Chipotle

Highlights:

• CHIPOTLE (NYSE: CMG) IS AN INVESTMENT-GRADE TENANT WITH A $66B+ MARKET CAP, $11.3B+ IN 2024 REVENUE, AND 3,700+ GLOBAL LOCATIONS.
• NEW 15-YEAR LEASE WITH 4–5 YEAR OPTIONS OFFERS LONG-TERM STABILITY, LAND & BUILDING OWNERSHIP, AND TAX BENEFITS THROUGH DEPRECIATION.
• 10% RENT INCREASES EVERY 5 YEARS BOOST NOI, CASH FLOW, AND PROVIDE AN INFLATION HEDGE WITH VALUE APPRECIATION POTENTIAL.
• ABSOLUTE NNN LEASE WITH ZERO LANDLORD RESPONSIBILITIES—CHIPOTLE HANDLES ALL BUILDING EXPENSES, REPAIRS, AND MAINTENANCE.
• SINGLE-TENANT ABSOLUTE NNN LEASE OFFERS HASSLE-FREE MANAGEMENT WITH TENANT COVERING ALL EXPENSES—IDEAL FOR PASSIVE INVESTORS OR 1031 EXCHANGE.
• NEW 2024 CHIPOTLANE DRIVE-THRU CONSTRUCTION ON A HIGH-VISIBILITY RETAIL PAD ALONG CALIFORNIA 99 FREEWAY, BOOSTING SALES AND REAL ESTATE VALUE.

Description:

Faris Lee Investments is pleased to oer for sale the fee simple interest (land & building)
in a newly constructed Chipotle. The freestanding Chipotle, which opened in February
2024, is on a long-term 15- year absolute NNN lease. The investment includes scheduled
rental increases throughout the lease term and option periods, providing a natural hedge
against inflation and ensuring stable cable cash flow. Strategically positioned in a high-trac
retail corridor, this Chipotle location features the latest drive-thru “Chipotlane” prototype,
designed to increase sales volume and eciency. The property oers investors unparalleled
advantages in a strong Central California market, a coveted pad location with excellent
freeway visibility, and zero-deferred maintenance
Chipotle (NYSE: CMG), a leading quick-service restaurant chain with over 3,100 locations
worldwide, is renowned for its fresh Mexican-inspired cuisine and commitment to using
high-quality ingredients sourced from sustainable suppliers. Chipotle’s stock has increased
over 340% in the last five (5) years. With annual revenue exceeding $11 billion and a current
market cap of $60B+ (April 2025), Chipotle continues to provide reliability and prestige in
the quick service restaurant segment.
The property enjoys exceptional visibility and connectivity from the 99 Freeway (41,903
VPD), making it an attractive destination for consumers. Additionally, the property benefits
from its location fronting Tractor Supply Co. and close proximity to top-performing retailers
and restaurants including McDonald’s and Starbucks. Strong trade area demographics
boast a population of over 85,000+ within a 5-mile radius and an average household
income of $81,000+. Merced, California, located in the heart of the Central Valley, is a
city experiencing dynamic growth, blending its established agricultural identity with the
transformative influence of the University of California, Merced. The population of Merced
has grown by approximately 32% since 2000.
This newly constructed, freestanding Chipotle featuring the latest drive-thru “Chipotlane”
prototype, presents investors with a compelling opportunity to acquire a high-quality
asset in a prime location. Leased to a best-in-class, investment-grade tenant (S&P Rating:
AA), the property is secured by a long-term absolute net lease. Strategically positioned
within a high-trac retail corridor, this investment oers stability, potential for growth, and
attractive returns.

Merced, California, located in the heart of the Central Valley,
is a city experiencing dynamic growth, blending its established
agricultural identity with the transformative influence of the
University of California, Merced. The city is strategically positioned
along major transportation corridors, including State Route 99 and
State Route 152, and features a multimodal transportation center
with Amtrak and bus services, as well as a regional airport. With
a population approaching 100,000, Merced serves as the county
seat and a vital center for the surrounding agricultural lands,
renowned for commodities like milk and almonds. According to
the county’s most recent agriculture report, the area generated an
impact in excess of $3.4 billion from the creation and distribution
of agriculture commodites. Other key employers contributing to
the local economy include food processing and manufacturing
companies, healthcare providers, and governmental and
educational institutions.
While agriculture remains a foundational economic driver, the
presence of UC Merced, the newest UC campus, has significantly
diversified the economy. The university is a major employer and
fosters growth in technology, research, and related sectors,
injecting substantial economic activity into the region. As of
December 8th, 2017, UC Merced had infused nearly $3 billion
into California’s economy since its founding in 2000 and currently
employs more than 3,500 people. The Merced 2020 project, the
University’s expansion plan, aims to bolster this growth. The plan
has resulted in an additional 400 workers, and is anticipated to
generate nearly $1.9 billion in regional economic impact and $2.4
billion state wide according to the Economic & Planning Systems.
By the time this project is completed, the University plans to
expand its student body to 10,000 students and an additional 1
million square feet to its campus size.