Newly Built San Bernardino Coffee Property Completes Ground Lease Sale
SRS Real Estate Partners has completed a $2.765 million ground lease sale of a Dutch Bros. coffee property in San Bernardino, California.
The asset traded hands to an unnamed private California investor, completing a 1031 exchange.
The single-tenant net-leased (STNL) at 4236 North Varsity Avenue closed at a 4.52% cap rate, marking one of the lowest cap rates for a Dutch Bros. STNL property nationwide this year.
SRS Capital Markets’ Senior Managing Principals Patrick Luther and Matthew Mousavi represented the seller, an affiliate of Paragon Commercial Group. JT Real Estate Group represented the buyer.
The 950-square-foot coffee shop, situated on 1.09 acres, was constructed in 2024 and is under a corporate-guaranteed ground lease with approximately 15 years remaining on the term.
“The location fronting Interstate 215 and the favorable lease structure contributed to the compressed cap rate of approximately 4.5% here,” Mousavi told GlobeSt.com.
The location sees strong crossover traffic from nearby retailers, including McDonald’s, Starbucks, as well as the Ralphs and LA Fitness-anchored University Town Center.
More than 259,000 residents and approximately 51,600 employees are within a five-mile radius.
California State University, San Bernardino is just two miles away.
“While the interest rate environment has certainly shifted, there is still private capital seeking high-quality corporate offerings in strong sub-markets in Southern California.”
The management-free investment is ideal for passive buyers as the lease includes options to extend, with the tenant responsible for all expenses.
Source: GlobeSt/ALM