Starbucks is under a corporate lease, set among the famous Hamptons, approximately 2.5 miles from the 5 mile stretch known as Billionaires' Lane. Starbucks (NASDAQ: SBUX) is under a 10-year lease term, with approximately 7 years remaining and four 5-year renewal options. There are 10% rental increases at each renewal option. Starbucks has a modified NN lease with limited landlord responsibilities including roof and structure. The company holds an A credit rating with S&P, currently has over 25,000 locations in 75 countries, and had net revenue in excess of $21 Billion in 2016. Starbucks is located in the Village of Southampton, one of the most prestigious and exclusive communities in the United States with full-time residential household income averaging over $145,000 within 5 miles. Starbucks also benefits from plentiful parking which is scarce, at best, in the Hamptons.
Southampton Village is located in the Hamptons, a popular summer destination for worldwide celebrities and some of the United States most elite families. Southampton Village is a bustling center of the Town of Southampton - home to many unique shops and restaurants and wonderful cultural centers and museums. Southampton hosts many well-known events including the Hamptons Half Marathon, Coopers Beach movie nights, and polar plunges. Southampton Village, which hosted the earliest summer community of socially prominent residents, and was arguably the center for upper class Americans, served as home to members of the Ford, Du Pont, Morgan, Atterbury, Woolworth, and Eisenhower families. The oceanfront streets in Southampton Village (Gin Lane and Meadow Lane) rank among the most expensive roads in the country. Meadow Lane has been called Billionaires' Lane and is cited as having among the highest home values in the country.