Starbucks signed a 20-year absolute ground lease on the site adjacent to the University of California Riverside campus. The retailer does not typically work with ground leases, but liked the location on main and main, along with the fact that this is the only drive-thru food tenant near the college campus. Starbucks even built out a larger footprint to accommodate space for studying. Starbucks usually prefers 500- to 2,200-s.f. sites. The retailer actually re-located from an inline space across the street that did not have a drive thru. The site also has easy access to and from one of the main freeways in the area.
Tenant: Starbucks
Location: Riverside, Calif.
Sale Price: $4.3M
Property Type: Freestanding Corner Pad with Drive-Thru
Square Footage: 2,800 s.f.
The 20-year lease term includes 10% rental increases every five years through the initial term and has three 10-year options to extend. Traffic counts reach 34,000 vehicles per day. The location serves an area of over 100,000 permanent residents with average household incomes of $75K within a three-mile radius. An Idaho-based private developer sold the asset to a California-based family office.
Owner Representation for the Sale: Faris Lee Investments, 18301 Von Karman Ave., Suite 800, Irvine, CA 92612.
Don MacLellan, Senior Managing Partner, (949) 221-1821. dmaclellan@farislee.com
