26 Jun 2019
Matthews Real Estate Investment Services™, a leading commercial real estate investment company, recently arranged the sale of a Starbucks in Orange County for $7.88 million, setting the record as the highest priced Starbucks sale in history, according to CoStar. Matthews™ senior associate, Jon Prater, and SVP & senior director, Aron Cline, represented the seller in the transaction.
The property is located along Beach Boulevard which receives traffic from 67,000 cars per day and is adjacent from Knott’s Berry Farm, a 57-acre theme park with over six million visitors annually. Prior to sale, the Starbucks property had recently relocated 0.1m to the only available drive-thru on Beach Blvd between the 91 Freeway and Knotts Berry Farm. This move was completed by the seller, CalBay Development, a Southern California retail development firm focused on buying premium commercial properties and developing first-class projects. By working with Matthews™, the seller received a record-breaking sale price for this free-standing Starbucks property.
The Matthews™ team generated multiple offers by prospecting all like-kind real estate owners as well as California apartment 1031 exchange buyers through the Matthews™ 1031 Exchange Program. As a result, the team sourced a buyer by utilizing the Matthews™ proprietary database and went under contract with the first buyer vetted and selected in just 17 days. The all-cash transaction closed in just under two months at 93 percent of the list price.
The buyer, a private California based investor, was motivated by the property’s strong national tenant and prime location. Starbucks has over 30,000 locations worldwide, with revenues of over $24.7 billion in 2018. The area is expected to receive two new neighboring hotel developments, Aloft hotel, and Stanford hotel.
As a premier net lease agent in the industry, Cline was able to bring his unparalleled experience and expertise to this noteworthy deal. “The high traffic counts, drive-thru, and resort district location made it an ideal property for the Starbucks concept which greatly values accessibility and convenience,” stated Cline. “With our commitment to providing superior client service, we were able to deliver exceptional results,” Cline added. “We were able to successfully communicate the generational value of this trophy asset to prospective buyers, and generate an abundance of interest while facilitating a smooth transaction process for both satisfied parties,” Prater concluded.
The deal team is continuously sourcing re-positioning opportunities throughout California and has arranged over $30 million in California Starbucks sales in the past 12 months. If you have any questions relating to similar assets, please do not hesitate to reach out to Jon Prater and Aron Cline.
About Matthews Real Estate Investment Services™:
MATTHEWS REAL ESTATE INVESTMENT SERVICES™ is recognized as an industry leader in shopping center, STNL, leasing, multifamily, management, portfolio disposition, and 1031 exchange programs. The firm is headquartered in El Segundo, CA and serves clients throughout the United States and Canada. For more information, please visit WWW.MATTHEWS.COM.
P: (310) 955-1784