New Starbucks Drive-Thru

Property Overview

Located at 1301 Yelm Highway SE in Tumwater, Washington, this 2,877 SF single-tenant property is one of the more unique Starbucks locations in the Pacific Northwest. Originally built in 1909 as the Chambers Prairie Grange No. 191, the building was purchased by a local investor in 2015 and fully restored over three years before opening as a Starbucks drive-thru in September 2018. The restoration preserved original floors, doors, and window panes, while all building systems — roof, electrical, and plumbing — were replaced new. Starbucks also invested over $600,000 in tenant improvements. At the time of sale, the property was 100% occupied under a brand-new, 10-year corporately guaranteed NNN lease with no early termination clause and 10% rental increases every five years.

Challenge

Our team was engaged by the seller to market a fully restored historic building leased to Starbucks in Tumwater, Washington. While the asset carried strong investment fundamentals, its character as a converted 1909 Grange hall made it genuinely one-of-a-kind, which meant the buyer pool needed to be educated on both the real estate and the restoration story. The assignment required finding a buyer who understood the value of a historically preserved, corporate-guaranteed NNN asset and could move with confidence on an unconventional property.

Action

We brought the property to market through Kidder Mathews, positioning it as a flagship Starbucks with a long-term lease, investment-grade tenancy, and a drive-thru location at a high-traffic intersection on Yelm Highway carrying over 27,000 vehicles per day. Our marketing emphasized the lease structure, the tenant's credit profile (rated A- by S&P and A3 by Moody's), and the irreplaceable nature of the building itself. We targeted investors seeking passive, NNN-leased retail assets, including those with 1031 exchange requirements.

Result

• Sale price of $2,300,000, or $799 per SF
• Multiple offers generated through the marketing process
• Sold to a local buyer completing a 1031 exchange
• Property was 100% occupied at close with a brand-new, 10-year corporate NNN lease in place
• Lease includes four five-year option periods with 10% rental bumps every five years, providing long-term income growth for the buyer