DUTCH BROS COFFEE OFFERING MEMORANDUM - SINGLE-TENANT TRIPLE-NET INVESTMENT OPPORTUNITY
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DUTCH BROS COFFEE
2375 N. 1ST STREET
DIXON, CA 95620
SINGLE-TENANT TRIPLE-NET INVESTMENT OPPORTUNITY
OFFERING MEMORANDUM
Justin Dobrinski
Justin Dobrinski
(916) 601-4027
(916) 601-4027
justin@adobiventures.com
justin@adobiventures.com
2375 N. 1ST STREET
DIXON, CA 95620
01 INVESTMENT HIGHLIGHTS 3
02 INVESTMENT OVERVIEW 4
03 SALES COMPARABLE 5
04 AERIAL 6-7
05 PROPERTY PHOTOS 8
06 SITE PLAN 9
07 LOCATION MAP 10
08 LOCATION OVERVIEW 11
09 TENANT OVERVIEW 12
Justin Dobrinski
(916) 601-4027
justin@adobiventures.com
01 INVESTMENT HIGHLIGHTS
2375 N 1st Street,
Dixon, CA 95602
• $2,300,000 (5.2% Cap Rate)
• Located between San Francisco and Sacramento
• Larger than normal parcel of land for
• 15-year ground lease with multi-unit operator, Dutch Bros of Woodland
Dutch Bros. (42,642 SF), with a
• 10% rental escalation every 5 years
double drive-through
• Brand new construction (2018)
• Zero landlord responsibilities • New Construction
• One of the largest tenured Dutch Bros franchisees in the country (franchisee since 2004).
• Dutch Bros is the largest privately held drive-through coffee chain in the United States. In a report from June of • Multi-unit operator (Dutch Bros of
2018, Food Drink & Franchise listed Dutch Bros in the top 10 coffee companies in the world, with an estimated Woodland, LLC) with a 15-year
$415M gross revenue in 2017. operating history with Dutch Bros.
• Located in the primary retail corridor of Dixon, across the street from Walmart, Panda, Starbucks, and Grocery
Outlet (scheduled opening in Q1 2021). This location sits on N. 1st St, the primary north-south corridor in Dixon.
• Dixon has and will continue to see population growth as Bay Area residents continue to move north seeking more
affordable housing. With a current population of 20,500 (2018 US Census Bureau), the City of Dixon has over 600
single family residential units planned for construction in the near future.
• Average household incomes in excess of $100,000 within a 3-mile radius.
Justin Dobrinski
(916) 601-4027 01
justin@adobiventures.com
02 INVESTMENT OVERVIEW
OFFERING SUMMARY
2375 N. 1st Street
ADDRESS:
Dixon CA 95620
PURCHASE PRICE: $2,300,000
CAP RATE: 5.22%
NET OPERATING INCOME: $120,000
RENT COMMENCEMENT: 1/1/2019
LEASE EXPIRATION: 12/31/2034
RENEWAL OPTIONS: Two 5-Year
NOI SCHEDULE
NOI DATE PERIOD INCREASE CAP RATE
$120,000 1/1/2020 1-5 5.22%
$132,000 1/1/2025 6-10 10% 5.74%
$145,200 1/1/2030 11-15 10% 6.31%
$159,720 1/1/2035 Option 1 10% 6.94%
$175,692 1/1/2040 Option 2 10% 7.64%
PROPERTY AND LEASE DETAILS
LEASE TYPE: Ground Lease (No Landlord Responsibilities)
TENANT: Dutch Bros of Woodland, LLC
DBA Dutch Bros
LAND SIZE: 42,642 SF
BUILDING SIZE: 824 SF (double drive-thru)
YEAR BUILT: 2018
Demographics
Radius 1 Mile 3 Mile 10 Mile
2024 Population 5,427 22,024 138,076
2019 Estimate 5,155 20,921 131,351
Growth 2019-2024 5.28% 5.27% 5.12%
2019 Avg Household Income $113,069.00 $100,160.00 $107,846.00
Justin Dobrinski Justin Dobrinski
(916) 601-4027 (916) 601-4027 02
justin@adobiventures.com justin@adobiventures.com
03 SALES COMPARABLES
SALES COMPARABLES
SALE CAP PRICE PSF
ADDRESS TENANT SALES PRICE DETAILS
DATE RATE LAND
1 139 S. Center St., Stockton, CA Dutch Bros 6/12/19 4.84% $1,650,000 $122.19 15-year ground lease, 8% increase in Yr. 10
2 3665 W. Chandler Blvd., Chandler, AZ Dutch Bros 11/20/18 5.00% $2,000,000 $183.65 15-yr ground lease, 2% increases start yr. 5
3 1370 S. Higley Rd., Gilbert, AZ Dutch Bros 5/31/19 5.01% $1,360,000 $40.03 15-yr ground lease w/ 10% inc. every 5 yrs.
