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8/16/23
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A 2.3k sf, new construction single-tenant Chipotle Mexican Grill property in Sacramento’s North Natomas area sold for $4.95 mil ($2,152/sf). We’re told the deal came in at the highest price per square foot sale of a single-tenant Chipotle drive-thru in the U.S. in 2023.
The property features a “Chipotlane” drive-thru for digital orders, which is an entirely new phase of drive-thru stores. It is situated at The Quad District, a new mixed-use development anchored by Costco at the southeast quadrant of I-5 and Arena Blvd.
Built in 2023, the Chipotle building occupies 1.13 acres at 2650 Arena Blvd, adjacent to Interstate 5’s new Arena Blvd off-ramp and the signalized intersection of Arena Blvd and East Commerce Way. Within a five-mile radius, the property serves a population exceeding 221,000, with a daytime population of nearly 149,000 employees. Within one mile, the average annual household income surpasses $111,000.
The Quad District will feature up to 2.4 msf of office space, 1 msf of retail, hotels, a new Kaiser Permanente Hospital, and more than 850k sf of multifamily residential units. A new 160k sf Costco is slated to open adjacent to Chipotle at the corner of East Commerce Way and Arena Boulevard.
The property was developed by Chase Partners Ltd, based in Glendale. Chase is among the most active developers of Chipotle sites and other name-brand retail developments with a dozen projects underway. Michael Carter was the project manager for Chase and Mike Singelyn was the lead consultant on the project. The project was constructed by KDC and designed by Vermeltfoort Architects.
Bill Asher and Jeff Lefko with Hanley Investment Group Real Estate Advisors represented Chase Partners in the sale of this state-of-the-art store. The buyer, a private Los Angeles-based investor, was repped by Jenny Eng from CBRE’s Glendale office.
Asher commented, “We generated multiple offers within the initial weeks of marketing, leading us to secure a 1031 exchange buyer based in Southern California. We procured the buyer while the building was under construction and closed escrow the day Chipotle opened for business,” said Asher. “The property’s new 15-year corporate absolute triple-net lease, strategic freeway-interchange location, and it being an outparcel to a soon-to-be-constructed new Costco, made the Chipotle property particularly appealing to investors.”
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