NEW 15 YEAR CORPORATE DUTCH BROS GROUND LEASE INVESTMENT

NEC KINO PARKWAY & TUCSON MARKETPLACE BOULEVARD | TUCSON, ARIZONA

NEW 15 YEAR CORPORATE DUTCH BROS GROUND LEASE INVESTMENT

Chad T. Russell, P.C. | [email protected] Randolph C. Titzck, P.C. | [email protected] North Scottsdale Road, Suite 3000, Scottsdale, Arizona 85251 ph. 480.483.8100 | www.landadvisors.comThe information contained herein is from sources deemed reliable. We have no reason to doubt its accuracy but do not guarantee it. It is the responsibility of the person reviewing this information to independently verify it. This package is subject to change, prior sale or complete withdrawal. AZPima170887 - 07.22.2020

OFFERING SUMMARY

Offering Price $1,368,421CAP Rate 4.75%

LEASE SUMMARY

Lease Type Ground Lease (NNN)Tenant BB Holdings AZ, LLC dba Dutch Bros. CoffeeLease Guarantor Dutch Bros. CoffeeEstimated Lease Commencement May 30, 2020Estimated Lease Expiration Date May 31, 2035Intital Lease Term 15 Years Options 4-5 Year Options (See below)

Lease Year Annual Rent

Initial Term 1-5 $65,000.00

6-10 $71,500.00

11-15 $78,650.00

Extension Term 16-20 $86,515.00

21-25 $95,166.00

26-30 $104,683.15

31-35 $115,151.46

LOCATION NEC Kino Parkway & Tucson Marketplace Boulevard

ADDRESS 2995 S. Kino Parkway, Tucson, AZ 85713

LOT SIZE ±30,045 SF (±0.69 ac)

YEAR BUILT Q2 2020

PARCEL NUMBER 132-13-1020

BUILDING SIZE 1 Story, ±865 SF

ZONING PAD, City of Tucson

DEMOGRAPHICS

3 Miles 5 Miles 7 Miles2019 Average Population ±105,171 ±273,187 ±453,6992019 Average Household Income $45,769 $49,860 $52,624

Source: ESRI

TRAFFIC COUNTS 1-10: ±98,276VPD Kino Parkway: N/S ±34,062 VPDSource: 2019, Kalibrate

COMMENTS • Located in a dense infill section of South Tucson.• Tenant’s use is pandemic proof (drive-thru coffee).• Located 1/2 mile north of Interstate 10 (full interchange).• Part of a master planned community with KB Homes and the University of

Arizona Bioscience Research Park.• Located 2.5 miles from the University of Arizona (±42,236 enrolled).• Located two (2) miles south of downtown Tucson and three (3) miles from the

Tucson International Airport.• GEICO Regional Call Center opened Summer of 2019 (±2,200 employees at

capacity) adjacent to the Property.• Phase I of U of A Tech Park (The Refinery) has broken ground (±120,000 SF).• JTED Innovative Learning Campus scheduled to open in August 2020.

EXECUTIVE SUMMARY

While the Land Advisors® Organization makes every effort to provide accurate and complete information, there is no warranty, expressed or implied, as to the accuracy, reliability or completeness of furnished data. This information can not be reproduced in part or whole without prior written permission. © 2020 The Land Advisors Organization. All rights reserved.

DUTCH BROS COFFEE DUTCH BROS COFFEE AERIALAERIALChad T. Russell, P.C. | Randolph C. Titzck, P.C. | 480.483.8100 | www.landadvisors.com


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TUCSON MARKETPLACE TUCSON MARKETPLACE SITE PLAN (SUBJECT TO CHANGE)SITE PLAN (SUBJECT TO CHANGE)Chad T. Russell, P.C. | Randolph C. Titzck, P.C. | 480.483.8100 | www.landadvisors.com


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DUTCH BROS COFFEE DUTCH BROS COFFEE SITE PLANSITE PLANChad T. Russell, P.C. | Randolph C. Titzck, P.C. | 480.483.8100 | www.landadvisors.com


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1330 OLYMPIC BLVD.SANTA MONICA, CALIFORNIA 90404PH 310 452-5533 FAX 310 450-4742

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DUTCH BROS COFFEE DUTCH BROS COFFEE DRONE PHOTOSDRONE PHOTOSChad T. Russell, P.C. | Randolph C. Titzck, P.C. | 480.483.8100 | www.landadvisors.com


DUTCH BROS COFFEE DUTCH BROS COFFEE PROPERTY PHOTOSPROPERTY PHOTOSChad T. Russell, P.C. | Randolph C. Titzck, P.C. | 480.483.8100 | www.landadvisors.com



TENANT OVERVIEW

Dutch Bros Coffee was founded in 1992 in Grants Pass, Oregon by Dane and Travis Boersma, brothers of Dutch descent. After three generations in the dairy business, the brothers decided to use changes in the industry as motivation to branch out and try something new. The bros bought a double-head espresso machine, cranked up the stereo, threw open the barn doors and started experimenting with 100 pounds of beans.

Dutch Bros. Coffee is the country’s largest, privately held drive-thru coffee company, with more than 370 stores across the western United States. The Company roasts all of its own coffee, a unique three-bean blend, and serves coffee, specialty drinks, tea, Dutch chocolate milk, and more. In October 2014, the company announced the released on Dutch Bros. Single-Serve Cups compatible with Keurig-style brewers. In 2012, the Company launched its own energy drink, Blue Rebel, and in May 2016 introduced Cold Brew Coffee.

Dutch Bros. operates a unique franchising model, offering franchise opportunities only to existing employees of the company, ensuring high-quality franchise operations.

Dutch Bros strives to be a force for good through outstanding customer service and killer coffee. The company is continuing to grow, sharing the Dutch love and opening new shops throughout the nation.

Through the Dutch Bros Foundation and local franchisees, Dutch Bros donates several million dollars to support its customers, local communities and nonprofit organizations.

CONFIDENTIALITY AGREEMENTThe information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Land Advisors Organization and it should not be made available to any other person or entity without the written consent of Land Advisors Organization. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property at this time, please return this offering memorandum to Land Advisors Organization.

This offering memorandum has been prepared to provide summary, unverified financial and physical information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Land Advisors Organization has not made any investigation, and makes no warranty or representation with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this offering memorandum has been obtained from sources we believe to be reliable; however, Land Advisors Organization has not verified, and will not verify, any of the information contained herein, nor has Land Advisors Organization conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property.

NET LEASED DISCLAIMERLand Advisors Organization hereby advises all prospective purchasers of Net Leased property as follows:

By accepting this Marketing Brochure, you agree to treat the information contained herein regarding the lease terms as confidential and proprietary and to only use such information to evaluate a potential purchase of this net leased property.

The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Land Advisors Organization has not and will not verify any of this information, nor has Land Advisors Organization conducted any investigation regarding these matters. Land Advisors Organization makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Land Advisors Organization expressly denies any obligation to conduct a due diligence examination of this Property for Buyer.

Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors.

Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property.

By accepting this Marketing Brochure you agree to release Land Advisors Organization Real Estate Investment Services as well as the Property Owner and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.

DUTCH BROS COFFEEDUTCH BROS COFFEEChad T. Russell, P.C. | Randolph C. Titzck, P.C. | 480.483.8100 | www.landadvisors.com


NEW 15 YEAR CORPORATE DUTCH BROS GROUND LEASE INVESTMENT

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