4 9643 Gravelly Lake Dr., Lakewood, WA Dutch Bros 11/1/19 5.11% $2,095,000 $84.38 15-yr NNN lease w/ 10% inc. every 5 yrs.
5 13929 N. 83rd Ave, Peoria, AZ Dutch Bros 9/18/19 5.15% $2,174,757 $43.41 10-yr Ground Lease
6 10105 E. Old Vail Rd., Tucson, AZ Dutch Bros 10/24/19 5.16% $1,940,000 $193.30 15-yr NNN lease, w/ 10% increases in option periods
7 W. Craig Rd & N. Rancho Dr, Las Vegas, NV Dutch Bros 9/13/19 5.26% $1,550,000 $107.83 15-yr NNN lease, 10% increases in rent every 5 yrs.
8 5690 W. Cortaro Farms Rd., Tucson, AZ Dutch Bros 9/17/19 5.27% $1,880,000 $56.05 15-yr NNN lease w/ 10% inc. every 10 yrs
9 1130 E. March Ln., Stockton, CA Dutch Bros 6/26/19 5.36% $1,540,000 $48.97 15-yr NNN lease, w/ 10% inc. in option periods
10 3169 Willow Creek Rd., Prescott, AZ Dutch Bros 5/3/19 5.38% $2,091,255 $77.43 15-yr NNN lease, 10% increases in rent every 5 yrs.
11 2211 E. Florence Blvd., Casa Grande, AZ Dutch Bros 7/25/19 5.4% $1,835,000 $47.11 15-yr NNN lease
12 2393 Cohasset Rd., Chico, CA Dutch Bros 12/26/18 5.51% $1,697,500 $77.54 9-yr NNN lease
13 602 S. Beeline Hwy., Payson, AZ Dutch Bros 2/26/19 5.67% $1,775,000 $48.51 15-yr absolute net lease, single drive-thru
AVERAGE 6/19/19 5.24% $1,814,501 $86.95
Justin Dobrinski
(916) 601-4027
justin@adobiventures.com
04 AERIAL
ADD WALMART LOGO HERE WITH AN
ARROW POINTING UP IN THE
WALMART DIRECTION
SHADED LINE CLEARLY IDENTIFYING THE STREET
AND ADD 17583 ADT (TRAFFIC COUNT)
ADD VAUGHN ROAD HERE WITH A
ADD VAUGHN ROAD HERE WITH A
SHADED LINE CLEARLY IDENTIFYING THE STREET
ADD “BANK OF STOCKTON” LOGO HERE
Justin Dobrinski
(916) 601-4027
justin@adobiventures.com
04 AERIAL
ADD “SACRAMENTO” HERE
ADD “DAVIS” HERE
A DT
32,739
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AS
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EN
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TIF GH
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EN AU
ID D V
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MOVE TRACTOR SUPPLY LOGO
UP, AND ADD BANK OF STOCKTON
LOGO
Justin Dobrinski
(916) 601-4027
justin@adobiventures.com
05 PROPERTY PHOTOS
Justin Dobrinski
(916) 601-4027
justin@adobiventures.com
06 SITE PLAN
Justin Dobrinski
(916) 601-4027
justin@adobiventures.com
07 LOCATION MAP
Justin Dobrinski
(916) 601-4027
justin@adobiventures.com08 LOCATION OVERVIEW
Dixon is a growing agricultural community of approximately 22,000 people. This neighbor to the cities of Davis and Vacaville offers a unique combination of an outstanding
location, safe environment, abundant new home construction, excellent schools, friendly people, and a town with strong community values. Dixon can best be characterized as a
progressive city that puts residents within commuting distance of both San Francisco and Sacramento. It is a city that boasts great quality of life characteristics, and that embraces
its rich history and agricultural heritage.
