New Dutch Bros | Main Retail Corridor | 15-Yr NNN
Large Parcel | Near 239-bed hospital
Marketing description
SRS National Net Lease is pleased to offer the opportunity to acquire the fee simple interest (land & building ownership) in an absolute NNN leased, Dutch Bros investment property located in Kingsport, Tennessee. The tenant, Dutch Bros, recently signed a brand-new, 15 year lease. The lease features 10% rental increases every 5 years throughout the initial term, 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 an out of state investor.
The Dutch Bros is located along Lee Hwy/E. Stone Drive, a major retail and commuter corridor serving the city of Kingsport, Tennessee, with traffic counts of approximately 33,140 vehicles per day, and near State Highway 93, which carries an additional 30,700 vehicles per day. The property is positioned as an outparcel within a strong retail corridor and is surrounded by national and credit tenants including Target, Kohl's, Academy Sports, Michaels, Ulta, Dollar Tree, TJ Maxx, Ross, Hobby Lobby, Five Below, PetSmart, Aldi, Lowe's, Walmart Neighborhood Market, CVS, Dunkin', Walgreens, and Home Depot, which help drive consistent consumer traffic to the site. The asset is also near major healthcare and community anchors including Indian Path Community Hospital (239 beds), Holston Valley Medical Center (303 beds), and Dobyns-Bennett High School (2,351 students), further supporting daily traffic and long-term tenant demand. The 5-mile trade area is supported by an estimated population of more than 67,678, with an average household income of approximately $78,789 and over 45,228 employees, making this an attractive location for long-term retail performance.
Investment highlights
- Tenant recently signed a brand new 15-year lease
- Lease provides 10% rental increases every five years throughout the term
- Dutch Bros operates 1,150+ locations nationwide and continues rapid U.S. expansion with $2MM+ average unit volume.
- Tenant pays for CAM, taxes, insurance and maintains all aspects of the premises
- No landlord responsibilities
- Ideal, management-free investment for an out-of-state, passive investor
- Located along Lee Hwy/E. Stone Drive, a major commercial corridor in Kingsport, with exposure to approximately 33,140 vehicles per day
- Property also benefits from proximity to State Highway 93, which carries approximately 30,700 vehicles per day
- Strong visibility, convenient access, and positioning within a heavily traveled retail corridor support long-term site performance
- The property is positioned adjacent to major retail destinations including East Stone Commons and Kingsport Pavilion Shopping Center
- Surrounding national and credit tenants include Target, Kohl's, Academy Sports, Michaels, Ulta, Dollar Tree, TJ Maxx, Ross, Hobby Lobby, Five Below, PetSmart, Aldi, Lowe's, Walmart Neighborhood Market, CVS, Dunkin', Walgreens, and Home Depot
- Strong surrounding commercial development and national tenancy create consistent consumer draw and reinforce the subject's long-term viability
- Located near major healthcare anchors including Indian Path Community Hospital (239 beds) and Holston Valley Medical Center (303 beds)
- Additional nearby demand drivers include Dobyns-Bennett High School (2,351 students), surrounding residential communities, and established retail traffic generators
- More than 67,678 residents support the 5-mile trade area
- Average household income exceeds $78,789 within 5 miles
- Strong daytime population is supported by approximately 45,228 employees within the 5-mile trade area
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