Purchase Price | $2,910,000 |
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Annual Rental Income | $149,865 |
Cap Rate | 5.15% |
Lease Term | 14 Years |
City | Provo‑Orem MSA |
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Dutch Bros Coffee – Single-Tenant Net Lease Investment
Provo‑Orem MSA, UT | Drive‑Thru Coffee Asset | Absolute NNN Ground Lease | Passive Income Opportunity
Overview
Offer includes a standalone Dutch Bros Coffee location in the Provo‑Orem metropolitan area of Utah. The property is secured by a long-term absolute triple-net (NNN) ground lease, meaning the tenant assumes responsibility for all site-related expenses—property taxes, insurance, maintenance, utilities, and landscaping. The lease incorporates structured rent escalations every five years, providing inflation protection and reliable income growth. With zero landlord responsibilities, this location offers genuinely passive returns. Positioned in a vibrant and growing Utah market, it is an excellent fit for investors targeting net lease investment properties, single‑tenant NNN assets, drive‑thru retail investments, and 1031‑exchange-ready opportunities.
Investment Highlights
Tenant Overview
Dutch Bros Coffee has grown into one of the most dynamic drive‑thru coffee brands in the U.S., earning loyalty through fast service, community engagement, and energetic branding. This Utah location is operated by an experienced franchise group with a track record of successful units. While the lease is franchisee‑guaranteed (not corporate), the operator’s sustained investment in this and other regional locations supports long‑term performance and market confidence.
Lease Summary
This setup delivers passive income with predictable growth and transparent underwriting.
Site Overview
Built to corporate prototype specifications, the property features a modern drive‑thru layout with dual lanes, branded monument signage, and ample parking. Located at a signalized intersection within a dense mixed‑use trade area, it benefits from strong visibility and uninterrupted access. Surrounding development includes retailers, office centers, residential communities, and educational anchors—positions it for consistent drive‑thru volume and strong repeat customers.
Market Overview – Provo‑Orem MSA
Provo and Orem form a dynamic metro that continues to expand thanks to its proximity to major urban centers, reputable universities, and growing technology and healthcare industries. Employment growth in sectors such as tech, higher education, and medical services supports rising population levels and escalating consumer demand. Retail corridors in the metro have seen active development, with drive‑thru coffee emerging as a top‑performing retail subtype for daily convenience.
Demographics and Trade Area
The nearby trade area features a mix of young families, professionals, and university communities. Line‑level household income is strong, and daytime population is supported by students, healthcare workers, tech employees, and retail staff. The rapid housing development in outlying neighborhoods further strengthens traffic patterns, making the location ideal for morning and evening peak periods.
Consumer Demand Drivers
Income Profile and Financial Strength
The structured five-year rent escalations provide clean income growth without landlord intervention. The absolute NNN ground lease structure, which assigns full expense responsibility to the tenant, ensures predictable cash flow and limited ownership obligations. Fixed escalations and franchisee commitment support resilience, underwriting confidence, and long-term value.
Ideal Buyer Profile
This asset aligns well with several investor verticals, including:
Market Positioning and Trends
Drive‑thru coffee locations consistently rank among the strongest NNN asset types. Dutch Bros’ brand reputation, combined with Utah’s favorable demographic trends and community values, make this offering stand out. Supply constraints and the scarcity of well‑located drive‑thru pads in Provo‑Orem enhance asset liquidity and supports competitive valuation. Keywords like net lease investment properties, single‑tenant net lease, fast‑casual NNN lease investments, and 1031 exchange NNN investment would directly connect this offering to active capital demand.
Conclusion
This Dutch Bros Coffee property in the Provo‑Orem MSA provides a rare opportunity to acquire passive, inflation‑protected real estate with minimal ownership involvement. The long‑term absolute NNN ground lease, franchisee‑backed tenancy, built‑in rent growth, and strong trade‑area dynamics offer a compelling package for investors seeking reliable income and long‑term value in a high‑growth sub‑market.
Please contact us for more information.