Des Moines, IA

Price $1,149,000
Cap Rate 5.75%
TYPE Single-Tenant
Tenant Starbucks Corp.
YEAR BUILT 2005 | 2016
LEASE EXP. 09/30/2025
Patricia Elliott, Elliott Realty Group
Iowa Local Broker #T05698000

Property Description

IHOP has 7 years remaining on a recently extended 10-year NN lease with attractive 10% rental escalations every 5 years. Starbucks Corporation has a S&P “A-Stable” credit rating and a Moody’s A3 stable rating, and operates more than 28,030 retail stores in 77 countries/markets. The subject location has been open for business since 2005, and in 2015 the tenant elected to exercise two of their 5-year options early. In addition, Starbucks spent over $100,000 remodeling/updating the store in 2016.

IHOP is located in Des Moines, IA and is located just off a hard corner with excellent drive-by visbility. This asset is a pad site to Merle Hay Mall (1,060,000 SF enclosed mall anchored by Target, Kohl’s & Flix Brewhouse w/ over 80 stores & services), and nearby retailers include: Hobby Lobby, Burlington, Harbor Freight Tools, Northern Tool + Equipment, Big Lots, Office Depot, Price Chopper, Dollar Tree, etc. IHOP is located less than 4 miles from Drake University, 4 miles from Broadlawns Medical Center (200 beds), and 2.5 miles from VA Central Iowa Health System (386 beds).

*In Association with Iowa Local Broker: Patricia Elliott, Elliott Realty Group #T05698000

Property Highlights

  • 7 Years Remaining on (Recently Extended) 10-Year NN Lease with Attractive 10% Rental Escalation Every 5 Years
  • Open for Business since 2005. In 2015, the Tenant Elected to Exercise Two of Their 5-Year Options Early. In Addition, Starbucks Spent Over ±$100,000 Remodeling/Updating the Store in 2016.
  • 2018 Demographics: Infill Location with Total Population (5-MI): 197,852 | Avg HH Income (3-MI): $83,618
  • Starbucks Corporation (NASDAQ: SBUX | S&P “A- Stable” Credit Rating | Moody’s A3 Stable Rating) Operates More than 28,030 Retail Stores in 77 Countries/Markets
  • Pad Site to Merle Hay Mall (Anchored by Target, Kohl’s & Flix Brewhouse), just Off the Hard Corner Location on Merle Hay Rd & Douglas Ave with Great Drive-By Visibility where Traffic Counts Exceeding 47,700 CPD!