Property Type: Retail
Address: 1064 State Route 28
Milford, OH 45150
|CAP Rate: 5.25%|
Square Feet: 2,107
Tenancy Type: National
Lease Type: NNN
The Cooper Commercial Investment Group has been exclusively retained by ownership to sell the 100% fee simple interest in the single-tenant Starbucks location in Milford, Ohio, an affluent suburb approximately 15 miles outside of Downtown Cincinnati. The property is a brand-new 2017 construction relocation store and being offered for a reduced price of $1,845,000, representing a 5.25% CAP Rate, providing an investor with the opportunity acquire an exceptionally stable tenant in an economically strong, high-barrier to entry, yet growing market.
Starbucks recently executed a 10-year lease with no early termination rights, is expected to commence rent in early April of 2017, has a 10% mid-term rental increase and four additional five year renewals with rental increases during each option period. The brand new 2,107 S.F. building accommodates its single-tenant retailer, Starbucks (NASDAQ: SBUX/S&P “A-”/Moody’s “A2”) who hand-picked this site for their desire to have a single-tenant location with drive-thru. Starbucks was previously located just a few doors down on State Route 28 in-line in a multi-tenant center without a drive-thru. Due to the success in the market and ability for further growth, corporate decided that building a new location with a drive-thru would be ideal.
The property was developed with high visibility and prominent signage in the retail corridor along State Route 28, one of the most travelled roadways in the area and conveniently located 1.5-miles to the I-275 interchange. Strategically positioned as an outlot to shadow anchors, Meijer, Kohl’s and Home Depot, also adjacent to Panera Bread and The Milford Shoppes (GameStop, AT&T, Sleep Outfitters, Thoma & Sutton Eye Care and Marco’s Pizza), the asset is centrally located on the main retail corridor.
Traffic counts along State Route 28, an east-west roadway with its end points being located in the cities of Milford and Chillicothe, OH are at approximately 45,000 vehicles per day. State Route 28’s position near I-275 creates an excellent suburban location for commuters. I-275 forms a loop around the entire City of Cincinnati and connects to I-71 and I-75 with direct routes to Downtown, 15 miles away. The City of Milford is an affluent suburb with average household incomes near $105,000 and within a 5 mile radius of the property has a population density of over 73,000 people.