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Starbucks - Marion, VA 1209 N Main St

2,500 SF Retail Building Marion, VA 24354 £1,537,514 (£615/SF) 6.20% Net Initial Yield

Executive Summary

• Starbucks exercised their first option early allowing them to extend their lease term significantly. They now have 13+ years remaining on their lease with 6 (5-year) options to extend, demonstrating their long-term commitment to the site
• 2022 construction which features high-quality materials, high-level finishes, and distinct Starbucks design elements
• The lease is corporate signed by Starbucks, an investment grade (S&P: BBB+), nationally recognized, and established firm with over 38,000 stores
• The lease features 10% rental increases every 5 years and at the beginning of each option
• Tenant pays for taxes, insurance and maintains most aspects of the premises
• Limited landlord responsibilities to roof & structure
• Ideal, low-management investment for a passive investor
• Starbucks is an outparcel at Smyth Valley Crossing, anchored by Walmart and Ingles Markets
• The immediate trade area is supported by neighboring retailers such as Food Lion, Tractor Supply Co, Food City, Wendy’s, and more
• Off I-81 (35,000 VPD), providing direct on/off ramp access for users
• Equipped with a drive-thru, providing ease and convenience for customers while maximining productivity and efficiency
• For Q4 2023, net revenues were up 11% to a record $9.4B, while comparable store sales were up 8% globally, 8% in North America, and 5% internationally
• The company opened 816 net new stores in Q4 2023, ending the period with 38,038 stores: 52% company-operated and 48% licensed
• Starbucks’ CEO said, “We finished our fourth quarter and full fiscal year strong, delivering on the higher end of our full-year guidance.”
• Fiscal year 2023:
• Global comparable store sales increased 8%, driven by a 5% increase in average ticket and 3% increase in comparable transactions
• North America and U.S. comparable store sales increased 9%, driven by a
6% increase in average ticket and 3% increase in comparable transactions
• International comparable store sales increased 5%, driven by a 5% increase in comparable transactions
• More than 10,000 residents and 7,000 employees support trade area
• $63,816 average household income within a 1-mile radius
• Down the road from Marion High School, providing a direct consumer base from which to draw

Property Facts

Sale Type
Investment
Property Type
Retail
Property Subtype
Freestanding
Building Size
2,500 SF
Building Class
B
Year Built
2022
Price
£1,537,514
Price Per SF
£615
Net Initial Yield
6.20%
NOI
£95,271
Tenancy
Single
Number of Floors
1
Building FAR
0.08
Lot Size
0.69 AC

Nearby Major Retailers

First Community Bank
Ingles
Food City
Food Lion
Anytime Fitness
  • Listing ID: 31352909

  • Date on Market: 28/03/2024

  • Last Updated:

  • Address: 1209 N Main St, Marion, VA 24354

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