For Sale
$2,272,000

7961 Brainerd RdChattanooga, TN 37421

High-growth coffee shop, 15-year lease, strong NOI.

Overview

Added:
Dec 11, 2024
Days on market:
114
This exceptional investment opportunity presents a brand-new, 950-square-foot Dutch Bros Coffee located at 7961 E Brainerd Rd, Chattanooga, TN 37421. The property sits on a 0.88-acre lot and includes 13 parking spaces. Built in 2024, this single-tenant retail building boasts a 100% occupancy rate with a 15-year absolute NNN ground lease commencing December 14, 2024, and expiring December 30, 2039. The lease includes four, 5-year renewal options with a 10% rent increase every five years, providing a strong hedge against inflation. The current Net Operating Income (NOI) is $117,000, resulting in a 5.15% cap rate. The asking price is $2,272,000. This corporate-guaranteed lease offers a passive investment with minimal landlord responsibilities. The property benefits from excellent visibility and access on Brainerd Road, which experiences approximately 29,140 vehicles per day. Its strategic location between a Walmart Neighborhood Market and a Food City, coupled with proximity to I-75 (nearly 130,000 VPD) and numerous national tenants, ensures high traffic and strong consumer demographics. The surrounding area is densely populated and affluent, with over 50,500 residents within a 10-minute drive boasting an average household income exceeding $117,400. This Dutch Bros location is part of a rapidly expanding national chain, currently the third largest coffee chain in the U.S. The property is situated in a state with no income tax.

Highlights

  • Brand-new, 950-square-foot Dutch Bros Coffee built in 2024.
  • Absolute NNN ground lease; 15-year initial term with four 5-year renewal options, 10% rent increase every five years. Zero landlord responsibilities.
  • Excellent visibility and access on Brainerd Road (approx. 29,140 VPD).
  • Strategically located between Walmart Neighborhood Market and Food City.
  • Densely populated, affluent area; 50,500+ residents within a 10-minute drive, average household income exceeding $117,400.
  • Less than 2 miles from I-75 (nearly 130,000 VPD).

Property Details for 7961 Brainerd Rd

Property type
Retail properties, Restaurants
Square Feet
950 SF
Year Built
2024
Buildings
1
Lot Size (sq. ft)
38,333 SF
Units
1

Location Insight

City
Chattanooga
County
Hamilton
State
Tennessee
Latitude
35.0054806
Longitude
-85.152144
7961 Brainerd Rd, Chattanooga, Tennessee

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7961 Brainerd Rd
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