representative image chipotle ground lease€¦ · WEBSITE: Founded by Steve Ellis in 1993, Chipotle Mexican Grill, Inc is an American chain of fast casual restaurants in the United

OFFERING MEMORANDUM

chipotle ground lease8201 s. interstate 35E, corinth, texas 76210

representative image

CAMERON DEPTULA

INVESTMENT SALES

c: 214.497.0276

o: 214.526.3626 x 116

e: [email protected]

www.DB2RE.com

listing TEAM

2929 Carlisle Street, Suite 250

Dallas, TX 75204

TABLE OF CONTENTS

SECTION 1 EXECUTIVE SUMMARY 03

SECTION 2 INVESTMENT HIGHLIGHTS 04

SECTION 3 LEASE TERMS 05

SECTION 4 LEASE ABSTRACT 06

SECTION 5 TENANT PROFILE 07

SECTION 6 PROPERTY INFORMATION 08

SECTION 7 LOCATION OVERVIEW 10

SECTION 8 MARKET OVERVIEW 14

SECTION 9 DISCLAIMER 15

chipotle | DB2RE | 2

DB2RE INVESTMENT SALES is proud to present the Chipotle Mexican Grill Ground Lease (the “Property”) located at 8201 S. Interstate 35E in Corinth, Texas. Scheduled for a November 27, 2019 opening, Chipotle offers investors an excellent absolute NNN ground lease investment backed by the corporate guarantee of Chipotle Mexican Grill, Inc (NYSE: CMG). New ownership will also enjoy a brand new ten (10) year primary term with four (4) five-year renewal options with 10% increases at each option.

Located in the DFW submarket of Corinth, Chipotle is at the heart of one of the fastest growing and affluent markets in the DFW Metroplex. Within a three and five mile radius there are 39,366 and 116,149 residents boasting staggering average household incomes of $113,498 and $120,839 respectively.

Situated at the entrance to Corinth, Chipotle is strategically positioned at the main lighted intersection at the NEC of Interstate 35E and Swisher Road. The Property boasts unmatched visibility and convenient access to traffic headed east and west along Swisher Road and exiting / merging onto I-35E from the north and south. Both thoroughfares serve as the primary arteries, connecting Corinth to downtown Dallas, Denton, Frisco and Lake Lewisville.

As the main retail corridor, Chipotle is surrounded by an array of national credit tenants, upscale residential communities and additional traffic generators. Surrounding Chipotle is over 1,000 upscale apartment units, over 1,300 students from neighboring schools, Lake Lewisville, Kensington Square Mall and national retailers that include: Walmart, Albertsons, Starbucks, McDonalds, Popeyes, Chick-Fil-A, QuikTrip and AMC, among many more.

executive summaryTENANT: Chipotle Mexican Grill

LOCATION:8201 S. Interstate 35ECorinth, Texas 76210

SALE PRICE: $2,777,778

NOI: $125,000

CAP RATE: 4.50%

BUILDING SIZE: 2,440 SF

LOT SIZE: 1.044 AC / 45,478 SF

OCCUPANCY: Ground Lease

YEAR BUILT: 2019

ZONING: C-2

DEBT: Free & Clear


INVESTMENT HIGHLIGHTS• New 10-year Absolute NNN Corporate Ground Lease to Chipotle (NYSE: CMG)

• Location features New “Chipotlanes” drive-thru concept

• Zero Landlord responsibility and stabilized revenue stream - perfect for a 1031 Exchange

• Four (4) five-year renewal options with 10% increases.

• Located at the entrance to Corinth, Chipotle sits at a lighted intersection at the NEC of Interstate 35E & Swisher Road.

• Positioned at the heart of the dominant retail corridor, Chipotle enjoys excellent visibility and access from the major thoroughfares in the market.

• Adjacent retailers and traffic generators include: Popeyes, Arby’s, Panda Express, T-Mobile, QuikTrip, Comfort Inn and Best Western, among others.

