Institutional-Quality Tenant Lineup
– Featuring Starbucks, one of the world’s most recognized retail brands, operating more than 40,000 locations globally.
– Anchored by O&H Danish Bakery, a beloved Wisconsin institution founded in 1949 and synonymous with Racine’s heritage.
– Complementary tenant mix combines a nationally recognized coffee retailer with a destination-oriented local specialty bakery.
– 100% occupied asset providing diversified income from two established operators with strong customer loyalty.
New Construction Asset with Minimal Capital Requirements
– Purpose-built retail property completed in 2021, offering investors a modern, high-quality construction profile.
– Recent development significantly reduces near-term capital expenditure and deferred maintenance risk.
– Contemporary drive-thru and retail design enhances long-term tenant appeal and operational efficiency.
Below-Market Rental Profile Creates Long-Term Upside
– Current in-place rents of approximately $34.00 PSF for Starbucks and $32.00 PSF for O&H Danish Bakery are considered conservative relative to new construction replacement costs.
– Contractual rent increases embedded through multiple renewal option periods.
– Opportunity for future rental growth as market rents continue to adjust to inflation and rising construction costs.
– Investors benefit from stable current cash flow while maintaining long-term lease rollover upside.
Strategic Racine Location Outside Milwaukee’s Core Urban Market
– Located in Racine, approximately 22 miles south of Milwaukee and positioned between Milwaukee and Chicago.
– Offers exposure to the broader Southeastern Wisconsin economy without the pricing associated with core Milwaukee assets.
– Strong surrounding demographics include approximately 86,000 residents within five miles and average household income exceeding $107,000 within one mile.
– Serves a highly established residential trade area supported by schools, apartments, national retailers, healthcare providers, and daily-needs traffic generators.
