UCF, Florida’s largest university, pro-motes a diverse and inclusive environment. Students come from 50 states and 148 countries. Study abroad programs allow students to study and conduct research with 98 institutions in 36 countries. Students at UCF have been recognized throughout the world and include recipients of the Rhodes, Mellon and Goldwater scholarships.

In 2014, UCF enrolled 79 freshman National Merit Scholars for an overall enrollment of 275 National Merit Scholars. Both school records. Last year, UCF enrolled more National Merit Scholars and awarded more degrees than any other Florida university.

In 2013-14, UCF professors received $145.6 million in research funding and have accrued more than $1.1 billion in external grants during the past decade. Distinctive programs extend learning beyond the classroom and include leadership programs, cooperative education, mentorships, intern-ships, service learning and paid research positions.

UCF is one of 25 public universities with the Carnegie Foundation’s high-est designation in two categories: community engagement and very high research activity.

The main campus stretches 1,415 acres and manages 800 acres of natu-ral ecosystems resulting in habitats for more than 45 animal species. On- campus housing includes 11 communities for 12,000 students ranging from first-year to graduate students. The 10,000-seat arena and a 45,000-seat on-campus football stadium were both opened in 2007.

UCF Knights won the inaugural American Athletic Conference titles in wom-en’s soccer and football and was the youngest university to ever play in a BCS bowl game last year. UCF Athletics football program finished last year ranked No. 10 in The Associated Press Top 25.

UNIVERSITY OF CENTRAL FLORIDA

MARKET OVERVIEW24

5 Minute Drive Time

10 Minute Drive Time

15 Minute Drive Time

Population Trend

2000 4,772 111,998 282,377

2010 9,097 144,823 359,723

2016A 10,443 160,220 401,198

Change 2000 to 2010 12,524 177,905 436,363

2021 90.6% 29.3% 27.4%

Change 2015 to 2020 19.9% 11.0% 8.8%

Household Trend

2000 1,529 42,428 116,749

2010 3,377 59,457 153,727

2016A 3,677 62,215 162,447

Change 2000 to 2010 4,427 69,604 177,643

2021 120.9% 40.1% 31.7%

Change 2016A to 2021 20.4% 11.9% 9.4%

Households By Income (2016A) (2021) (2016A) (2021) (2016A) (2021)

$0 - $14,999 5.0% 3.5% 10.3% 7.9% 12.8% 9.8%

$15,000 - $24,999 5.8% 4.1% 10.7% 8.6% 11.7% 9.6%

$25,000 - $34,999 9.4% 7.0% 12.2% 9.9% 11.8% 9.9%

$35,000 - $49,999 11.8% 9.5% 16.9% 14.4% 15.5% 13.4%

$50,000 - $74,999 24.1% 21.1% 22.3% 21.4% 20.1% 19.4%

$75,000 - $99,999 21.3% 22.5% 12.4% 15.2% 11.4% 14.0%

$100,000 - $149,999 14.7% 21.2% 10.2% 15.1% 10.5% 15.1%

$150,000 + 7.9% 11.0% 5.0% 7.5% 6.1% 8.8%

Average Household Income $82,050 $96,757 $63,681 $76,741 $65,178 $78,979

Median Household Income $67,829 $79,937 $49,877 $61,500 $47,810 $60,165

Per Capita Income $28,090 $33,252 $23,636 $28,667 $25,028 $30,382

DEMOGRAPHICS BY DRIVE TIME (5, 10, 15 MINUTES)

MARKET OVERVIEW25

Demographics

PROPERTY NAME

MARKETING TEAM

STARBUCKS

DEMOGRAPHICS

Source: © 2016 Experian

Created on April 2017

POPULATION 1 Miles 3 Miles 5 Miles 2021 Projection

Total Population 8,653 78,825 240,877

2016 Estimate

Total Population 7,097 68,769 217,638 2010 Census


2000 Census


Current Daytime Population

2016 Estimate 4,526 42,890 158,229

HOUSEHOLDS 1 Miles 3 Miles 5 Miles 2021 Projection

Total Households 3,075 27,288 89,117

2016 Estimate


Average (Mean) Household Size 2.96 2.90 2.69

2010 Census


2000 Census

Total Households 861 13,705 55,150

Occupied Units

2021 Projection 3,075 27,288 89,117

2016 Estimate 2,567 24,478 85,513

HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles 2016 Estimate

$150,000 or More 7.67% 6.01% 4.23%

$100,000 - $149,000 15.59% 12.87% 9.92%

$75,000 - $99,999 21.88% 15.47% 11.50%

$50,000 - $74,999 24.18% 23.69% 21.53%

$35,000 - $49,999 11.27% 15.57% 17.12%

Under $35,000 18.42% 25.46% 34.89%

Average Household Income $85,379 $74,037 $62,102

Median Household Income $70,500 $58,346 $47,732

Per Capita Income $30,048 $25,742 $23,065

HOUSEHOLDS BY EXPENDITURE 1 Miles 3 Miles 5 MilesTotal Average Household Retail Expenditure $64,523 $60,148 $54,678

