Starbucks – STNL Gold
*Starbucks Opened 2,254 New Locations in 2017
*CAP Rates Vary State by State
*CAP Rates Vary By Listing Broker
*Demographics Play A Key Role in Long Term Viability
*Working with a Local Broker Will Restrict You to ‘In-House’ Listings
Starbucks either STNL or two tenant are trading roughly in a Cap Rate range of 4.75% – 5.25%.
This acquisition was successfully negotiated to a 6.50% Cap Rate.
At the end of the transaction, I am compensated by the seller for the acquisition, while costs to my client amount to $0. With an extensive network of legal relationships I am able to assist my clients in structuring the ‘acquiring llc,’ review due diligence and close the acquisition. In addition, in many instances, after negotiating the terms of the acquisition, I am able to also arrange permanent mortgage financing options. In this instance, having negotiated a higher than average cap-rate accompanied by favorable lending terms, allows my client to forecast a better than average ROI with additional tax benefits at years end.
Not being tied to house listings, affords me the opportunity to look at national STNL market as a whole – allowing me to advise my clients best opportunities to provide them a healthy, long-term ROI.
I refer to this allocation as S.W.A.N Investing = Sleep Well At Night