El Pollo Loco

Investment Overview

Newmark is pleased to offer the fee interest in the El Pollo Loco pad at 47th Street Pavilion, a 2,700 square foot drive-thru restaurant on approximately 33,487 square feet of land in Palmdale, California. The Property is leased to El Pollo Loco, Inc. under a 20-year ground lease with fixed rent increases and four five-year extension options.

Investment Highlights

• Absolute NNN lease, no landlord obligations. The tenant pays property taxes, insurance, utilities and maintenance, plus its share of common area costs, and owns the building improvements during the term.
• Fixed 10% rent increases every five years. Rent steps from $129,107 today to $142,018 on exercise of the first option, and continues through four options to $189,026.
• Strong store performance. 286.8K visits in the past year (up 7%), ranking 15th of 383 El Pollo Loco locations in California per Placer.ai.
• Out Parcel to Super Target. El Pollo Loco sits directly in front of Antelope Valley’s only Super Target at 47th Street Pavilion - drawing over 6.5 million visits in the last 12 months.
• Protective exclusive. While El Pollo Loco is open, the lease restricts other restaurants in the center that derive 15% or more of sales from bone-in Mexican style chicken.