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Dutch Bros.

NOT ACTUAL LOCATION - Under Construction -

Brand New Corporate15-Year Unsubordinated Ground Lease

121 S CENTER STREET, STOCKTON, CA

$1,880,000

4.25% CAP Rate | $80,000 NOI Listing Brokers: Blake Federinko Blake@ MAJCRE.com 360.823.5111

Brandi M. Ho

Brandi@ MAJCRE.com 360.823.5112

Michael A. Jenkins Mike@ MAJCRE.com 360.823.5102


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THIS OFFERING PRESENTS the opportunity to acquire a Single Tenant net leased investment located in Stockton, CA. The property is leased to Dutch Bros. on a 15-Year Absolute Net Lease. The subject property is in close proximity to other retailers such as Stockton Arena, Regal Cinema, Walgreens, Bob Hope Theater, Wells Fargo and much more. The excellent location provides ideal visibility from SR-4. Dutch Bros will be featured on the center’s large freeway monument sign.


INVESTMENT OVERVIEW $1,880,000 CAP | 4.25% Price |

Lot Size 13,305+/- SqFt Estimated Completion Jan-Feb 2019 Rent Commencement March 5, 2019

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Brand New Development Dutch Bros. Property located in Stockton, CA New 15-Year Corporate Absolute Net Ground Lease Located in Close Proximity to SR-4 and I-5 8% Rent Increases in Year 10 of Initial Term Surrounding Businesses include Stockton Arena, Regal Cinema, Walgreens, Bob Hope Theater, Wells Fargo and much more.


LEASE SUMMARY GUARANTOR

EXTENDED TERMS

Dutch Bros. Corporate

TERM

3, 5-Year Options

15-Year Primary Term

INCREASES

$80,000.00

8% Increases in Year 10 and

Absolute Net Lease

in the option periods

NOI

LEASE TYPE

TAXES: TENANT RESPONSIBLE (SEE SEC. 9.1 OF LEASE)

INSURANCE: TENANT RESPONSIBLE (SEE SEC. 10.1, 10.2, 10.3 OF LEASE) CAMS: TENANT RESPONSIBLE (SEE SEC. 21 OF LEASE) LANDLORD RESPONSIBILITIES: NONE

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TENANT OVERVIEW TENANT SUMMARY Dutch Bros Coffee was founded in 1992 by Dane and Travis Boersma: brothers of Dutch descent. After three generations in the dairy business, government regulations pressed the family to sell the cows. What felt devastating turned out to be a blessing in disguise.

The bros bought a double-head espresso machine, threw open the barn doors and started experimenting with just 100 pounds of beans and a rockin’ stereo. They set up a pushcart on the railroad tracks and started passing out samples to anyone who would brave the new brew, and, within a month, they knew they had something special.

“One of the most rewarding things in this change of occupation was going from smelling cow manure to smelling coffee,” said Dane. “You’d open the bag, and it was like heaven.” Today, Dutch Bros Coffee is the country’s largest, privately held drive-thru coffee company, with over 290 locations in seven states and over 7,500 employees. But growth hasn’t taken the company away from its roots. Dutch Bros still gives away drinks — now over one million each year — to further the bros.’ mission of “spreading the Dutch Luv.” The company donates over $2 million a year to its local communities and nonprofit organizations, including the Muscular Dystrophy Association, in honor of Dane, who passed away in 2009 after a four-year battle with Lou Gehrig’s disease. With its loyal customer base dubbed the Dutch Mafia, Dutch Bros Coffee continues to grow, and, wherever it does, the love, donations and smiles grow also.


RENT ROLL Term

Monthly Rent

Annual Rent

Years

3/5/2019 3/5/2029

$6,666.67 $7,200.00

$80,000 $86,400

1-10 11-15

OPTION 1 OPTION 2 OPTION 3

$7,776.00 $8,398.08 $9,070.00

$93,312 $100,777 $108,840

16-20 21-25 26-30

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FINANCIAL SUMMARY Scheduled Income

$80,000.00

Less Operating Expenses CAMS

TENANT

PROPERTY TAXES

TENANT

INSURANCE

TENANT

TOTAL EXPENSES

Net Operating Income Sale Price CAP Rate

$0.00

$80,000.00 $1,880,000.00 4.25%


SITE PLAN FUTURE RETAIL DEVELOPMENTS

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ELEVATIONS

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FREEWAY SIGNAGE

Stockton Crossroads consists of a freeway Pylon Sign that is approximately 55’ Tall and can be seen by 77,000 VPD on SR-4

SR-4

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AERIAL I-5 132,000 VEHICLES DAILY

SR 4

77,000 VEHICLES DAILY

Subject Property

Surrounding Retailers Red Orchid Stockton Courthouse St Mary’s Church Hardin Animal Hospital Weber Point Events Center Banner Island Ballpark

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Starbucks Walgreens Dollar Tree Bank Of America Bob Hope Theater Wells Fargo


DEMOGRAPHICS

Average Income

1mi.

3mi.

5mi.

Estimated 2018 Projected 2023 Census 2010 Census 2000

$30,632 $33,083 $32,493 $25,497

$53,319 $59,822 $44,440 $38,294

$65,630 $75,464 $53,026 $43,983

Population

1mi. 20,371 22,586 18,224 19,694

Estimated 2018 Projected 2023 Census 2010 Census 2000

3mi. 147,978 160,307 138,414 134,440

5mi. 266,695 287,092 249,641 223,184


STOCKTON, CA Stockton’s location at the head of a navigable channel, approximately 90 miles inland from San Francisco Bay, allows the city to continue to serve as a major shipping point for many of the agricultural and manufactured products of Northern California. Rich peat soil and a temperate climate make the area around Stockton one of the richest agricultural and dairy regions in California. Throughout the 150 years of Stockton’s history, almost every major fruit, nut, and field crop has been grown, some with greater success than others. Current major crops include asparagus, cherries, tomatoes, walnuts, and almonds, plus other smaller-production orchard, row and feed crops. Grapes amount to 40 percent of the fruit and nut harvest and contribute 18 percent to the county’s agricultural dollar. Prizewinning wines are produced from vineyards north of Stockton, contributing to the international reputation of fine quality California wines. The legendary Delta created by the confluence of several rivers and man-made channels, includes 1,000 miles of waterways and defines Stockton’s geography. Wildlife, irrigation, transportation, and recreation all owe their success to the muddy waters of the San Joaquin Delta. Stockton and environs have long been known in the entertainment industry as locationrich.

Median Age AGE

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32.5 Years Old

Gender Male Female

49.0% 51.0%


LARGEST EMPLOYERS IN STOCKTON


300 West 15th Street, Suite 201 Vancouver, WA 98660 360.699.4494 www.MAJCRE.com

Dutch Bros - Stockton, CA  
Dutch Bros - Stockton, CA