Chipotle — Delano, CA (Comparable)
A California comparable used in Mike's June 20 cap-rate reply. Single-tenant Chipotle (NYSE: CMG, investment grade) at 503 Woollomes Ave, Delano (Kern County, Central Valley), 2022 construction, $2,598,029 / 5.10% cap on $132,500 NOI. Roughly 12-year NNN with four 5-year options. The 5.10% cap — lowest in the CA set — reflects Chipotle's corporate credit, not location quality. Notably the landlord retains roof and structure, so it is not absolute NNN.
Key Facts¶
- Investment-grade corporate Chipotle credit drives the low cap rate.
- Landlord keeps roof/structure — deviation from absolute NNN.
- Central Valley agricultural market — credit, not location, prices the deal.