4480 26Th Ave, Fargo, ND 58104

Property Details for 4480 26Th Ave

Year built

2017

Lot size

0.89 lot acres

Property type

Commercial real estate

Description

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.

Location Insight

City

Fargo

County

Cass

State

North Dakota

Longitude

-96.8610029

Latitude

46.8394671