A new, 2.3k sf single-tenant net lease Chipotle Mexican Grill in Lathrop (San Joaquin County) sold for $3.185 mil, 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. The buyer was a private investor out of Orange County.
Built in 2020, the new Chipotle building is located at 16542 Golden Valley Pkwy in Lathrop, near the intersection of River Islands Pkwy and Golden Valley Pkwy, and the Interstate 5 Fwy, 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.
Bill Asher and Jeff Lefko with Hanley Investment Group Real Estate Advisors represented the seller, Chase Partners, based in Glendale, CA. The buyer was repped by Kurt Bruggeman with Lee & Associates in Irvine.
“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.