SRS Real Estate Partners has completed the sale of a newly constructed, single-tenant Chipotle property in Palmdale for $4.39 million. The freestanding restaurant, located at 3852 W Rancho Vista Blvd., spans 2,325 square feet and is backed by a 15-year absolute triple-net corporate-guaranteed lease. The store is scheduled for its grand opening on June 4, underscoring that the asset traded as a brand-new, fully leased net lease investment.
The property is leased to Chipotle under an absolute triple-net structure, meaning the tenant is responsible for all property expenses over the full term of the lease. The corporate guarantee adds another layer of security to the income stream, aligning the investment with the preferences of buyers seeking long-term, credit-backed cash flow. With 15 years of initial term in place, the lease provides an extended duration of fixed income for the new owner.
The seller, Phoenix-based First Street Development, was represented by SRS Capital Markets managing principal Calvin Short and Jeff Christian of First Street, Inc. Their team advised the seller through the marketing and transaction process, with SRS Real Estate Partners overseeing completion of the sale. The buyer is described as a private 1031 exchange investor based in Los Angeles, underscoring the continued appeal of single-tenant net lease assets for investors looking to complete tax-deferred exchanges.
According to CoStar, the transaction closed at a 4.45% cap rate, which is the lowest recorded for a Chipotle property sale in California over the past two and a half years. This benchmark cap rate highlights the pricing power that can be achieved by combining a nationally recognized quick-service restaurant brand with new construction and a long-term absolute triple-net lease. It also reflects the competitive bidding environment for well-located, single-tenant net lease assets in the current market.
Short noted that Chipotle remains one of the most sought-after names among net lease investors, citing the brand’s strong corporate credit profile, expanding national footprint and consistent store-level performance. He added that new construction locations with long-term absolute triple-net leases in high-growth retail corridors, such as this Palmdale site, continue to attract significant investor interest and support aggressive pricing. The Palmdale closing provides a current data point for market participants evaluating cap rates and pricing expectations for similar credit-tenant net lease offerings.
