ACTUAL PROPERTY McDONALD’S · 2020. 6. 15. · Marcus & Millichap is pleased to present a...
Transcript of ACTUAL PROPERTY McDONALD’S · 2020. 6. 15. · Marcus & Millichap is pleased to present a...
M c D O N A L D ’ S
1 4 2 9 M a r i o n Wa l d o R o a d , M a r i o n , O H 4 3 3 0 2
Long Term Occupancy: 24+ Years | Ground Lease | Recent 5-Year Extension
O F F E R I N G M E M O R A N D U M
A C T U A L P R O P E R T Y
N O N - E N D O R S E M E N T & D I S C L A I M E R N O T I C E
C O N F I D E N T I A L I T Y & D I S C L A I M E RThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should
not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to
prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation.
Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial
performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and
Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant's plans or intentions to continue its occupancy of
the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify,
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or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Marcus & Millichap is a service mark of Marcus &
Millichap Real Estate Investment Services, Inc.
© 2018 Marcus & Millichap. All rights reserved.
N O N - E N D O R S E M E N T N O T I C EMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation's logo or name is not
intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial
listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.
S P E C I A L C O V I D 1 9 N O T I C EA l l p ot e nt i a l buye r s are s t rong ly a dv i s e d t o t a ke a dv ant a ge o f t h e i r opp or tu n i t i e s an d o b l i g at i ons t o c on du c t t h orou g h du e d i l i ge n c e an d s e e k e x p e r t opi n i ons a s t h e y m ay
d e e m n e c e s s ar y, e s p e c i a l l y g ive n t h e u npre d i c t ab l e c h ange s re s u l t i ng f rom t h e c ont i nu i ng C OV I D - 1 9 p an d e m i c . Marc u s & Mi l l i c h ap h a s n ot b e e n re t a i n e d t o p e r for m ,
an d c an n ot c on du c t , du e d i l i ge n c e on b e h a l f o f any pro s p e c t ive pu rc h a s e r. Marc u s & Mi l l i c h ap’s pr i n c ip a l e x p e r t i s e i s i n m ar ke t i ng i nve s t m e nt prop e r t i e s an d a c t i ng a s
i nt e r m e d i ar i e s b e t we e n buye r s an d s e l l e r s . Marc u s & Mi l l i c h ap an d i t s i nve s t m e nt profe s s i on a l s c an n ot an d w i l l n ot a c t a s l aw ye r s , a c c ou nt ant s , c ont r a c t or s , or e ng i n e e r s . A l l
p ot e nt i a l buye r s a re a d m on i s h e d an d a dv i s e d t o e ng a ge o t h e r profe s s i on a l s on l e g a l i s s u e s , t a x , re g u l at or y, f i n an c i a l , an d a c c ou nt i ng m at t e r s , an d for qu e s t i ons
i nvo lv i ng t h e prop e r t y ’s phy s i c a l c on d i t i on or f i n an c i a l out l o ok . Pro j e c t i ons an d pro for m a f i n an c i a l s t at e m e nt s a re n ot g u ar ant e e s an d , g ive n t h e p ot e nt i a l
vo l at i l i t y c re at e d by C OV I D - 1 9 , a l l p ot e nt i a l buye r s s h ou l d b e c om for t ab l e w i t h an d re ly s o l e ly on t h e i r ow n pro j e c t i ons , an a ly s e s , an d d e c i s i on - m a k i ng .
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R E P R E S E N T A T I V E P H O T O3
Marcus & Millichap is pleased to present a McDonald’s restaurant located at 1429 Marion-Waldo Road, Marion, Ohio. The property consists of 4,922 square feet of building space and sits on approximately 1.32 acres of land. This ground
lease investment calls for zero landlord responsibilities.
The subject property was built in 1995, and McDonald’s has been operating at this location for over 24 years. McDonald’s recently signed a five year extension with approximately five and a half years remaining on the lease.
The proposed base rent is $80,000 and will be subject to rental increases every five years. These rental increases will continue through the remaining two, five-year tenant renewal options.
This McDonald’s is backed by a corporate guaranteed. McDonald’s Corporation (NASDAQ: MCD), a publicly traded company with annual revenue in excess of $21 billion, is one of the leading global food-service retailers with more than
38,695 local restaurants serving approximately 69 million people in over 100 countries each day.
