Overview
Atlantic Capital Partners is pleased to present for sale the newly constructed Starbucks located on Route 1 in Peabody, Massachusetts. The new 2,400 SF prototype was recently built, features a brand new 10-year lease to Starbucks, and the store has a projected opening date in Q4 2024. Starbucks year 1 NOI is $200,000 with 10% rent escalations every 5 years throughout the term and at each option. The offering also features 10 Tesla supercharger spaces, providing additional passive income on a new 10-year lease with 3% annual increases backed by a Tesla corporate guarantee.
The property is strategically located at the crossroads of Route 1 (100,000 VPD) and I-95 (124,500 VPD), two of Metro Boston’s dominant thoroughfares. The current annual rent for the offering is $230,000 (inclusive of the $30K Tesla income) and this investment offers a unique combination of new construction, minimal landlord responsibilities, and stable, long-term passive income from top-tier corporate tenants
Investment Highlights
NEW CONSTRUCTION
New construction limiting exposure to capital repairs during the hold period
NEW 10-YEAR LEASE & MINIMAL LANDLORD RESPONSIBILITIES
NN lease leaves minimal Landlord Responsibilities (Roof & Structure)
ATTRACTIVE RENTAL INCREASES
10% rent increase every 5 years including option periods
CORPORATE GUARANTY FROM INVESTMENT-GRADE TENANTS
Both of the leases are corporately guaranteed. Starbucks has a Market Cap of $105.8B(NASDAQ: SBUX) and Tesla has a Market Cap of $651.2B (NASDAQ: TSLA)
LOCATED IN HIGH TRAFFIC CORRIDOR
Situated at the crossroads of Route 1 and I-95, which sees 100,000 VPD and 124,500 VPD, respectively
RETAIL AND COMMERCIAL HUB | PEABODY, MA
Major Retailers: Peabody is home to the North Shore Mall, a Simon-owned Property, which is home to prominent retailers such as Shaw’s, Life Time Fitness, Barnes & Noble, Chick-fil-A, and Chipotle. Office: Peabody and surrounding towns are also major office hubs, with the Centennial Drive Office Park as well as the Cummings Center (2M SF)
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