Village Center

Investment Overview

CALL FOR OFFERS: Wed, August 19th, 5PM Newmark Pacific Capital Markets is pleased to present, to qualified investors, the opportunity to acquire Village Center (the “Property”), a grocery-anchored neighborhood shopping center in core Orange County. Encompassing approximately 87,520 square feet across 8.1 acres on four legal parcels, the Property is anchored by Sprouts, Dollar Tree, and Picklr, with high-profile pad tenants McDonald’s and Dutch Bros. Currently 97.9% occupied, Village Center offers investors a stable, infill opportunity supported by daily-needs tenancy and strong brand recognition. The opportunity includes McDonald’s and Dutch Bros. on pads with the ability to sell off individually. Both tenants executed 20-year leases, Dutch Bros. has 2% annual increases, providing long-term stability that will yield the lowest cap rates if sold individually.

Investment Highlights

• Core Orange County, Grocery-Anchored Opportunity
• Anchored by Sprouts Farmers Market (NASDAQ: SFM), a top-tier specialty grocer that drives consistent daily traffic to Village Center.
• Sprouts is a recognized, publicly traded grocer with an approximate $8 billion market capitalization and over $360 million in free cash flow; rated BB (S&P) / B1 (Moody’s), with a stable outlook.
• Prime Orange County infill location with approximately 198,627 residents within a 3-mile radius and average household income exceeding $151,505.
• 97.9% leased with mark-to-market potential as legacy rents roll to current market rates.
• Diverse and Complementary Credit Tenant Mix
• McDonald’s (NYSE: MCD), a global QSR leader, with an approximate $203 billion market cap, over $7 billion in free cash flow, and investment-grade ratings of BBB+ (S&P) / Baa1 (Moody’s).
• Dutch Bros Inc. (NYSE: BROS) with an approximate $11.6 billion market cap and projected FY2025 free cash flow of about $91 million; not rated by S&P or Moody’s but demonstrating strong growth and unit economics.
• Dutch Bros is widely recognized for top-tier customer satisfaction, in-store experience, and value in third-party surveys, remaining highly competitive within the coffee category.
• The Picklr brings the rapidly expanding pickleball category to the center; pickleball is among the fastest-growing sports in the U.S., with an estimated 24.3 million participants in 2025.
• The Picklr extends hours of operation, adds incremental daily visits, and creates cross-shopping and merchandising opportunities for the center.
• Balanced merchandising across grocery, food and beverage, entertainment/fitness, medical, financial services, education, and health and beauty.
• Over 56% of GLA is leased to national and credit tenants, including Sprouts, McDonald’s, Dutch Bros, Dollar Tree, Bank of America, Subway, and Kumon.
• Significant Cap Rate Arbitrage via Outparcel Optionality
• McDonald’s and Dutch Bros are separately parceled, providing future optionality to sell individually and capture historically lower single-tenant NNN cap rates.
• McDonald’s assets have historically priced among the lowest cap rates in the single-tenant NNN market.
• Dutch Bros locations are highly sought after, often achieving some of the most aggressive cap rate pricing among coffee operators.
• McDonald’s executed a new 20-year lease in 2025, supporting a compelling, long-duration income profile for single-tenant NNN investors.
• Dutch Bros executed a new 20-year lease in 2023 with 2% annual increases, offering durable cash flow growth and attractive single-tenant disposition potential.