Dutch Bros | 13+ Yrs NNN | Signalized Corner 9605 Menchaca Rd

PROPERTY HIGHLIGHTS
• Newer (2022), build-to-suit construction with Dutch Bros’ latest prototype
• Corporately guaranteed, absolute NNN lease | Zero Landlord responsibilities
• Long-term, passive investment | Over 13 years remaining on the initial term
• Signalized, hard corner location with excellent access and visibility from Menchaca Road which sees over 32,000 VPD
• Across the road from Tanglewood Village | 157,000 SF shopping center anchored by H-E-B
• Extremely dense and affluent area | 114,600+ residents with an average HH income exceeding $129,000 within a 3-mile radius
• Located in the heart of the South Austin Bar & Entertainment district which is considered “the next Rainey Street” and has over $270MM in development projects currently
• 10% rent increases every 5 years throughout the initial term and options, providing an excellent hedge against inflation
• Just off the signalized intersection of Slaughter Lane & Menchaca Road | Combined ±77,200 VPD
• Site is walking distance to:
– The $77MM Moontower Apartments development | Will feature 431 units
– The Local multi-family development | Will include 233 units
– The newly developed Shelby Ranch complex | 302 apartment units
– National tenants including H-E-B, McDonald’s, Walgreens, Planet Fitness, LA Fitness, Discount Tire, Whitewater Car Wash, AutoZone, Taco Cabana, Popeyes, Sonic, O’Reilly Auto Parts, Bank of America, Jiffy Lube, 7-Eleven, Burge King, Valvoline, among others
• Less than 2.5 miles from:
– Southpark Meadows, the largest single shopping destination in the Austin metro area with | 1.6MM SF open-air shopping mall with 100+ tenants | Anchored by Super Target, Walmart Supercenter, Sam’s Club, JCPenney, Best Buy, Hobby Lobby, Cinemark, among others
– James Bowie High School | 2,782 students
– Shady Hollow Village | Randalls-anchored shopping center
• The Austin metro area was the fastest growing area in the U.S. for 12 straight years from 2012-2023
• Austin ranked as the 9th best city to live in the U.S. for 2024-2025, according to U.S. News & World Report
• Just over 2.5 miles from:
– I-35 which boasts 152,560 VPD
– A Home Depot-anchored center
– H-E-B
• Asset is located in an income tax-free state
TENANT HIGHLIGHTS
• Dutch Bros is the third largest coffee chain in the US with 900+ units across 17 states with a long-term goal of hitting 4,000+ stores in the next 10-15 years
– In Q1 2024, total revenues grew 39% y-o-y to a record $275MM | Delivered 10% same store sales growth
– Expects to open at least 150-165 locations in 2024
– Has opened at least 30 stores in 12 consecutive quarters
• Dutch Bros holds an AUV of $2MM (2023)
• Dutch Bros (NYSE: BROS) went public in 2021 and holds a market cap of ±$4.8B as of 8/28/24
– Held the highest AUV in the QSR Magazine’s “snack segment” at just under $2MM in 2023, beating out the likes of Starbucks, Dunkin’, 7 Brew Coffee, among others
– 3rd most popular restaurant chain in the U.S. in 2024, according to Nation’s Restaurant News
– #33 on QSR Magazine’s QSR Top 50 rankings
– #48 on Technomic’s 2024 Top 500 Chain Restaurant Report