• Traffic counts in excess of 133,000 vehicles daily along I-35E and 21,000 vehicles along Swisher Road / FM 2181.

• Swisher Road is the primary exit to both northbound and southbound traffic exiting and accessing I-35E.

• Surrounding national retailers within retail trade area include: Walmart, Albertsons, Chick-Fil-A, McDonalds, Starbucks, Whataburger and many other national credit tenants.

• Chipotle is at the convergence of two of the most coveted high-growth markets in North Texas (between Denton to the north and Lewisville to the south).

• Upscale neighboring communities and schools: Kensington Park (294 Units), Oxford at Lake View (240 Units), Mansions at Hickory Creek (190 Units), Steeplechase, Enclave of Hickory Creek, Lake Dallas High School (1,275 Students).

• Dense affluent market with 39,366 and 116,149 residents within a three and five mile radius.

• Average household income is a staggering $113,498 to $120,839 within the respective three and five mile radius.

• Daytime populations of 9,169 and 28,573 employees and 734 and 2,378 businesses within three and five miles of Chipotle.


lease termsPRIMARY LEASE TERM

TERM DATES MONTHLY RENT ANNUAL RENT INCREASE

YEARS 1 - 10 11/27/2019 - 11/26/2029 $10,416.66 $125,000.00 -

OPTION TERMS

YEARS 11 - 15 11/27/2029 - 11/26/2034 $11,458.33 $137,500.00 10.00%

YEARS 16 - 20 11/27/2034 - 11/26/2039 $12,604.16 $151,250.00 10.00%

YEARS 21 - 25 11/27/2039 - 11/26/2044 $13,864.58 $166,375.00 10.00%

YEARS 26 - 30 11/27/2044 - 11/26/2049 $15,251.04 $183,012.50 10.00%

NOTES:1. Chipotle scheduled to open November 27, 2019. Dates to be adjusted accordingly in the event opening is delayed.


lease abstractTENANT TRADE NAME: Chipotle Mexican Grill “Chipotle”

LEASE GUARANTOR: Chipotle Mexican Grill, Inc - (NYSE: CMG)

GLA: 2,440 SF

LEASE TERM: 10 Years

LEASE COMMENCEMENT DATE: November 27, 2019 (Est.)

RENT COMMENCEMENT DATE: November 27, 2019 (Est.)

LEASE EXPIRATION DATE: November 26, 2029 (Est.)

INCREASES: 10.00% rental increase each option

RENEWAL OPTIONS: Four (4) Five (5) year lease options

LEASE TYPE: Absolute NNN Ground Lease

USE: Restaurant

CAM: Tenant Responsability

UTILITIES: Tenant Responsability

INSURANCE: Tenant Responsability

TAXES: Tenant Responsability

REPAIRS & MAINTENANCE: Tenant Responsability

ROOF & STRUCTURE: Tenant Responsability

HVAC: Tenant Responsability

ROFR: None

TERMINATION RIGHTS: None

ADDITIONAL DETAILS: None


tenant profile

TENANT: Chipotle Mexian Grill (NYSE: CMG)

OWNERSHIP: Public

YEARS IN BUSINESS: 1993 - 26 Years

EMPLOYEES: 64,570 at over 2,500 locations

REVENUE (YE 2016) $4.9 Billion

HEADQUARTERS: Newport Beach, CA

WEBSITE: www.chipotle.com

Founded by Steve Ellis in 1993, Chipotle Mexican Grill, Inc is an American chain of fast casual restaurants in the United States, United Kingdom, Canada, Germany and France. Specializing in tacos and Mission-style burritos, Chipotle is one of the largest Mexican style restaurants in the World. Chipotle uses high-quality raw ingredients, classic cooking methods, a distinctive interior design, and friendly people to take care of each customer. Praised for its health conscious menu and nutritional knowledge, Chipotle has been included in Health.com’s “Healthiest Fast Food Restaurants” in the world. Chipotles vision has been to change the way people think about and eat fast food. The company does this by avoiding a formulaic approach when creating our restaurant experience, looking to fine-dining restaurants for inspiration.

