Caribou Coffee

Rent 36% Below New Caribou Locations – In-place rent of $85,900 sits well below the ~$135,000 average at newer Caribou stores, enhancing unit-level economics and long-term rent sustainability across the portfolio.
Early Lease Extension Signals Store Strength – Despite six years still remaining on the base term, the tenant exercised their first 5-year option, signaling strong unit performance and long-term commitment.
Two 10% Increases Over Next 6 Years – Unlike most deals with 11 years remaining, this lease features two 10% rent increases occurring in 2029 and 2032, driving the cap rate from 5.75% today to nearly 7.00% within six years.
Corporate Lease with a National Coffee Operator – The lease is guaranteed by Caribou Coffee, a large, creditworthy operator with 800+ locations globally, ranking among the top U.S.-based coffee brands behind only Starbucks, Dutch Bros, and Tim Horton’s.
90-Minute Drive from Corporate Headquarters – Situated within a 90-minute drive of Caribou’s global headquarters in the Twin Cities, placing it squarely within the company’s most closely monitored and strategically important home market. Stores in close proximity to corporate headquarters tend to benefit from stronger oversight, sustained investment, and long-term market commitment, supporting the durability of this location.
Flagship “Cozy Café” Format – Features Caribou’s signature sit-down Cozy Café concept—designed for longer dwell times, repeat customers, and deeper brand loyalty, which serve as cornerstone locations within the system. Recently, Caribou’s leadership reaffirmed plans to expand the Cozy Café format across its future store pipeline, positioning these locations as long-term brand anchors aligned with growth, customer experience, and differentiation.

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Kurt Sauer