Offering Memorandum Chipotle
Transcript of Offering Memorandum Chipotle
Representative Photo
Chipotle
15-Year Corporate Lease with Public Company | 10.00% Increases Every 5 Years | Signalized Access
510 S Sutton Road, Streamwood (Chicago), IL 60107
Offering Memorandum
Christina PecoraroTransaction [email protected]+1 312.777.2453
Tom Fritz Managing Director, [email protected] IL Lic. #471018602
Brandon Duff Managing Director, [email protected] Lic. #475139166
Mackenzie [email protected] Lic. #475173323
Table of ContentsOffered Exclusively by
Stan Johnson Company303 East Wacker Drive | Suite 1111 Chicago, Illinois 60601 P: +1 312.240.0127 | F: +1 312.240.0158 stanjohnsonco.com
Point of ContactPoint of ContactThe Offering and Highlights .................................3 Lease Abstract ......................................................... 4 Tenant Summary ......................................................5 Location Summary ..................................................6 Regional Maps ...........................................................7 Aerial Maps ................................................................8
Site Plan ....................................................................10 Floor Plan .................................................................. 11 Property Renderings ............................................ 12 Exterior Elevations ................................................ 13 Demographics ......................................................... 14
Confidentiality and Restricted Use AgreementThis Confidential Offering Memorandum (“COM”) is provided by Stan Johnson Company (“SJC”), solely for your consideration of the opportunity to acquire the commercial property described herein (the “Property”). This COM may be used only as stated herein and shall not be used for any other purpose, or in any other manner, without prior written authorization and consent of SJC.
This COM does not constitute or pertain to an offer of a security or an offer of any investment contract. This COM contains descriptive materials, financial information and other data compiled by SJC for the convenience of parties who may be interested in the Property. Such information is not all inclusive and is not represented to include all information that may be material to an evaluation of the acquisition opportunity presented. SJC has not independently verified any of the information contained herein and makes no representations or warranties of any kind concerning the accuracy or completeness thereof. All summaries and discussions of documentation and/or financial information contained herein are qualified in their entirety by reference to the actual documents and/or financial statements, which upon request may be made available. An interested party must conduct its own independent investigation and verification of any information the party deems material to consideration of the opportunity, or otherwise appropriate, without reliance upon SJC.
The Property may be financed or withdrawn from the market without notice, and its owner(s) reserve(s) the right to negotiate with any number of interested parties at any time. The Property is offered and sold by its owner(s) as is, where is, and with all faults, without representation or warranty of any kind except for any customary warranties of title.
BY ACCEPTING THIS COM, YOU AGREE THAT: (1) all information contained herein, and all other information you have received or may hereafter receive from SJC relating to the Property, whether oral, written or in any other form (collectively, the “Information”), is strictly confidential; (2) you will not copy or reproduce, and claim as your own without attribution to SJC, all or any part of this COM or the Information; (3) upon request by SJC at any time, you will return and/or certify your complete destruction of all copies of this COM and the Information; (4) for yourself and all your affiliates, officers, employees, representatives, agents and principals, you hereby release and agree to indemnify and hold harmless SJC all of its affiliates, officers, employees, representatives, agents and principals, from and with respect to any and all claims and liabilities arising from or related to the receipt or use of this COM and/or any other Information concerning the Property; (5) you will not provide this COM or any of the Information to any other party unless you first obtain such party’s acceptance and approval of all terms, conditions, limitations and agreements set forth herein, as being applicable to such party as well as to you; and (6) monetary damages alone will not be an adequate remedy for a violation of these terms and that SJC shall be entitled to equitable relief, including, but not limited to, injunctive relief and specific performance, in connection with such a violation and shall not be required to post a bond when obtaining such relief.
