Purchase Price | $2,150,000 |
---|---|
Annual Rental Income | $161,250 |
Cap Rate | 7.50% |
Lease Term | 15 Years |
City | Decatur MSA |
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Scooter’s Coffee – Single-Tenant Net Lease Investment
Decatur MSA, IL | Drive-Thru Coffee Asset | Absolute NNN Ground Lease | Passive Income Opportunity
Overview
This listing features a freestanding Scooter’s Coffee in the Decatur metropolitan area, structured with an absolute triple-net (NNN) ground lease. The tenant assumes all operational costs, including real estate taxes, insurance, utilities, maintenance, and landscape upkeep. The lease incorporates scheduled rent escalations every five years, offering steady income growth and inflation protection. With zero landlord responsibilities, this property delivers reliable passive income and fits well within portfolios targeting net lease investment properties, single-tenant NNN retail assets, drive-thru coffee investments, and 1031-exchange-ready opportunities.
Investment Highlights
Tenant Overview
Scooter’s Coffee is a growing drive-thru coffee brand known for its made-to-order beverages and strong customer loyalty. The tenant operating this location is a franchisee with proven local success and financial stability. While the lease is backed by the franchisee, their consistent reinvestment in maintenance, brand standards, and customer experience supports long-term occupancy and site performance.
Lease Terms
This lease structure ensures passive income with clear growth benchmarks and minimal management requirements.
Site Overview
The site is built to prototype standards featuring dual-lane drive-thru, branded exterior finishes, customer parking, and outdoor lighting. It is located on a signalized corner within a busy retail node. Easy access from intersecting arterials and strong signage enhance daypart volumes, while adjacent retailers support consumer cross-traffic.
Market Overview – Decatur MSA
Decatur functions as a stable regional hub with a diversified economic base including manufacturing, healthcare, education, and community services. Retail corridors in the area feature groceries, national retailers, restaurants, and service providers catering to local demand. The prevalence of drive-thru concepts continues to grow as convenience preferences evolve in markets similar to Decatur.
Demographics and Trade Area
The surrounding catchment area includes a blend of families, professionals, students, and service-sector employees. A balance of residential neighborhoods and institutional centers contributes to daily vehicle flow. The trade area supports consistent morning and afternoon trade, reflecting commuter and shopper behaviors.
Consumer Demand Drivers
Income Profile and Growth
Scheduled rent step-ups secure increasing revenue without landlord capital expenditures. The tenant’s financial responsibility for all site costs ensures predictable yields and clean cash flow. Operational stability and local franchisee engagement increase confidence in long-term asset performance.
Ideal Buyer Profile
Well-suited for:
Market Positioning & Trends
Drive-thru coffee continues to outperform in the single-tenant NNN real estate sector. Scooter’s Coffee, with its emerging franchise network and growth strategy, matches well with investor demand in similar markets. Scarcity of well-located hard-corner drive-thru pads supports pricing strength and future liquidity. This listing aligns with high-intent asset searches—net lease investment properties, single-tenant NNN retail, drive-thru coffee NNN opportunities, and 1031 exchange NNN deals.
Conclusion
This Scooter’s Coffee in the Decatur MSA offers a prime net lease opportunity with strong passive income characteristics. Featuring a long-term absolute NNN ground lease, franchisee-backed tenancy, scheduled rent growth, and a well-located site in a stable regional market, it meets key investment criteria. With no landlord responsibilities and inflation-hedged returns, it stands as a top-tier addition to any net lease retail or drive-thru portfolio.
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