In the past 18 months, SRS Real Estate Partners Capital Markets has successfully sold 50 drive-thru properties occupied by single-tenant coffee shops such as Starbucks, 7 Brew, Caribou Coffee, Dunkin’, Dutch Bros Coffee and Scooters Coffee House. These transactions have a total value of $135 million and an average closing cap rate of 5.52%. Currently, SRS has a portfolio of active listings or properties in escrow totaling $124 million.
According to Patrick Luther, Principal & Managing Director at SRS Real Estate Partners Capital Markets: “Developers and property owners now have a wider range of options when considering adding a coffee shop amenity to their property. While Starbucks remains popular among investors due to its brand recognition and creditworthiness, there is also significant demand for other growing coffee brands.”
The majority of these deals are new construction assets with fee simple ownership or ground lease agreements (land ownership), as well as sale-leaseback scenarios. Located in busy retail corridors within larger retail centers, these low-maintenance single-tenant assets attract strong crossover traffic and dense customer populations.
This recent success highlights the continued growth potential for investors seeking cash-flowing assets with stable tenants in expanding markets across the US market.”
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