For Sale
$2,250,000

4480 26Th AveFargo, ND 58104

High-Yield Starbucks NNN Lease

Overview

Added:
Dec 11, 2024
Days on market:
113
This exceptional investment opportunity presents a freestanding Starbucks located in Fargo, North Dakota, the state's largest city, boasting a MSA of over 250,000. The property, built in 2017, features 2,545 square feet on a 0.89-acre lot and benefits from a strong 100% occupancy rate under a Net Lease (NNN) agreement. The current lease, with Starbucks as the sole tenant, commenced January 1, 2017, and expires December 31, 2027, leaving approximately 3.1 years remaining before the first option period. The lease includes a 5.30% cap rate and features built-in rental increases of 10% every five years throughout the lease term and four subsequent five-year option periods, with the next increase scheduled for November 15, 2027. The tenant is responsible for all operating expenses, including taxes, utilities, insurance, HVAC, snow removal, and interior/exterior maintenance (excluding structural components). Landlord responsibilities are limited to roof, structure, and parking lot maintenance, backed by a 25-year roof warranty. The property's prime location between a Sonic and a Mammoth Car Wash, high-traffic businesses paying $183,000 and $264,000 annually respectively, suggests the current lease rate is below market value. Comparable Starbucks locations in the metro area lease for $140,000 to $160,000+ annually, indicating significant potential for future rent growth. Fargo's ranking as a top coffee-consuming city further enhances the property's long-term prospects. This is a rare opportunity to acquire a high-performing, single-tenant Starbucks investment with substantial upside potential. Asking price is $2,250,000.

Highlights

  • Free-standing Starbucks in Fargo, ND, MSA 250,000+.
  • Excellent location.
  • Rent increases 10% every 5 years; next increase 11/15/2027.
  • NNN lease; Landlord responsible for roof, structure, and parking lot. 25-year roof warranty.
  • Strong market demand in a top coffee-consuming city.
  • High-traffic location between Sonic ($183,000 NNN) and Mammoth Car Wash ($264,000 NNN); below-market rent with significant upside potential. Comparable Starbucks leases range from $140,000 to $160,000+.

Property Details for 4480 26Th Ave

Property type
Retail properties, Restaurants
Square Feet
2,545 SF
Class
A
Year Built
2017
Lot Size (sq. ft)
38,768 SF

Location Insight

City
Fargo
County
Cass
State
North Dakota
Latitude
46.8394671
Longitude
-96.8610029
4480 26Th Ave, Fargo, North Dakota

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4480 26Th Ave
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