Dutch Bros

Highlights:

• Dutch Bros: Strong National Tenant with Corporate Guaranty of Lease (NYSE: Bros) | Annual Revenue: Over $739m (2022)
• New Long Term 15-Year Absolute NNN Ground Lease | 4 (5-Year) Options to Extend Lease Term For A Potential Total of 35 Years
• Growing Income Stream With 10% Rental Increases Every 5-Years
• Brand New 2023 Construction | Double Drive-Thru | Grand Opening Slated For 4th Quarter 2023
• The Colony / Upscale Dallas-Fort Worth Suburb
• Strong Trade Area Demographics within 5 Miles | Over $148,000 AHHI
• Ease of Management
• Main Street Frontage, Visibility, & Access | Over 64,000 VPD

Description:

Faris Lee Investments is pleased to offer for sale a single tenant, corporate guaranteed absolute NNN ground leased property (land ownership) to Dutch Bros Coffee. Dutch Bros has signed a new long term 15-year lease plus multiple options to extend the term. The lease features a growing income stream with fixed 10% rental increases every 5 years which hedges against inflation & increases the return on investment. Dutch Bros is responsible for all expenses associated with the property, including roof, structure, HVAC and parking lot. New 2023 construction with Double Drive-Thru store design increases sales volume as well as provides intrinsic real estate value. Grand opening is slated for November 2023.
BB Holdings TX, LLC dba: Dutch Bros has guaranteed the lease. Headquartered in Grant Pass, OR. Dutch Bros is a public company (NYSE: BROS) with a Market Cap of $4B (as of October 2023), and 675 locations in 14 states.

The subject property is strategically located in The Colony, Texas just 30 minutes north of Dallas. Dutch Bros is in close proximity to The Colony High School with over 2,000 students and The Colony Five Star Complex, an 80-acre sports complex with 5 baseball fields, 6 soccer fields, 2 football fields, and 2 softball fields. Vehicle traffic fronting the subject property exceeds 63,000 VPD. Dutch Bros is located within Denton County with a population of over 940,000 people. Lewisville Lake, The Colony Five Star Complex, and The Colony High School are under less than one mile away from the subject property