Dutch Bros Coffee - Indianapolis, IN
Retail | 5.50% CAP | 950 SqFt
Marketing description
Porthaven Partners, is pleased to present the opportunity to acquire a long-term absolute NNN investment occupied by Dutch Bros Coffee, located in Indianapolis, Indiana.
The Property consists of a newly constructed Dutch Bros Coffee drive-thru build-to-suit strategically positioned along South Emerson Avenue within the dominant South Emerson / County Line retail corridor, one of the strongest suburban retail and healthcare corridors in the south Indianapolis / Greenwood trade area. Dutch Bros has occupied the Property since 2025 and is committed through the initial 15-year base term, with 10% rental increases every 5 years. The lease is structured as an absolute NNN lease with zero landlord responsibilities, providing passive ownership and stable long-term cash flow to investors.
The lease is guaranteed by Boersma Bros, LLC, the main corporate operating subsidiary of Dutch Bros, Inc. (NYSE: BROS), one of the fastest-growing drive-thru coffee operators in the United States. Dutch Bros currently operates 1,181 locations across 25 states and generated approximately $1.64 billion in revenue in FY 2025, representing 27.9% year-over-year growth. The company also reported $157.4 million in EBITDA and $117.3 million in net income while continuing aggressive national expansion. Dutch Bros' double drive-thru operating model has proven highly successful by allowing the company to serve customers more efficiently than traditional cafe-style competitors.
The Property is exceptionally well positioned within a highly trafficked retail and healthcare-oriented corridor near Kroger Marketplace, Costco, Walmart Supercenter, and Franciscan Health Indianapolis, a major regional hospital campus and one of the dominant healthcare employment anchors on the south side of Indianapolis. The surrounding trade area benefits from a unique combination of healthcare, commuter, and daily-needs retail traffic, creating strong all-day demand drivers that align particularly well with Dutch Bros' convenience-driven drive-thru format.
Additionally, the immediate area surrounding the Property continues to experience residential and mixed-use growth tied to the broader Greenwood and south Indianapolis expansion corridor. Nearby projects include The Hangar at Emerson Pointe mixed-use multifamily development and additional residential densification occurring throughout the County Line Road and I-65 trade area. The corridor also benefits from strong demographics, including approximately 182,000 residents within 5 miles earning an average household income of approximately $99,000.
This offering provides investors with the opportunity to acquire a long-term net lease investment backed by a rapidly expanding national operator, featuring contractual rental growth, passive ownership structure, strong surrounding real estate fundamentals, and positioning within one of the strongest suburban retail corridors in the Indianapolis MSA.
Investment highlights
- Long-Term Absolute NNN Lease - Tenant is operating under a 15-year absolute NNN lease with zero landlord responsibilities. The Lease offers long-term passive cash flow to investors and is significantly more attractive than competing coffee concepts with shorter 10-year lease structures.
- Strong Contractual Rent Increases - The Lease includes 10% rental increases every 5 years. Given the 15-year term, there are two scheduled rental increases in the base lease term, which provides a superior boost to yield and hedge against inflation compared to competing QSRs with a shorter lease.
- Dutch Bros - Top Performing Drive-Thru Coffee Operator - Dutch Bros Coffee is operated by Boersma Bros, LLC and backed by Dutch Bros Inc. (NYSE: BROS), one of the fastest-growing drive-thru coffee operators in the U.S. The company operates 1,181 locations across 25 states, with 32,000+ employees and $1.64 billion in revenue (up 27.9% YoY). EBITDA increased 31.4% to $157.4 million and net income increased 76.3% to $117.3 million, supporting continued national expansion and strong brand momentum.
- Newer Construction w/ Double Drive Thru - The Property features brand new 2025 construction with Dutch Bros' high-throughput drive-thru model, designed to serve a high volume of customers quickly and efficiently. The format is particularly well suited for commuter, retail, and healthcare-driven traffic patterns that dominate the surrounding trade area.
- Prime South Emerson / County Line Retail Corridor - The Property is located within one of the strongest south Indianapolis / Greenwood retail corridors, near the intersection of South Emerson Avenue (21K+ VPD) and County Line Road (34K+ VPD). The Property is adjacent to Kroger Marketplace, Costco, Walmart Supercenter, and Greenwood Airport, with additional regional access from I-65. The Property enjoys easy access to I-65 (127K+ VPD) less than a half mile from the site.
- Franciscan Health Indianapolis - Major Healthcare Anchor - Located immediately north of the Property, Franciscan Health Indianapolis is a 423-bed hospital campus at 8111 S Emerson Avenue and operates 24 hours per day. The hospital features the only full-service heart and vascular care program on the south side of Indianapolis and was previously named one of the 100 top hospitals in the U.S. by Truven Health Analytics.
- All-Day Demand Profile - The site benefits from a balanced demand base created by three major traffic streams: healthcare activity from Franciscan Health, daily-needs retail from Kroger / Costco / Walmart, and commuter traffic from South Emerson Avenue, County Line Road, and I-65. This creates demand beyond a single morning coffee window and supports Dutch Bros' broader beverage platform, including coffee, energy drinks, teas, lemonades, and cold beverages.
- Strong Surrounding Demographics - The trade area includes approximately 5,653 residents within 1 mile, 74,154 within 3 miles, and 182,029 within 5 miles, with projected 2030 growth to 5,964, 75,178, and 185,535 residents, respectively. Average household incomes are strong at $92,007 within 1 mile, $94,102 within 3 miles, and $99,026 within 5 miles.
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