NEW PRICING-Dutch Bros Single-Tenant NNN GL
NEW PRICE - Dutch Bros Single-Tenant NNN GL, $2,000,000, 5.20% Cap Rate
Marketing description
Kidder Mathews is pleased to present the exclusive offering of a newly constructed, Single-Tenant NNN fee simple Ground Lease investment leased to Dutch Bros Coffee, located at 5212 Slide Road, in the City of Lubbock, Texas 79414.
This high-profile asset features a ±2,170 square feet freestanding, double drive-thru with 26 vehicles stacking on a ±28,369 square feet parcel along Slide Road, one of Lubbock’s busiest corridors with traffic counts around ±31,689 vehicles per day. The site is strategically positioned adjacent to Arby’s and Burger King and near South Plains Mall, the only enclosed regional mall within ±100 miles, anchored by Dillard’s Dept Store, JC Penny, Premiers IMAX Cinemas, and H&M. Surrounded national retailers include Home Depot, Hobby Lobby, Ross, Old Navy, PetSmart, Texas Roadhouse, Chick-fi-A, Raising Cane’s, McDonald’s and Olive Garden, creating strong retail synergy and consumer draw.
Dutch Bros opened at this location in June 2021 under a 15-year corporate-guaranteed NNN Ground Lease with three (3) five-year renewal options and 10% increases every 5 years. With ±10.8 years remaining on the initial term, the property offers investor a stable, long-term income stream backed by an investmentgrade tenant, with zero landlord responsibilities, an ideal fit for 1031 exchange or truly passive investors. Dutch Bros (NYSE: BROS) is the fastest-growing coffee chain in the U.S. and third largest by revenue, operating ±982 locations across ±19 states.
Located in the dominant retail corridor of Lubbock, the cultural and economic hub of West Texas, the property benefits from strong regional demand. Lubbock serves more than 50 surrounding communities, with South Plains Mall acting as the primary retail destination. The local economy is supported by diverse industries including agriculture, oil services, healthcare, home building, medical, and Texas Tech University. Favorable demographics further strengthen the market, with a 5-miles population exceeding ±244,000 and an average household income over $94,000. The property offers convenient access to US-62, US-327, and Loop 289 ensuring excellent regional connectivity. Its infill location is surrounded by established residential neighborhoods, national retailers, and popular dining destinations, ensuring long-term tenant success
Investment highlights
HIGH-IMAGE, LONG-TERM LEASE
• 15-year absolute NNN lease - ±10.3 years remaining, three (3) five-year options, 10% increase every 5 years
• Corporate Guarantee – Lease guaranteed by Dutch Bros (NYSE: BROS)
• Double Drive Thru (26 Vehicles Stacking) • Strong Real Estate Fundamental – ±2,170 SF double drive-thru on ±28,369 SF parcel (typical Dutch Bros are ±950 SF)
• Tax-Advantaged Market – Texas has no state income tax INVES TMENT GR ADE TENANC Y/S TRONG CREDIT TENANT
• Publicly Traded Tenant - Dutch Bros Coffee (NYSE: BROS)
• High-Growth Tenant – Fastest-growing U.S. coffee chain and 3rd largest by revenue, ±982 locations across ±19 states
• Resilient Business Model – Drive-thru coffee format proven across all economic cycles
PA SSIVE INVES TMENT/SECURE & S TABLE CASH FLOW
• Absolute NNN Ground Lease – Passive ownership with Zero Landlord Responsibilities
• 1031 Exchange Ready - Excellent for tax-deferred investors
• Delivered free & clear of debt – flexible financing or all-cash purchase PRIME INFILLED LUBBOCK
COUNT Y LOCATION
• High-Traffic Corridor – Positioned on Slide Road, a major arterial with ±31,689 vehicles per day traffic
• Regional Retail Hub – Adjacent to South Plains Mall, the only enclosed regional mall within ±100 miles, anchored by Dillard’s Dept Store, JC Penny, Premiers IMAX Cinemas, and H&M
• Strong Retail Synergy – Surrounded by national major retailers including Home Depot, Hobby Lobby, Ross, Old Navy, PetSmart, Chick-fi-A, Raising Cane’s, Texas Roadhouse, Olive Garden and Arby’s, creating strong cross shopping synergy
E XCEP TIONAL MARKET DRIVERS/ INCREDIBLE DEMOGRAPHICS
• Regional Hub – Lubbock serves as the economic, cultural, educational, and medical hub for ±50 surrounding communities across West Texas and Eastern New Mexico.
• University & Medical Base – Home to Texas Tech University (40,000+ students) and a large medical district, creating consistent consumer demand
• Dense and Affluent Trade Area – ±244,229 residents within 5 miles / ±$94,256 average household income • Excellent Connectivity – Convenient access to US-62, US-327, and Loop 289
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