Dutch Bros Coffee Ground Lease - Kyle, TX | Austin MSA NOW OPEN
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N OW O PE N
OFFERING MEMORANDUM
Dutch Bros Coffee Ground Lease
Kyle, TX | Austin MSA
This property is listed in conjunction with Texas-licensed real estate broker Delta Commercial. www.preservewestcapital.com
TABLE OF CONTENTS
PROPERT Y HIGHLIGHTS 1 AERIALS 6
PROPERT Y INFORMATION 2 ABOUT THE AREA 8
TENANT INFORMATION 3 DEMOGRAPHICS 10
SITE PL AN 4
Disclaimer MGM Capital Corp dba Preserve West Capital (“Broker”) has been retained on an exclusive basis to market the property
described herein (“Property”). Broker has been authorized by the Seller of the Property (“Seller”) to prepare and distribute
Putnam Daily
Partner
the enclosed information (“Material”) for the purpose of soliciting offers to purchase from interested parties. More detailed
financial, title and tenant lease information may be made available upon request following the mutual execution of a letter of 415.445.5107
intent or contract to purchase between the Seller and a prospective purchaser. You are invited to review this opportunity and putnam@preservewc.com
make an offer to purchase based upon your analysis. If your offer results in the Seller choosing to open negotiations with you,
CA RE License #01750064
you will be asked to provide financial references. The eventual purchaser will be chosen based upon an assessment of price,
terms, ability to close the transaction and such other matters as the Seller deems appropriate.
Lindsey Snider
The Material is intended solely for the purpose of soliciting expressions of interest from qualified investors for the acquisition
of the Property. The Material is not to be copied and/or used for any other purpose or made available to any other person Vice President
without the express written consent of Broker or Seller. The Material does not purport to be all-inclusive or to contain all of the 415.906.2887
information that a prospective buyer may require. The information contained in the Material has been obtained from the Seller lindsey@preservewc.com
and other sources and has not been verified by the Seller or its affiliates. The pro forma is delivered only as an accommodation
and neither the Seller, Broker, nor any of their respective affiliates, agents, representatives, employees, parents, subsidiaries,
CA RE License #01443387
members, managers, partners, shareholders, directors, or officers, makes any representation or warranty regarding such
pro forma. Purchaser must make its own investigation of the Property and any existing or available financing, and must Michael Maffia
independently confirm the accuracy of the projections contained in the pro forma. Managing Partner
Seller reserves the right, for any reason, to withdraw the Property from the market. Seller has no obligation, express or implied, 415.373.4060
to accept any offer. Further, Seller has no obligation to sell the Property unless and until the Seller executes and delivers mike@preservewc.com
a signed agreement of purchase and sale on terms acceptable to the Seller, in its sole discretion. By submitting an offer, a
purchaser will be deemed to have acknowledged the foregoing and agreed to release Seller and Broker from any liability with
CA RE License #01340853
respect thereto.
Property walk-throughs are to be conducted by appointment only. Contact Broker for additional information.
www.preservewestcapital.com
PROPERT Y HIGHLIGHTS
Property Highlights
• 15-Year Ground Lease to Dutch Bros Coffee (NYSE: BROS)
with Corporate Guarantee
- Scheduled 10% Rental Escalations in Primary Term & Options
- No Landlord Maintenance Responsibilities
• Dutch Bros Filed for IPO September 2021
- Market Capitalization of $5.94 Billion
- Stock Price Up 57.7% over IPO Price
- 2021 Revenue of $497.9 Million
Downtown • New 2022 Construction with Upgraded Brick Façade & Double Drive Thru
Kyle
• Located within The Village at Kyle – 215-Acre Mixed-Use Development
- Anchored by Lowe’s, with tenants including Taco Bell, Arby’s,
AT&T, Taco Cabana, Dunkin’, Firehouse Subs, and More
• Prominent Retail Location on Main Retail Node
- Major Retail Tenants in Surrounding Area Include Walmart
Supercenter, Target, H-E-B Plus, Chick-fil-A, Ross, Kohl’s, Petco,
CVS, Walgreens, and More
Kyle Pkwy (18,955 AADT)
• High Growth Suburb of Austin with Robust Demographics in
Surrounding Area
(1
- Total Population of 88,073 within 5 Miles of Site and Average
56
Household Income of $91,675 within 5 Mile Radius
,6
68
• Direct Access and Visibility from I-35 and Kyle Pkwy
AA
- Combined 175,623 AADT
DT
• Kyle is One of the Fastest Growing Cities in Texas
)
- Trade Area Has Built and Sold an Average of 5,000 Single Family
Homes Annually with Growth of Over 10% Per Year
• Part of the Greater Austin MSA
- 18 Miles from Downtown Austin
• New 300,000 SF Amazon Sortation Center Located within 1-Mile
• Less than 2-Miles from Austin Community College Hays Campus with
Fro
4000+ Students Enrolled
nta
• Neighbors Seton Medical Center – Hays, a 142-Bed Level III Trauma
Center and the Largest Medical Campus in Hays County
ge
• No State Income Tax in Texas
PRESERVE WEST CAPITAL | 1
PROPERT Y INFORMATION
PRICE
$2,244,000
4.50% Return
Location Annual Rent
The property is located at 20325 IH-35 in Kyle, Texas.
