Chipotle - Shiloh Crossing by Blake Federinko

CONFIDENTIALITY DISCLAIMER

This offering has been prepared solely for informational purposes. It is designed to assist a potential investor in determining whether it wishes to proceed with an in-depth investigation of the subject property. While the information contained herein is from sources deemed reliable, it has not been independently verified by the MAJ Commercial Real Estate affiliate or by the Seller.

The projections and pro forma budget contained herein represent best estimates on assumptions considered reasonable under the circumstances. No representations or warranties, expressed or implied, are made that actual results will conform to such projections. This document is provided subject to errors, omissions and changes in the information and is subject to modification or withdrawal. The contents herein are confidential and are not to be reproduced without the express written consent.

Interested buyers should be aware that the Seller is selling the Property “AS IS” CONDITION WITH ALL FAULTS, WITHOUT REPRESENTATIONS OR WARRANTIES OF ANY KIND OR NATURE. Prior to and/or after contracting to purchase, as appropriate, buyer will be given a reasonable opportunity to inspect and investigate the Property and all improvements thereon, either independently or through agents of the buyer’s choosing.

The Seller reserves the right to withdraw the Property being marketed at any time without notice, to reject all offers, and to accept any offer without regard to the relative price and terms of any other offer. Any offer to buy must be: (i) presented in the form of a non-binding letter of intent; (ii) incorporated in a formal written contract of purchase and sale to be prepared by the Seller and executed by both parties; and (iii) approved by Seller and such other parties who may have an interest in the Property. Neither the prospective buyer nor Seller shall be bound until execution of the contract of purchase and sale, which contract shall supersede prior discussions and writings and shall constitute the sole agreement of the parties.

Prospective buyers shall be responsible for their costs and expenses of investigating the Property and all other expenses, professional or otherwise, incurred by them.

MAJ COMMERCIAL REAL ESTATE

MAJ Commercial Real Estate is pleased to present the opportunity to acquire a Single Tenant Net Leased Investment located in Billings, Montana. The property is leased to Chipotle on a brand new 15-year term that commenced in July of 2023. This location is Chipotle’s new prototype design that consists of a pickup window “Chipotlane” for customers with meals preordered in the Chipotle mobile-app. The site is ideally located on Shiloh Crossing Boulevard with surrounding businesses that include Kohls, AMC Theaters, Scheel’s, Ulta Beauty and much more.

LEASE SUMMARY

LEASE GUARANTOR: Chipotle Corporate

PARENT COMPANY: Chipotle Mexican Grill, Inc.

NUMBER OF LOCATIONS: 2,800 +/-

HEADQUARTERS: Newport Beach, CA

REVENUE 2020: $5.98 Billion

WEBSITE: www.Chipotle.com

PROPERTY ADDRESS: 1124 Shiloh Crossing Blvd., Billings, Montana, 59102

GUARANTOR: Chipotle Corporate

OWNERSHIP TYPE: Fee Simple

LEASE TERM: 15-Years

EXTENDED TERMS: 4, 5-year Options

LEASE TYPE: NNN

MANAGEMENT FEE: $200 Per Month

LANDLORD RESPONSIBLE: Roof and Structure

Founded in 1993 out of Denver, CO, Chipotle has become one of the fastest growing fast-casual restaurants globally, with more than 2,700 restaurants and over 88,000 employees across all locations.

Chipotle takes pride in how their food is prepared and the partnerships with farms from where the food is sourced, focusing on using only high-quality ingredients and serving their customers a full-service restaurant experience, but with the convenience of a fast-food style experience. Chipotle’s focus has always been on using higher-quality ingredients and cooking techniques to make great food accessible to all people at reasonable prices.

ADDRESS:

1124 Shiloh Crossing Blvd., Bilings, Montana 59102

TENANT: Chipotle

NNN

BUILT: 2023

COMMENCEMENT DATE: July 2023

BUILDING SIZE: +/- 2,325 SF LAND SIZE: +/-0.54 Acres

Chipotles New Prototype including a “Mobile Pick Up Window”

15-year Initial Term

NNN Leased Investment

Newly Developed

Chipotle customers are ordering in-store, while the chain keeps investing in digital and drive-thru

10/27/2022

After years of turning toward mobile orders and delivery, Chipotle customers are returning to stores to order in-person. In-store sales were up 22% in the third quarter of 2022 over the same period in the previous year, while digital sales were down 6% to make up 37% of all sales.

The resurgence of in-store sales is a break from what had been happening at Chipotle since 2020. Digital sales grew throughout the pandemic — supercharged by the chain’s continued investment in mobile. By the middle of 2021, they made up nearly half of all orders. At the time, Insider called it a change to the business model that made Chipotle popular in the first place.

source: https://www.businessinsider.com/chipotle-customers-are-returning-torestaurants-over-mobile-ordering-2022-10

TAXES

TENANT RESPONSIBLE

Inside the Rise of the Game-Changing ‘Chipotlane’

10/04/2021

It wasn’t that long ago fast casual and drive-thru were the industry’s oil and water. Pickup windows were seen as the hallmark of quick service’s biggest players—not its upstarts forging a fresh path.

And nobody drew the line in the asphalt sharper than Chipotle.

While the category pioneer spawned a fast-casual movement that would fill with copycats in the coming years, Chipotle’s ethos, sourcing, and operational style proved equal parts innovative and stubborn.

Put simply, the notion of Chipotle opening a drive-thru was unlikely on its best day.

However, former Taco Bell leader Brian Niccol’s arrival as CEO in the winter of 2018 turned the first blank page in Chipotle’s modern playbook. From digital make-lines to pickup shelves to delivery, loyalty, quesadillas, TikTok, esports, and more, Niccol targeted the one area he believed the brand was losing ground quickest: accessibility.

source: https://www.qsrmagazine.com/fast-casual/inside-rise-game-changing-chipotlane

$140,000 5.25%

$2,666,000

SITE PLAN

Property Photos

SURROUNDING AREA

ShilohRd.

11,000+/-

Subject Property

BILLINGS MT

Billings is the largest city in the U.S. state of Montana, with a population of 117,116 as of 2020. Located in the south-central portion of the state, it is the seat of Yellowstone County and the principal city of the Billings Metropolitan Area, which had an population of 184,167 in the 2020 Census. It has a trade area of over 500,000.

Billings was nicknamed the “Magic City” because of its rapid growth from its founding as a railroad town in March 1882. With one of the largest trade areas in the United States, Billings is the trade and distribution center for much of Montana east of the Continental Divide, Northern Wyoming, and western portions of North Dakota and South Dakota. Billings is also the largest retail destination for much of the same area.

The city is experiencing rapid growth and a strong economy; it has had and is continuing to have the largest growth of any city in Montana. Parts of the metro area are seeing hyper growth. From 2000 to 2010 Lockwood, an eastern suburb, saw growth of 57.8%, the largest growth rate of any community in Montana.