McDonald’s1 4 2 9 M a r i o n Wa l d o R d , M a r i o n , O H 4 3 3 0 2
I N V E S T M E N T H I G H L I G H T S
Tenant Recently Executed a Five (5)-Year Extension
Ground Lease (NNN) | No Landlord Responsibilities
Strong Commitment to Location | Operating at This Location for Over 24 Years
Two (2), Five (5)-Year Options with Increases Remaining
Out-Parcel to Marion Centre Mall | Across the Street from Kroger
Visibility to over 16,000+ VPD
Corporate Guarantee
I N V E S T M E N T S U M M A R Y 4
TENANT SUMMARY // McDonald’s
McDonald’s is the world’s largest restaurant chain by revenue, serving over 69 million customers daily in over 100 countries across 38,695 outlets as of 2019. Although McDonald’s is best known for its hamburgers, cheeseburgers and french fries, they feature chicken products, breakfast items, soft drinks, milkshakes, wraps, and desserts. In response to changing consumer tastes and a negative backlash because of the unhealthiness of their food, the company has added to its menu salads, fish, smoothies, and fruit. The McDonald’s Corporation revenues come from the rent, royalties, and feespaid by the franchisees, as well as sales in company-operated restaurants. McDonald’s has three pillars in their growth strategy that has kept them successful over the past 60+ Years. These pillars include Retaining, Regaining, and Converting customers. With such a large focus on customer satisfaction they have stayed at the top of the list of fast food restaurants.
P R O P E R T Y O V E R V I E W 6
Company NamePublic (NYSE:MCD)
2019 Employees210,000
2019 Revenue$21.08 Bi l l ion
2019 Net Income$5.92 Bi l l ion
2019 Assets$47.51 Bi l l ion
Credit RatingS&P: BBB+
P R O P E R T Y O V E R V I E W 7
RENT SCHEDULE ANNUAL RENT % CHANGE
12/31/2015 - 12/30/2020 $70,000
12/31/2020 - 12/30/2025 $80,000 14.29%
12/31/2025 - 12/30/2030 $91,000 13.75%
12/31/2030 - 12/31/2035 $103,000 13.19%
A C T U A L P R O P E R T Y
A C T U A L P R O P E R T Y
*Parcel to be separated prior ro closing
PRICING DETAILS // McDonald’s
THE OFFERING
Price $1,650,000
Capitalization Rate 4.85%
Price/SF $335.23
NOI $80,000
PROPERT Y DESCRIPTION
Parcel No. (APN) 18-010001.1800
Property Address 1429 Marion-Waldo Road
City, State, Zip Marion, OH 43302
Year Built // Renovated 1995 // 2011
Building Area 4,922-SF
Parcel Size 1.32 ± Acres
LEASE SUMMARY
Original Lease Term 20-Years
Lease Term Remaining 5.5-Years Remaining
Rent Commencement October 26th, 1995
Lease Expiration December 30th, 2025
Lease Type Ground-Lease (NNN)
Land Lord Responsibility None
Options to Renew Two (2), Five (5)-Year Options
Rental Increases 13%+ During Options
Right of First Refusal No
Marion is a city in and the county seat of Marion County, Ohio, United States. The municipality is located in north-central Ohio, approximately 50 miles north of Columbus. Marion currently styles itself as “America’s Workforce Development Capital” given public–private educational partnerships and coordination of educational venues, from four and two–year college programs to vocational and technical training and skill certification programs.
While Marion and the surrounding area is generally rural, manufacturing is a significant source of employment. The county is a well-positioned rail transportation hub with access to U.S. 23, serving as a major connection to Interstate 80 and Interstate 90 through Detroit and Toledo to the north, and connections to Interstate 71 and Interstate 70 through nearby Columbus.
One of the largest intermodal freight transport facilities in the country is located in Marion. It provides rail and local truck delivery services for Whirlpool Corporation, International Paper and major automotive parts manufacturers, among many others. Whirlpool’s dryer manufacturing facility in Marion is the largest in the world, producing over 20,000 dryers daily.
Marion City Schools enroll 4,206 students in public primary and secondary schools. The district administers 8 public schools including six elementary schools, one middle school, and one high school.
