Chick-Fil-A Ground Lease 7060 Chestnut St

Investment Highlights

New 15-Year Corporate Absolute NNN Ground Lease to Chick-fil-A with No Landlord Maintenance Responsibilities 2024 Construction with Double Drive-Thru Component E 10th Street/Pacheco Pass Highwayy (152) at Highway 101 is the Dominant Retail Node in Gilroy Featuring Several Major Shopping Centers Strong Inflation Protection ? 10% Rental Increases Every 5 Years Rare New Construction Northern California Net Lease Investment Opportunity Affluent Surrounding Demographics with an Average Household Income Over $145,000 and Population of Over 55,000 within 3 Miles

Executive Summary

The property is strategically located at the foot of the off/on ramp for US Highway 101 (104,200 VPD) at the intersection of E 10th Street/Pacheco Pass Hwy 152 with traffic counts over 31,300 VPD. The property is part of the new construction Plaza Allium retail and hospitality center featuring popular co-tenants such as Starbucks, Circle K, Blue Wave Car Wash, and the Hyatt Place Hotel (120 keys). The surrounding demographics are outstanding with average household income over $146,600 and population over 55,900 within 3 miles. The immediate area is a robust retail and commercial corridor surrounding the confluence of E 10th Street/Pacheco Pass Hwy (152) and Highway 101 featuring several major shopping centers with anchor tenants such as Costco, Walmart, Lowe?s, Target, Kohl?s, Smart & Final, and Burlington, multiple auto dealerships, and numerous large scale industrial manufacturing and distribution centers.The city of Gilroy is located 28 miles south of San Jose in one of the fastest growing counties in California, Santa Clara County. It is a developing community in transition with a current population 55,936. The small family farms of the past have given way to a sophisticated seed culture, high tech food processing, recreational shopping, distribution, and modern wine production. Gilroy is also home to Gilroy Gardens Theme Park. With its Mediterranean climate, mild temperatures, and an abundance of award-winning parks. Gilroy is situated in the Santa Clara Valley, just 15 miles from the Pacific Ocean, and strategically located at the junction of two key highways: US 101 and State Route 152. Gilroy is within a half hour drive of the Silicon Valley, meaning close proximity to the tech companies that reside there and the two universities that call it home: Stanford and Santa Clara University. Gilroy is probably best known for the annual Gilroy Garlic Festival, which started in 1979 and has drawn hundreds of thousands of garlic lovers from around the world. This led to the city being nicknamed the Garlic Capital of the World. It is also known for boutique wine production, as part of the Santa Clara Valley AVA, mostly consisting of family vineyards around the base of the Santa Cruz Mountains to the west.

• Sale Type    Investment NNN
• Sale Condition    Ground Lease (Leased Fee)
• Property Type    Retail
• Property Subtype    Fast Food Fast Food General Retail Freestanding General Retail Restaurant Fast Food
• Building Size    5,000
• Building Class    B
• Year Built    2024
• Construction Status    Under Construction
• Price    4,934,000
• Price Per SF    987
• Cap Rate    3.75
• NOI    185,000
• Tenancy    Single
• Building Height    1 Story
• Building FAR    0.09
• Land Acres    1.27 AC
• Opportunity Zone    Yes State officials designate a portion of qualified Census Tracts to be Opportunity Zones. Certain investments in Opportunity Zones may be eligible for preferential tax treatment.

• Drive Thru