LATHROP, Calif. – RealEstateRama – Hanley Investment Group Real Estate Advisors, a nationally recognized real estate brokerage and advisory firm specializing in retail property sales, announced today that the firm has arranged the sale of a brand-new, single-tenant net lease Chipotle Mexican Grill in Lathrop (San Joaquin County), California. The sale price was $3,185,000, representing a price per square foot of $1,371, and a cap rate of 4.05%, a record-low cap rate for a new Chipotle drive-thru in the U.S.
Hanley Investment Group’s Executive Vice Presidents Bill Asher and Jeff Lefko represented the seller, Chase Partners, based in Glendale, California. The buyer, a private investor, based in Orange County, California, was represented by Kurt Bruggeman, a partner with Lee & Associates in Irvine, California.
“The brand-new construction, double-drive-thru Chipotlane format is the company’s latest prototype designed to more effectively accommodate today’s quick-service customer demand,” said Asher. “Customers are able to place their order through the Chipotle mobile app or via the website, then pick it up in the Chipotlane, all without ever having to leave their car.”
Asher noted that Chipotle reported Q3 2020 digital sales tripled year-over-year and accounted for nearly half of all sales — digital sales grew 202.5% and accounted for 48.8% of sales for the quarter. Comparable restaurant sales increased 8.3%, while revenue increased 14.1% to $1.6 billion.
According to the company, Chipotlanes are expected to be included in more than 60% of new Chipotle restaurants.
Built in 2020, the new 2,323-square-foot Chipotle building is located at 16542 Golden Valley Parkway in Lathrop, near the intersection of River Islands Parkway and Golden Valley Parkway, and the Interstate 5 freeway, approximately 11 miles south of Stockton. The Chipotle building is situated within a Target anchored shopping center and immediately adjacent to In-N-Out Burger and Starbucks. Both have drive-thrus.
As of September 30, 2020, Chipotle had over 2,700 restaurants in the United States, Canada, the United Kingdom, France and Germany and is the only restaurant company of its size that owns and operates all its restaurants.
On November 24, 2020, Chipotle opened its first-ever Chipotle digital-only restaurant called Chipotle Digital Kitchen located outside the gates to the military academy in Highland Falls, New York. It is unique because it does not include a dining room or front service line and guests must order in advance via Chipotle.com.
“New Chipotle Mexican Grill restaurants with a Chipotlane drive-thru are one of the more sought-after quick-service restaurant investments nationwide right now,” continues Asher. “In late July, the chain announced its 100th Chipotlane, which is significant because the drive-thrus have proven to contribute to higher check averages than traditional units.”
About Hanley Investment Group
Hanley Investment Group Real Estate Advisors is a real estate brokerage and advisory services company with a $7.6+ billion transaction track record that specializes in the sale of retail properties nationwide. Our expertise, proven track record, and unwavering dedication to putting clients’ needs first, sets us apart in the industry. Hanley Investment Group creates value by delivering exceptional results through the use of property-specific marketing strategies, cutting-edge technology, and local market knowledge. Our nationwide relationships with investors, developers, institutions, franchisees, brokers, and 1031 exchange buyers are unparalleled in the industry, translating into maximum exposure and pricing for each property. With unmatched service, Hanley Investment Group has redefined the experience of selling retail investment properties. For more information, visit www.hanleyinvestment.com.
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