Shelbyville, TN - Dutch Bros

Description:

SRS National Net Lease is pleased to offer the opportunity to acquire the leased fee interest (land ownership) in an absolute NNN, new construction, corporate guaranteed Dutch Bros Coffee investment property located in Shelbyville, Tennessee. The tenant recently signed a brand new 15 year lease with 3 (5-year) options
to extend, demonstrating their commitment to the site. The lease features 10% rental increases every 5 years throughout the initial term and at the beginning of each option period, steadily growing NOI and hedging against inflation. The lease is absolute NNN with zero landlord responsibilities making it an ideal, management free investment opportunity for a passive investor. Dutch Bros Inc. (NYSE: BROS) is a high growth operator and franchisor of drive-thru shops with 1,000+ locations nationwide.

The property is situated at a highly-visible corner intersection along N. Main Street (26,200 VPD), offering high traffic exposure. This heavily trafficked thoroughfare is home to several national tenants, including Walmart Supercenter, Lowe’s, Kroger, and popular fast-food brands such as Chick-fil-A, McDonald’s, Sonic, Taco Bell, Dunkin’, Chili’s, and Bojangles. The concentration of national QSR locations in the area promotes crossover retail exposure, significantly increasing consumer traffic to the site. Additionally, the location is in close proximity to Shelbyville Central High School, which has over 1,500 students, further adding to the local foot traffic. The area also features nearly 2 million square feet of industrial space, within 2-miles of the site, occupied by major manufacturing and distribution centers, including Tyson Foods, Newell Brands, and the recently opened DS Electera factory. The DS Electera factory, the largest of its kind on the continent, represents a major investment in electric car manufacturing in Tennessee. The factory will supply electrolytes to battery makers for the electric vehicle industry, creating 100+ jobs and producing approximately 60,000 tons of electrolytes annually for automakers in the Southeastern U.S. The 5-mile trade area consists of 31,637 residents and 13,922 employees, with an average household income of $78,756 within a 5-mile radius.