Chipotle • Streamwood (Chicago), IL 3
Location: 510 S Sutton Road, Streamwood, IL 60107
County: Cook County
Tenancy: Single
Property Type: Fast Casual Restaurant
Building Size: ± 2,375 SF
Land Area: ± 0.876 Acres
Year Built: 2022
Occupancy: 100%
Ownership Interest: Fee Simple
Environmental: Phase I from 6/22/21 is Clean
Offering Summary
Publicly Traded Corporate Tenant
15-Year Primary Term
Best Intersection in the Area
81,035 People within 3 miles
10% Rent Increases
Near New Potential Chicago Bears Stadium
69,000+Combined VPD
$106,886 Household Income within 3 Miles
Investment Highlights Price: $3,355,000 Cap Rate: 4.00%Lease
The Lease is with Chipotle Mexican Grill, Inc which is the corporate public entity. It offers a brand new 15-year term with 10.00% increases every 5 years. Landlord has limited obligations to roof and structure, while the Tenant maintains parking lot, HVAC, CAM, and pays taxes directly. The Lease also offers financial reporting in the event the entity were to ever be taken private which can add significant value down the road.
PropertyThe Property consists of a brand new 2,375 sf building on 0.876 acres with a drive-thru window and outdoor patio. The building is currently under construction with an estimated completion date of March 2022. The site is located at the main intersection for Streamwood with 69,037 combined vehicles passing daily. Chipotle shares the shopping center with CVS, Dunkin' Donuts, and Arby’s. They all share the corner with a Target-anchored center, Starbucks, Panera Bread, Wendy’s, Chase Bank, Shell Oil, Chili’s Bar & Grill, and many others. This is the primary retail corner in Streamwood and offers great visibility and access.
Trade AreaStreamwood is a high density and high-income suburb of Chicago only 35 miles northwest of the CBD. There are 81,035 people living within 3 miles, earning $106,886 on average per household. The area is in close proximity to O’Hare International Airport while nearby Bartlett offers a METRA train line allowing for an easy commute to downtown Chicago. Other well known suburbs in the area include Schaumburg and Arlington Heights. Arlington is where the Chicago Bears are currently considering relocating their future stadium which would be great for the surrounding communities such as Streamwood.
TenantChipotle Mexican Grill, Inc is a publicly traded company with Revenue of $6 billion and a Net Income of $356 million. They have witnessed year-over-year growth of an average of 11% over the past two years, even during COVID. The company is one of the first fast casual restaurant concepts and is considered a pioneer in the industry. They have over 2,788 locations with over 64,000 employees worldwide. Chipotle opened 160 new stores in 2020 and has plans to open another 200 in 2021. They are expanding into Canada, the United Kingdom, France, Germany, and the United States. Chipotle is amongst the best-of-the-best credit one can buy in the net lease industry today.
Chipotle • Streamwood (Chicago), IL 4
Lease AbstractTenant: Chipotle Mexican Grill, Inc
Doing Business As: Chipotle
Space Size: ± 2,375 SF Plus Drive-Thru and Outdoor Patio
Pro-Rata Share: 100.00%
Lease Commencement: September 4, 2021
Delivery Date: March 2022 (estimated)
Rent Commencement: July 2022 (estimated); Seller will credit rent between Closing and Rent Commencement
Lease Expiration: June 30, 2037 (estimated)
Primary Lease Term: 15 Years
Term Remaining: 15+ Years
Rent Increases (Primary): 10.00% Every 5 Years
Renewal Options: Four, 5-Year Options (365 days’ notice)
Rent Increases (Options): 10.00% Each Option
Lease Type: NN
Landlord Obligations: Roof, structure, and exterior of building
Roof: Landlord responsible
Parking Lot: Tenant responsible
HVAC: Tenant responsible
CAM: Tenant responsible
Taxes: Tenant pays directly
Insurance:Tenant responsible for Liability, naming Landlord and Lender as additional insured; Tenant also responsible for Property (full replacement value) of building
ROFO: None
Financial Reporting:Tenant is currently a public company; if they are ever private, Tenant to report audited financials within 15 days’ notice
Rent ScheduleLease Yr(s) Exp Date Rent % Increase
1-5 6/30/2027 $134,187 -
6-10 6/30/2032 $147,606 10.00%
11-15 6/30/2037 $162,378 10.00%
Option 1 6/30/2042 $178,600 10.00%
Option 2 6/30/2047 $196,460 10.00%
Option 3 6/30/2052 $216,101 10.00%
Option 4 6/30/2057 $237,714 10.00%
Representative Photo
* Note: Expiration Dates are estimated
Chipotle • Streamwood (Chicago), IL 5
Chipotle Mexican Grill, Inc. is an American chain
of fast casual Tex-Mex restaurants. Founded
in 1993, Chipotle is one of the first chains
of fast casual restaurants ever created and
considered a pioneer in its respective industry.
