Starbucks

Starbucks – Single Tenant Net Lease Investment Lufkin, TX MSA | Freestanding Drive-Thru Coffee Shop | Absolute NNN Lease | Passive Income Opportunity

This opportunity showcases a freestanding Starbucks drive-thru in the Lufkin metropolitan area, a regional hub in deep East Texas. The asset features a long-term absolute triple-net (NNN) lease with scheduled rent escalations every five years and zero landlord obligations. All property-level expenses—including taxes, insurance, structural and equipment maintenance—are the tenant’s responsibility, resulting in fully passive income. This investment is ideal for buyers targeting net lease investment properties, NNN properties for sale, single tenant net lease assets, and coffee-shop NNN lease investments in increasingly desirable secondary markets.

Located on a high-traffic arterial roadway in a growing suburban-commercial node, this Starbucks offers dual-lane drive-thru service, strong visibility, and seamless ingress and egress. Surrounding amenities include residential neighborhoods, healthcare facilities, schools, retail centers, and automotive services. The location aligns perfectly with investor search criteria such as buy NNN property, long term NNN lease investments, 1031 exchange NNN, and fast casual NNN lease investments in regional Texas markets.

Investment Highlights

• Nationally recognized Starbucks tenant with strong credit

• Absolute NNN lease structure shields landlord from expenses

• Scheduled rent increases every five years support inflation protection

• Long-term lease with multiple five-year renewal options

• Prototype building with dual-lane drive-thru optimized for traffic

• Positioned in a prime retail corridor within Lufkin’s trade area

• Supported by dense surrounding services and growth in nearby residential zones

• Ideal for investors seeking passive income from credit-tenanted assets

Tenant Overview

Starbucks, a leading international coffee chain, continues to outperform in drive-thru-centric markets. Known for its loyalty program and mobile-ordering infrastructure, Starbucks achieves above-average ticket size and frequency. The franchisee managing this site has a successful track record in similar markets. Under an absolute NNN lease, the tenant is responsible for all operating expenses, including structural upkeep, roofing, HVAC, parking lot maintenance, landscaping, taxes, and insurance. Scheduled rent escalations every five years add long-term growth to the revenue stream, delivering steady, hands-off income.

Lease Summary

• Lease type: Absolute triple-net (NNN)

• Remaining term: Approximately 15–20 years

• Rent escalations: Every five years, typically CPI-indexed or fixed

• Lease renewals: Multiple five-year extension options

• Landlord obligations: Zero

This lease structure provides tenants with cost certainty and landlords with passive yield in line with investor expectations for high-quality NNN assets.

Market Overview – Lufkin MSA

Lufkin serves as the economic and retail center for a wide area of East Texas, driven by healthcare, education, manufacturing, energy, and forestry industries. The population is over 45,000 in the city itself, with a broader trade area approaching 100,000 residents. The local economy is underpinned by Texas A&M Forest Service, Angelina College, Memorial Hospital, and regional retailers. While rural in character, Lufkin’s economy remains stable and gradually expanding, with occasional growth tied to infrastructure and retail investments.

Starbucks thrives in regional centers where commuters, education, and healthcare workers create volume. Lufkin’s car-oriented corridor layout provides the perfect environment for drive-thru coffee brands, and vehicle counts during peak dayparts support strong unit-level performance.

Property Features

• Stand-alone Starbucks building with dual-lane drive-thru canopy

• Clear monument and building signage visible from both traffic lanes

• Sufficient parking and stack lanes engineered for peak period throughput

• Located at a signalized intersection, maximizing visibility and access

• Adjacent to grocery, banking, pharmacy, healthcare, and education hubs

• Positioned to serve multiple consumer segments: commuters, students, professionals, families

The site layout ensures strong performance throughout morning, midday, and evening sales windows, especially as it captures both drive-thru and walk-up traffic.

Trade-Area Demographics

Within a five-mile radius:

• Population approximates 50,000–60,000 residents with modest growth

• Median household income above $60,000, supporting discretionary spending

• Daytime population bolstered by hospital staff, college employees, and retail workers

• A mix of homeowners, renters, students, and professionals

• Continued residential development and infill projects completing

The demographics support stable, year-round patronage and align with investor objectives for cashflow attributes in coffee-shop NNN lease investments.

Economic and Consumer Drivers

Key performance drivers in the Lufkin Starbucks market include:

• Steady community growth, supported by municipal development and retail investment

• Demand from professionals and families in growing suburbs

• Higher daytime traffic due to education, healthcare, and public services employment

• PSD: Primary and secondary schools generating consistent midday volume

• Strong commuter patterns along major roadways feeding into Lufkin’s commercial node

These dynamics provide dependable traffic volume and support consistent revenue generation across all dayparts.

Rent Escalations and Income Profile

Rent escalations every five years build into net operating income, offering inflation resilience and predictable growth. With an absolute NNN lease, the owner faces no expense exposure, simplifying property ownership and enabling precise financial modeling—critical for buyers seeking return clarity, such as 1031 exchange investors, REITs, and net lease portfolio managers.

Ideal Buyer Profile

This asset appeals to:

• Investors pursuing passive income strategies through single-tenant NNN coffee tenants

• Buyers conducting 1031 exchange transactions seeking low-touch assets

• Private equity firms and family offices building resilient net lease portfolios

• REITs and institutional capital targeting Southeast and secondary U.S. growth markets

• Asset allocators focused on credit-backed, operationally simple real estate

With creditworthy tenancy, built-in growth, and a proven drive-thru model, this Starbucks aligns with top-tier net lease acquisition profiles.

Texas Net Lease Market Context

Texas continues outperforming national averages in population and job expansion, with municipal and regional capitals seeing outsized retail demand. Lufkin’s market offers exposure to Texas growth drivers at a smaller scale, with limited competition for drive-thru Starbucks. National retailers and investors have closely monitored supply constraints, supporting asset value and investor yield stability.

Conclusion