With over 2,500 locations, a revenue of $4.9 billion and a staff of over 64,000 employees, Chipotle continues to grow as they continue to expand their company and brand throughout North America and Europe.


property information

ADDRESS:8201 S. Interstate 35Corinth, Texas 76210(Denton County)

APN: R700321

BUILDING SIZE: 2,440 SF

LOT SIZE: 1.044 AC / 45,478 SF

OCCUPANCY: Absolute NNN Ground Lease

YEAR BUILT: 2019

PARKING:33 surface parking spaces w/ drive-through

SIGNAGE: Ample tenant signage

INGRESS / EGRESS:Two (2) points of ingress / egress S. I-35E and Swisher Road

ZONING: C-2

ROOF: New - Tenant Responsability

HVAC: Exterior HVAC units

TRAFFIC:Interstate 35E - 133,623 vpdSwisher Road / FM 2181 - 21,661 vpd

property details


VAN

SIDEWALK, TYP. REFER TO CIVIL DRAWINGS

EXCLUSIVE DUMPSTER ENCLOSURE WITH PAD APRON AND BOLLARDS

1,000 GALLON EXCLUSIVE GREASE INTERCEPTOR, REFER TO CIVIL DRAWINGS

PROPERTY LINE/ LIMITS OF CONSTRUCTION

2,440 SF

ADA PARKING SPACE, TYP. REFER TO CIVIL DRAWINGS

SITE LIGHT POLE, TYP. REFER TO ELECTRICAL DRAWINGS

PARKING STRIPING, TYP. REFER TO CIVIL DRAWINGS

I-35 E

SP10210

ADA RAMP, REFER TO CIVIL DRAWINGS

CLEARANCE BAR AND FOUNDATION BY TSV

9

DIGITAL MARKETING BOARD, AND FOUNDATION BY TSV; PROVIDE CONDUIT, REFER TO ELECTRICAL DRAWINGS

DIRECTIONAL SIGNAGE AND FOUNDATION BY TSV; PROVIDE CONDUIT, REFER ELECTRICAL DRAWINGS

DIRECTIONAL SIGNAGE AND FOUNDATION BY TSV; PROVIDE CONDUIT, REFER TO ELECTRICAL DRAWINGS

ADA RAMP, TYP., REFER TO CIVIL DRAWINGS

(3) PULL-IN PARKING SPACES MARKED WITH PAINTED NUMBERS AND POLE SIGNS

(2) SPACES MARKED FOR CHIPOTLE PICK-UP PARKING; POLE SIGNAGE BY TENANT SIGN VENDOR

8

8

8

SWISHER RD.

EXISTING CONCRETE LINED CHANNEL, N.I.C.

LENGTH OF EXISTING CURB TO BE DEMOED, TYP.

AREA IN LIGHT GRAY HATCH IS EXISTING CONSTRUCTION INCLUDING CONCRETE CURBS AND DRIVE AISLES, TYP.; REFER TO CIVIL DRAWINGS

CONCRETE CURB, TYP. REFER TO CIVIL DRAWINGS

MONUMENT SIGN STRUCTURE, FOUNDATION AND CONDUIT BY GC; PANELS BY TENANT SIGNAGE VENDOR

FIRE LANES REQUIRED BY THE CITY ARE SHOWN BY DIAGONAL LINE HATCH; FIRE LANES REQUIRE RED PARKING STRIPING ALONG ALL EDGES, TYP.

ADJACENT PROPERTY, N.I.C.

550 SF PATIO PAD, REFER TO CIVIL DRAWINGS

LANSCAPING AND IRRIGATION, REFER TO CIVIL DRAWINGS, TYP.

