Dutch Bros Coffee Ground Lease,
Rancho Cordova, CA Investment Summary
| Price | $2,050,000 |
| Cap Rate | |
| NOI | |
| Lease Term | 15 Years |
| Lease Type | Absolute NNN Ground Lease, With Tenant Responsible For All Taxes, Insurance, And Maintenance |
| Rental Increases | 10% Rental Increases Every Five (5) Years |
| Year Built | 2022 |
| Building Size | 950 SF |
| Lot Size | 0.81 Acres (35,414 SF) |
| Status | Sold |
| Lead Brokers | Ryan Forsyth Executive Managing Director 415.413.3005 ryan.forsyth@cushwake.com CA RE License #01716551 Scott Crowle Executive Managing Director 415.604.4288 scott.crowle@cushwake.com CA RE License #01318288 Michael T. Yuras, CCIM Vice Chairman 415.481.0788 michael.yuras@cushwake.com CA RE License #01823291 Vincent Aicale Executive Managing Director 415.690.5522 vince.aicale@cushwake.com CA RE License #01728696 |
Investment Highlights
NEW 15-YEAR ABSOLUTE NNN GROUND LEASE WITH CORPORATE GUARANTY
» New 15-year absolute NNN ground lease with a strong corporate guaranty
» 10% rental increases every five years, providing a hedge against inflation
» Requires no landlord management, ideal for an out-of-area investor
» Dutch Bros (NYSE: “BROS”) recently went public – now valued at over $5.6 billion
» Dutch Bros Inc. is one of the fastest-growing brands in the food service and restaurant industry in the U.S. by location count
» In 2021, total revenues grew 52.1% to $497.9 million as compared to $327.4 million in 2020
HIGH-PROFILE LOCATION IN GROWING RANCHO CORDOVA RETAIL CORRIDOR
» Conveniently located near the signalized hard corner of Douglas Road and Sunrise Boulevard, with excellent visibility and access to a combined 47,818 vehicles per day
» Located within the Anatolia Retail Center, a ±105,478-square-foot neighborhood shopping center being developed to serve the new Sunridge development (approved for over 20,000 new homes)
» Outparcel to a new shopping center with McDonald’s, Chevron, and several multi-tenant pads
» Common gateway to Downtown Sacramento, the capital city of California (503,482 population)
DENSELY POPULATED CALIFORNIA REGION WITH EXCELLENT DEMOGRAPHICS
» 92,850 residents live within five miles of the property
» High average annual household income of $167,522 within a one-mile radius of the site
» Projected population and income increase within 1-, 3-, and 5-mile radii over the next five years, poising Dutch Bros and Rancho Cordova for steady concurrent growth
» Rancho Cordova’s population has increased by 24% since 2010, one of the fastest growing residential areas in the Sacramento region
NEW 2022 CONSTRUCTION
» 2022 construction featuring a dedicated dual-lane drive-thru, providing additional customer convenience and boosting sales revenue
» Features latest store designs and concepts
» New building, limiting near-term deferred maintenance or capital costs
Property Description
» The property is conveniently located near the signalized hard corner of Douglas Road and Sunrise Boulevard, with excellent visibility and access to a combined 47,818 vehicles per day
» The site is located within the Anatolia Retail Center, a ±105,478-square-foot neighborhood shopping center being developed to serve the new Sunridge development (approved for over 20,000 new homes)
» Outparcel to a new shopping center with McDonald’s, Chevron, and several multi-tenant pads
» This Dutch Bros is set in a densely populated and affluent area, with 92,850 residents living within five miles of the site and an average annual household income of $167,522 within a one-mile radius of the property
» The location serves as a common gateway to Downtown Sacramento, the capital city of California (503,482 population)
» Projected population and income increase within 1-, 3-, and 5-mile radii over the next five years, poising Dutch Bros and Rancho Cordova for steady concurrent growth
