Key Takeaways
- • SRS Real Estate Partners completed a $4.39 million sale of a new-construction Chipotle property in Palmdale, California at a 4.45% cap rate—the lowest recorded for a California Chipotle sale in 2.5 years, signaling aggressive investor pricing for net-lease QSR assets.
- • The property is a 2,325-square-foot single-tenant building on 1.1 acres with a 15-year absolute triple net corporate-guaranteed lease, positioned at a signalized intersection in Palmdale's dominant retail corridor with 148,000+ residents/employees within a five-mile radius.
- • A Los Angeles-based private 1031 exchange investor purchased the property from Phoenix-based seller First Street Development; SRS Capital Markets brokers Calvin Short and Jeff Christian represented the seller in the transaction.
- • The low cap rate reflects sustained investor demand for Chipotle properties driven by the brand's strong corporate credit quality, expanding national footprint, and consistent store-level performance, particularly for new-construction assets in high-growth retail locations.
- • The property's grand opening is scheduled for June 4, 2026, positioning it as a newly operational asset within a secondary Southern California market experiencing retail corridor maturation and demographic density.
Summary
SRS Real Estate Partners announced the completion of a $4.39 million single-tenant net-lease transaction for a newly constructed Chipotle Mexican Grill restaurant located at 3852 W Rancho Vista Boulevard in Palmdale, California. The transaction closed at a 4.45% capitalization rate, marking the lowest cap rate recorded for a Chipotle property sale in California over the preceding 2.5-year period, according to CoStar data. This pricing reflects heightened competition among net-lease investors for quality QSR assets backed by investment-grade corporate tenants.
The property comprises 2,325 square feet situated on 1.1 acres and is subject to a 15-year absolute triple net corporate-guaranteed lease structure. The asset is strategically positioned at the signified intersection of Rancho Vista Boulevard and Town Center Drive within Palmdale's primary retail corridor, proximate to major shopping anchors including Antelope Valley Mall, Palmdale Marketplace, and Rancho Vista Park. The submarket benefits from demographic density, with more than 148,000 residents and employees within a five-mile radius. The property's grand opening is scheduled for June 4, 2026.
The buyer was identified as a Los Angeles-based private investor executing a 1031 tax-deferred exchange strategy. The seller, First Street Development, is based in Phoenix, Arizona. SRS Capital Markets brokers Calvin Short (Executive Vice President and Managing Principal) and Jeff Christian of First Street, Inc., represented the seller and negotiated the transaction.
According to Short, the transaction exemplifies sustained institutional appetite for Chipotle properties within the net-lease market. "Chipotle continues to be one of the most sought-after brands among net lease investors due to its strong corporate credit, expanding national footprint and consistent store-level performance," Short stated. "New construction locations with long-term absolute triple net leases in high-growth retail corridors, like this Palmdale property, continue to attract significant investor demand and drive aggressive pricing."
SRS Real Estate Partners reported achieving more than $3.5 billion in deal volume during the preceding year across 950 transactions nationwide, positioning the firm as a significant intermediary within the net-lease capital markets. The Palmdale transaction underscores continued institutional confidence in corporate-guaranteed restaurant assets despite broader market volatility.
The property comprises 2,325 square feet situated on 1.1 acres and is subject to a 15-year absolute triple net corporate-guaranteed lease structure. The asset is strategically positioned at the signified intersection of Rancho Vista Boulevard and Town Center Drive within Palmdale's primary retail corridor, proximate to major shopping anchors including Antelope Valley Mall, Palmdale Marketplace, and Rancho Vista Park. The submarket benefits from demographic density, with more than 148,000 residents and employees within a five-mile radius. The property's grand opening is scheduled for June 4, 2026.
The buyer was identified as a Los Angeles-based private investor executing a 1031 tax-deferred exchange strategy. The seller, First Street Development, is based in Phoenix, Arizona. SRS Capital Markets brokers Calvin Short (Executive Vice President and Managing Principal) and Jeff Christian of First Street, Inc., represented the seller and negotiated the transaction.
According to Short, the transaction exemplifies sustained institutional appetite for Chipotle properties within the net-lease market. "Chipotle continues to be one of the most sought-after brands among net lease investors due to its strong corporate credit, expanding national footprint and consistent store-level performance," Short stated. "New construction locations with long-term absolute triple net leases in high-growth retail corridors, like this Palmdale property, continue to attract significant investor demand and drive aggressive pricing."
SRS Real Estate Partners reported achieving more than $3.5 billion in deal volume during the preceding year across 950 transactions nationwide, positioning the firm as a significant intermediary within the net-lease capital markets. The Palmdale transaction underscores continued institutional confidence in corporate-guaranteed restaurant assets despite broader market volatility.
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