EL CENTRO, Calif. – Hanley Investment Group Real Estate Advisors, a nationally recognized real estate brokerage and advisory firm specializing in retail property sales, announced today it arranged the sale of a new single-tenant property occupied by a Dutch Bros Coffee drive-thru in El Centro, Calif. The sale price was $2.58 million for the 15-year absolute triple-net ground lease. This location marks the first Dutch Bros to open and operate in the Imperial Valley.
Executive Vice Presidents Bill Asher and Jeff Lefko, along with Vice President Beau Velten, of Hanley Investment Group, represented the seller and developer, Zach Bonsall and Braden Bernards of Cole Valley Partners of Portland, Ore. The buyer, a private investor from Northern California, was represented by Bill Johnson of KW Commercial.
"We generated multiple qualified offers and secured a non-1031 exchange buyer through a repeat cooperating broker relationship," Asher said. "We negotiated a 21-day due diligence period and closed escrow in 28 days, underscoring the strong demand for this type of retail asset."
Asher added, "The offering represented a rare Dutch Bros land and building fee-simple investment opportunity with no landlord responsibilities in California. This was a unique corporate-leased Dutch Bros in California with the opportunity for the buyer to benefit from depreciation of the building, compared to most new corporate Dutch Bros offerings that are ground lease structures. This is a truly passive single-tenant net-leased asset, which remains highly sought after by investors seeking stable income streams in the current market environment."
The property, a remodel of a former 2,411-square-foot Wendy's drive-thru originally built in 1985 on 0.32 acres, is located at 740 N. Imperial Avenue (State Route 86). It is situated along the region’s main retail corridor, Imperial Avenue, on an outparcel to a Vons-anchored shopping center and shadow-anchored by Smart & Final Extra! Dutch Bros opened on February 28, 2025, and is projected to be a top-performing location within the chain.
The new 15-year absolute triple-net corporate lease (NYSE: BROS) features 10% rental increases every five years during the initial term, with three five-year renewal options also including 10% increases.
Dutch Bros is one of the fastest-growing brands in the U.S. quick-service beverage industry. "Dutch Bros continues its impressive expansion trajectory," Asher noted. "As of March 31, 2025, Dutch Bros operated 1,012 locations across 18 states, including 30 new openings in the first quarter, 25 of which were company operated. With a strong emphasis on drive-thru convenience and a deeply loyal customer base, the brand continues to be an attractive tenant for long-term real estate investment."
Dutch Bros reported strong financial performance in its first-quarter 2025 earnings, with total revenues growing 29.1% year-over-year to $355.2 million. For the full year 2024, total revenues grew 32.6% to $1.28 billion.
"The El Centro Dutch Bros offers intrinsic value due to its larger-than-typical format," Velten said. "Most Dutch Bros drive-thru prototypes are approximately 950 square feet, but this 2,411-square-foot building provides a future owner with a long-term sustainable footprint, well-positioned for future growth and potential adaptability."
The property benefits from its high-traffic location along Imperial Avenue (29,000 cars per day) in the heart of the submarket's retail corridor. It offers excellent freeway accessibility, situated along State Route 86 (Imperial Avenue) and accessible via Interstate 8 and Highway 111, providing excellent exposure to regional traffic. The site is two miles north of Interstate 8, a major route between San Diego and Phoenix, and four miles west of Highway 111, a primary north-south route and retail corridor through the Coachella Valley.
Imperial Avenue serves as the primary retail corridor in the Imperial Valley, with nearby national tenants including Vons, DG Market, Costco, Lowe's, Target, Walmart Supercenter, ALDI, Ashley HomeStore, Cardenas Markets, dd's Discounts, Food 4 Less, Grocery Outlet, Harbor Freight Tools, PetSmart, Planet Fitness, Ross Dress for Less, Smart & Final Extra!, and Tractor Supply.
Strategically located within close proximity to Dutch Bros' target customer base, the property is one mile from Central Union High School (1,955 students) and Wilson Junior High School (640 students). El Centro, as the county seat of Imperial County (190,000 residents), serves as a core location benefiting from its central position in Southern California along Interstate 8. The property also functions as a premier retail shopping destination for the broader Imperial Valley and Mexicali (Mexico) region, creating a combined primary customer base of approximately 1.5 million people.
Velten also emphasized the broader market trends supporting such investments. "The underlying strength of the U.S. coffee market provides a compelling long-term outlook for drive-thru investments like this Dutch Bros property," he said. "With 66% of Americans drinking coffee daily, surpassing bottled water, and the market projected to grow to nearly $35 billion by 2030, the fundamental consumer demand for convenience and specialty beverages is clear. This consistent consumer engagement, driven by Millennials and Gen Z, directly translates into reliable income streams, making these assets highly attractive for investors seeking stability and growth in their portfolios."
About Hanley Investment Group
Celebrating 20 years, Hanley Investment Group Real Estate Advisors is a real estate brokerage and advisory services company with a $12 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. Hanley 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, Hanley Investment Group has redefined the experience of selling retail investment properties. For more information, visit www.hanleyinvestment.com.
About Cole Valley Partners
Founded in 2013, Cole Valley Partners is a national real estate development and investment firm based in Portland, OR that has completed 112 projects valued at over $250 million. We rapidly deliver the ideal space and location to support our clients' expansion plans. Our integrated development team brings deep market knowledge, agile execution, and hands-on accountability to each project — orchestrating the process from site selection to construction to occupancy. We promise unmatched service, collaboration, and results for every tenant we work with. For more information, visit www.cvpre.com.
Media Contact
Company Name: Hanley Investment Group Real Estate Advisors
Contact Person: Bill Asher, Executive Vice President
Email: Send Email
Phone: 949.585.7684
Address:3500 East Coast Highway, Suite 100
City: Corona del Mar
State: California
Country: United States
Website: https://hanleyinvestmentgroup.com/
