Net Lease Dutch Bros Sold

The Boulder Group has completed the sale of a single tenant Dutch Bros property located at 1826 South Academy Boulevard in Colorado Springs, CO for $2,008,000. Zach Wright and Brandon Wright exclusively represented the seller in the transaction. The seller was a developer based in the Southwest and the buyer was a 1031 exchange investor based in Southern California.

The brand-new construction Dutch Bros property is located along South Academy Boulevard within a densely populated area. There are over 21,000 people living within one mile of the property. The Dutch Bros is in the immediate proximity to several schools including Sierra High School, Atlas Preparatory High School, Centennial Elementary School, Atlas Elementary School, and Carmel Community School.

The Dutch Bros property features a new 15-year absolute triple net lease. The lease includes 10% rental increases every five years and zero landlord responsibilities. Dutch Bros is a publicly traded company (NYSE: BROS) with a $6 billion market capitalization. Dutch Bros has approximately 850 locations and very aggressive expansion plans to continue serving their cult-like following.

“Dutch Bros properties offer passive investors a long-term lease with fixed rental increases and zero landlord responsibilities. They have one of the most landlord-friendly leases in the net lease space. With an average unit volume of approximately $2M, these drive thru only properties have great unit-level profitability. Dutch Bros properties are highly sought after amongst 1031 exchange investors because of these reasons. Despite a slower market, we received numerous offers for this property,” stated Zach Wright, Vice President.

“Single tenant properties in Colorado continue to command a premium compared to the rest of the U.S. – and we have a proven platform to help sellers achieve this premium. As a result, this property sold for a lower cap rate than the national median asking cap rate for all Dutch Bros properties, which includes California and ground leases,” added Brandon Wright, Associate.

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