The company offers a simple, proven menu that
consists of five items: burritos, bowls, tacos,
quesadillas, and salads. Chipotle boasts 2,788+
locations worldwide and has 64,570 employees.
Many newer locations are now offering drive
thru windows (subject property included) which
further gives them a competitive edge in the
ever-changing retail “I want it now” environment.
Chipotle has seen tremendous growth in recent
years, averaging 11% annually over the past
two years. During the pandemic, Chipotle
has thrived and has emerged as one of the
strongest companies in the restaurant industry.
The company grew its 2020 Revenue by 7.13%,
compared to an average of -13.70% amongst
its competitors. The company’s initiatives to
strengthen digital sales, enhance capabilities,
add on drive thru windows, and provide
superior customer experience through loyalty
programs and innovative menu offerings should
continue to drive future growth. The company
opened 160 new stores in 2020 and has begun
to expand its restaurants worldwide into new
markets such as Canada, the United Kingdom,
France, and Germany. Chipotle plans to continue
that growth by opening 200 new stores in 2021.
Chipotle Mexican Grill, Inc (NYSE: CMG) is a
publicly traded company listed on the New
York Stock Exchange. As of 2021, Chipotle is
ranked #464 on the Fortune 500 list with a
Total Revenue of $6 Billion for FY 2020. The
company’s Stockholder Equity is at $2 billion.
Investors continue to remain optimistic for
Chipotle, as the company is currently trading
near its 52-week high at $1,845.00 per share.
Tenant Summary
Representative Photos
Tenant Profile
Company: Chipotle Mexican Grill, Inc.
Doing Business As: Chipotle
Entity Type: Public
Stock Symbol: CMG
Exchange: NYSE
Business Use: Tex-Mex Fast Casual Restaurant
# Locations: 2,788+
FYE 2020 2019 2018
Total Revenue: $6 Billion $5.6 Billion $4.9 Billion
YOY Change: 7.13% 14.83% 8.68%
Net Income: $356 Million $350 Million $177 Million
YOY Change: 1.60% 98.33% 0.17%
Stockholder Equity: $2 Billion
Source: Yahoo! Finance
Founded: 1993
Headquartered: Newport Beach, California
Website: https://www.chipotle.com/
Chipotle • Streamwood (Chicago), IL 6
Location SummaryStreamwood is a Chicago suburb that is located just 35 miles
northwest of the CBD. Its 2021 population is 40,615, which has
grown over the last 10 years. Streamwood is a family-oriented
community with 60.7% of households headed by married couples
and 41.6% of households having children under the age of 18. The
area offers excellent demographics with a population of 81,035
people earning $106,886/household within 3 miles.
Streamwood’s retail corridor has been a hub for commercial
activity and development, driving growth in the area and bringing
in residents from nearby areas. One of the biggest projects in
recent years is called Sutton Park Shopping Center. Sutton Park is
a Target-anchored center, located at the intersection of the area’s
two prominent highways - Route 59 and Route 19. Retailers include
Panera, Chase Bank, Chili’s, Jimmy John's, Famous Footwear,
Marshalls, Wendy’s and others. The subject property is kiddy
corner to this development and shares the signalized access. Other
retailers on the same corner include CVS, Dunkin' Donuts, Bank of
America, Taco Bell, and Arby’s.
Streamwood’s businesses and jobs are mostly located in sectors
that include food production, medical, and education. Major
employers in the area include Fresh Express – Chiquita Brands,
Streamwood Behavioral Health Center, and Streamwood High
School. Businesses are attracted to the area due to the proximity
to state and federal highways, O’Hare International Airport, and the
city of Chicago. Streamwood supports over 600 businesses from
small entrepreneurial firms to large international corporations.
