2605 Townsend Ave Montrose, CO 81401-5432

Property Details for 2605 Townsend Ave

Lot size

1.06 lot acres

Property type

Commercial land

APN

3993-042-56-001

APU

399304256001

Description

This exceptional investment opportunity presents a fee-simple ownership interest in a brand-new, 950-square-foot Dutch Bros Coffee location in Montrose, Colorado. Built in 2024, this single-story building sits on a 1.06-acre lot and boasts a double drive-thru, aligning with Dutch Bros.' latest prototype design. The property benefits from a high-traffic location on South Townsend Avenue (Highway 550), experiencing over 28,000 vehicles per day, and enjoys convenient access from both directions. The property is situated near major retailers including Target, Walmart, and Home Depot, as well as Montrose High School and Cottonwood Elementary School. The 15-year absolute NNN ground lease, commencing September 1, 2024, and expiring August 31, 2039, includes a corporate guarantee and offers zero landlord responsibilities. Rent increases by 10% every five years, providing significant long-term yield growth. The property features 48 parking spaces and is zoned B-3 General Commercial. The lease includes three, five-year renewal options. With a current NOI of $118,320 and an asking price of $2,254,000, this property offers a compelling 5.25% cap rate. Montrose's thriving tourism industry, fueled by its proximity to numerous outdoor attractions, further enhances the investment potential. The property is part of a larger development including 164 acres of commercial, residential, and industrial land. The surrounding area boasts a strong demographic profile, with over 25,000 residents within a three-mile radius and an average household income exceeding $84,000. This is a rare opportunity to acquire a high-performing, passively managed asset with a blue-chip tenant in a rapidly growing market.