New Price
Cap Rate
4.58%
Offering Price
$2,350,000
Year Built
1909
Building Size
2,877 SF
Price Per SF
$817/SF
Type
For Sale
Status
New Price
Location
Tumwater, WA

Investment Summary

Kidder Mathews is pleased to offer a unique, flagship Starbucks located on Yelm Highway in Tumwater, Washington. In 2015, a local investor purchased the subject property formerly known as the Chambers Prairie Grange No. 191. Over the next 3 years, the 110-year old building was a completely restored and in September 2018 it opened to become the third largest Starbucks in Washington.


The restoration thoughtfully preserved the original floors, doors, and window panes. Even the former Grange hall stage, which was made of Douglas Fir, was saved and repurposed into and open beam area in the center of the store. All building systems are new including roof, electric, and plumbing.


The property is strategically located along Yelm Highway at the “main and main” intersection of Tumwater with over 27,000 vehicles per day. The YMCA is located directly across the street creating a community hub for the area. Starbucks is adjacent to a 138 acre master planned community with 848 existing residential units on site including senior housing, mixed-use, and single family homes.


The lease includes 4 - 5 year option periods with 10% rental increases every 5 years (including the base term), giving a strong inflation hedge to an investor.

Investment Highlights

FULLY RESTORED HISTORIC BUILDING

This unique, pride of ownership investment was originally built in 1909 as Chambers Prairie Grange No. 191. The building has been completely renovated and historically preserved.

LONG TERM LEASE

Brand new 10-year corporately guaranteed lease with no early termination clause provides long term investor security.

DRIVE-THRU LOCATION

Starbucks is positioned at a highly visible intersection and is on “going to work” side of the street for a large daytime State of Washington workforce.

INVESTMENT GRADE TENANT

Starbucks is the largest coffeehouse chain in the world with over 28,000 stores. Starbucks is Rated A- by S&P and A3 by Moody’s.

PASSIVE INVESTMENT

Triple net lease (NNN) with minimal landlord responsibilities. Landlord responsible for roof, structure and exterior maintenance. A new metal roof was added as part of the building restoration.

SIGNIFICANT TENANT INVESTMENT

In addition to the developer costs, Starbucks invested over $600,000 in tenant improvements to fully restore the property.

LARGE FOOTPRINT STORE

Starbucks occupies 2,877 SF on the main level and has an option to pay additional rent and occupy the basement level. There is also a ~400 square foot patio area making this the third largest Starbucks in the state of Washington.

Property Summary

Offering Price
$2,350,000
CAP Rate
4.58%
Year Built
1909
Building Size
2,877 SF
Price Per SF
$817/SF
Address
1301 Yelm Highway SE,, Tumwater, WA, 98501

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