C i t y O fM A R I O N
M A R ION ’ S TOP T E N E M PL OY E R S
EMPLOYER # EMP. TYPE
1. Whirlpool Corp. 2,384 Industrial
2. OhioHealth Marion Genreal Hospital 1,421 Medical
3. Marion City Schools 769 Education
4. Andersen Windows 600 Industrial
5. The Kroger Co. 850 Retail
6. Wyandot, Inc 410 Industrial
7. Union Tank Car Company 385 Industrial
8. US Yachiyo, Inc. 373 Indsutrial
9. Marion Industires, Inc 330 Industrial
10. Nucor Steel Marion, Inc 259 Industrial
M A R ION L O C A L S C HO OL S
SCHOOL # ENROLLED
1. Marion City Schools 4,330
2. Marion Technical College 2,477
3. River Valley Local Schools 1,941
4. Ohio State University at Marion 1,252
5. Pleasant Local Schools 1,180
6. Elgin Local Schools 989
7. Ridgedale Local Schools 673
8. Heritage Christian School 173
L O C A T I O N O V E R V I E W 8
POPUL ATION 3 Mi les 5 Mi les 7 Mi les2019 Estimate
Total Population 37,494 49,348 54,958
2010 Census
Total Population 38,013 49,283 54,929
2000 Census
Total Population 38,761 48,042 54,489
Current Daytime Population
2019 Estimate 36,847 48,375 55,019
HOUSEHOLDS 3 Mi les 5 Mi les 7 Mi les2019 Estimate
Total Households 14,876 17,404 19,483
Average (Mean) Household Size 2.48 2.5 2.52
2010 Census
Total Households 15,581 18,113 20,244
2000 Census
Total Households 15,837 18,209 20,192
O C CUPIED UNIT S 3 Mi les 5 Mi les 7 Mi les2019 Estimate 17,763 20,597 22,872
HOUSEHOLDS BY INCOME 3 Miles 5 Miles 7 Miles
§2019 Estimate
$150,000 or More 3.83% 3.81% 3.96%
$100,000 - $149,000 8.24% 8.74% 9.36%
$75,000 - $99,999 10.10% 10.44% 10.97%
$50,000 - $74,999 20.42% 20.61% 21.24%
$35,000 - $49,999 15.14% 15.48% 15.61%
Under $35,000 42.25% 40.93% 38.87%
Average Household Income $55,587 $56,267 $58,023
Median Household Income $42,446 $43,615 $45,650
Per Capita Income $22,292 $21,228 $21,905
HOUSEHOLDS BY EXPENDITURE 3 Mi les 5 Mi les 7 Mi lesTotal Average Household Retail Expenditure $66,119 $67,029 $68,743
• Consumer Expenditure Top 10 Categories
Housing $16,568 $16,758 $17,103
Transportation $11,921 $11,995 $12,265
Shelter $9,038 $9,124 $9,281
Food $7,499 $7,584 $7,762
Personal Insurance and Pensions $6,879 $7,089 $7,419
Health Care $4,851 $4,934 $5,085
Utilities $3,619 $3,662 $3,736
Entertainment $3,294 $3,363 $3,468
Gifts $1,859 $1,879 $1,936
Household Furnishings and Equipment $1,827 $1,851 $1,900
POPUL ATION PROFILE 3 Mi les 5 Mi les 7 Mi lesPopulation By Age
2019 Estimate Total Population 37,494 49,348 54,958
Under 20 25.19% 22.70% 22.64%
20 to 34 Years 18.61% 20.63% 20.09%
35 to 39 Years 5.71% 6.36% 6.27%
40 to 49 Years 11.64% 13.20% 13.16%
50 to 64 Years 19.99% 20.21% 20.71%
Age 65+ 18.87% 16.89% 17.12%
Median Age 40.45 40.24 40.82
• Population 25+ by Education Level
2019 Estimate Population Age 25+ 25,868 34,898 38,989
Elementary (0-8) 2.13% 2.05% 2.00%
Some High School (9-11) 10.24% 11.71% 11.22%
High School Graduate (12) 42.55% 42.50% 42.82%
Some College (13-15) 22.54% 22.78% 22.76%
Associate Degree Only 8.04% 7.98% 8.02%
Bachelors Degree Only 8.00% 7.18% 7.28%
Graduate Degree 5.51% 4.90% 4.97%
D E M O G R A P H I C S 9
Michael GlassBroker of Record
Lic.# BRK 2007005898
E X C L U S I V E L Y L I S T E D B Y
Dar p an PatelFirst Vice President, Investments
Net Lease Retail GroupDirect: (513) 878-7723 // Fax: (513) 878-7710
[email protected]: OH SAL 2012000748
Frank SimcicPartner | The Patel Group
National Retail GroupDirect: (513) 878-7745 // Fax: (513) 878-7710
[email protected]: OH SAL 2015005386