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Starbucks - Otsego NEC of Parrish NE & 88th St ave

1,750 SF Retail Building Otsego, MN 55330 £2,099,313 (£1,200/SF) 6.15% Net Initial Yield

Investment Highlights

  • Starbucks signed a 10 year net lease, which does not include a termination option and leaves minimal responsibilities for the Landlord
  • The lease is directly with Starbucks Corporation, which is publicly traded and boasts an investment- grade credit rating
  • The property is less than half a mile from MN-101, an arterial roadway that carries 52,000 VPD
  • The building is brand new construction with high- quality materials and distinct design elements
  • The property is situated directly adjacent to a Target and a newly developed Coborn's Grocery

Executive Summary

Jones Lang LaSalle Americas, Inc. (“JLL”), is pleased to exclusively offer for sale the fee-simple interest in a newly developed Starbucks (the “Property”) located at the northeast corner of Parrish Ave NE and 88th St in Otsego, Minnesota. This single tenant net lease asset is 100% occupied by Starbucks, and the 10-year lease, which includes built-in rent escalations every 5 years, is signed directly with Starbucks corporate. The 1,693 SF building is new construction and sits on 0.68 acres of land.
Starbucks (NASDAQ: SBUX) is a global leader in the retail coffee industry, renowned for its premium beverages and inviting store experience. With a strong presence in over 80 markets worldwide, Starbucks operates more than 31,000 stores across the globe. With over $32 Billion in revenue in 2022 and an investment-grade credit rating, Starbucks is the gold standard for quick service retail.
The property is ideally situated on the hard corner of Parrish Ave and 88th St, benefiting from a clear, unobstructed view from both roadways. The site is also located directly adjacent to a Target and a newly developed Coborn's Grocery. The immediate area is experiencing rapid development with Parkview Grand Apartments and Parrish Meadows Townhomes being completed in the last two years. Within a three-mile radius, average household income approximately equal to the national average and has grown at a solid pace over the last five years. With a relatively highly educated and young population, the surrounding area is primed for continued growth, as evidenced by steady population growth over the last five years.
Please see OM for more information.

Data Room Click Here to Access

Property Facts

Sale Type
Investment NNN
Property Type
Retail
Building Size
1,750 SF
Year Built
2024
Price
£2,099,313
Price Per SF
£1,200
Net Initial Yield
6.15%
NOI
£129,104
Tenancy
Single
Number of Floors
1
Building FAR
0.06
Lot Size
0.68 AC

Amenities

  • Drive Thru

Nearby Major Retailers

Starbucks
Denny's
Coborn's
Caribou Coffee
Aldi
Cross Fit
  • Listing ID: 31060627

  • Date on Market: 27/02/2024

  • Last Updated:

  • Address: NEC of Parrish NE & 88th St ave, Otsego, MN 55330

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