Description

DuWest Realty Investment Services has been exclusively retained to market for sale the Chipotle Build-to-Suit in Frisco, Texas (“The Property”). The Property is a corporately-backed absolute NNN lease with a rare 20-year primary term. The building is currently under construction with a projected rent commencement of January 2023. It sits on one of the most dynamic corners (Coit and Main) just south of Brinkmann Ranch in the booming submarket of Frisco, Texas.

The Brinkmann Ranch is a 3,200 acre family ranch that has been the largest holdout during the development of Frisco in the last 20 years. However, in the last year, ownership has slowly started to parcel out to multi-family investors. The most recent being a $1 billion sale of 637 acres to Landon Development Co. Most of the 3,200 acre ranch is expected to become housing over the next 5 years and will include a new high school, the 13th for the City of Frisco. This will bring excellent density to an already highly active intersection.

Chipotle is a popular fast casual dining operator with a focus on local and organic ingredients. The food is made fresh daily and free of artificial flavors, colors, and preservatives. The company currently has 2,966 locations, and is steadily growing to include new locations in their portfolio. Since becoming public in 2006, Chipotle’s stock, (NYSE:CMG), has climbed to $1,630 per share with a market cap of $45.32 billion. In 2020, Chipotle reported over $6 billon in annual revenue.

The acquisition of this Chipotle offers investors an outstanding 20-year corporate lease, staggered income increases and zero landlord responsibility. Texas is also an income tax free state which allows for the perfect hands-off upleg for any 1031 investor.