Investor Pays $4.4 Million for New-Construction Chipotle Pad in Palmdale

A Los Angeles-based private 1031 exchange investor acquired a newly constructed single-tenant restaurant property in Palmdale, California, for $4.4 million. According to Shopping Center Business, the brokerage firm SRS Real Estate negotiated the sale of the 2,325-square-foot building. The seller was Phoenix-based First Street Development, represented by Calvin Short and Jeff Christian of First Street Inc.

With buyers actively seeking corporate-guaranteed net-lease assets, secondary markets like Palmdale have drawn increased investor attention as capital looks to be deployed outside core Los Angeles submarkets.

Key Details

The transaction involved several core components that characterized the deal structure:

• Brokerage: SRS Real Estate negotiated the $4.4 million sale; seller First Street Development was represented by Calvin Short and Jeff Christian of First Street Inc.
• Property Specifications: The newly constructed building encompasses 2,325 square feet, tailored specifically for high-volume fast-casual dining operations with modern buildout standards.
• Tenant: Chipotle Mexican Grill will occupy the space under a 15-year absolute triple-net corporate guaranteed lease, with the location expected to open June 4, 2026.
• Buyer: A Los Angeles-based private 1031 exchange investor.
• Seller: Phoenix-based First Street Development.
• Location: Situated in Palmdale, the property benefits from its position in the rapidly growing Antelope Valley submarket of Northern Los Angeles County.

Market Context

For commercial real estate professionals, the Palmdale transaction illustrates continued investor appetite for single-tenant net-lease (STNL) assets backed by national restaurant brands with corporate guarantees.

Palmdale and the surrounding Antelope Valley have emerged as focal points for retail developers and investors. Historically overshadowed by coastal and central Los Angeles submarkets, the region has seen growing retail demand as the trade area expands.

Furthermore, the presence of a tenant like Chipotle signals long-term viability for the immediate trade area. The chain is known for its rigorous site selection process, typically targeting locations with high visibility, strong traffic counts, and favorable demographic profiles—factors that investors prioritize when acquiring STNL assets.

This $4.4 million transaction is a marker for single-tenant restaurant pad sales in the Antelope Valley, as investors continue seeking reliable yield in growing secondary markets across Southern California.

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