Dutch Bros | Absolute NNN Lease 5.00% cap 3520 N Zaragoza Rd 950 SF Retail Building El Paso, TX 79938 $4,064,234 CAD ($4,278.14 CAD/SF) 5% Cap Rate

Pegasus Investments is pleased to present the exclusive opportunity to acquire a brand-new single-tenant corporate Dutch Bros in El Paso, Texas (the “Property”). The Offering is secured by a 15-year absolute NNN lease and features purpose-built 2026 construction in accordance with Dutch Bros’ latest drive-through prototype. The Property features a lease structure with zero landlord responsibilities, 10% rental increase every 5 years, and four (4) x 5-year options.
Dutch Bros (NYSE: BROS) continues to demonstrate exceptional operating momentum, surpassing 1,177 locations across 25 states while delivering record revenue growth and expanding aggressively throughout the state of Texas. Unlike comparable QSR concepts, Dutch Bros’ recent same-store sales growth has been driven primarily by increased customer transactions rather than increased prices, a trend Wall Street views as a stronger indicator of underlying consumer demand and long-term corporate financial strength. Analysts also point to the company’s compact, drive-through-focused operating model, which delivers attractive unit economics through lower development costs, efficient operations, and high store-level productivity. As of Dutch Bros’ Q1 2026 financial results, the company is projecting annual revenue of nearly $2.1 billion, a 25% increase year over year, and average unit volumes (AUVs) of $2.2 million annually. With approximately 1,200 locations open and operating and a long-term strategic plan to expand to roughly 7,000 locations nationwide, Dutch Bros is widely viewed to have one of the industry’s longest growth runways among publicly traded food and beverage concepts.
Strategically located along North Zaragoza Road, the Property is positioned within one of the fastest-growing commercial corridors in East El Paso, where continued residential expansion and national retail investment are reshaping the surrounding trade area. Immediately adjacent to the Property, recently built and sold outparcels occupied by Mister Car Wash, Panera Bread, and Nusenda Credit Union provide tangible evidence of continued development activity and investor demand along the corridor. The adjacent Walmart Neighborhood Market, along with nearby Chipotle, Panda Express, an Albertsons-anchored shopping center, large—format fitness operators, and other national retailers, underscores the corridor’s rapid commercial growth and continued retailer demand.
The Property’s double-lane drive-thru provides a meaningful operational advantage within the immediate trade area. Unlike the nearby Starbucks, which operates with a single drive-thru lane, Dutch Bros is designed to accommodate higher customer volumes, improve vehicle circulation, and support faster service throughout the day. Combined with the oversized parcel, dedicated parking, and walk-up service window, the Property is well positioned to serve the corridor’s expanding residential population and growing daily traffic base.
The surrounding trade area continues to benefit from nearly $400 Million in transportation infrastructure investment, including the Montana Expressway project, while Fort Bliss generates a $27.9 Billion annual economic impact and supports approximately 127,000 direct and indirect jobs throughout the region. Combined with El Paso’s role as a major international trade gateway and East El Paso’s continued residential and commercial expansion, these long-term demand drivers reinforce the Property’s compelling investment fundamentals.