Hanley Investment Group Real Estate Advisors arranged the sale of three new-construction, single-tenant properties occupied by a 950-square-foot Dutch Bros Coffee drive-thru format to three different private buyers in 30 days. The properties, which sold for a combined $8.08 million, each have a new 15-year initial absolute triple-net lease term. 

In the first transaction, Hanley EVPs Bill Asher and Jeff Lefko represented the seller and developer, Evergreen Development, in the sale of a new Dutch Bros ground lease at 14521 Ramona Blvd. in Baldwin Park for $3.32 million. The buyer, a San Gabriel Valley-based private investor, was represented by Brian Melkesian, an SVP with Lee & Associates in Ontario.

In the second transaction, Asher and Lefko represented the seller and developer, Evergreen Development, in the sale of a new Dutch Bros ground lease at 23140 Hemlock Ave. in Moreno Valley for $2.61 million. The buyer, a Los Angeles-based private investor, was represented by Ashley Berglund, of Granite Capital Group in Santa Barbara.

In the third transaction, Asher and Lefko represented the seller and developer, a local private investment firm, in the sale of a new Dutch Bros ground lease at 526 Nestles Rd. in Soledad for $2.15 million. The buyer, a private investor based in Northern Los Angeles County, was represented by Maxi Case with Century 21 Doug Anderson in Lancaster.

SRS Real Estate Partners Capital Markets said that over the past 18 months, the firm has sold a total of 50 drive-thru properties occupied by single-tenant, net-leased coffee shops including Starbucks, 7 Brew, Caribou Coffee, Dunkin’, Dutch Bros Coffee and Scooters Coffee House. All told, the transactions are valued at $135 million with an average closing cap rate of 5.52%. Additionally, SRS has 45 active coffee shop listings or in escrow with a total value of $124 million.

“While the investor favorite from a brand and credit perspective remains Starbucks, developers and property owners now have a much wider and growing pool of coffee users to consider when offering a coffee shop amenity to their property,” said Patrick Luther, principal & managing director with SRS. “Investors have been clamoring for these cash-flowing, low maintenance single-tenant assets especially with brands that are aggressively expanding and seeking more U.S. locations to capture a growing market share.”

The majority of SRS’ recently completed deals and those in escrow are new construction assets with fee simple ownership, ground lease (land ownership) and sale-leaseback scenarios. Due to the nature of the asset, they are overwhelmingly located in busy retail corridors and are usually a part of a larger retail center, creating strong crossover traffic and a dense customer population.