The Registry – Southern California Real Estate
March 20, 2023
FONTANA. Calif. – IBC Investment Group Real Estate Advisors, a nationally recognized real estate brokerage and advisory firm specializing in retail property sales, announced today that the firm has arranged the sale of a brand-new construction, single-tenant property occupied by Dutch Bros Coffee Drive-Thru at Highland Village Shopping Center, a new Sprouts-anchored shopping center in Fontana, California. The sale price was $2.3 million for the absolute triple-net ground lease. This transaction marks the ninth property IBC Investment Group has sold at Highland Village, totaling 75,509 square feet and approximately $43.1 million in combined sales.
Built in 2022 on a 0.45-acre parcel, the 871-square-foot Dutch Bros Coffee Drive-Thru is located at 17010 South Highland Avenue in Fontana. The property is situated on an outparcel to a 30,000-square-foot Sprouts Farmers Market at the hard-corner, signalization intersection of Highland Avenue and Sierra Avenue. Co-tenants include Raising Cane’s, Jack in the Box, Quick Quack Car Wash, Mountain View Tire, Jersey Mike’s Subs, Pacific Dental, Crumbl Cookies, Fatburger, Café Rio and Oggi’s.
Highland Village Shopping Center is immediately adjacent to the 210 Freeway (153,000 cars per day) at the Sierra Avenue entrance/exit and enjoys highly visible pylon signage. The 210 Freeway is one of the major east/west freeways connecting California’s San Gabriel Valley to San Bernardino.
IBC Investment Group’s Fryman, Asher and Lefko previously arranged the sale of two multi-tenant retail pad buildings totaling 13,515 square feet and a 7,500-square-foot multi-tenant retail shop building adjacent to Sprouts. Sales at Highland Village Shopping Center also included a Quick Quack Car Wash ground lease, plus the sales of Sprouts, Mountain View Tire & Auto Service, Raising Cane’s and Jack in the Box, each as separate, single-tenant transactions at Highland Village Shopping Center. IBC Investment Group’s sale of Quick Quack Car Wash at the shopping center was the first single-tenant Quick Quack to sell as a net-leased investment in California.
“We were able to maximize value for the seller through individual sales to private, non-institutional investors in a price range of approximately $2 million to $11 million, a price range that greatly appeals to the largest buyer pool in the retail investment industry,” “Investors recognized that this shopping center and its location and demographics offered long-term security and stability in a continued growth area.”
“We expect investor demand for well-located, single-tenant and multi-tenant retail properties leased to nationally and regionally recognized internet-resistant tenants to remain steady in 2023,”
One of the fastest-growing brands in the food service and restaurant industry in the United States, Dutch Bros (BROS: NYSE) is a publicly traded drive-thru coffee chain with 671 locations across 14 states as of December 31, 2022. In 2022, Dutch Bros delivered another strong year of growth, with revenue increasing almost 50% to $739.0 million, driven by 133 new shop openings systemwide. In 2023, Dutch Bros is targeting 150 new systemwide shops, enabling the company to achieve its five-year goal of 800 systemwide shops by year-end. Additionally, Dutch Bros expects to be within striking distance of $1 billion in revenue in 2023 and 1,000 systemwide shops by the first half of 2025, according to a recent company news release.
This is the third Dutch Bros Coffee property sale IBC Investment Group has sold within the last 30 days.
About IBC Investment Group
IBC Investment Group Real Estate Advisors is a real estate brokerage and advisory services company with a $10 billion transaction track record that specializes in the sale of retail properties nationwide. Our expertise, proven track record, and unwavering dedication to putting clients’ needs first set us apart in the industry. IBC Investment Group creates value by delivering exceptional results through the use of property-specific marketing strategies, cutting-edge technology, and local market knowledge. Our nationwide relationships with investors, developers, institutions, franchisees, brokers, and 1031 exchange buyers are unparalleled in the industry, translating into maximum exposure and pricing for each property. With unmatched service, IBC Investment Group has redefined the experience of selling retail investment properties.
