Situated on Watt Ave, this property benefits from 49,354 daily
vehicles and proximity to Costco (0.5 miles). The site lies along a bustling corridor with
major retailers like Target and Home Depot within one mile. Its visibility and accessibility
make it a standout investment in Sacramento’s retail landscape.
Starbucks Corporation’s 15-year net lease, starting June 2025, shifts
all taxes, insurance, and maintenance (except roof, structure, and parking lot) to the tenant.
This structure delivers a hassle-free $180,000 NOI at a 4.50% cap rate for the landlord.
Rental escalations of 10% every five years project NOI to $318,881 by 2040, enhancing
long-term yield.
The property serves 379,580 residents within five miles, with a
median household income of $75,476, rising to $85,500 by 2029. Average household
income within one mile reaches $109,086, the highest among the radii, signaling strong
consumer spending potential. Population growth of 13% since 2010 underscores the area’s
expanding demand base.
Completed in 2025, this 2,200 SF building on a 0.84-acre lot
features Starbucks’ latest design with a high-efficiency drive-thru. The construction quality
minimizes future capital expenditures for the landlord, aligning with the net lease terms. Its
compact footprint maximizes land use efficiency in a high-traffic zone.
Watt Ave’s 49,354 AADT (0.14 miles away) and El Camino Ave’s
16,110–21,191 AADT (0.31–0.34 miles) ensure consistent exposure. The site’s signalized
intersection proximity enhances ingress/egress for drive-thru customers. This connectivity
supports Starbucks’ 22.5% visitation rate within five miles.
Priced at $4,000,000 with a 4.50% cap rate, the property offers
immediate cash flow and growth potential via scheduled rent bumps. Starbucks’ credit
strength and the site’s location near a Costco Business Center bolster its stability. The five mile radius’s 267,596 fast-food visitors in six months reinforce its revenue