GADSDEN, Ala. (May 2025) — RealSource Group, a national leader in commercial real estate investment sales, tenant representation, and sale-leasebacks, has closed the $3 million sale of a newly constructed, single-tenant Starbucks drive-thru located in Gadsden, Alabama. The transaction represents the first standalone Starbucks property to be sold in the state this year.

The 2,500-square-foot store, which includes a patio, sits on 1.17 acres at 720 Gilbert Ferry Road SE. Completed in 2024, the property is positioned in a busy retail corridor with high visibility and steady traffic, adjacent to major national tenants including Walmart and McDonald’s, and just minutes from Interstates 59 and 759.

RealSource Group’s Austin Blodgett, Senior Vice President of Investment Sales, and Jonathan Schiffer, Senior Associate, in partnership with ParaSell, Inc., represented both sides of the deal — the Florida-based developer and an Ohio-based private investor.

“By leveraging direct outreach to commercial property owners and investors, RealSource Group identified a motivated all-cash buyer within the first 30 days,” said Blodgett. “The buyer's interest was fueled by Starbucks' investment-grade credit, limited competition, and the passive nature of the NN+ lease. Additionally, the buyer was actively seeking a net-leased investment in Alabama for tax planning purposes, making this deal a perfect match.”

The strategic positioning of the Gadsden location also played a key role. Schiffer emphasized the strength of the site: “With more than 21,000 vehicles passing daily and as the only standalone Starbucks within a three-mile radius, the location offers strong visibility and minimal immediate competition.”

The Starbucks lease is backed corporately and structured as a NN+ (double net plus) lease with minimal landlord responsibilities. It includes a 10-year primary term, 10% rent increases every five years, and six five-year renewal options — offering long-term, predictable returns ideal for passive investors. According to Blodgett, “The corporate-backed NN+ lease features a 10-year primary term with 10% rental increases every five years and minimal landlord responsibilities, creating a compelling opportunity for a passive investor seeking predictable cash flow.”

In a competitive market for single-tenant Starbucks properties, RealSource priced the deal strategically. Nationally, CoStar data showed 68 comparable properties on the market with an average cap rate of 5.75% and an average sale price over $3.1 million. To stand out, RealSource listed the Gadsden asset at a 6.00% cap rate. The property ultimately sold at a 6.29% cap rate.

RealSource’s targeted marketing strategy included direct contact with commercial property owners and investors in Alabama, leading to a successful match with a non-exchange buyer familiar with the local trade area.

Starbucks Corp. (NASDAQ: SBUX), which operates over 40,000 stores worldwide and employs approximately 380,000 people, continues to be a highly sought-after tenant among investors due to its credit strength and global brand recognition. The Gadsden location adds to the growing list of new-build Starbucks drive-thrus designed to meet demand for convenience and accessibility.

Looking ahead, Blodgett sees continued momentum in the market. “With a steady pipeline of new construction Starbucks properties, we expect the supply of Starbucks deals to remain high. Demand will continue, driven by Starbucks' investment-grade credit and buyers seeking long-term security. Given the Federal Reserve's current rate outlook, we do not expect a significant drop in interest rates this calendar year. As a result, cap rates are likely to hold, with the potential for a slight decline in the fourth quarter if rate cuts occur.”

About RealSource Group

Founded in 1991, RealSource Group has facilitated over 1,000 commercial real estate transactions nationwide. The firm specializes in tenant representation, investment sales, and sale-leaseback transactions. RealSource leverages its vast broker network, advanced data tools, and a refined marketing process to deliver consistent, high-quality results to clients across the U.S.

For more details, visit RealSource.com.

Originally reported by AB Newswire in Open PR.