BUILDING SETBACK LINE, TYP.

RIGHT OF WAY RESERVATION, REFER TO CIVIL DRAWINGS

SP1012

FIRE HYDRANT ASSEMBLY, REFER TO CIVIL DRAWINGS

EXISTING TREE TO REMAIN, REFER TO CIVIL DRAWINGS

TRANSFORMER PAD; REFER TO CIVIL DRAWINGS

VEHICLE DETECTION SYSTEM, REFER TO ELECTRICAL DRAWINGS

VEHICLE DETECTION SYSTEM, REFER TO ELECTRICAL DRAWINGS

r e darchitecture

174 East Long StreetSuite 300

OHIO 43215COLUMBUS,614.487.8770PHONE:614.487.8777FAX:

+ planning

STOR

E NO.

:

CHIPOTLE MEXICAN GRILL, INC.8800 LYRA DR. SUITE 150

COLUMBUS, OH 43240TELEPHONE: (614) 318.2482

FAX: (303) 222.2516INTERNET: WWW.CHIPOTLE.COM

COPYRIGHT 2019THIS DRAWING IS AN INSTRUMENT OF SERVICE AND AS SUCH REMAINS THE PROPERTY OF CHIPOTLE MEXICAN GRILL, INC.. PERMISSION FOR USE OF THIS DOCUMENT IS LIMITED AND CAN BE EXTENDED ONLY BY WRITTEN AGREEMENT WITH CHIPOTLE MEXICAN GRILL, INC..

Project No.

Contents:

Drawn:

Issue Record:

Consultant:

Checked:

# Revisions:

CORIN

TH82

01 I-3

5 ECO

RINTH

, TX 7

6208

AA, CS

CMG813

ARCHITECTURALSITE PLAN

SP100

3389

KM

02/19/19 PERMIT SET

ALL SITE WORK INCLUDING PAVING, CURBING, PARKING, PARKING LOT LIGHTING,SIDEWALKS, LANDSCAPING, AND DUMPSTER ENCLOSURE ARE EXISTING UNLESSNOTED OTHERWISE.NOTE: ARCHITECTURAL SITE PLAN IS FOR REFERENCE ONLY. GC TO BUILD FROM CIVILDRAWINGS. IF THERE IS A DISCREPANCY BETWEEN ARCHITECTURE AND CIVIL,CONTACT ARCHITECT IMMEDIATELY.

GENERAL NOTES

1/16" = 1'-0"SP100ARCHITECTURAL SITE PLAN1

property informationsite plan


location overviewchipotle - corinth, texas

STEEPLECHASE AT HICKORY CREEK

LAKE DALLAS HIGH SCHOOL(1,275 STUDENTS)

CORINTH ELEMENTARY

MANSION AT HICKORY CREEK(190 UNITS)

SHADOW CREEK ESTATES

ENCLAVE OF HICKORY CREEK

STEEPLECHASE

OXFORD AT LAKE VIEW(240 UNITS)

KENSINGTON PARK(294 UNITS)

LAKE LEWISVILLE

SWISHER ROAD (22,000 VPD)

TEASLEY DRIVE / FM 2181

N

INTERSTATE 35E (128,181 VPD)


