Listed by Sands Investment Group Los Angeles, Sands Investment Group
$3,400,000
Chipotle - Edinburg, TX
Details
Property Type Retail
Sub Type QSR/Fast Food, Restaurant
Square Footage 2,325
Cap Rate 5%
NOI $170,000
Occupancy 100%
Tenancy Single
Brand/Tenant Chipotle, Chipotle Mexican Grill
Lease Type Absolute NNN
Lease Term 16.6
Lease Expiration 02/28/2041
Remaining Term 14.7
Rent Bumps Yes
Lease Options 5 x 5 Year Options
Year Built 2025
Buildings 1
Acreage 0.810
Investment Type Net Lease
Tenant Credit Corporate Guarantee
Lease Commencement 07/29/2024
Brand-New Chipotle - Texas | Drive-Thru | 40-Year Potential | Outparcel to Strip Center
Marketing description
Sands Investment Group is pleased to exclusively offer for sale the 2,325 SF Chipotle Mexican Grill located at 4112 S Business Highway 281 in Edinburg, TX. The tenant is responsible for all property taxes, insurance, maintenance, and repairs, including the roof, structure, parking, and all building systems. The lease features contractual 10% rent increases every 5 years across all renewal periods, providing built-in income growth with zero landlord management responsibilities, making this a rare, passive net-lease investment opportunity for investors seeking stable cash flow and long-term appreciation.
Investment highlights
- Investment-Grade Corporate Guarantee with 40-Year Earning Potential: Leased to Chipotle Mexican Grill, Inc. (NYSE: CMG, S&P: A-), one of the strongest credit tenants in the QSR sector, on a brand-new 15-year Absolute Triple Net (NNN) Lease with 5-year renewal options extending the total potential term to 40 years. Chipotle operates over 3,600 restaurants and generated $11.3 billion in revenue in 2024, delivering an unmatched credit profile for passive Triple Net (NNN) investors.
- Zero Landlord Responsibility – True Absolute Triple Net (NNN) Lease Structure: The tenant is responsible for all property taxes, insurance, maintenance, and repairs, including the roof, structure, parking, and all building systems. The lease features contractual 10% rent increases every 5 years across all renewal periods, providing built-in income growth with no management burden.
- 2025 New Construction Built-to-Suit with Chipotlane Drive-Thru: This is a brand-new, purpose-built Chipotle featuring the company’s latest prototype design and a dedicated Chipotlane (drive-thru pickup lane). Chipotlane locations consistently outperform traditional Chipotle stores in both revenue and transaction volume, generating approximately 10–15% higher throughput, a signal of strong unit-level economics at this location.
- Outparcel to the Shoppes at Rio Grande Valley – 1.2M+ SF Regional Power Center: Positioned on the Closner Parcel of The Shoppes at Rio Grande Valley, a dominant 1.2 million+ SF regional shopping destination anchored by Burlington, TJ Maxx, Ross, JCPenney, and Academy Sports + Outdoors. The Chipotle pad is situated alongside Dutch Bros Coffee on Closner Boulevard (Business US-281), one of Edinburg’s primary commercial corridors, with immediate adjacency to US Highway 69/US-281 Expressway.
- Dense, Growing Trade Area Anchored by UTRGV’s 32,000+ Students: Over 86,500 residents live within a 3-mile radius of the property. Edinburg is the county seat of Hidalgo County and home to The University of Texas Rio Grande Valley (UTRGV), the second-largest university in the UT System, with 32,000+ enrolled students, a massive, built-in customer base for Chipotle’s core 18–34 age demographic. The McAllen-Edinburg-Mission MSA (population 900,000+) has ranked among the fastest-growing metros in the U.S. for over a decade.
- High-Visibility Closner Boulevard Corridor with Expressway Access: Closner Boulevard (Business US-281) is the primary north-south commercial artery connecting Edinburg’s university district to the US-69/US-281 Expressway and the greater McAllen MSA. The property benefits from a hard corner position with frontage on the boulevard, a drive-thru lane, and dedicated exclusive parking, delivering strong visibility and convenience for both drive-thru and dine-in traffic.
- Exclusive Use Protection – No Competing Mexican QSR in the Restricted Area: The lease grants Chipotle an exclusive right to sell burritos, Mexican-style wraps, fajitas, and tacos within the center’s restricted area, with 50% rent abatement and termination rights as enforcement remedies. This covenant of exclusivity protects both the tenant’s operations and the investor’s income stream from competitive dilution within the broader shopping center.
- Attractive Basis Relative to Texas Chipotle Comparables: At the indicated pricing range, this property offers a compelling entry point versus comparable Texas Chipotle Triple Net (NNN) deals, which are currently marketed at an average of $3.72M (~4.6% CAP Rate). Sold comps for corporately-guaranteed Chipotles in Texas have averaged approximately $3.38M at a 4.80% CAP Rate, positioning this new-construction, drive-thru-equipped asset competitively within the market.
Listing Contacts
Listed by Sands Investment Group Los Angeles, Sands Investment Group
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Loan Amount
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Annual Debt Service
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Annual Cash Flow
$170,000.00
$14,166.67/mo
Valuation Metrics
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DSCR
5%
Cap Rate
5%
ROI
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