Faris Lee Investments Facilitates Off-Market Transaction for Prime Dutch Bros Drive-Thru Property In Texas

Donna, TX – June 3, 2024 – Faris Lee Investments (FLI), a leading national retail investment firm, is pleased to announce the successful acquisition of a new Dutch Bros double Drive-Thru property in Texas, in an off-market transaction agreed to before the completion of construction.

The sale, orchestrated by Tyler Strauss and Hunter Steffien (Directors at Faris Lee Investments) reflects a strategic investment opportunity in the burgeoning south Texas market. With an acquisition price of $1,323,000 and a competitive 5.35% cap rate, the property promises attractive returns for an investor seeking a quality asset in a high-growth region.

Motivated by a 1031 exchange requirement, the client engaged FLI to identify corporate-backed Triple Net (NNN) investment properties in Texas, Tennessee, and Florida. The team leveraged their proprietary NNN developer database to find upcoming, new construction, QSR assets and procured an offer, which secured this rare ‘low-rent’ Dutch Bros property for the client before the opportunity went to the open market.

Situated as a hard-corner pad to a thriving and highly-trafficked Ross-anchored shopping center, the Dutch Bros property represents a well-located QSR asset. Dutch Bros will benefit from the traffic created by retailers and also from neighboring QSR tenants, including brand new Chick-Fil-A and Cheddar's Scratch Kitchen locations coming in 2025. Faris Lee Investments proactive approach and market insights ensured a committed and seamless transaction process once the contract was executed.

The marketing strategy underscored the property's unique value proposition, emphasizing the tenant’s corporate guarantee, Dutch Bro’s robust average unit volume (AUV) of $1.9 million, and strategic alignment with the client's long-term investment objectives. Comparative analysis against other QSR assets on the market further reinforced the property's attractiveness.

The results speak to Faris Lee Investments’ commitment to delivering tailored solutions and exceeding client expectations by finding off-market opportunities. In securing the Dutch Bros asset, the team satisfied the client's 1031 exchange requirement.

About Faris Lee Investments:

Faris Lee Investments is one of the leading retail investments firms in the US and is one of the original firms specializing in retail investment sales throughout the country. Faris Lee combines underwriting and market research that exceeds industry standards with a custom strategy to maximize values for their clients’ .The firm also serves as high level investment advisors in the areas of dispositions, acquisitions & recapitalizations as well as, distressed asset disposition, portfolio sales, and corporate sale-leaseback. For more information, visit www.farislee.com


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