Pegasus Sees Investor Opportunity Amidst Starbucks Portfolio Disposition

Sale of seasoned drive-thru locations in Greensboro, NC and Peoria, IL reflects investor demand for well-placed net lease assets with proven operating histories

LOS ANGELES, CA, UNITED STATES, October 15, 2026 /EINPresswire.com/ — Pegasus Investments Real Estate Advisory, Inc. (“Pegasus”) announced today the successful sale of a two-property portfolio of single-tenant, freestanding Starbucks drive-thru assets located in Greensboro, North Carolina and Peoria, Illinois. The portfolio traded for approximately $4.1 million, reflecting a 6.44% blended cap rate, and closed in under 60 days from the date the properties were launched to market.

The seller, a long-term private owner who acquired the assets slightly more than a decade ago, elected to sell following the maturity of the portfolio’s debt. Facing a materially higher cost of capital in the current rate environment and the corresponding impact to cash flow, the ownership group chose to liquidate and redeploy proceeds into alternative, non-real estate investments.

Pegasus served as the exclusive advisor on the disposition and had also served as asset manager for the ownership throughout its hold period. In the months leading up to the sale, Pegasus executed a deliberate pre-marketing strategy designed to maximize buyer interest and pricing. That work included negotiating lease extensions with Starbucks at both locations so the assets would reach the market with the longest possible remaining term, while pairing the newly executed extensions with planned roof and parking-lot improvements intended to address much of the properties’ near-term capital requirements. The strategy reflected Pegasus’ belief that the disposition process begins well before an asset formally comes to market.

Both stores carry more than 20 years of continuous operating history as Starbucks locations. Combined with the newly executed renewals, that track record gave prospective buyers meaningful evidence of the tenant’s long-term commitment to each site.

The purchaser was Castle Bay Management Services, a diversified, multi-generational real estate acquisition and management firm headquartered in New York that acquires, owns, and operates retail properties across 10 states. Castle Bay closed all cash and within the originally allotted timeframe.

“We are very excited to add these two Starbucks into our growing portfolio of QSRs around the country,” said John Tanenbaum of Castle Bay Management Services. “Cities like Peoria and Greensboro are the backbone of this country and we are thrilled to add them into our growing QSR holdings.”

The acquisitions represent Castle Bay’s third and fourth completed transactions of 2026 as the company continues to expand its portfolio and acquisition platform.

The engagement closed against the backdrop of a significant repricing in the single-tenant Starbucks sector. At the peak of the cycle, net leased Starbucks drive-thrus commanded cap rates as low as 4%. A combination of rising interest rates, an influx of new construction inventory, investor resistance to the double-net lease structure Starbucks typically signs, and the company’s announced store closures has made buyers increasingly selective—particularly when evaluating assets with shorter lease terms or underlying real estate fundamentals that could present greater residual risk.

“The headline on net lease Starbucks over the last two years has been negative, and that has created a real opportunity for investors who actually underwrite the real estate,” said David Chasin, CEO of Pegasus. “These two assets have more than two decades of proven sales history, rent that is readily replaceable if the tenant ever walks, and investment grade credit behind the lease. That is a very different risk profile than a brand new build in an untested trade area, and sophisticated buyers know the difference.”

Castle Bay similarly expects the relationship to continue, with both firms already evaluating additional opportunities to work together.

**About Pegasus**

Pegasus is a national commercial real estate advisory and asset management platform dedicated to simplifying complex transactions and elevating the client experience. Modeled after the wealth management industry, Pegasus emphasizes transparency, alignment of interests, fiduciary-minded advisory, and long-term partnership. The firm’s fully integrated platform includes acquisition and disposition advisory, debt and equity advisory, asset and property management, leasing, project and construction management, and holistic strategic planning—serving ultra-high-net-worth individuals, family offices, and institutional investors nationwide.

**About Castle Bay Management Services**

Castle Bay Management Services is a diversified, multi-generational real estate acquisition and management firm based in New York. The firm acquires, owns, and operates retail properties across 10 states, with a concentrated focus on quick service restaurant and net lease assets.

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