Single Tenant Chipotle with "Chipotlane" Drive-Thru
Turnersville, NJ (Philadelphia MSA)
The Opportunity
Summary
- Price: $3,143,000
- Cap Rate: 5.25%
- NOI: $165,000
- Lease Type: Fee Simple: NN
- Tenant: Chipotle Mexican Grill of Colorado, LLC
- Guarantor: Chipotle Mexican Grill, Inc.
- Building Size: 2,627 SF
- Parcel Size: 0.72 Acres
- Year Renovated: 2025 (New Roof)
- Remaining Lease Term: 15 Years
- Options: Three (3), Five (5) Year Options
- Rental Increases: 10% Every Five (5) Years
Forged Real Estate is pleased to exclusively offer the opportunity to acquire the fee simple interest in a single-tenant property leased to Chipotle, (the “Property”) in Turnersville, New Jersey, part of Washington Township and located just 20 miles southeast of Philadelphia. Chipotle is expected to open in October 2025 and operates under a newly established 15-year lease, with 10% rental increases every five years. The lease is backed by a corporate guaranty from Chipotle Mexican Grill, Inc. (NYSE: CMG). The brand-new Chipotle features a drive-thru “Chipotlane” for quick and efficient customer access. The current Landlord will be adding a new roof to the property prior to rent commencement. The property benefits from excellent visibility along NJ-42, a major thoroughfare boasting over 79,300 VPD. Additionally, the property is seconds away from the start of the Atlantic City Expressway, which boasts 47,800 VPD and runs directly to Atlantic City. Turnersville is situated 20 miles southeast of Philadelphia and contained within the Philadelphia MSA; the 8th largest metro area in the country that is home to a population of over 6.25 million people. The 5-mile area surrounding the Property exhibits excellent demographics with a population of over 183,000 and 71,000 households. Additionally, the average household income within that same area sits at $122,000. Chipotle is a leading fast casual restaurant chain with more than 3,700 locations and over 130,000 employees, which together serve over 1 million customers daily. As of Q4 2024, Chipotle’s total revenue was $2.8 billion, an increase of 13.0% compared to Q4 2023. In the same period, Chipotle opened 119 new company-owned restaurants, of which 95 included a Chipotlane, and one international licensed restaurant. For the full year 2024, total revenues increased 14.6% to $11.3 billion and the company opened 304 company-owned restaurants with 257 locations including a Chipotlane and three international licensed restaurants.
Investment Highlights:
Tenant
Ownership: PUBLIC - (NYSE: CMG)
Credit Rating: N/R
Headquarters: NEWPORT BEACH, CA
# of Locations: 3,700+ (As of December 31, 2024)
Chipotle is an American restaurant chain founded in Denver, Colorado by Steve Ellis, a classically trained chef. A Fortune 500 company and recognized on both Fortune’s list of Most Admired Companies (2024) and Time Magazine's Most Influential Companies, Chipotle is an innovator in the world of “fast casual” dining serving up a simple menu of Mexican-inspired food. Chipotle has grown to more than 3,700 locations and over 125,000 employees, which together serve over 1 million customers daily. The company is known for its brand and marketing of the motto “Food With Integrity,” its commitment to offering fresh meal items and sourcing ingredients from ethically minded suppliers. Since going public in 2006, Chipotle’s restaurant footprint has grown rapidly, and now includes locations in Canada, the United Kingdom, France, Germany, and Kuwait. As of Q4 2024, Chipotle’s total revenue was $2.8 billion, an increase of 13.0% compared to Q4 2023. In the same period, Chipotle opened 119 new company-operated restaurants, of which 95 included a Chipotlane, and one international licensed restaurant. For the full year 2024, total revenues increased 14.6% to $11.3 billion and the company opened 304 company-owned restaurants with 257 locations including a Chipotlane and three international licensed restaurants.
