The Boulder Group, a net leased investment
brokerage firm, has completed the sale of a single tenant Chipotle ground lease
located at 8955 Staples Mill Road in Richmond, Virginia for $1,630,000.
The
2,215 square foot Chipotle was recently developed in 2013. The 56,715 square
foot property is an outparcel to a Target anchored development. The Chipotle
ground leased area is 27,007 square feet providing the purchaser with a value
add opportunity with the remaining 29,708 square feet of developable land. The
property is located along Staples Mill Road, a heavily trafficked north-south
thoroughfare that leads to downtown Richmond. A 124,000 square foot Kroger
anchored shopping center is currently being developed across the street. There
are over 180,000 people living within a five mile radius earning average
household incomes in excess of $80,000.
Chipotle
has nine years of lease term remaining on their ground lease that features 10%
rental escalations every five years in the primary term and renewal options.
Chipotle is a publicly traded company (NYSE: CMG) with a market capitalization
in excess of $18 billion.
Randy
Blankstein and Jimmy Goodman of The Boulder Group represented the seller in the
transaction. The seller was a real estate partnership based in North Carolina
and the buyer was a German based investor.
“The market for net lease properties
in Top 50 MSAs remains robust as these assets are in high demand among private
investors.” said Randy Blankstein, President of
The Boulder Group. Jimmy Goodman,
Partner of The Boulder Group, added, “Despite not
having a credit rating, Chipotle leased properties are trading at cap rates
comparable to investment grade tenanted properties.”
About The Boulder Group
The Boulder Group is a boutique investment real estate service firm specializing in single tenant net lease properties. The firm provides a full range of brokerage, advisory, and financing services nationwide to a substantial and diversified client base, which includes high net worth individuals, developers, REITs, partnerships and institutional investment funds. Founded in 1997, the firm has arranged the acquisition and disposition of over $1.7 billion of single tenant net lease real estate transactions. From 2011-2013, the firm was ranked in the top 10 companies in the nation for single tenant retail transactions by Real Capital Analytics. The Boulder Group is headquartered in suburban Chicago.
The Boulder Group is a boutique investment real estate service firm specializing in single tenant net lease properties. The firm provides a full range of brokerage, advisory, and financing services nationwide to a substantial and diversified client base, which includes high net worth individuals, developers, REITs, partnerships and institutional investment funds. Founded in 1997, the firm has arranged the acquisition and disposition of over $1.7 billion of single tenant net lease real estate transactions. From 2011-2013, the firm was ranked in the top 10 companies in the nation for single tenant retail transactions by Real Capital Analytics. The Boulder Group is headquartered in suburban Chicago.
