MOJAVE, Calif. – RealEstateRama – Hanley Investment Group Real Estate Advisors, a nationally recognized real estate brokerage and advisory firm specializing in retail property sales, announced today that the firm has arranged the sale of a new construction, single-tenant Starbucks Drive-Thru with a café in Mojave, California, for $4,560,000. The property is located along Highway 14, just past the Highway 58 interchange in southeastern Kern County. Millions of tourists pass through Mojave annually enroute to vacation destinations Mammoth Mountain (2.5 million annual visitors), Yosemite National Park (4 million annual visitors), and Death Valley National Park (1.6 million annual visitors).
Hanley Investment Group’s Executive Vice Presidents Bill Asher and Jeff Lefko represented the seller, Kaidence Group, a commercial real estate development company based in Phoenix, Arizona. The buyer was a private investor based in Orange County, California.
“We procured multiple qualified offers and created a competitive bidding environment to achieve maximum market pricing,” said Asher. “We procured an all-cash, 1031 exchange buyer in the final weeks of their identification period and opened escrow before the store opened for business.”
Asher adds, “The sale represents record pricing for a new Starbucks priced above $4 million in the Central Valley region of California.”
According to Asher, Starbucks had been looking for a new drive-thru site in Mojave for years based on how well other national retailers performed in the area since this location was a high-traffic weekend stop between Los Angeles and popular winter and summer California vacations spots.
“Approximately 70% of annual Mammoth visitors come from Southern California and a majority of the vehicles must travel through Mojave to get to their destination,” said Asher.
The new 3,000-square-foot, freestanding Starbucks-occupied building is located on 0.86 acres at 15652 Sierra Highway in Mojave, along what is also referred to as Highway 14. Starbucks opened on April 21, 2022.
Mojave is 50 miles east of Bakersfield and 100 miles north of Los Angeles. The town, which is on the Pacific Crest Trail, is located in the western region of the Mojave Desert, below and east of Oak Creek Pass and the Tehachapi Mountains.
Starbucks is situated a little over a mile from the Mojave Air and Space Port, a world-renowned flight research center spanning 3,300 acres, hosting the latest and most advanced aeronautical designs. Mojave Air and Space Port is home to 69 companies that provide 2,500 jobs to the immediate area. To the south are the principal cities of the Antelope Valley, Lancaster and Palmdale. Major employers in the Antelope Valley are Northrop Grumman (28,000), Edwards Air Force Base (8,929), Naval Weapons Airstation (7,995) and Lockheed Martin (3,700). Mojave is projected to grow quickly in the coming decades, with its population expected to grow to more than 45,000 by the year 2035.
Starbucks has more than 34,000 stores worldwide and is the premier roaster and retailer of specialty coffee in the world. In March, the company confirmed its plans to expand to approximately 55,000 company-operated and licensed stores across 100 markets by 2030.
Interim CEO Howard Schultz said during the Starbucks Q2 2022 earnings call as reported by Restaurant Dive that Starbucks will accelerate its new store growth, outfitting 90% of new stores with a drive-thru. The drive-thrus will incorporate new store designs and technology, including more handheld devices and equipment aimed at increasing efficiency, speed and profitability. Additionally, the company is investing $1 billion in its employees and technology this fiscal year to meet ongoing consumer demand across drive-thru, mobile order and pay — which makes up 70% of store volume — as well as delivery and in-store orders, Schultz said.
“Starbucks cap rates have compressed to historic lows over the last 12 months,” said Asher. “Investors continue to acquire Starbucks-leased investments as a flight to quality and security based on their credit, continued company innovation and site selection that typically targets the best-positioned real estate for maximum accessibility, identity and visibility.”
Hanley Investment Group is a market leader in the sale of Starbucks investments in the U.S. and has sold or has in escrow 58 Starbucks properties in the last 48 months.
About Hanley Investment Group
Hanley Investment Group Real Estate Advisors is a real estate brokerage and advisory services company with over a $9.2 billion transaction track record that specializes in the sale of retail properties nationwide. Our expertise, proven track record, and unwavering dedication to putting clients’ needs first set us apart in the industry. Hanley Investment Group creates value by delivering exceptional results through the use of property-specific marketing strategies, cutting-edge technology, and local market knowledge. Our nationwide relationships with investors, developers, institutions, franchisees, brokers, and 1031 exchange buyers are unparalleled in the industry, translating into maximum exposure and pricing for each property. With unmatched service, Hanley Investment Group has redefined the experience of selling retail investment properties. For more information, visit www.hanleyinvestment.com.
About Kaidence Group
The Kaidence Group is a commercial real estate development company based in Phoenix, Arizona. Kaidence offers a full-service approach to deliver the highest quality development product through site selection, due diligence, money management, entitlements, design & permitting, and construction management. Kaidence participates in the development of projects in a multitude of ways, from fee development to full purchase and sale.
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