McDonalds Net Leased Property For Sale

McDonald’s (Ground Lease)6126 Hickory Flat HighwayCanton, GA 30115 (Atlanta MSA)

NET LEASE INVESTMENT OFFERING


TABLE OF CONTENTS

I. Executive Summary

Executive SummaryInvestment HighlightsProperty Overview

II. Location Overview

Site PlanAerialMapPhotos

III. Market & Tenant Overview

Tenant ProfileLocation OverviewDemographics


DISCLAIMER STATEMENT

The information contained in the following Offering Memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from The Boulder Group and should not be made available to any other person or entity without the written consent of The Boulder Group.

This Offering Memorandum 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. The Boulder Group has not made any investigation, and makes no warranty or representation.

The information contained in this Offering Memorandum has been obtained from sources we believe to be reliable;however, The Boulder Group has not verified, and will not verify, any of the information contained herein, nor hasThe Boulder Group conducted any investigation regarding these matters and makes no warranty or representationwhatsoever regarding the accuracy or completeness of the information provided. All potential buyers must takeappropriate measures to verify all of the information set forth herein.

DISCLAIMER STATEMENT:


EXECUTIVE SUMMARY

The Boulder Group is pleased to exclusively market for sale a McDonald’s ground lease located in the Atlanta MSA. The 4,024 square foot McDonald’s is strategically positioned on Hickory Flat Highway, the primary artery connecting Cherokee County and Fulton County. The location has multiple points of ingress and egress and offers excellent visibility from the heavily trafficked intersection of Hickory Flat Highway & E. Cherokee Drive (approximately 24,000 VPD).

The property is located across the street of the Hickory Flat Village anchored by Publix Supermarket, Wells Fargo Bank, Advanced Auto Parts and GNC. Other retailers in the area include Kroger Supermarket, CVS Pharmacy and many other restaurants. Sequoyah High School, Dean Rusk Middle School and Hickory Flat Elementary School are located around the corner to the McDonald’s on Cherokee Drive. The property features a double drive-through.

Canton, Georgia is the county seat of Cherokee County and part of the Atlanta metropolitan area. The property benefits from strong supporting demographics in the immediate trade area including an average household income of over $101,000 and approximately 55,000 permanent residents within a 5-mile radius.

McDonald’s has approximately 10 years remaining on their 20 year lease which expires May 17, 2026. This triple net ground lease features a 10% rent escalation in May 2020 and four 5-year renewal option periods with 10% escalations. McDonald’s is a publicly traded company on the New York Stock Exchange (MCD), with a market capitalization of $101.6 billion. McDonald’s is an investment grade rated company with a Standard & Poor’s rating of BBB+.

EXECUTIVE SUMMARY:


INVESTMENT HIGHLIGHTS

• Located within the Atlanta MSA

• Investment grade rated company with an S&P rating of BBB+

• Approximately 10 years remaining on ground lease

• 10% rental escalations every five years

• Triple net ground lease

• Positioned along a primary east-west thoroughfare in the area which experiences traffic counts of 24,000 vehicles per day

• Nearby retailers include Publix Supermarket, Wells Fargo Bank, Advanced Auto Parts, Kroger Supermarket and CVS Pharmacy

• Property features a double drive-through

• An average household income of over $100,000 within a 5-mile radius.

INVESTMENT HIGHLIGHTS:


PROPERTY OVERVIEW

Price: $1,394,130

Cap Rate: 4.60%

Net Operating Income: $64,130

Escalation: 10% Every Five Years

Renewal Options: Four 5-Year Lease Options; 10% Escalations

Rent Schedule: NOI Escalation Date $64,130 $70,543 5/17/20 $77,597 5/18/26 Option 1 $85,357 5/18/31 Option 2 $93,893 5/18/36 Option 3 $103,282 5/18/41 Option 4

Lease Commencement Date: May 31, 2005

Lease Expiration Date: May 17, 2026

Tenant: McDonald’s

Credit Rating: BBB+ (S&P)

Lease Type: Ground Lease – NNN

Rentable Square Feet: 4,024

Land Size: 40,946 SF

PROPERTY OVERVIEW:


SITE PLAN

HICKORY FLAT HWY

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AERIAL


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Hickory Flat Hwy (14,430 VPD)

