Jones Lang LaSalle Americas, Inc. (“JLL”) is pleased to present for sale the newly constructed three-tenant retail strip center (the “Property” or “Asset”) located at 1301 US Hwy 231 S, Troy, Alabama. The 6,400 SF building was delivered in 2022 and is fully occupied by Starbucks, T-Mobile, and Jersey Mike’s Subs on a brand new 10-year leases with attractive rental increases every five years. Starbucks, T-Mobile, and Jersey Mike’s Subs all have four, two, and three 5-year renewal options, respectively. The Starbucks store at the Property is the only Starbucks in Troy. The Property offers a rare opportunity to acquire a secure cash flow that is backed by both Starbucks’ and T-Mobile’s investment-grade credit.

With excellent visibility and frontage along Highway 231 South (24,000 VPD), this property benefits from being located on a highly trafficked retail corridor that features national tenants. The Asset is across the street from a Walmart Supercenter that is in the 74th percentile of Walmart stores in the nation by visits as well as Troy Regional Medical Center, a medical campus with 97+ beds that serves six counties in the area. Both Troy University, the fourth largest university in Alabama, and Mossy Grove Neighborhood, the most affluent neighborhood in Troy, are located less than a five-minute drive from the Property. Starbucks will benefit from serving as the only Starbucks in the area for students, employees, and residents in the area.

Buff Teague

License #: AL - 83353-0

PROXIMATE TO A WALMART SUPERCENTER AND OTHER TRAFFIC DRIVERS

• The Property is surrounded by national retail tenants, including a Walmart Supercenter store in the 74th percentile of Walmart stores in the nation by visits per Placer.ai.
• The Asset is located on the highly trafficked corridor Highway 231 South (24,000 VPD), which features national retailers, two grocer-anchored shopping centers, a Walmart Supercenter, and Troy Regional Medical Center.
• Troy University, the fourth largest university in Alabama, and Mossy Grove Neighborhood, the most affluent neighborhood in Troy, are both less than a 5-minute drive from the Property.

BEST-IN-CLASS RETAIL TENANCY

• The Asset has the only build-to-suit drive-thru Starbucks in Troy, Alabama. Starbucks’ future retail strategy involves an aggressive drive-thru store expansion to meet the growing customer demand for convenience. The NPD group reported a 20% increase in drive-thru orders from February 2020 – February 2022 across QSR tenants.
• Starbucks is the world’s largest specialty coffee retailer with over 34,630 locations, $29.1B in annual revenue, and an investment grade ‘BBB+’ credit rating from S&P.
• T-Mobile is the nation’s third largest wireless service provider with over 8,000+ locations, $80.2 billion in revenue, and accelerated growth through the acquisition of Sprint to launch a 5G network expansion program. T-Mobile received a stable, investment-grade credit rating of ‘Baa3’/’BBB-’ from Moody’s/S&P in Q3 2022.
• Jersey Mike’s Subs operates and franchised over 2,200+ stores nationally and has had 13.3% growth in franchise store expansions since 2020.

OPTIMAL LONG-TERM NET LEASE ECONOMICS

• The Property is leased to Starbucks Corporation, T-Mobile, and Labe Restaurant Group (dba Jersey Mike's Subs) under brand new ten-year leases with favorable rental escalations and five-year renewal options.