Starbucks

Starbucks – Single Tenant Net Lease Investment
Montgomery MSA, AL | Freestanding Drive‑Thru Coffee Shop | Absolute NNN Lease | Passive Income Opportunity

This investment offering features a freestanding Starbucks drive‑thru located in the Montgomery metropolitan area of Alabama. The property is under a long-term absolute triple-net (NNN) lease with scheduled rent escalations every five years and zero landlord responsibilities. Every expense—property taxes, insurance, structural maintenance, landscaping, and utilities—is the tenant’s obligation, delivering fully passive income. This turnkey asset satisfies high-intent search criteria for investors seeking net lease investment properties, NNN properties for sale, single tenant net lease assets, and coffee-shop NNN lease investments in growing Southeast markets.

Positioned on a high-traffic corridor in a primary suburban node of Montgomery, the Starbucks offers dual-lane drive-thru access, excellent visibility, and easy ingress/egress. It is surrounded by residential developments, medical facilities, university campuses, retail centers, office parks, and hospitality venues. This location aligns well with investor demand for buy NNN property, long-term NNN lease investments, 1031 exchange NNN strategies, and fast-casual NNN lease investments.

Investment Highlights

• Leased to Starbucks, a high-credit, globally recognized tenant
• Absolute NNN lease structure ensures tenant responsibility for all real estate costs
• Long-term remaining lease term with structured five-year rent escalations
• Freestanding prototype building with dual-lane drive-thru configuration
• Located in a high-growth corridor within the Montgomery MSA
• Surrounding co-tenants include grocery anchors, medical offices, banks, schools, and professional offices
• Ideal for investors seeking passive income, portfolio diversification, or 1031 exchange properties
• Delivers a reliable income stream with minimal oversight and strong tenant performance

These features align with investor searches focused on net lease real estate investments, single tenant NNN retail properties, and NNN investment property listings.

Tenant Overview

Starbucks is one of the world’s most creditworthy and operationally efficient coffee chains. It has successfully driven growth through drive-thru optimization, mobile ordering, loyalty programs, and beverage innovation. This location is operated by a creditworthy franchisee with demonstrated sales consistency in Montgomery and regional markets.

Under an absolute NNN lease, the tenant bears all property-related expenses, including structural repairs, roof and HVAC maintenance, parking lot and landscaping, taxes, insurance, and utilities. Scheduled rent escalations every five years ensure long-term value and inflation protection, offering investors a clean, passive income stream with no capital injection or property oversight required on their part.

Lease Summary

• Lease Type: Absolute triple-net (NNN)
• Term Remaining: Approximately 15–20 years
• Rent Escalations: Every five years, CPI-indexed or fixed
• Renewal Options: Multiple five-year extensions
• Landlord Responsibilities: None

This lease structure delivers income certainty and aligns with investor goals for stable, tenant-backed cash flow.

Market Overview – Montgomery MSA

Montgomery, the capital of Alabama, has a population of approximately 225,000 within the metro area. The local economy is anchored by state government, military installations (Maxwell Air Force Base), healthcare systems, educational institutions, manufacturing, logistics, and professional services. The city has seen consistent suburban migration, new residential development, and public infrastructure investment.

Starbucks performs well in suburban corridors where commuters, students, healthcare workers, and professionals converge. The blend of residential density, daytime population drivers, and limited drive-thru coffee competition supports strong site fundamentals.

Site Features

• Stand-alone Starbucks building featuring dual-lane drive-thru
• Monument and building signage visible to both directions on the arterial road
• Ample parking with functional stacking lanes for drive-thru traffic
• Easily accessible from a signalized intersection
• Neighboring tenants include grocery anchors, pharmacies, medical clinics, banks, and schools
• Catchment includes residential subdivisions, suburban office parks, and commuter routes

The site layout supports high-volume performance during morning, lunch, and afternoon day-parts, consistent with Starbucks’ operational model.

Demographics and Trade Area

Within a five-mile radius of the property:

• Population between 80,000 and 110,000 residents, with steady growth supported by suburban expansion
• Median household incomes above average for the region, representing a mix of professionals, military families, and government employees
• Diverse consumer base including students, commuters, medical staff, families, and remote workers
• Several major daytime traffic generators: Maxwell AFB, Montgomery Regional Airport, Baptist and Jackson hospitals, and educational institutions
• Active residential construction, including single-family and multifamily developments

These demographics support frequent visits, loyalty-driven behaviors, and consistently strong sales performance.

Economic Drivers and Customer Base

Primary drivers supporting this Starbucks include:

• Workforce demand from healthcare, government, education, and military sectors
• Commuter traffic tied to suburban employment nodes and transportation corridors
• Residential expansion creating new customer density in nearby subdivisions
• Local students and faculty traveling from nearby campuses
• Limited nearby drive-thru coffee competitors enhancing site performance

These characteristics deliver a stable and diversified consumer pool that reinforces reliable revenue generation and unit-level efficiency.

Rent Escalations and Income Growth

Scheduled rent escalations every five years ensure that net operating income grows in line with inflation and market conditions. The absolute NNN lease structure guarantees that all operational and capital expenses are tenant borne, eliminating landlord cost unpredictability. This structure offers investors strong income clarity and low management burden.

Ideal Buyer Profile

The property is well-suited for:

• Investors completing 1031 exchange acquisitions seeking turnkey NNN assets
• Private equity or family office investors aiming for passive parking of capital with minimal risk
• Institutional buyers and REITs focused on nationally credited tenants in dominant trade areas
• Private investors and capital allocators seeking net lease real estate investments with strong tenant stability
• Buyers focused on portfolio diversification through fast-casual and coffee-shop NNN lease investments

This Starbucks aligns with search intent targeting net lease opportunities, 1031 exchange replacement assets, and single tenant NNN retail investments.

Alabama Net Lease Market Trends

Alabama continues attracting businesses and population with favorable tax and regulatory environments. Montgomery’s economy benefits from government, military, logistics, health, and education sectors. Drive-thru coffee assets, especially those under absolute NNN leases, have seen growing investor demand for their resilience, simplicity, and scalability.

Freestanding Starbucks locations in regional markets like Montgomery are rare, driving pricing strength. Investors view these assets as core opportunities for stable income, attractive yield, and minimal oversight.

Conclusion

This freestanding Starbucks in the Montgomery MSA represents a best-in-class net lease investment. With a national tenant, absolute NNN lease structure, scheduled rent escalations, dual-lane drive-thru design, and a growth-oriented suburban location, the asset delivers passive income with zero landlord responsibilities.

Ideal for investors looking to buy NNN property, pursue coffee-shop NNN lease investments, or fulfill 1031 exchange strategies, this offering delivers on key criteria: reliable cash flow, tenant strength, site quality, and demographic support. This Starbucks provides a strong addition to any net lease investment portfolio in emerging Southeast markets.