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.


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 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/


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


N N

Illinois

ChicagoChicago

StreamwoodStreamwood

ChicagoChicago

O'Hare O'Hare International International AirportAirport

MD-West Metra

Potential New Chicago Bears Football Stadium


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

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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


W

Sutton Road (46,930 VPD)Sutton Road (46,930 VPD)

Irvi

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ark

Roa

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2,10

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Irvi

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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


Site Plan

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Sut

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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


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Drive-Thru Window


Color Rendering (West)

Color Rendering (Northeast)

Color Rendering (South)

Color Rendering (East)

Subject Property Renderings


Exterior ElevationsExterior Elevations Plan (East)

Exterior Elevations Plan (South) Exterior Elevations Plan (West)

Exterior Elevations Plan (North)

South

North East

West


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

offering memorandum chipotle

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