Consumer Expenditure Top 10Categories

Housing $18,000 $16,840 $15,620

Transportation $11,425 $10,305 $9,339

Shelter $11,068 $10,276 $9,563

Food $7,752 $7,144 $6,445

Personal Insurance and Pensions $6,454 $5,407 $4,547

Utilities $4,102 $3,899 $3,664

Health Care $3,962 $3,898 $3,502

Entertainment $2,598 $2,424 $2,163

Apparel $1,583 $1,389 $1,258Household Furnishings and Equipment $1,318 $1,218 $1,095

POPULATION PROFILE 1 Miles 3 Miles 5 Miles Population By Age

2016 Estimate Total Population 7,097 68,769 217,638

Under 20 26.36% 26.00% 25.51%

20 to 34 Years 26.15% 23.98% 27.49%

35 to 39 Years 8.09% 7.49% 7.14%

40 to 49 Years 15.52% 14.53% 13.54%

50 to 64 Years 16.68% 17.80% 16.29%

Age 65+ 7.19% 10.19% 10.00%

Median Age 33.45 35.01 33.06

Population 25+ by Education Level

2016 Estimate Population Age 25+ 4,660 45,785 141,345

Elementary (0-8) 2.46% 3.20% 4.08%

Some High School (9-11) 5.81% 7.11% 8.18%

High School Graduate (12) 22.50% 26.34% 27.55%

Some College (13-15) 22.41% 20.56% 19.59%

Associate Degree Only 12.44% 11.47% 11.38%

Bachelors Degree Only 22.49% 21.21% 20.15%

Graduate Degree 10.58% 9.16% 8.01%

3MARKET OVERVIEW26

Demographics

IncomeIn 2016, the median household income for your selected geography is$70,500, compare this to the US average which is currently $54,505.The median household income for your area has changed by 23.31%since 2000. It is estimated that the median household income in yourarea will be $82,014 five years from now, which represents a changeof 16.33% from the current year.

The current year per capita income in your area is $30,048, comparethis to the US average, which is $29,962. The current year averagehousehold income in your area is $85,379, compare this to the USaverage which is $78,425.

PopulationIn 2016, the population in your selected geography is 7,097. Thepopulation has changed by 143.13% since 2000. It is estimated thatthe population in your area will be 8,653.00 five years from now,which represents a change of 21.92% from the current year. Thecurrent population is 49.62% male and 50.38% female. The medianage of the population in your area is 33.45, compare this to the USaverage which is 37.68. The population density in your area is2,261.16 people per square mile.

HouseholdsThere are currently 2,497 households in your selected geography. Thenumber of households has changed by 190.01% since 2000. It isestimated that the number of households in your area will be 3,075five years from now, which represents a change of 23.15% from thecurrent year. The average household size in your area is 2.96 persons.

EmploymentIn 2016, there are 2,616 employees in your selected area, this is alsoknown as the daytime population. The 2000 Census revealed that68.61% of employees are employed in white-collar occupations inthis geography, and 32.68% are employed in blue-collar occupations.In 2016, unemployment in this area is 4.47%. In 2000, the averagetime traveled to work was 29.00 minutes.

Race and EthnicityThe current year racial makeup of your selected area is as follows:65.48% White, 10.64% Black, 0.04% Native American and 9.44%Asian/Pacific Islander. Compare these to US averages which are:70.77% White, 12.80% Black, 0.19% Native American and 5.36%Asian/Pacific Islander. People of Hispanic origin are countedindependently of race.

People of Hispanic origin make up 43.23% of the current yearpopulation in your selected area. Compare this to the US average of17.65%.

PROPERTY NAME

MARKETING TEAM

STARBUCKS

HousingThe median housing value in your area was $197,657 in 2016,compare this to the US average of $187,181. In 2000, there were 768owner occupied housing units in your area and there were 93 renteroccupied housing units in your area. The median rent at the time was$951.

Source: © 2016 Experian

DEMOGRAPHICS

4

MARKET OVERVIEW27

Demographics

CONFIDENTIALITY AND DISCLAIMER

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

Marcus & Millichap is a service mark of Marcus & Millichap, Inc. © 2016 Marcus & Millichap

Marcus & Millichap, Inc. (“M&M”) is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of M&M, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of M&M, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

NON-ENDORSEMENT NOTICE

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOURMARCUS & MILLICHAP AGENT FOR MORE DETAILS.

OFFICES THROUGHOUT THE U.S. & CANADAwww.marcusmillichap.com

Exclusively listed by:

Sonny MolloySOUTHEASTERN INVESTMENTSSenior President InvestmentsSenior Director, National Retail GroupATLANTADir: (678) [email protected]

Jared KayeSOUTHEASTERN INVESTMENTSAssociateNational Retail GroupATLANTADir: (678) [email protected]

Christian LopezATLANTA CORE RETAILAssociate National Retail GroupATLANTADir: (678) [email protected]

STARBUCKS - LoopNet...Starbucks is currently under construction and is estimated to be ... Starbucks is publically traded on the NASDAQ under the ticker symbol ‘SBUX’ and ... FINANCIAL

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