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7/15/25
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A new single-tenant property occupied by a Dutch Bros Coffee drive-thru in El Centro traded for $2.58 mil. Dutch Bros is on a 15-year absolute triple-net ground lease for the property, covering 0.32 acres at 740 N. Imperial Ave. The corporate lease features 10% rental increases every five years during the initial term, with three five-year renewal options also including 10% increases.
The property is a remodel of a former 2.4k sf Wendy's drive-thru originally built in 1985. It is situated along the region’s main retail corridor, Imperial Ave, on an outparcel to a Vons-anchored shopping center and shadow-anchored by Smart & Final Extra! Dutch Bros opened on February 28, 2025, and is projected to be a top-performing location within the chain.
The property benefits from its high-traffic location along Imperial Avenue (29,000 cars per day) in the heart of the submarket’s retail corridor. It offers excellent freeway accessibility, situated along State Route 86/Imperial Avenue and accessible via Interstate 8 and Highway 111, providing excellent exposure to regional traffic. The site is two miles north of Interstate 8, a major route between San Diego and Phoenix, and four miles west of Highway 111, a primary north-south route and retail corridor through the Coachella Valley.
This location marks the first Dutch Bros to open and operate in the Imperial Valley. Dutch Bros is one of the fastest-growing brands in the U.S. quick service beverage industry and, as of March 31, 2025, operated 1,012 locations across 18 states, including 30 new openings in the first quarter, 25 of which were company operated.
Bill Asher, Jeff Lefko and Beau Velten Hanley Investment Group Real Estate Advisors represented the seller and developer, Zach Bonsall and Braden Bernards of Cole Valley Partners of Portland, OR. The buyer, a private investor from Northern California, was repped by Bill Johnson of KW Commercial. According to Asher, the listing generated multiple qualified offers.
"The offering represented a rare Dutch Bros land and building fee-simple investment opportunity with no landlord responsibilities in California,” noted Asher. “This was a unique corporate-leased Dutch Bros in California with the opportunity for the buyer to benefit from depreciation of the building, compared to most new corporate Dutch Bros offerings that are ground lease structures. This is a truly passive single-tenant net-leased asset, which remains highly sought after by investors seeking stable income streams in the current market environment.”
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