| Purchase Price | $2,735,000 |
|---|---|
| Annual Rental Income | $144,955 |
| Cap Rate | 5.30% |
| Lease Term | 13 Years |
| City | Austin MSA |
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Dutch Bros Coffee – Single-Tenant Net Lease Investment
Austin MSA, TX | Drive-Thru Coffee Asset | Absolute NNN Ground Lease | Passive Income Opportunity
Overview
This offering presents a freestanding Dutch Bros Coffee located in the thriving Austin metropolitan area. The asset is secured by a long-term absolute triple-net (NNN) ground lease, meaning the tenant is fully responsible for all expenses related to the property, including taxes, insurance, maintenance, and site repairs. With scheduled rent increases built into the lease and no landlord obligations, this property offers consistent, passive income. Its location within a growing Texas market makes it an ideal acquisition for investors seeking net lease investment properties, single-tenant NNN retail assets, and fast-casual NNN lease investments well-suited for 1031 exchange strategies.
Investment Highlights
Tenant Overview
Dutch Bros Coffee has quickly become a leading brand in the drive-thru coffee category. Known for its fast service and community-centric branding, the chain has built a loyal customer base nationwide. This location is operated by a successful multi-unit franchisee with a strong footprint in the Texas market. While the lease is franchisee-backed rather than corporately guaranteed, the operator’s tenure and performance within the system reflect long-term operational confidence.
Lease Summary
This structure offers truly passive income, stable lease performance, and reliable cash flow over the long term.
Site Overview
Constructed to meet Dutch Bros’ modern prototype standards, this location features a drive-thru-focused layout optimized for quick service and traffic flow. The building sits on a well-sized parcel with easy ingress and egress from nearby arterial roads. High visibility and prominent signage ensure the location remains top-of-mind in a competitive trade area. The site includes a dual-lane drive-thru system, outdoor lighting, branded elements, and landscaping consistent with the tenant’s national image.
Market Overview – Austin MSA
The Austin metropolitan area is among the most dynamic and fastest-growing in the nation. It consistently ranks as a top destination for job seekers, businesses, and new residents. Austin’s economy is fueled by a strong mix of technology, higher education, health care, and state government. These fundamentals create a deep, diversified employment base that drives consistent consumer spending across all retail categories, including food and beverage.
The property is located in a retail-rich corridor that serves a combination of local neighborhoods, daytime workers, and destination shoppers. Infill housing growth and continued commercial development have led to increased demand for convenient drive-thru concepts, particularly those offering quick service and strong branding like Dutch Bros.
Demographics and Trade Area
The surrounding area includes a wide mix of family households, professionals, and students. Residential growth has surged in recent years, driven by affordability relative to coastal markets, quality of life, and job availability. The daytime population is enhanced by schools, healthcare institutions, and corporate campuses, supporting robust traffic patterns during morning and afternoon peaks. The trade area is well-developed with a combination of national brands, regional retailers, grocery anchors, and service-oriented businesses.
Consumer Demand Drivers
Income Profile and Upside
The long-term lease is structured to include rent increases every five years, providing organic income growth without the need for landlord intervention or capital improvements. This, combined with the ground lease format, ensures operating simplicity and predictable returns. As the surrounding area continues to densify and consumer traffic increases, the intrinsic land value and tenant performance are likely to strengthen, providing both near-term yield and long-term value appreciation.
Ideal Buyer Profile
This asset is ideal for:
Market Positioning and Trends
Dutch Bros continues to expand across Texas, where demand for drive-thru beverage concepts is strong and consistent. The Austin market supports this growth with favorable demographics, a robust employment base, and traffic patterns that align with the chain’s business model. Drive-thru retail remains one of the highest-demand asset classes in the NNN space, particularly when backed by a recognizable brand with operational resilience. This property fits the investment profile of buyers searching for net lease investment properties, single-tenant net lease opportunities, 1031 exchange NNN deals, and fast-food NNN lease investments.
Conclusion
This Dutch Bros Coffee location in the Austin MSA represents a high-quality net lease opportunity, combining a strong tenant brand, ground lease simplicity, passive income structure, and growth market positioning. Investors seeking inflation-protected, long-duration cash flow with minimal oversight will find this asset highly attractive. With the continued strength of the Austin metro and the national trajectory of Dutch Bros, this investment offers long-term upside and stability.
Please contact us for more information.