Years Annual Rent Return
Lot Size 1-5 $101,000 4.50%
Approximately 0.77 acres or 33,571 square feet.
6-10 $111,100 4.95%
Improvements 11-15 $122,210 5.45%
A 871 square foot retail restaurant building for Dutch Bros Coffee with a double 16-20 (Option 1) $134,431 5.99%
drive-thru component.
21-25 (Option 2) $147,874 6.59%
The improvements are built and owned by the tenant; only the land is for sale.
26-30 (Option 3) $162,662 7.25%
Ground Lease
Leased to BB Holdings TX, LLC, and guaranteed by Boersma Bros, LLC, for 15
years from August 12th, 2022, at a current annual rent of $101,000. There are three
Financing
(3) five-year options to renew the lease. Rent is to increase by 10% every five years This property will be delivered free and clear of permanent financing.
and at the start of each option period. The lease is net with tenant responsible for all
taxes, insurance, and maintenance.
PRESERVE WEST CAPITAL | 2
ABOUT THE TENANT
Dutch Bros. Coffee (NYSE: BROS) is a publicly
held drive-through coffee chain with 500+ stores
across the western United States. The company
roasts all of its own coffee, a unique three-bean
blend, and serves coffee, specialty espresso
drinks, tea, Dutch chocolate milk, and more. The
company operates a unique franchising model,
offering franchise opportunities only to existing
employees of the company, ensuring high-quality
franchise operations. J.D. Power and associates
has consistently ranked the company among the
top specialty coffee companies for customer
satisfaction. Dutch Bros Coffee underwent its
initial public offering on September 15, 2021; as
of June 23, 2022, it has a market capitalization of
$5.94 billion, with its stock price up 57.7% over the
IPO price. The company reported $497.9 million in
revenue for 2021, growing 52% from 2020.
BB Holdings, TX, LLC, the lease entity, and Boersma
Bros, LLC are subsidiaries of Dutch Mafia, Inc., the
corporate entity for Dutch Bros. Coffee.
PRESERVE WEST CAPITAL | 3
SITE PLAN
GE
TA
ON
FR
871 SF
SIGN
PRESERVE WEST CAPITAL | 4
AERIAL WEST VIEW
Oaks on Plum Creek
Marketplace
ADT)
y ( 1 8,955 A
k w
Kyle P
(156
,668
AAD
T)
Fro
nt age
AERIAL AREA DEVELOPMENTS
HAYS COMMERCE CENTER
PHASES I & II
Estates
at Plum Creek
Mountain
City DRY RIVER DISTRICT
Kyle Crossing Meadows
65-Acre Mixed Use Development of Kyle
Hays Campus (Medical, Multifamily, and 300k SF
(4,000+ Students) Retail anchored by EVO Entertainment,
Costco & The Home Depot)
1,400 LOTS
Jack C Hays
High School 138 ACRES
2,500 HOMES
250K SF OFFICE
150K SF RETAIL
Kohlers Cross
ing
Barton Amberwood
Middle 625 LOTS
School
Plum Creek
Golf Course
MAJESTIC KYLE CROSSING
PLUM CREEK BUSINESS PARK
INDUSTRIAL CENTER
T
AD
New 74-Acre (859k SF) Sunset
State-of-the-Art Hills Chapa
8A
1,521 MULTIFAMILY Industrial Complex 625 LOTS Middle school
UNITS
6
Distribution Center
6,6
Hidden Oaks &
15
Dove Hollow
Estates
152 LOTS
Science Hall
Elementary
2,184 LOTS
Laura B. Negley
Elementary Kensington
Trails
Brooks
Ranch
Hometown
Kyle
Hays Hospital
Creekside Fuentes
Brooks Village Elementary
Crossing
ABOUT THE AREA
General Overview
Kyle (population 53,763) is a rapidly growing city located
approximately 11 miles from San Marcos and 22 miles from
downtown Austin. The city’s population has increased nearly
810% since 2000 and continues to rapidly expand; more than
4.5 million square feet of new retail and mixed-use space is
planned or has recently been completed in the city. Other
major recent developments include Plum Creek, a 2,200-acre
master-planned mixed-use community, and which will include
the Uptown at Plum Creek development, slated to feature
restaurants, lifestyle retail, offices, and residential space, the
Hays Logistics Center, a 108-acre industrial and manufacturing
center which is expected to draw additional jobs in high-tech
manufacturing to the area. Residential development activity
within the city has also been strong, with nearly 50,000 new
homes in the development pipeline.
The city is poised to be the largest city in Hays County with the
undertaking of major highway and infrastructure improvements.
