Overview

Description

SRS National Net Lease Group is pleased to offer the opportunity to acquire the leased fee (land ownership) interest in an absolute NNN, corporate guaranteed, drive-thru equipped, Dutch Bros. Coffee investment property located in Vista, California (San Diego MSA). The tenant recently signed a 15-year lease with 3 (5-year) options to extend, demonstrating their long-term commitment to the site. The lease features a 10% rental increase every 5 years throughout the initial term and at the beginning of each option period, growing NOI and hedging against inflation. The lease is corporate guaranteed and is absolute NNN with zero landlord responsibilities, making it an ideal, management-free investment opportunity for a passive investor. This offering represents a rare opportunity to acquire Southern California real estate within a dense, infill trade area with high barriers for new development. Dutch Bros is currently under construction and they expect to open May 12, 2024.

Dutch Bros. Coffee is strategically located along S. Melrose Dr., a major retail and commuter thoroughfare averaging 41,200 vehicles passing by daily. The building features a double drive-thru with stacking capacity for 22 vehicles. On average, stores with drive-thrus experience higher sales than those without. The asset is located directly next to a Wendy’s currently under construction and 128-key Hilton Garden Inn that has been approved for development by the city. The property benefits from being near the major signalized intersection of S. Melrose and Palomar Airport (91,600 VPD). Located within a dense retail corridor, Dutch Bros. is within close proximity to a variety
of national/credit tenants including Target, Home Depot, Sprouts Farmers Market, Trader Joe’s, CVS Pharmacy, and more. Strong tenant synergy increases consumer draw to the immediate trade area and promotes crossover store exposure for the site. In addition, the subject property is located near the Carlsbad Oaks Business Park, a project that consists of 150.6 acres of class A corporate office, R&D, and light manufacturing facilities. Notable hotels and communities within the 3-mile radius include Hyatt Place San Diego (150 Keys), Holiday Inn Carlsbad (133 Keys), Shadow Ridge Park Apartments (182 Units), Rancho Carillo Apartments (116 Units), and more. The 5-mile trade area is supported by more than 274,000 residents and 140,000 daytime employees with an affluent average household income of $150,944.

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