location overviewtrade area map - FAR


location overviewtrade area map - CLOSE


LOCATION OVERVIEWDEMOGRAPHICS

1 MILE 3 MILE 5 MILE

TOTAL POPULATION: 9,299 39,366 116,149

POPULATION GROWTH RATE: 2.42% 2.21% 2.30%

TOTAL HOUSEHOLDS: 3,324 13,928 39,669

HOUSEHOLD GROWTH RATE: 2.51% 2.20% 2.29%

AVERAGE HOUSEHOLD INCOME: $91,307 $113,498 $120,839

MEDIAN AGE: 35.9 38.4 37.3

BUSINESSES: 338 734 2,378

EMPLOYEES: 5,355 9,169 28,573

% WHITE 79.49% 82.08% 77.62%

% HISPANIC 20.83% 15.35% 17.40%


market overview

The Dallas/Fort Worth Metroplex (DFW) is a dynamic

12-county region made up of Dallas, Fort Worth, and another

150 municipalities. The DFW Metroplex is the largest urban

agglomeration in Texas and the fourth largest in the United States

spanning an area of 9,286 square miles with a population of

approximately 6.9 million people. As the fourth fastest growing

region in the United Sates, the DFW population in 2016 is 33.6%

higher than in 2000 according to data from Neilson Claritas; by the

year 2030, it is projected that over 10.5 million people will be living

in the Metroplex according to the Dallas Regional Chamber.

The DFW region is the most economically diverse region in the state

of Texas. The GDP of North Texas is estimated to be $447 Billion, and

if DFW were its own state it would be the 12th largest in the country,

just ahead of Massachusetts. Eighteen Fortune 500 companies

have their headquarters in DFW. DFW is connected to the world by

the nation’s fourth busiest airport and is served by 55 international

flights. DFW has the largest workforce in the state of Texas totaling

over 3.3 million people, and 31.4% of the population 25 and older

have a bachelor’s degree or higher. In DFW, there are 33 colleges

and universities, 157 public school districts and 96 public charter

schools, according to the North Texas Commission.

dfw market overivew

ONE OF THE MOST DIVERSE economies in

the U.S.

0% STATE INCOME TAX & an unemployment

rate of 3.20%

1ST IN THE NATION in job creation - over

116,000 new jobs

EXPECTED TO RANK FIRST in both popula-tion and job growth

2019 - 2023

8TH LARGEST millennial population in the United

States

ULI’s 2019 1ST MARKET TO WATCH

30% POPULATION GROWTH SINCE 2010

#1 CITIES FOR ABSO-LUTE JOB GROWTH

#1 REAL ESTATEMARKET

#1 BEST CITY TO BUY A HOME #1 BEST CITY FOR JOBS

#1 MOST AFFORDABLE METRO IN THE U.S.


Davidson & Bogel Real Estate, LLC: The information contained in this document pertaining to Chipotle “Property”

has been obtained from sources believed reliable. While DB2RE does not doubt its accuracy, DB2RE has not verified

the information and makes no guarantee, warranty or representation about the information contained in this pack-

age. It is your (Purchaser) responsibility to independently confirm the accuracy and completeness of the informa-

tion. Any projections, opinions, assumptions or estimates used herein are for example only and does not represent

the current or future performance of the property. The value of this transaction to you depends on tax and other

factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct

a careful, independent investigation of the property to determine to your satisfaction the suitability of the property

for your needs. Photos herein are the property of their respective owners and use of these images without the ex-

press written consent of the owner is prohibited. DB2RE and the DB2RE logo are service marks of Davidson & Bogel

Real Estate, LLC and/or its affiliated or related companies in the United States and other countries. All other marks

displayed as well as any elements of this document are the property of their respective owners and DB2RE. No

transmission of this document is permitted without written consent from DB2RE. As a condition of DB2RE’s consent

to communicate the information contained herein–as well as any information that may be communicated to you

subsequently either verbally or in writing by DB2RE, owner or agents of either of these parties regarding the Proper-

ty – it is required that you agree to treat all such information confidentially.

DISCLAIMERDISCLOSURE


DISCLAIMER

Approved by the Texas Real Estate Commission for Voluntary Use. Texas law requires all real estate licensees to give the following information about brokerage services to prospective buyers, tenants, sellers and landlords.