Dixon is located in the northeast portion of Solano County on interstate 80, which connects the Bay Area to Sacramento and Lake Tahoe. Dixon is 19 miles southwest of
Sacramento and 70 miles northeast of San Francisco. It is 5 miles south of Davis, CA (population 70,000), and 8 miles north of Vacaville, CA (population 100,000).
In this ideal location, Dixon enjoys convenient access to institutions of higher learning such as the University of California, Davis and the California State University, Sacramento.
Demographics
Radius 1 Mile 3 Mile 10 Mile
2024 Population 5,427 22,024 138,076
2019 Estimate 5,155 20,921 131,351
Growth 2019-2024 5.28% 5.27% 5.12%
2019 Avg Household Income $113,069.00 $100,160.00 $107,846.00
Justin Dobrinski
(916) 601-4027
justin@adobiventures.com09 TENANT OVERVIEW
Travis Boersma, Co-Founder and CEO of Dutch Bros.
Dutch Bros Coffee is the largest privately held drive-through coffee chain in the United States. It is headquartered in Grants Pass, Oregon, with company-owned and franchise
locations expanding throughout the western United States.
The company was founded Dane and Travis Boersma, brothers of Dutch descent, in Grants Pass, Oregon. It originally sold coffee from pushcarts around town, and by 2018 had
over 300 coffee stands in seven Western states with the majority being drive-thrus and a few walk ins. The coffee chain serves a variety of coffees, caffeinated beverages, and other
drinks including tea, energy drinks, smoothies, hot cocoa, soda, and lemonade including a "not-so-secret menu”. The company's mission statement centers on three core values:
quality, speed, and service.
The company's mantra is to "make a difference, one cup at a time”. The company holds an annual fundraiser for the Muscular Dystrophy Association in honor of the co-founder
Dane Boersma, who died of Lou Gehrig's disease in 2009 at the age of 55. Dutch Bros donates millions annually to local and national organizations, and lives by the mantra “make
a difference, one cup at a time.”
Dutch Bros has outlets in seven states, with more than 360 locations, and over 12,000 employees.
In October of 2018, Dutch Bros raised a large, undisclosed amount of capital from TSG Consumer Partners, a funding round intended to allow Dutch Bros to push their store total
from 300 to 800 locations within 5 years.
In 2018, Food Drink & Franchise listed Dutch Bros in the top 10 coffee companies in the world, with an estimated $415M gross sales in 2017.
Justin Dobrinski
(916) 601-4027
justin@adobiventures.com2375 1st Street, Dixon CA 95620
CONFIDENTIALITY and DISCLAIMER
The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Adobi Ventures and it
should not be made available to any other person or entity without the written consent of Adobi Ventures.
By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that
recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property, please promptly return this offering memorandum to Adobi Ventures.
This offering memorandum has been prepared to provide summary, unverified financial and physical information to prospective purchasers, and to establish only a preliminary level of interest in
the subject property.
The information contained herein is not a substitute for a thorough due diligence investigation. Adobi Ventures has not made any investigation, and makes no warranty or representation with
respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence
or absence of contaminating substances, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvements thereon, or financial condition or
business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property.
The information contained in this offering memorandum has been obtained from sources we believe reliable; however, Adobi Ventures has not verified, and will not verify, any of the information
contained herein, nor has Adobi Ventures conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the
information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Prospective buyers shall be responsible for their costs and expenses of
investigating the subject property.
Exclusively Marketed by:
Justin Dobrinski
(916) 601-4027
justin@adobiventures.com
Justin Dobrinski
(916) 601-4027
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