GADSDEN, Ala. - RealSource Group, a national commercial real estate brokerage company specializing in investment sales, sale-leasebacks and tenant representation, announced today the $3 million sale of a newly built, single-tenant Starbucks drive-thru in Gadsden, Alabama. This transaction marks the first single-tenant Starbucks property sold in the state in 2025.
The 2,500-square-foot building, featuring a patio, was constructed in 2024 on a 1.17-acre site at 720 Gilbert Ferry Road SE. The property benefits from its location in a high-traffic commercial corridor near major retailers such as Walmart and McDonald’s and offers convenient access to Interstates 59 and 759.
Austin Blodgett, Senior Vice President of Investment Sales, and Jonathan Schiffer, Senior Associate, with RealSource Group, in association with ParaSell, Inc., represented both the Ohio-based private investor and the Tampa, Florida-based private developer in the transaction.
"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."
Schiffer emphasized the property's strategic positioning. "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 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, Blodgett noted.
According to CoStar, there were 68 newly built single-tenant Starbucks properties on the market, with an average cap rate of 5.75% and a sale price exceeding $3.1 million. Recognizing the competitive landscape, RealSource strategically priced the deal at 6.00% to ensure strong market activity. RealSource also took a targeted approach, contacting commercial property owners throughout the market, which led to securing a non-exchange buyer familiar with the trade area and actively seeking a net-leased property in Alabama. The property ultimately sold at a 6.29% cap rate.
Starbucks Corp. (NASDAQ: SBUX), the world's largest coffee chain, operates more than 40,000 stores globally and employs approximately 380,000 people. The Gadsden location benefits from a corporate-backed NN+ lease with six five-year renewal options following the initial 10-year term.
"With a steady pipeline of new construction Starbucks properties, we expect the supply of Starbucks deals to remain high," Blodgett said. "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
RealSource Group, founded in 1991, is a national commercial real estate brokerage company specializing in tenant representation, investment sales and sale-leaseback transactions. With the combination of RealSource's leasing and sales experience, vast broker network, technology, unique processes and national reach, RealSource delivers consistency, high-quality production, quality service and measurable deal-making results for its clients on a nationwide platform. Transacting over 1,000 commercial real estate deals nationwide, RealSource has perfected its platform through proven execution over the last 33 years.
For more information, visit: realsource.com.
Media Contact
Company Name: RealSource Group
Contact Person: Austin Blodgett, Senior Vice President, Investment Sales
Email: Send Email
Phone: 949.431.2735
Address:12 Corporate Plaza Suite 150
City: Newport Beach
State: California
Country: United States
Website: https://realsource.com/
