Purchase Price | $2,325,000 |
---|---|
Annual Rental Income | $186,000 |
Cap Rate | 8.00% |
Lease Term | 9 Years |
City | Roswell MSA |
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Dutch Bros Coffee – Single-Tenant Net Lease Investment
Roswell MSA, NM | Drive-Thru Coffee Asset | Absolute NNN Ground Lease | Passive Income Opportunity
Overview
This offering features a standalone Dutch Bros Coffee drive-thru in the Roswell metropolitan area of New Mexico. The property operates under a long-term absolute triple-net (NNN) ground lease, meaning the tenant is fully responsible for all expenses, including real estate taxes, insurance, maintenance, utilities, and landscaping. With scheduled rent escalations every five years and no landlord obligations, this asset offers predictable passive income. Positioned within a stable regional retail node, it is a strong fit for investors pursuing net lease investment properties, single-tenant NNN retail assets, drive-thru fast-casual investments, and 1031-exchange-ready opportunities.
Investment Highlights
Tenant Overview
Dutch Bros Coffee is one of the most recognized drive-thru coffee brands in America, noted for its fast service, energetic brand personality, and dedicated customer base. This Roswell location is managed by a qualified multi-unit franchisee with successful operations in similar markets. While the lease is franchisee-guaranteed rather than corporate-backed, the tenant’s ongoing investment in the site and demonstrated performance support long-term tenancy stability.
Lease Summary
This structure ensures fully passive income with built-in leasing growth and no landlord cost liability.
Site Overview
Designed to Dutch Bros’ brand standards, the building features dual-lane drive-thru capability, attractive signage, and customer-friendly parking. Located at a signalized intersection on a primary retail corridor, the site enjoys strong visibility and easy access. Surrounding development includes national retailers, service providers, and residential areas, producing steady daily drive-thru activity.
Market Overview – Roswell MSA
Roswell serves as a regional hub with steady demand driven by healthcare, government services, and education. The local economy is stable, offering consistent consumer spending and low business volatility. Retail nodes in the area support moderate growth, and drive-thru coffee is increasingly valued for its convenience and efficiency in these secondary markets.
Demographics and Trade Area
The surrounding neighborhood includes a mix of families, professionals, and service-sector employees. Population density is balanced, and employment nodes such as medical facilities and schools generate stable daytime traffic. Residential growth in adjacent areas supports ongoing retail expansion. Combined, these factors support drive-thru frequency across morning and afternoon dayparts.
Consumer Demand Drivers
Income Profile and Growth
Rent escalations every five years provide structured income growth without landlord investment. The absolute NNN ground lease structure guarantees tenant-managed site costs and risk insulation for the owner. The franchisee’s ongoing upgrades and operational strength bolster investment stability and long-term appeal.
Ideal Buyer Profile
This investment aligns with various investor types:
Market Positioning & Trends
In secondary metros like Roswell, drive-thru coffee assets remain rare and therefore highly appealing to tenant and capital interests. Dutch Bros’ brand momentum and regional growth profile reinforce the property’s competitive edge. Limited new site availability strengthens scarcity value and supports upside. Keywords such as net lease investment properties, single-tenant net lease, fast-casual NNN lease investments, and 1031 exchange NNN listings align perfectly with this asset.
Conclusion
This Dutch Bros Coffee in the Roswell MSA presents a strong net lease investment opportunity with long-lease duration, franchisee-backed tenancy, structured rent escalations, and zero landlord obligations. Situated in a stable regional economy, it offers passive income, inflation protection, and regional resilience. This asset is a valuable candidate for investors seeking reliable, hands-off real estate in the fast-casual drive-thru sector.
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