Faris Lee Investments is pleased to offer a STNL freestanding, corporate-guaranteed Dutch Bros
Coffee on an absolute triple net ground lease (land ownership) in Fontana, CA. The newly constructed
property, which opened in September 2024, is secured by a long-term 15-year lease with three
(5-year) renewal options, offering potential total lease terms of up to 30 years. The lease stipulates
10% rental increases every five years, ensuring a growing income stream and a robust hedge against
inflation. This completely passive investment also boasts a double drive-thru, further providing intrinsic
real estate value and customer convenience.
Dutch Bros Coffee, established in 1992, has grown into the third largest coffee chain in the U.S., with
over 900 locations in 18 states. Dutch Bros has been publicly traded on the NYSE (BROS) since 2021
and has demonstrated remarkable growth since, achieving a market capitalization of $12.21 billion as
of February 2025. With an impressive average annual revenue growth rate of 37% since going public,
Dutch Bros achieved over $1.28 billion in revenue for 2024.
The subject property is strategically located fronting a Winco Foods in a bustling retail corridor in
Fontana, CA. Situated at the high-traffic intersection of Foothill Blvd. and Cherry Ave., the location
experiences over 60,000 vehicles per day at the intersection, making it a prime site for retail activity.
The surrounding area boasts strong demographics, including over 144,000 residents and more than
32,000 daytime employees within a 3-mile radius, with an average household income exceeding
$119,000. Co-tenants within the subject property’s shopping center: Winco Supermarket, Chipotle,
Jersey Mike’s, McDonald’s, and Chevron.