Investment Offering
Richmond, KY - Dutch Bros
847 Eastern Bypass | Richmond, KY 40475
$2,385,000
Price5.4%
Cap Rate$128,810
NOI950
± SF Offering GLADescription
SRS National Net Lease Group is pleased to offer the opportunity to acquire the leased fee interest (land ownership) in an absolute NNN leased, corporate guaranteed (NYSE: BROS), Dutch Bros investment property located in Richmond, Kentucky. The tenant, Boersma Bros Holdings KY, LLC, has just under 19-years remaining on its lease with 3 (5-year) options to extend, demonstrating their commitment to the site. The lease features 10% rental increases every 5 years throughout the initial term and at the beginning of each option period, steadily growing NOI and hedging against inflation. The lease is absolute NNN with zero landlord responsibilities making it an ideal, management free investment opportunity for a passive investor. Dutch Bros is a rapidly growing coffee chain with more than 850 locations in 17 states.
Location
Dutch Bros is strategically positioned at a signalized, hard corner intersection along Eastern Bypass, a major retail thoroughfare serving more than 36,700 vehicles passing daily. The site is conveniently accessible from both sides of Eastern Bypass and is nearby multiple points of ingress/egress from Interstate-75 (69,400 VPD). The asset benefits tremendously from its position as an outparcel to the 150K+ square foot Carriage Gate Shopping Center. The retail center receives 1M+ annual visits (per Placer.ai) and features a strong tenant lineup including Harbor Freight Tools, Hobby Lobby, and Office Depot. The site receives significant crossover retail exposure from the center, adjacent fast-food tenants Starbucks, KFC, and Freddy’s, and a Walmart Supercenter, Lowe’s, and Kroger directly across the street. The immediate area provides a direct consumer base for the tenant, supported by a dense residential community of single family homes, Eastern Kentucky University (14,000+ students), and apartment communities such as the Ty Lane Apartments (278 units) and the East Ridge Apartments (228 units). The 5-mile trade area is supported by a population of over 47,600 residents and 23,800 employees with an average household income of $72,377.