Starbucks & Jersey Mikes
Retail | 6.75% CAP | 4,126 SqFt
Marketing description
Horvath & Tremblay is pleased to present the exclusive opportunity to acquire the fee simple interest in the two-tenant plaza located at 1804-1808 Washington Street in Pella, Iowa (the “Property”). The newly constructed plaza is improved with Starbucks and Jersey Mike’s and contains 4,126 square feet on a large 1.76-acre parcel. Starbucks has 10-year lease with four (4), 5-year renewal options and Jersey Mike’s has 10-year lease with three (3), 5-year renewal options. Both tenants’ leases call for attractive rent increases every five years throughout the primary lease terms and renewal option periods.
The Property is strategically positioned at the intersection of Washington Street and 218th Place within Pella’s primary retail corridor, offering strong frontage, visibility, and access along one of the community’s main commercial routes. Located adjacent to the Walmart Supercenter plaza, the site benefits from its placement within the core retail trade area serving Pella, Iowa. The location also provides convenient access to key demand drivers including Central College, Pella Regional Health Center, and major employers such as Vermeer Corporation and Pella Corporation, supporting consistent retail activity in the immediate area.
Investment highlights
NEW CONSTRUCTION: The Build-to-Suit Property was constructed in 2025 and features brand-new leases with both tenants. Starbucks recently commenced a 10-year lease with four (4), 5-year renewal options and Jersey Mike’s signed a 10-year lease with three (3), 5-year renewal options. Additionally, Starbucks will benefit from a patio with outdoor seating and a dedicated drive-thru lane.
ATTRACTIVE RENT INCREASES: Starbucks’ lease features attractive 7.5% rental increases every five years throughout their primary term and renewal options and Jersey Mike’s has a 7.2% rent increase in the sixth year of their lease with 7.5% increases at the start of each option period, providing the investor with an attractive increase in revenue and hedge against inflation.
INVESTMENT GRADE CREDIT: Starbucks Corp. (NASDAQ: SBUX) boasts an investment grade credit rating of BBB+ (S&P) and Baa1 (Moody’s). Starbucks has a market cap of approximately $108 billion (2/17/2026) and reported FY 2025 revenues of $37.2 billion, a 3.0% increase over 2024 revenues.
MINIMAL LANDLORD RESPONSIBILITIES: Starbucks and Jersey Mike’s both have net leases with minimal Landlord responsibilities. The tenants reimburse their pro-rata share of all operating expenses, including taxes, insurance, and common area maintenance, and are directly responsible for their HVAC. The landlord is solely responsible for roof & structure and parking lot replacement, making it an attractive investment for the passive real estate investor.
STRATEGIC LOCATION: Situated on a corner parcel at the intersection of Washington Street and 218th Place, Starbucks and Jersey Mike’s benefit from excellent frontage and visibility along the area’s primary commercial and commuter corridor, with the large 1.76-acre lot offering ample parking for patrons. The Property is adjacent to the Walmart Supercenter plaza that anchors Pella’s retail trade area between downtown and State Route 163. The location offers convenient access to Pella Municipal Airport, Pella Regional Health Center, and Central College; Pella additionally serves as the home for the headquarters of Vermeer Corporation and Pella Corporation, two of the largest employers in Marion County.
TRADE AREA: Additional retailers bringing consumers to the trade area include Walmart Supercenter, Taco Bell, Burger King, Culver’s, Applebee’s, Maurices, Verizon, Great Clips, Domino’s, Fareway Meat and Grocery, Scooter’s Coffee, Chick-fil-A, Arby’s, Casey’s, Kwik Star, West Side Social, Dollar General, US Bank, Bank Iowa, MidWestOne Bank, as well as a variety of local businesses, restaurants, and services in downtown Pella just 1 mile east along Washington Street.
TRAFFIC COUNTS: Approximately 10,200 vehicles per day pass directly in front of the Property along Washington Street.
DEMOGRAPHICS: More than 12,500 people live within 3 miles of the Property with an average household income of $116,559. There are over 11,100 employees working within the same 3-mile radius.
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