Investment Summary
Price | $2,233,000 |
Cap Rate | |
NOI | |
Lease Term | 15 Years |
Lease Type | Absolute NNN Lease, With Tenant Responsible For All Taxes, Insurance, Maintenance, Including Roof, Structure, And Parking Lot |
Rental Increases | 10% Rental Increases Every Five (5) Years |
Year Built | 2023 |
Building Size | 950 SF |
Lot Size | +/- 1.4103 acres (61,432 SF) |
Status | Closed |
Lead Brokers | Vincent Aicale Executive Managing Director 415.690.5522 vince.aicale@cushwake.com CA RE License #01728696 Ryan Forsyth Executive Managing Director 415.413.3005 ryan.forsyth@cushwake.com CA RE License #01716551 Michael T. Yuras, CCIM Vice Chairman 415.481.0788 michael.yuras@cushwake.com CA RE License #01823291 Scott Crowle Executive Managing Director 415.604.4288 scott.crowle@cushwake.com CA RE License #01318288 |
Investment Highlights
NEW 15-YEAR ABSOLUTE NNN CORPORATE LEASE TO RAPIDLY GROWING COFFEE QSR
» New 15-year absolute NNN corporate lease with 10% rental increases every five years
» No landlord management, an ideal opportunity for an out-of-area investor
» Dutch Bros (NYSE: “BROS”) went public in 2021 – now valued at over $6.4 billion
» Dutch Bros Inc. is one of the fastest-growing brands in the food service and restaurant industry in the United States by location count with 671 locations across 14 states
» In Q3 2022, total revenues grew 53.0% to $198.6 million as compared to $129.8 million in the same period of 2021
PRIME LOCATION NEAR STRONG TRAFFIC DRIVERS WITH ACCESS TO OVER 180K
» Excellent visibility and access to 16,277 vehicles per day along Main Street
» Situated near a newly leased Amazon Fulfillment Center (305,000 SF facility) and Buda Midway (390,000 SF four rear loading warehouse buildings currently under construction)
» High traffic location near Interstate 35, which experiences 163,852 vehicles per day
» Nine hotels within a two-mile radius with 664 guestrooms, providing a nearby customer base for the site
» Surrounded by many single and multi-family developments and just minutes from Buda Elementary (500 students), and Baylor Scott & White Medical Center – Buda (15 beds) WELL-
POSITIONED WITHIN GREATER AUSTIN WITH A LARGE POPULATION OF OVER 2.35 MILLION
» Population of 93,880 within a five-mile radius (significant growth of 103% since 2010)
» $118,100 average annual household income within five miles (14% projected increase by 2027)
» Gateway to Austin, the state capital and fourth-most populous city in Texas (964,177 people)
» Strategic location within Greater Austin (over 2.35 million people)
» Austin ranked first among the 50 largest U.S. metros based on net migration as a percent of the total population in 2020, the largest rate among the top 50 U.S. metros
» The region benefits from over 50 colleges and universities and 400,000 enrolled students within a 100-mile radius
NEW 2023 CONSTRUCTION IN A TAX-FREE STATE
» High-quality 2023 construction featuring a dedicated dual-lane drive-thru, providing additional customer convenience and boosting sales revenue
» Texas has no state income tax
Property Description
SOLD
» Dutch Bros is in a prime location with excellent visibility and access to 16,277 vehicles per day along Main Street and maintains beneficial proximity to the highly trafficked Interstate 35 (163,852 vehicles per day)
» The site is situated near a newly leased Amazon Fulfillment Center (305,000 SF facility) and Buda Midway (390,000 SF four rear loading warehouse buildings currently under construction)
» The location is near nine hotels within a two-mile radius with 664 guestrooms, providing a nearby customer base for the site
» The property is surrounded by many single and multi-family developments and is also minutes from Buda Elementary (500 students), and Baylor Scott & White Medical Center – Buda (15 beds)
» The site is supported by a population of 93,880 within five miles and has experienced a significant growth rate of 103% since 2010
» The average annual household income is $118,100 within five miles and is projected to increase by 14% in the next five years
» The location serves as a gateway to Austin, the state capital and fourth-most populous city in Texas (population 964,177)
» The site is in a strategic location within Greater Austin (over 2.35 million people), which ranked first among the 50 largest U.S. metros based on net migration as a percent of the total population in 2020 – the largest rate among the top 50 U.S. metros)