For Sale
$2,254,000

2605 Townsend AveMontrose, CO 81401

High-yield NNN ground lease; strong tenant.

Overview

Added:
Dec 11, 2024
Days on market:
116
This exceptional investment opportunity presents a fee-simple ownership interest in a brand-new, 950-square-foot Dutch Bros Coffee location in Montrose, Colorado. Built in 2024, this single-story building sits on a 1.06-acre lot and boasts a double drive-thru, aligning with Dutch Bros.' latest prototype design. The property benefits from a high-traffic location on South Townsend Avenue (Highway 550), experiencing over 28,000 vehicles per day, and enjoys convenient access from both directions. The property is situated near major retailers including Target, Walmart, and Home Depot, as well as Montrose High School and Cottonwood Elementary School. The 15-year absolute NNN ground lease, commencing September 1, 2024, and expiring August 31, 2039, includes a corporate guarantee and offers zero landlord responsibilities. Rent increases by 10% every five years, providing significant long-term yield growth. The property features 48 parking spaces and is zoned B-3 General Commercial. The lease includes three, five-year renewal options. With a current NOI of $118,320 and an asking price of $2,254,000, this property offers a compelling 5.25% cap rate. Montrose's thriving tourism industry, fueled by its proximity to numerous outdoor attractions, further enhances the investment potential. The property is part of a larger development including 164 acres of commercial, residential, and industrial land. The surrounding area boasts a strong demographic profile, with over 25,000 residents within a three-mile radius and an average household income exceeding $84,000. This is a rare opportunity to acquire a high-performing, passively managed asset with a blue-chip tenant in a rapidly growing market.

Highlights

  • Brand new 15-year absolute NNN ground lease with Dutch Bros Coffee.
  • Zero landlord responsibilities.
  • Dutch Bros Coffee tenant; strong financial performance with over $913 million in 2023 revenue and 43% revenue CAGR since 2019.
  • 10% rental increases every 5 years.
  • Brand new construction with a double drive-thru, per Dutch Bros' latest prototype.
  • High-traffic location on Highway 550 (28,000+ VPD), easily accessible from both directions.

Property Details for 2605 Townsend Ave

Property type
Retail properties, Restaurants
Square Feet
950 SF
Year Built
2024
Buildings
1
Stories
1
Lot Size (sq. ft)
46,174 SF
Units
1

Location Insight

City
Montrose
County
Montrose
State
Colorado
Latitude
38.456588907095
Longitude
-107.86617264279
2605 Townsend Ave, Montrose, Colorado

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2605 Townsend Ave
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