Chipotle - Single Tenant NNN Investment

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 Tacoma, Washington. Chipotle’s brand-new 15year NNN lease has commenced, November 3, 2022. This location features an outdoor patio, and a “Chipotlane” pickup window for customers with meals preordered in the Chipotle mobileapp. The property is ideally positioned at the intersection of Pacific Ave S and Military Road with approximately 104,442 vehicles driving by the site per day. National retailers in the immediate vicinity include Walgreens, Albertsons, Home Depot, Safeway, Goodwill, Tractor Supply and much more.

Lease

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.

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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-to-restaurants-over-mobile-ordering-2022-10

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

More Chipotle customers are ordering in-store, while the chain keeps investing in digital and drive-thru 10/27/2022

Walgreens

ATM

The Site is approved to have an ATM that a Bank can utilize on the outer Drive-Thru Lane which would be additional income “Upside” to the Buyer. The Bank/ATM User will also have a designated space on the Monument Sign.

Walgreens Parking

ATM

ATM

Years 1-5

Years 6-10

11/1/2022 - 10/30/2027

$159,980.00

11/1/2027 - 10/30/2032 $175,978.00

Years 11-15 11/1/2032 - 10/30/2037 $193,558.96

Option 1

Option 2

11/1/2037 - 10/30/2042 $212,924.96

11/1/2042 - 10/30/2047 $234,210.72

Option 3 11/1/2047 - 10/30/2052 $257,652.00

Option 4 11/1/2052 - 10/30/2057 $283,417.20

Pierce Transit – Spanaway Runner

Pierce Transit launches Spanaway Runner, bringing on-demand transportation service to Spanaway, Parkland and Midland. Spanaway Runner provides a link to fixed route transit and a quick and car-free way to access work, appointments and resources. This service will be especially valuable to seniors and those with special needs who cannot easily access fixed route transit.

source: https://www.piercetransit.org/spanaway-parkland-midland-runner/ https://www.piercetransit.org/news/?id=587

Joint Base Lewis-McChord

Today, JBLM encompasses 413,714 acres — 90,283 acres at the joint base, and 323,431 acres at the Yakima Training Center. Troops may train in a high desert environment at YTC, or in dense woods or conduct amphibious operations at JBLM. Both installations are key to service member readiness, allowing troops to maneuver in more than 50 training areas, fire at more than 90 ranges, or shoot artillery, mortars and other munitions into multiple impact areas. Joint Base Lewis-McChord supports more than 40,000 service members, including active duty, National Guard and reserve members, approximately 14,000 full-time civilian employees — including Department of Defense contractors and other civilian employees — and more than 90,000 family members, veterans and retirees.

Joint Base Lewis-McChord SUBJECT PROPERTY

About Tacoma, WA

Birthplace of world renowned glass artist Dale Chihuly, Tacoma is home to a vibrant, creative community of writers, artists and musicians, photographers, filmmakers, passionate entrepreneurs and business owners. With a population of roughly 219,000 people, Tacoma includes a young and diverse mix of cultures, with 40% of the population under 30. Tacoma’s workers can get an education and training at one of Tacoma’s higher-education institutions, including the University of Washington Tacoma in downtown. With a median household income of $68,820 and a median home value of $505,000, Tacoma offers the best of both worlds: an affordable lifestyle and an incredible quality of life.

Tacoma is experiencing unprecedented growth. With more than $1 billion being invested in downtown Tacoma alone, private investment has surpassed public investment by a nearly 4:1 ratio.

Urbanites are drawn to downtown Tacoma for its competitively priced living spaces with sweeping mountain, city and water views, while families gravitate toward Tacoma’s charming neighborhoods with big city amenities.

By

SounderBruce

A haven for hikers, runners and cyclists, Tacoma is alive with activity from students attending the University of Washington Tacoma, the University of Puget Sound, The Evergreen State College Tacoma campus, local trade and technical colleges, and nearby Pacific Lutheran University.

Tacoma’s gourmands and culinary connoisseurs have cultivated a scene for foodies that’s made national press, while its world renowned museums, top-notch meeting and convention spaces, and huge headliner concerts have drawn visitors from across the globe.

Just 20 minutes away from the Seattle-Tacoma International Airport, and easily accessible from downtown Seattle and other neighboring cities, Tacoma is a city on the rise.