SRS Real Estate Partners Capital Markets said that over the past 18 months, the firm has sold a total of 50 drive-thru properties occupied by single-tenant, net-leased coffee shops including Starbucks, 7 Brew, Caribou Coffee, Dunkin’, Dutch Bros Coffee and Scooters Coffee House. All told, the transactions are valued at $135 million with an average closing cap rate of 5.52%. Additionally, SRS has 45 active coffee shop listings or in escrow with a total value of $124 million.

“While the investor favorite from a brand and credit perspective remains Starbucks, developers and property owners now have a much wider and growing pool of coffee users to consider when offering a coffee shop amenity to their property,” said Patrick Luther, principal & managing director with SRS. “Investors have been clamoring for these cash-flowing, low maintenance single-tenant assets especially with brands that are aggressively expanding and seeking more U.S. locations to capture a growing market share.”

The majority of SRS’ recently completed deals and those in escrow are new construction assets with fee simple ownership, ground lease (land ownership) and sale-leaseback scenarios. Due to the nature of the asset, they are overwhelmingly located in busy retail corridors and are usually a part of a larger retail center, creating strong crossover traffic and a dense customer population.