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09:53 16 May in News & Talk

Starbucks as STNL Properties Investments Have Strong Long Term ROI and Triple Net Terms.

STNL Properties are sound investments with excellent long term ROI potential.

Bill Howard, working with a valued client, sought to locate STNL properties with strong ROI potential 17 has shown tightening of lending standards as concerns over a wary global financial outlook continue to impact the US economy

*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

Currently, a client is acquiring an off-market Starbucks-Kay Jewelers.  We are acquiring directly from the developer, the building was just completed and the two tenants are currently doing an interior build out.   My client will take possession upon completion and issuance of CO – then doors will be open for business.  The client’s 10 year cash flow will start immediately.  There are additional lease options.

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

Bill Howard
Senior Real Estate Consultant
(732) 720-6306

Bill is well versed in the real estate field and brings 37 years of experience in the securities industry where he serviced and developed significant relationships with high net worth accredited and qualified investors, both domestically and globally. His prior position as Managing Director of a start-up REIT, and role in acquiring real estate assets, affords him the insight regarding diversified portfolios of retail, multi-family, industrial, office and medical properties.