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Dutch Bros Coffee, Tyler, TX (Broadway)

Dutch Bros Coffee, Tyler, TX (Broadway)


Investment Summary

Price $2,093,657
Cap Rate
NOI
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 2022
Building Size 950 SF
Lot Size 0.82 Acres (35,719 SF)
Status Sold
Lead Brokers Ryan Forsyth
Executive Managing Director
415.413.3005
ryan.forsyth@cushwake.com
CA RE License #01716551

Vincent Aicale
Executive Managing Director
415.690.5522
vince.aicale@cushwake.com
CA RE License #01728696

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 QSR
» New 15-year absolute NNN corporate lease with 10% rental increases every five years, providing a hedge against inflation
» Dutch Bros (NYSE: “BROS”) went public in 2021 – 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 opening 31 stores across 9 states during Q2
» As of August 2022, Dutch Bros opened 61 stores in Texas with plans to open approximately 100 locations in the state by 2023
» In Q2 2022, company-operated store revenues increased 55.9% to $160.5 million, compared to $103.0 million during the same period of 2021
» Total revenues grew 44.2% to $186.4 million in Q2 2022 as compared to $129.2 million in the same period of 2021
» Dutch Bros exceeded $1 billion in systemwide sales in Q2 2022

HIGH-TRAFFIC SITE IN SOUTHERN TYLER’S RETAIL EPICENTER
» Excellent visibility with access to 35,071 vehicles per day along U.S. Route 69/South Broadway Avenue, a major north-south Texas thoroughfare that is part of a longer I-69 extension known as the NAFTA superhighway, that, when completed, will connect Canada to Mexico
» Located in Southern Tyler’s retail epicenter, the property is surrounded by major national tenants such as Walmart Supercenter, Target, Kohl’s, Academy Sports + Outdoors, World Market, AMC, and many more
» In 2021 the city of Tyler issued 63 new commercial permits, built 393 new single-family homes, and constructed 14 new office buildings, demonstrating the areas rapid expansion
» Between 2021 and 2026, industries in the Tyler area are expected to grow at an annual pace of 3.65%, which would lead to approximately $2 billion in economic gain
» Employment in Tyler is projected to increase by 2.17% annually, adding 12,400 jobs by 2026

EXCELLENT LOCATION IN HIGH-GROWTH TEXAS SUBURB
» Dense population of 80,413 within five miles (a 17% growth since 2010)
» Located in one of Texas’ fastest-growing affluent areas with an average annual household income of $106,787 within one mile of the site (projected 9% increase by 2027)
» Growth continues along the South Broadway Avenue corridor and Loop 323, with new restaurants such as Chuy’s, Saltgrass Steak House, Abuelo’s, Walk-Ons, and others providing additional job growth
» The Tyler metro area ranked first in Texas for job growth from December 2020 to December 2021, with 8,800 added jobs representing an 8.3% increase

NEW 2022 CONSTRUCTION IN A TAX-FREE STATE
» High-quality 2022 construction featuring a dedicated dual-lane drive-thru, walk-up window, and outdoor patio seating, providing additional customer convenience and boosting sales revenue
» Texas has no state income tax

Property Description

SOLD

» This Dutch Bros is located along U.S. Route 69/South Broadway Avenue, a major north-south Texas thoroughfare that is part of a longer I-69 extension known as the NAFTA superhighway, that, when completed, will connect Canada to Mexico (35,071 AADT)
» The site features excellent demographics, with a population of 80,413 within a five-mile radius (a 17%growth since 2010) with an affluent average annual household income of $106,787 within one mile of the site (projected to increase 9% by 2027)
» Located in Southern Tyler’s retail epicenter, the property is surrounded by major national tenants such as Walmart Supercenter, Target, Kohl’s, Academy Sports + Outdoors, World Market, AMC, and many more
» The Tyler metro area ranked first in Texas for job growth from December 2020 to December 2021, with 8,800 added jobs representing an 8.3% increase
» Growth continues along the South Broadway Avenue corridor and Loop 323, with new restaurants such as Chuy’s, Saltgrass Steak House, Abuelo’s, Walk-Ons, and others providing additional job growth
» This Dutch Bros Coffee is a high-quality 2022 construction featuring a dedicated dual-lane drive-thru, walk-up window, and outdoor patio seating, providing additional customer convenience and boosting sales revenue

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