NNN on New Chipotle Mex. restaurant - Posted by Brian,WI

Real Estate Investing
1

Posted by Chuck on April 03, 2003 at 15:11:26:

http://www.hoovers.com/co/capsule/5/0,2163,106335,00.html

Even so… the numbers wouldn’t work for me either as a cash-flow investment.

Most NNN deals are money makers at the time of resale, they’re typically “buy and hold” investments.

So unless you can get a lower purchase price (higher cap), come up with a larger down payment, or have some 1031 money to play with…

2

NNN on New Chipotle Mex. restaurant - Posted by Brian,WI

Posted by Brian,WI on April 03, 2003 at 04:45:22:

Greetings,

Just got a prospectus on a newly built Chipotle Mexican Grill restaurant. This company is a “partner brand” of McDonalds. The NNN lease is for 10 years with 2 renewable 5 year terms after that.

Price is $1,345,000

List Cap Rate of 8%

Cash on Cash $107,655/year

I know this isn’t a lot of information, but has anyone heard of this restaurant or company? I haven’t. This is something I may be able to swing, depending on the financing. So what do you think?

Thanks

Brian,WI

3

Not as good as I thought? - Posted by Brian,WI

Posted by Brian,WI on April 03, 2003 at 12:33:06:

Guess I should have run some numbers before posting…

Here is what I came up with so please chime in if my thinking is wrong:

Purchase price $1,345,000
Less down $ 200,000 of sake of example
Financed $1,145,000 @ 6.5% for 20 years
PI $ 8,537 x 12 months = $102,441

If I’m bringing in $107,655 a year and paying out $102,441 No Deal Here.

I’m a correct in my thinking here, or am I missing something?

Thanks

Brian,WI