1615 Sycamore View Rd, Memphis, TN 38134
$1,995,000 asking price
Net Operating Income - $99,663, CAP Rate 5%
6 years remaining on Corporate Guaranteed lease
Six Points Real Estate is pleased to announce for sale a Starbucks located in Memphis, Tennessee, (part of a four property portfolio selling as individuals or package). The investment contains a corporately guaranteed lease from an investment grade tenant ( S & P Rating AA - ), who has operated at the site since construction in 2007. Starbucks has exercised the first of the four, five year option periods with significant 10% rent increases throughout. As of June 30th, 2017 the rent will increase to $109,643.58. The CAP rate will jump to 5.5%.
Starbucks is the largest coffeehouse company in the world, with over 24,000 stores globally, including around 13,000 in the United States, followed by nearly 1,000 in Canada and more than 900 in Japan.
Situated just north of the Interstate 40 Intersection in Memphis, with traffic of over 240,000 cars per day. The property is well positioned to take advantage of this growing metropolitan area. Over 200,000 individuals reside within five miles of the property, and the average household income is over $75,000. With three hotels, Drury Inn and Suites, Americas Best Value Inn and Econo Lodge, as neighbors this Starbucks has a constant supply of caffeine starved customers. The site is also surrounded by numerous national major retailers including Family Dollar, Walgreens and Dollar General.