Offering Memorandum STARBUCKS Freddy’s Frozen Custard

[Pages:11]REPRESENTATICE

Offering Memorandum

STARBUCKS

212F1rBReOdOKSdSTy's Frozen Custard

MILSaSkOeUwLoAo,dM, TCO59801

DEVELOPED BY:

AERIAL PHOTO

93

C S PORTER MIDDLE SCHOOL

STARBUCKS

TOOLE PARK

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UNIVERSITY OF

MONTANA

HELLGATE HIGH SCHOOL

BONNER PARK

RESERVE ST BROOKS ST

COMMUNITY MEDICAL CENTER

MISSOULA COUNTRY

CLUB

McDonald's

SUBJECT PROPERTY

12 SPARTAN PARK

Walgreens

UNIVERSITY OF MONTANA

GOLF COURSE

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This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future

performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. ? 2013 Marcus & Millichap ACT ID Y0070377

AERIAL PHOTO

Southgate Mall

Starbucks

STARBUCKS

BROOKS ST

Walgreen's

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future

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performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. ? 2013 Marcus & Millichap ACT ID Y0070377

EXECUTIVE SUMMARY

STARBUCKS

2121 Brooks St Missoula, MT 59801 FINANCIAL SUMMARY Price Down Payment Cap Rate Building SF Net Cash Flow Year Built Lot Size

LEASE SUMMARY Lease Type Tenant Lease Guarantor Roof & Structure Rent Commencement Date Lease Expiration Date Lease Term Remaining Rental Increases Renewal Options

STARBUCKS

$1,857,200 100% $1,857,200

5.25% +/- 1,920 SF 5.25% $97,500

2014 .52 Acres

Double-Net (NN) Lease Starbucks Corporation

Corporate Landlord Responsible

July 28, 2014 August 31, 2024

7 Years 10% Increases Every 5 Years

4, 5 Year Options

ANNUALIZED OPERATING DATA LEASE YEARS

Current - 8/31/2019 9/1/2019 - 8/31/2024

ANNUAL RENT $97,500.00 $107,250.00

OPTIONS 9/1/2024 - 8/31/2029 9/1/2029 - 8/31/2034 9/1/2034 - 8/31/2039 9/1/2039 - 8/31/2044

ANNUAL RENT $117,975.00 $129,772.50 $142,749.75 $157,024.73

BASE RENT Net Operating Income Total Return

CAP RATE 5.25% 5.77%

CAP RATE 6.35% 6.99% 7.69% 8.45%

$97,500 $97,500 5.25% $97,500

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This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future

performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. ? 2013 Marcus & Millichap ACT ID Y0070377

TAEENRAINATL OP HVEORTVOIEW

STARBUCKS

Starbucks

Starbucks is the premier roaster, marketer and retailer of specialty coffee in the world, operating in 69 countries. Formed in 1985, Starbucks Corporation's common stock trades on the NASDAQ Global Select Market ("NASDAQ") under the symbol "SBUX." The company purchases and roasts high-quality coffees that they sell, along with handcrafted coffee, tea and other beverages and a variety of fresh food items, through company-operated stores. Starbucks also sells a variety of coffee and tea products and license their trademarks through other channels such as licensed stores, grocery and national foodservice accounts. In addition to their flagship Starbucks Coffee brand, Starbucks also offers goods and services under the following brands: Teavana, Tazo, Seattle's Best Coffee, Evolution Fresh, La Boulange, Ethos and and Torrefazione Italia Coffee.

Starbucks company-operated stores are typically located in high-traffic, highvisibility locations. Their ability to vary the size and format of their stores allows the Starbucks to locate them in or near a variety of settings, including downtown and suburban retail centers, office buildings, university campuses, and in select rural and off-highway locations.

Headquarters Stock Symbol Founded Locations Website

Seattle, WA NASDAQ: SBUX

1985 22,519+

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future

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performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. ? 2013 Marcus & Millichap ACT ID Y0070377

AP RE ROIPAELRPTHYODTEOSCR IP TION

STARBUCKS

INVESTMENT HIGHLIGHTS

? Corporate Lease with Starbucks ? Ten Percent Rental Increases Every Five Years ? Drive-Thru Location ? Minutes from the University of Montana (13,000 Students) ? Close Proximity to Southgate Mall - Largest Mall in Western Montana with Over 100 Stores ? Located Less Than 3 Miles Off the I-90 Freeway ? Directly Across from Albertson's Grocery Store and Ace Hardware ? More than 80,900 Residents in Trade Area

DEMOGRAPHICS

Population 2021 Projection 2016 Estimate Growth 2015 - 2020

Households 2021 Projections 2016 Estimate Growth 2016 - 2021

Income 2016 Est. Average Household Income 2016 Est. Median Household Income 2016 Est. Per Capita Income

1-Mile 14,470 14,267 1.43%

1-Mile 6,803 6,672 1.96%

1-Mile $45,789 $33,447 $21,505

3-Miles 61,735 59,895 3.07%

3-Miles 27,535 26,437 4.15%

3-Miles $52,234 $35,556 $23,699

5-Miles 84,831 80,986 4.75%

5-Miles 37,180 35,089 5.96%

5-Miles $58,254 $40,425 $25,758

LOCATION OVERVIEW

Missoula is Montana's second largest city, with a population of over 116,130 in the city's metropolitan area. It is located at the western edge of Montana approximately 45 miles from the Idaho border.

Considered to be a regional trade center, Missoula is home to key business sectors including health care, retail shopping, transportation, education, arts and culture, and government. Health care in particular is one of Missoula's fastest growing industries with St. Patrick Hospital (western Montana's only Level II Trauma center) and the Community Medical Center already the city's second and third largest employers behind the University of Montana (UM). Fifty-five percent of employment in Missoula is made up of the service and retail sectors. Export industries are concentrated in heavy and civil engineering, construction, beverage production, technical services, truck transportation, and forestry-, logging-, and wood-related industries.

Nestled in the heart of Missoula's stunning natural landscape, the University of Montana draws a diverse population to the city and helps cultivate an educated, engaged and vibrant community. The university has a close relationship with the city of Missoula as Missoula's largest employer and with the revenue the university brings through visitors of school-sponsored sporting and cultural events. UM houses Missoula's only business incubator, the Montana Technology Enterprise Center (MonTEC) and several start-up businesses.

Missoula boasts more than 500 acres of city parkland, 26 miles of trails, 3,300 acres of conservation lands, and 20,000 park and boulevard trees. It is also a regional destination for shopping and dining, featuring three distinct shopping districts and an abundance of restuarants, cafes, coffee houses and breweries.

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This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future

performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. ? 2013 Marcus & Millichap ACT ID Y0070377

PROPERTY PHOTOS AP RE ROIPAELRPTHYOPTHOOTOS

Starbucks

STARBUCKS

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future

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performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. ? 2013 Marcus & Millichap ACT ID Y0070377

RAEGRI OALNAPLHOMTAOP

MAP

Williams-Sonoma

STARBUCKS

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This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future

performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. ? 2013 Marcus & Millichap ACT ID Y0070377

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