A newly-constructed, single-tenant corporate Starbucks with a drive-thru located in Bakersfield has sold for $2.65 mil, which works out to a price of $1,432/sf. According to CoStar, this sale achieved a record low cap rate of 4.09% for a single-tenant Starbucks in Bakersfield and a record high price per square foot in the city.
Built in 2017, the 1.9k sf building is situated on 0.81 acres in the southeast quadrant of Colony St and Panama Lane. The property is in close proximity to the 99 Fwy Panama Lane on/off ramp, benefitting from more than 128,000 cars per day and nearby national and regional credit tenants including Walmart Supercenter, Albertsons, Aldi, AutoZone, Carl’s Jr., Family Dollar, In-N-Out, Jack in the Box, Lowe’s, O’Reilly Auto Parts, McDonald’s, Pizza Hut, Sleep Train, Vallarta Supermarkets and Walgreens.
Traffic is also driven to the area by the nearby Bakersfield Auto Mall, made up of 21 different major auto dealerships. Additionally, there are multiple new housing developments from builders Lennar, CalAtlantic and Legacy Homes in the surrounding area.
The buyer, a private investor from Los Angeles, was represented by Joe Bolognese of Major Properties Real Estate in Los Angeles. Bill Asher and Jeff Lefko with Hanley Investment Group represented the seller, Evergreen Development, retail and multi-family development company with heavy emphasis on developing projects in California, Colorado, Arizona and now Utah.
According to Asher, “Average store sales are significantly greater in Starbucks locations that have a drive-thru, which has created a goal for Starbucks to have drive-thrus in half of its stores by 2020. By 2019, Starbucks expects to grow from $16 bil to $30 bil in revenue, with 60 percent of all new locations including a drive-thru.”