Deal Close
July 2, 2026
Type
Single-Tenant Retail, 862 SF
Price
$2,600,000
Marco Arambula
San Diego Retail Team
Executive Summary
This Dutch Bros location served as the 1031 exchange replacement property for a client exiting a Del Taco asset.
Greysteel chose it over a competing Dollar General option based on location, traffic, and lease structure, and confirmed the decision firsthand: the broker grew up in La Quinta, and a site visit during due diligence turned up confirmation from the store’s own manager that it was the highest-performing Dutch Bros in the Coachella Valley.
The Challenge
Choosing the right 1031 replacement property under exchange deadline pressure meant weighing two genuinely different retail options — a corporate-backed coffee concept against a larger discount retailer — with limited time to validate performance claims beyond what was publicly available.
The Solution
Greysteel leaned on direct local knowledge and an in-person site visit to validate the asset’s actual performance rather than relying solely on lease terms and market comparables, confirming with on-site management that the location outperformed its peers in the surrounding submarket.
Results
- $2,600,000 sale price at approximately a 4.65% cap rate
- Corporate-guaranteed lease with 10% rent increases every five years
- Tenant reported roughly $3 million in annual sales against approximately $121,000 in annual rent — a strong rent-to-sales ratio
- Successfully completed the client’s 1031 exchange on a compressed timeline
“Greysteel identified the Dutch Bros location as the strongest long-term investment based on its prime retail corridor, strong traffic counts, and corporate-backed lease with scheduled rent increases. During due diligence, the team also confirmed the property was the highest-performing Dutch Bros in the Coachella Valley, reinforcing the buyer’s confidence in the acquisition.” — Marco Arambula, Greysteel Lead Deal Contact, San Diego Retail Team
Greysteel Advisory Expertise
Greysteel is a commercial real estate advisory firm specializing in investment sales and debt and structured finance, serving private investors, middle-market operators, and institutional clients nationwide.
The firm provides sector-focused advisory across multifamily, healthcare, and affordable housing and other commercial real estate asset classes, delivering market intelligence, capital markets expertise, and disciplined execution.
