Net Lease Chipotle Property Profile and Cap Rates

Net Lease Chipotle – Typical Property and Lease Terms

 

Price Range:	$1 mm - $3 mm
Cap Rate:	5.35%
Net Income:	$70,000
Price Per foot:	$600 PSF
Building Size:	3,000 SF
Lot Size:	1 Acre
Escalations:	7.5% every 5 years
Lease Term:	10 Years
Lease Type:	Ground Lease
Credit Rating:	N/A

 

Tenant Company Information:

 

Chipotle Mexican Grill, Inc. often known simply as Chipotle, is an American chain of fast casual restaurants in the United States, United Kingdom,[8] Canada,[9][10] Germany,[11] and France,[12] specializing in tacos and Mission burritos.[13][14] Its name derives from chipotle, the Nahuatl name for a smoked and dried jalapeño chili pepper.[15] The company trades on the New York Stock Exchange under the ticker symbol CMG.[16]

Chipotle is one of the first chains of fast casual dining establishments.[17] Competitors in the fast-casual Mexican market include Qdoba Mexican Grill, Moe’s Southwest Grill, Rubio’s Coastal Grill, and Baja Fresh.[18] Founded by Steve Ells on July 13, 1993, Chipotle had 16 restaurants (all in Colorado) when McDonald’s Corporation became a major investor in 1998. By the time McDonald’s fully divested itself from Chipotle in 2006,[19] the chain had grown to over 500 locations. With more than 2,000 locations, Chipotle had a net income of US$475.6 million and a staff of more than 45,000 employees in 2015.[3]

In May 2018, Chipotle announced the relocation of their corporate headquarters to Newport Beach, California, in Southern California, ending their relationship with Denver after 25 years.

Back