New: Starbucks @ Palmdale Crossroads
Retail | 5.00% CAP | 1,264 SqFt
Marketing description
Faris Lee Investments is excited to present an exceptional investment opportunity featuring a newly-constructed Starbucks, as the only double drive coffee in the entire trade area. The Site is strategically positioned in the heart of Palmdale, a vibrant Southern California city renowned for its strategic location and flourishing community. With a coveted hard corner parcel at a signalized intersection within a bustling retail hub joined by Chick-fil-A and Mister Car Wash, this property offers investors unparalleled advantages in the highly sought-after Palmdale market.
The property boasts a corporate-guaranteed lease with Starbucks, the only investment grade Coffee retailer in the US. Starbucks 2025 revenue was over $37 Billion across its 40,000 worldwide stores with a Market cap of $115 Billion. Investors benefit from a long-term lease spanning 10 years, structured with a triple-net arrangement, ensuring stable and secure cash flow. Starbucks reimburses for common area maintenance, property taxes, and insurance expenses, presenting an ideal opportunity for passive income generation. In addition, Starbucks rent is 43% below the average Starbucks rent in LA County for a new state of art double drive thru.
Strategically positioned within a thriving retail hub, the property is surrounded by top-performing retailers and restaurants, including Walmart, Lowes, Target, Stater Bros, Walgreens, Vallarta Supermarket, McDonald's, Jack In The Box, and Panda Express. Its proximity to the Antelope Valley 14 Freeway and located at the intersection of 40th Street East and Avenue S (over 32,000 VPD) enhances the property's accessibility and connectivity, making it an attractive destination for consumers.
This retail property featuring a newly-constructed Starbucks presents investors with a rare opportunity to acquire a high-quality asset in a prime location with a best-in-class tenant. With its secure long-term lease, strategic positioning within a thriving retail hub, and favorable trade area demographics, this investment offers stability, growth potential, and attractive return in Southern California's dynamic real estate market.
Investment highlights
- Publicly Traded Company (NSDQ: SBUX)
- Market Cap over $115B (June, 2026)
- Only Investment Grade coffee retailer in the world
- New 10-Year lease term (No Early Termination)
- Provides investor with long term stability
- Below Market rent for a double drive thru quick service retailer
- This is the only Double drive thru prototype building in the trade area
- Double Thrus are the most profitable for Starbucks and generate approximately 50% more revenue than non-drive-thru locations
- Mobile order and pay, drive-thru, and delivery account for over 70% of company revenue
- High profile drive thru pad building along 4Oth St East & Avenue S with over 32,000 VPD
- Free-standing retail pad locations with Drive Thru's are most sought after investment product for investors
- Development includes a new State of Art Double Drive Thru Chick fil-A Restaurant and Mister Car Wash which will provide additional traffic generation to the property
- Dry Town Water Park is located across the street from the Starbucks location and typically has up to 100,000 annual visitors
- Ideal investment opportunity for passive investor looking for secure income stream with a highly-rated credit tenant
- New Construction ensures no potential deferred repairs or maintenance for the investor
- Expenses passed through to Tenant – limited Landlord responsibilities and ease of management
- Starbucks lease provides for ownership of building by investor
- Ideal for 1031 exchange
- Cost Segregation provides for tax benefits through depreciation
- Starbucks is conveniently located between two neighborhood shopping centers anchored by Stater Bros & Food 4 Less to the West and Target, Walmart Supercenter, Home Depot, Lowes Home Improvement, Ross Dress for Less, Stater Bros, and Vallarta Supermarket to the east
- According to Placer.ai, the following tenants in the immediate area, ranked by customer visitation: Walmart top 10% nationwide, Target top 17% nationwide, Stater Bros No. 1 in region, Vallarta top store in chain, El Pollo Loco top 3% nationwide, Panda Express top 6% nationwide, Jack in the Box top 1% nationwide
- Trade area consists of 126,901 residents with an average household income of $95,412
- There are 6 new residential developments planned and under construction within 2 miles of the subject property that will add 617 homes to an already strong trade area
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