There is a nearby METRA train line in Bartlett that connects
residents to downtown Chicago, offering easy commuting to one
of the largest business hubs in the world. Chicago, IL
Sutton Park Shopping Center
Streamwood Oaks Golf Club
Chipotle • Streamwood (Chicago), IL 7
N N
Illinois
ChicagoChicago
StreamwoodStreamwood
ChicagoChicago
O'Hare O'Hare International International AirportAirport
MD-West Metra
Potential New Chicago Bears Football Stadium
Chipotle • Streamwood (Chicago), IL 8
W
Streamwood Streamwood High SchoolHigh School
±± 1,818 Students 1,818 Students
Sutton Park Shopping Center
Oak Ridge Park
Sutton Road (46,930 VPD)Sutton Road (46,930 VPD)
Irvi
ng P
ark
Ro
ad (
22,1
07
VP
D)
Irvi
ng P
ark
Ro
ad (
22,1
07
VP
D)
Future Future DevelopmentDevelopment
Village Owned Village Owned LandLand
Future Park Future Park District Campus District Campus
±±10.15 Acres10.15 Acres
Future Future Development Development
Potential New Potential New Multi-Family or Multi-Family or Senior HousingSenior Housing
Chipotle • Streamwood (Chicago), IL 9
W
Sutton Road (46,930 VPD)Sutton Road (46,930 VPD)
Irvi
ng P
ark
Roa
d (2
2,10
7 V
PD)
Irvi
ng P
ark
Roa
d (2
2,10
7 V
PD)
3 Mile Stats:81,035 People
$106,886 Avg HH Income
Future Park Future Park District Campus District Campus
±±10.15 Acres10.15 Acres
Future Future Development Development
Potential New Potential New Multi-Family or Multi-Family or Senior HousingSenior Housing
Village Owned Village Owned LandLand
AccessAccess
AccessAccess
AccessAccess AccessAccess
Chipotle • Streamwood (Chicago), IL 10
Site Plan
N
Sut
ton
Ro
ad (
46
,930
VP
D)
Sut
ton
Ro
ad (
46
,930
VP
D)
Newly Newly ConstructedConstructed
ChipotleChipotle
New 2,375 SF BuildingNew 2,375 SF Building0.876 Acres0.876 AcresDrive-ThruDrive-Thru
Plus Outdoor Seating AreaPlus Outdoor Seating Area
Outdoor Outdoor Seating AreaSeating Area
Chipotle • Streamwood (Chicago), IL 11
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�Floor Plan
Drive-Thru Window
Chipotle • Streamwood (Chicago), IL 12
Color Rendering (West)
Color Rendering (Northeast)
Color Rendering (South)
Color Rendering (East)
Subject Property Renderings
Chipotle • Streamwood (Chicago), IL 13
Exterior ElevationsExterior Elevations Plan (East)
Exterior Elevations Plan (South) Exterior Elevations Plan (West)
Exterior Elevations Plan (North)
South
North East
West
Chipotle • Streamwood (Chicago), IL 14
N
DemographicsPopulation 1 mile 3 miles 5 miles
2021 Population 10,638 81,035 221,769
2026 Population 10,577 80,010 219,935
Households 1 mile 3 miles 5 miles
2021 Total Households 3,592 26,861 73,412
2026 Total Households 3,572 26,499 72,830
Household Income 1 mile 3 miles 5 miles
2021 Average Household Income $131,007 $106,886 $101,592
2021 Median Household Income $103,302 $85,056 $81,946
Source: Esri, 2021
1 Mile
3 Miles
81K+Total Population
(3 Miles)Avg. HH Income
(3 Miles)
$106K
going beyond
The information contained herein was obtained from sources believed reliable, however, Stan Johnson Company makes no guaranties, warranties or representations as to the completeness thereof. The presentation of this property for sale, rent or exchange is submitted subject to errors, omissions, change of price or conditions, or withdrawal without notices.
Stan Johnson Company303 East Wacker Drive | Suite 1111Chicago, IL 60601+1 312.240.0127 | F: +1 312.240.0158
stanjohnsonco.com
Offered Exclusively by
Christina PecoraroTransaction [email protected]+1 312.777.2453
Tom Fritz Managing Director, Partner [email protected] Lic. #471018602
Brandon Duff Managing Director, Partner [email protected] Lic. #475139166
Mackenzie Wolfgram Associate [email protected] Lic. #475173323
Point of Contact