4005 7th St
Moline, IL 61265
New Starbucks | 10 Yr Lease | 5.5% CAP · Retail Property For Sale

Marcus & Millichap, on behalf of ownership as its exclusive advisor, is pleased to market for sale Starbucks located in Moline, Illinois. Starbucks was built-to-suit in 2018 and occupies a freestanding prototypical masonry building with drive-thru. Starbucks recently signed a 10-year lease with rent escalations of 12% every 5 years, which carry over into all four 5-year options. The lease terms are very favorable for prospective landlords, wherein there are no early termination clauses, and landlord is only responsible for expenses associated with roof & structure. All other operating expenses are fully reimbursed by tenant including taxes, insurance and common area maintenance. The lease has a full corporate guarantee from publicly-traded Starbucks Corporation (NASDAQ: SBUX), which carries Moody’s “Baa1” investment-grade credit. Starbucks is currently ranked #132 on the Fortune 500, posting 2018 consolidated revenues of $24.7 billion, up 10% over the prior year. Starbucks also announced that same-store sales increased by 4% year-over-year, and their renowned reward membership in the U.S. increased by 15% to 15.3 million active users. Starbucks is located at the hard corner of John Deere Road & 7th Street, which combine to see over 37,500 vehicles per day. The subject property is situated as an outparcel to UnityPoint Health’s Trinity Campus, which includes a full-service emergency department, pain center, cancer treatment, birthing facility and state-of-the-art surgical suites for inpatient and outpatient surgical services. Curb cuts are found along 7th street, just past the signalized intersection making the property extremely accessible for traffic in all directions. Starbucks also shares the intersection with the adjacent Riverplace Centre which contains Target, Hy-Vee, Kohl’s, Ross, & Hobby Lobby. Other retailers in the immediate vicinity include, Wal-Mart, Lowe’s, and the 825,000 square foot SouthPark Mall. Prominent tenants at SouthPark consist of Dillard’s, JCPenney, Von Maur, Dick’s Sporting Goods & 60+ small shops/restaurants. This asset benefits from having a prime location in a high foot traffic corridor, however, as dense as this area is, Starbucks holds dominant market share being the only quick service coffee provider along the main throughway, and realistically the only Starbucks location servicing all of western Moline. Moline is located in Rock Island County, Illinois, and is part of the Quad Cities. Quad Cities have an estimated population count of 381,342 and include cities in Illinois and Iowa. The subject property’s immediate demographics are stable and mature with population counts of over 58,486 within 3-miles and 128,658 within 5-miles. Average household income is above the national average at $75,701. Moline is the ninth-most populated city in Illinois outside the Chicago Metropolitan Area and is home to Deere & Company’s national headquarters.