SRS Real Estate Partners has completed the $2.765 million ground lease (land ownership) sale of a single-tenant net-leased (STNL) Dutch Bros Coffee property located at 4236 North Varsity Avenue in San Bernardino, Calif. The transaction closed at a 4.52% cap rate, marking one of the lowest cap rates for a Dutch Bros STNL property nationwide this year.
SRS Capital Markets’ Senior Managing Principals Patrick Luther and Matthew Mousavi represented the seller, an affiliate of Paragon Commercial Group. The buyer was a private California investor completing a 1031 exchange who was represented by JT Real Estate Group.
Situated on 1.09 acres, the 950-square-foot Dutch Bros location was newly constructed in 2024 and is under a corporate-guaranteed ground lease with approximately 15 years of term remaining. The lease includes options to extend, with the tenant responsible for all expenses, providing an ideal management-free investment for passive investors.
“This Dutch Bros offered a brand-new, corporate-guaranteed ground lease with zero landlord responsibilities in a high-traffic, densely populated trade area directly off Interstate 215 and near a state university,” said Luther.
The property receives strong crossover traffic from nearby national retailers including McDonald’s, Starbucks, and the Ralphs and LA Fitness-anchored University Town Center. Additionally, California State University, San Bernardino is just two miles away. The surrounding area boasts more than 259,000 residents and approximately 51,600 employees within a five-mile radius.
This year, SRS Capital Markets has completed more than $1.2 billion in deal volume comprised of more than 350 transactions across the nation. SRS currently has in excess of 845 properties actively on the market with a market value surpassing $3.7 billion.
About SRS Real Estate Partners
Founded in 1986, SRS Real Estate Partners is building upon its retail foundation to provide extensive commercial real estate solutions to tenants, owners, and investors. Headquartered in Dallas, with 29 offices in the U.S., SRS has grown into one of the industry’s most influential and respected leaders. Our commitment to excellence is strengthened by our Guarantee of Value and our success is measured in the achievement of our clients’ objectives, satisfaction, and trust. For more information, please visit srsre.com.