Hanley Investment Group Real Estate Advisors, a nationally recognized real estate brokerage and advisory firm specializing in retail property sales, announced that the firm arranged the sale of a brand-new construction, single-tenant property occupied by a Dutch Bros Coffee Drive-Thru in Beaumont, California. The sale price was $1.9 million for the new 15-year absolute triple-net ground lease.
Hanley Investment Group’s Executive Vice Presidents Bill Asher and Jeff Lefko represented the seller and developer, Evergreen Development. Spanning the last 48 years, Evergreen is a national retail and multi-family development company with a heavy emphasis on developing projects in California, Colorado, Arizona and Utah. The buyer, a private investor based in Riverside County, California, was represented by Trevor Harris of Triwell Properties Inc. in Torrance, California.
“We generated multiple competitive offers and procured a local all-cash 1031 exchange buyer,” Asher said. “We implemented a pre-sale marketing strategy and secured the buyer while the property was under construction and closed escrow the day after the tenant opened for business.”
Dutch Bros is a high-growth operator and franchisor of drive-thru shops that focus on serving high-quality, hand-crafted beverages with unparalleled speed and superior service. Founded in 1992 by brothers Dane and Travis Boersma, Dutch Bros began with a double-head espresso machine and a pushcart in Grants Pass, Oregon. While espresso-based beverages are still at the core of what Dutch Bros does, Dutch Bros now offers a wide variety of unique, customizable cold and hot beverages that appeal to a broad array of customers. As of December 31, 2022, Dutch Bros had 671 locations across 14 states.
The single-tenant 920-square-foot Dutch Bros is located on 0.87 acres at 1675 E. 8th Street at the hard corner, signalized intersection of Highland Springs Avenue and 8th Street, adjacent to a brand new single-tenant 7-Eleven convenience store and gas station, also developed by Evergreen and is currently listed for sale by Hanley Investment Group (contact Bill Asher for further details at 949.585.7684 or [email protected]).
The property is situated on the morning side of the street, less than a half-mile north of the Interstate 10 on/off ramps (138,500 cars per day). Dutch Bros enjoys excellent accessibility and visibility with two points of ingress/egress and two monument signs along Highland Springs Avenue and 8th Street. The property is also located across from San Gorgonio Memorial Hospital, a 79-bed, non-profit community hospital with over 200 employees. Surrounding tenants include Walmart, Kohl’s, The Home Depot, Albertsons, ALDI, Best Buy, Food 4 Less, Hobby Lobby, Marshalls, Petco, Ross Dress For Less, Stater Bros Markets, Applebee’s, Burger King, Denny’s, Jack in the Box, Petco, Walgreens and Wendy’s.
The property benefits from its location in a high-growth trade area, just south of two master-planned communities, Butterfield and Sundance, with approximately 9,000 residential units between both communities. From 2010-2020, the area experienced a 21% increase in population and a 24% increase in the number of households within a three-mile radius of the property.
The city of Beaumont is part of the Inland Empire, one of the fastest-growing regions in the country. The Inland Empire has grown by 78% in the past 30 years, twice as fast as the rest of California during that same period.
“We have had great success in implementing a pre-sale marketing process for the sale of Dutch Bros in Beaumont to help the seller retain maximum value for the development,” Asher notes. “For many historical transactions, we have been able to procure buyers for net-leased assets often before the buildings are completed and the tenants are open for business. Although overall investor demand has slowed in 2023, we expect the appetite for well-located single-tenant net-retail investments leased to national corporate quick-service restaurant (QSR) drive-thru tenants to remain steady and pricing stable for the remainder of the year.”
Hanley Investment has completed the sale of 49 coffee-related retail investments in the past 48 months, including four single-tenant Dutch Bros properties in less than three months and seven in the last 16 months.