INFORMATION ABOUT BROKERAGE SERVICES: Before working with a real estate broker, you should know that the duties of a broker depend on whom the broker represents. If you are a prospective seller or landlord (owner) or a prospective buyer or tenant (buyer), you should know that the broker who lists the property for sale or lease is the owner’s agent. A broker who acts as a subagent represents the owner in cooperation with the listing broker. A broker who acts as a buyer’s agent represents the buyer. A broker may act as an intermediary between the parties if the parties consent in writing. A broker can assist you in locating a property, preparing a contract or lease, or obtaining financing without representing you. A bro-ker is obligated by law to treat you honestly.

Real estate licensee asks that you acknowledge receipt of this information about brokerage services for the licensee’s records.

Buyer, Seller, Landlord or Tenant

01A TREC No. OP-K

Texas Real Estate Brokers and Salespersons are licensed and regulated by the Texas Real Estate Commission (TREC). If you have a question or complaint regarding a real estate licensee, you should contact TREC at P.O. Box 12188, Austin, Texas 78711-2188 or 512-465-3960.

IF THE BROKER REPRESENTS THE BUYER: The broker becomes the buyer’s agent by entering into an agreement to represent the buyer, usually through a written buyer representation agreement. A buyer’s agent can assist the owner but does not represent the owner and must place the interests of the buyer first. The owner should not tell a buyer’s agent anything the owner would not want the buyer to know because a buyer’s agent must disclose to the buyer any material information known to the agent.

(4) may not disclose any confidential information or any information that a party specifically instructs the broker in writing not to disclose unless authorized in writing to disclose the information or required to do so by The Texas Real Estate License Act or a court order or if the information materially relates to the condition of the property. With the parties’ consent, a broker acting as an intermediary between the parties may appoint a person who is licensed under The Texas Real Estate License Act and associated with the broker to commu-nicate with and carry out instructions of one party and another person who is licensed under that Act and as-sociated with the broker to communicate with and car-ry out instructions of the other party.

IF THE BROKER REPRESENTS THE OWNER: The broker becomes the owner’s agent by entering into an agreement with the owner, usually through a written - listing agreement, or by agreeing to act as a subagent by accepting an offer of subagency from the listing broker. A subagent may work in a differ-ent real estate office. A listing broker or subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first. The buyer should not tell the owner’s agent anything the buyer would not want the owner to know because an own-er’s agent must disclose to the owner any material in-formation known to the agent.

IF THE BROKER ACTS AS AN INTERMEDIARY: A broker may act as an intermediary between the parties if the broker complies with The Texas Real Es-tate License Act. The broker must obtain the written consent of each party to the transaction to act as an intermediary. The written consent must state who will pay the broker and, in conspicuous bold or under-lined print, set forth the broker’s obligations as an in-termediary. The broker is required to treat each party honestly and fairly and to comply with The Texas Real Estate License Act. A broker who acts as an intermedi-ary in a transaction:(1)shall treat all parties honestly;(2) may not disclose that the owner will accept a price less than the asking price unless authorized in writing to do so by the owner; buyer: and(3) may not disclose that the buyer will pay a price greater than the price submitted in a written offer un-less authorized in writing to do so by the buyer; and

IF YOU CHOOSE TO HAVE A BROKER REPRESENT YOU:You should enter into a written agreement with the bro-ker that clearly establishes the broker’s obligations and your obligations. The agreement should state how and by whom the broker will be paid. You have the right to choose the type of representation, if any, you wish to receive. Your payment of a fee to a broker does not necessarily establish that the broker represents you. If you have any questions regarding the duties and re-sponsibilities of the broker, you should resolve those questions before proceeding.

Date

BROKERAGE SERVICES


CAMERON DEPTULA2929 CARLILSE STREET, SUITE 250

DALLAS, TX 75204

(214) 497-0276 [email protected]

WWW.DB2RE.COM

CHIPOTLE MEXICAN GRILL8201 S. INTERSTATE 35ECORINTH, TEXAS 76210

Documents

representative image chipotle ground lease€¦ · WEBSITE: Founded by Steve Ellis in 1993, Chipotle Mexican Grill, Inc is an American chain of fast casual restaurants in the United