In the past 18 months, SRS Real Estate Partners Capital Markets has successfully sold a total of 50 drive-thru properties occupied by single-tenant, net-leased coffee shops. These include popular brands such as Starbucks, 7 Brew, Caribou Coffee, Dunkin’, Dutch Bros Coffee and Scooters Coffee House. The transactions have amounted to $135 million with an average closing cap rate of 5.52%. Currently, SRS has a portfolio of active coffee shop listings or in escrow worth $124 million.
According to Patrick Luther, Principal & Managing Director at SRS Real Estate Partners Capital Markets,”investors continue to favor well-known brands like Starbucks for their strong brand recognition and creditworthiness.” However,the market is expanding with more options for developers and property owners looking to add a coffee shop amenity on their property.
The majority of recent deals completed by SRS involve new construction assets under fee simple ownership or ground lease agreements. Additionally,sale-leaseback scenarios are also common due to the low maintenance nature of these single-tenant assets.These properties are strategically located in busy retail corridors within larger retail centers,resulting in high foot traffic and dense customer populations.This makes them highly desirable investments for investors seeking stable cash flow opportunities.
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