Investment Summary
Price | $2,500,000 |
Cap Rate | 5.00% |
NOI | $125,000 |
Lease Term | 15 Years |
Lease Type | Absolute NNN Lease, With Tenant Responsible For All Taxes, Insurance, Maintenance, And Repair, Including Roof, Structure, And Parking Lot |
Rental Increases | 10% Rental Increases Every Five (5) Years |
Year Built | 2023 |
Building Size | 862 SF |
Lot Size | +/- 0.69 Acres (30,056 SF) |
Status | Under Contract |
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 Russell Train Brokerage 202.210.2379 russell.train@cushwake.com CA RE License #02087816 |
Investment Highlights
NEW 15-YEAR ABSOLUTE NNN LEASE WITH CORPORATE GUARANTY TO GROWING RETAIL TENANT
» New 15-year absolute NNN lease to strong and rapidly growing retail tenant
» 10% rental increases every five years, providing a hedge against inflation
» 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-VISIBILITY I-80 LOCATION WITH ACCESS TO DAILY COMMUTERS
» Immediate access and excellent visibility to Interstate 80 (160,700 AADT) and Interstate 5 (202,000 AADT)
» Access to 21,520 vehicles per day at the El Camino Avenue and Orchard Lane signalized intersection
» Located across from The Cove, a master planned community under construction to feature 590 homes, a clubhouse, fitness center, pool, walking trails, and more
» Excellent location in a affluent commuter corridor, with proximity to several high-density single and multi-family developments
» Close to several higher-education institutions, such as the University of California, Davis (31,772 students), California State University, Sacramento (31,588 students, 3,318 employees), Sacramento City College (20,032 students), and American River College (26,735 students)
WEALTHY AND DENSE IMMMEDIATE TRADE AREA
» $129,039 average annual household income within a one-mile radius (projected 17% increase by 2027)
» 259,164 residents within five miles of the property (21% growth since 2010)
» Immediately surrounded by the newly constructed “The Cove” master planned community
» Near notable tenants such as Walmart Supercenter, IKEA, The Home Depot, Black Bear Diner, Starbucks, Burger King, McDonald’s (coming soon), and 7-Eleven (coming soon)
» Five miles to Downtown Sacramento (500,930 residents, visited by four (4) million people annually
NEW 2023 CONSTRUCTION
» High-quality 2023 construction featuring a dedicated dual-lane drive-thru, providing additional customer convenience, and boosting sales revenue
Property Description
» This Dutch Bros Coffee is located conveniently near the El Camino Avenue and Orchard Lane signalized intersection with excellent visibility and access to 21,520 vehicles per day
» The site is in an easily accessible location for North and West Sacramento residents who commute to work and school and maintains beneficial proximity to highly trafficked Sacramento thoroughfares including Interstate 80 (160,700 AADT) and Interstate 5 (202,000 AADT)
» The property is close to several higher-education institutions, such as the University of California, Davis (31,772 students), California State University, Sacramento (31,588 students, 3,318 employees), Sacramento City College (20,032 students), and American River College (26,735 students)
» 259,164 residents with an average annual household income of $129,039 live within one mile of the property with the population experiencing an explosive 21 percent growth since 2010
» The average annual household income is growing and projected to increase 17 percent by 2027, poising Dutch Bros Coffee and Sacramento for significant concurrent growth
» The site is five miles from Downtown Sacramento, visited by four million people annually, and just eight miles from Sacramento International Airport, which served 9.7 million passengers annually in 2021
» Sacramento (500,930 residents) is the sixth-most populous city in California and the capital of California