This has led to massive growth, investment, and commitment
SITE from commercial businesses and developers. Kyle is part of
the Austin-Round Rock-San Marcos Metropolitan Statistical
Area (MSA), one of the largest and fastest growing MSAs in
the U.S., with a population of more than 2 million and the 16th
largest GDP per capita in the country. Numerous Fortune 500
companies are based in or maintain a significant presence in and
around Austin, including Dell, Whole Foods Market, and ABM
Industries, Amazon.com, eBay, Hewlett-Packard, Apple, Cisco,
Google, IBM, Facebook, Intel, Oracle, PayPal, Samsung, Xerox,
Texas Instruments, and 3M. Dell’s worldwide headquarters are
located in the nearby suburb of Round Rock.
The region is home to a booming tech sector that has earned
it the nickname “Silicon Hills”; major tech companies with
a presence in and around Austin include Applied Materials,
Bigcommerce, BioWare, Blizzard Entertainment, Buffalo
Technology, Cirrus Logic, Dropbox, Electronic Arts, Flextronics,
HomeAway, Hostgator, National Instruments, Nvidia, Polycom,
Qualcomm, Inc., Rackspace, RetailMeNot, Rooster Teeth, and
more. The Austin metropolitan area is one of the top regions for
venture capital and is home to more than 45 startup incubators,
accelerators, and co-working spaces. Austin has also recently
emerged as a hub for pharmaceutical and biotechnology
companies, and was ranked by the Milken institute as the
number 12 biotech and life science center in the U.S.ABOUT THE AREA
Site Information
The subject property is prominently located within the The Village
at Kyle, a 215-acre mixed-use commercial development anchored
by Lowe’s, with tenants including Taco Bell, Arby’s, AT&T, Taco
Cabana, Dunkin’, Firehouse Subs, and more. The property has
excellent access and freeway visibility along I-35 (156,668
AADT) and Kyle Pkwy (18,955 AADT). The site benefits from
robust demographics with a total population of 88,073 within a
5-mile radius and average household income within 5 miles of the
site is $91,675. Growth in the surrounding area has been strong
SITE with an annual rate of 6.72% since 2010; growth is projected to
continue at a robust annual rate of 4.85% through 2023.
The property benefits from a prominent retail location within
a dense retail hub adjacent to major shopping centers. Nearby
retail centers include Kyle Crossing, a Target-anchored shopping
center with additional tenants including CVS, Kohl’s, Ross,
Petco, Dollar Tree, Rack Room Shoes, with outparcels such as
GameStop, MOD Pizza, Five Guys, Jack in the Box, McDonald’s,
Spectrum, Five Guys, Jersey Mikes, Chick-fil-A, Applebee’s, IHOP,
and more; Kyle Marketplace, an H-E-B Plus-anchored shopping
center with tenants consisting of Subway, Starbucks, Chase
Bank, Whataburger, Great Clips, T-Mobile, Wells Fargo, and more;
a Walmart Supercenter-anchored plaza with tenants featuring
Goodwill, KFC, Fast Med Urgent Care, Popeyes, Wendy’s,
Discount Tire and more; and Kyle Crossing with tenants such as
OrangeTheory Fitness, Smoothie King, and more.
In addition, the property benefits from its close proximity to
Seton Medical Center – Hays, a Level III trauma center and the
largest medical campus in Hays County, providing state-of-the
art hospital services, including specialized care and surgeries
and outpatient diagnostic and therapeutic services. In addition,
construction is currently underway on a new 50 room OB-GYN
wing neighboring the property. As the city’s second-largest
employer, the property will benefit from increased traffic from
staff andpatients proximal to the site. The property is also located
near Austin Community College Hays Campus, with over 4,000
Students as well as Kyle ER. Kyle is home to 14 public schools in
the immediate vicinity serving almost 11,000 students. A newly
constructed 300,000 square foot Amazon Sortation Center is
within 1-mile of the property.DEMOGRAPHICS
20325 IH-35 | Kyle, TX 78640
Major Employers # of
in Kyle Employees
Hays County Independent 2,383
2021 POPULATION AVG. HOME VALUE AVG. HOUSEHOLD INCOME School District
88,073
610
$280,884 $91,675 Seton Medical Center Hays
City of Kyle 250
H-E-B Plus 208
Population Summary 1 Mile 3 Miles 5 Miles
Amazon 200
2010 Total Population 1,527 31,387 50,883
2021 Total Population 5,465 50,761 88,073 Legend Oaks Healthcare & Re- 116
habilitation
2026 Total Population 7,305 61,147 106,535
Lowe’s Distribution 108
2021-2026 Annual Rate 5.97% 3.79% 3.88%
Warm Springs Rehab Hospital 100
Average Household Income
2021 $77,967 $91,228 $91,675 Home Depot 100
2026 $85,578 $101,149 $101,749 Austin Community College at 80
Average Home Value
Hays
RSI, Inc 58
2021 $280,884 $239,542 $244,104
2026 $389,161 $294,681 $293,047
PRESERVE WEST CAPITAL | 9BUILDING CAPITAL WITH CONFIDENCE Putnam Daily Lindsey Snider Michael Maffia Partner Vice President Managing Partner 415.445.5107 415.906.2887 415.373.4060 putnam@preservewc.com lindsey@preservewc.com mike@preservewc.com CA RE License #01750064 CA RE License #01443387 CA RE License #01340853
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