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HICKORY FLAT LIBRARY

HICKORY FLATELEMENTARY SCHOOL

DEAN RUSK MIDDLE SCHOOL

SEQUOYAH HIGH SCHOOL


MAP

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PHOTOS


TENANT PROFILE

McDonald’s Corporation (NYSE: MCD) is the world’s largest chain of hamburger fast food restaurants, serving around 68 million customers daily throughout 119 countries. McDonald’s primarily sells hamburgers, cheeseburgers, chicken, french fries, breakfast items, soft drinks, shakes and desserts. In response to changing consumer tastes, the company has expanded its menu to include salads, wraps, smoothies and fruit. McDonald’s restaurants offer customers counter service as well as drive-thru service. McDonald’s owns approximately 18% of their restaurants, while the remainder of the stores are run my franchisee members or joint venture. In 2015 McDonald’s had total revenue of $25 billion.

Website: www.mcdonalds.com

Number of Locations: 36,525

Stock Symbol: MCD : NYSE

Standard & Poor’s Rating: BBB+

Market Capitalization: $101.6 billion

Employees: 420,000

TENANT PROFILE:

http://www.mcdonalds.com


LOCATION OVERVIEW

Canton, population 22,958 (2010 Census), is the county seat of Cherokee County, Georgia (part of the Atlanta metropolitan area). Interstate 575 passes through the eastern side of the city, with access from exits 14 through 20. Canton is 40 miles (64 km) north of downtown Atlanta via I-575 and I-75. The Etowah River, a tributary of the Coosa River, flows from east to west through the center of the city. Canton has grown as the suburbs of Atlanta have expanded northward, and is currently experiencing its period of greatest population growth, which nearly tripled between 2000 and 2010.

The Cherokee County Airport is located adjacent to I-575 7 miles (11 km) northeast of downtown Canton.

A redevelopment project currently underway includes an already completed 10,000-square-foot terminal, the ongoing lengthening of the runway from its current 3,414 to 5,000 feet, a new parallel taxiway, instrument landing equipment, and new hangars. The new facilities will accommodate 200 hangared corporate aircraft and provide 100 tie-downs for smaller aircraft.

www.canton-georgia.com

Atlanta is the hub and economic engine of the Southeast, which is the fastest growing region in the U.S. The city’s thriving economy and job base, coupled with its high quality and low cost of living, make it an ideal destination to draw young and educated talent from the region’s major universities.

With an overall population of 5.5 million throughout the 28–county metro area, Atlanta is the ninth–largest Metropolitan Statistical Area (MSA) in the United States and is projected to be the 6th most populated metro area by 2020. Over the course of the 1990s and into the 2000s, Atlanta evolved from the regional “capital” of the Southeast into its current distinction as a leading international city for business. The World Cities Study Group at Loughborough University rated Atlanta as a “Global City.” With a gross domestic product of US$270 billion, Atlanta’s economy ranks 15th among world cities and sixth in the nation. Atlanta contains the country’s fourth largest concentration of Fortune 500 companies, and more than 75 percent of Fortune 1000 companies have business operations in the metropolitan area. Metro Atlanta is the world headquarters of corporations such as The Coca-Cola Company, Turner Broadcasting, The Home Depot, AT&T Mobility, UPS, and Delta Air Lines.

As further proof that Atlanta is a mainstay of global commerce, this fast-growing metropolis is also host to the busiest airport in the world, Hartsfield-Jackson Atlanta International Airport, serving 89 million passengers per year.

LOCATION OVERVIEW:

http://www.canton-georgia.com


DEMOGRAPHICS

DEMOGRAPHIC REPORT:

Population 3 Mile 5 Mile 10 Mile

Total Population 18,290 54,821 304,022

Total Households 6,119 18,299 105,812

Income 3 Mile 5 Mile 10 Mile

Median Household Income $94,257 $80,086 $84,551

Average Household Income $109,966 $101,054 $110,389

Randy [email protected]

Jimmy [email protected]

666 Dundee Road, Suite 1801Northbrook, IL 60062

www.bouldergroup.com

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McDonalds Net Leased Property For Sale

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Transcript of McDonalds Net Leased Property For Sale