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McDonalds Ground Lease

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ground leased McDonalds for sale

ground leased McDonalds for sale


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  • 1. NET LEASED INVESTMENT OFFERING www.bouldergroup.com McDonald’s (Ground Lease) 3151 South Dirksen Parkway Springfield, IL 62703
  • 2. NET LEASED INVESTMENT OFFERING www.bouldergroup.com 1) Confidentiality & Disclaimer 2) Executive Summary 3) Property Overview 4) Aerial 5) Site Plan 6) Maps 7) Tenant Profile 8) Demographic Comparison Report 9) Location Overview 10) Contact Information TABLE OF CONTENTS TABLE OF CONTENTS
  • 3. NET LEASED INVESTMENT OFFERING www.bouldergroup.com 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 has The Boulder Group conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. CONFIDENTIALITY & DISCLAIMER CONFIDENTITALITY & DISCLAIMER
  • 4. NET LEASED INVESTMENT OFFERING www.bouldergroup.com The Boulder Group is pleased to exclusively market for sale a single tenant McDonald’s ground lease located in Springfield, Illinois. McDonald’s has occupied the site for almost forty years and is committed to the area as evidenced by the recent execution of their last remaining renewal option. The 4,134 square foot property is located within a primary retail trade area directly off Interstate 55/72. Interstate 55/72 experiences traffic volumes in excess of 50,000 vehicles per day. McDonald’s is an investment grade rated company with a Standard & Poor’s rating of A. The property is located along South Dirksen Parkway just east of Stevenson Drive and less than one-quarter mile from the Interstate 55 exit ramp. Dirksen Parkway and Stevenson Drive experience traffic volumes of 13,900 VPD and 18,200 VPD respectively. The property benefits from the signalized intersection at South Dirksen and Stevenson Drive, providing consistent traffic near the site. The McDonald’s property has multiple points of ingress and egress and is located at the entrance to the Capital City Shopping Center. The Capital City Shopping Center is anchored by AMC Theater, Big Lots and Anytime Fitness. Dirksen Parkway is home to numerous hotels including the Crown Plaza, Holiday inn Express, Hilton Garden Inn and Comfort Suites. Employers in the immediate area include the Illinois Department of Transportation (950 employees), The Illinois Secretary of State and City Water, Light & Power of Springfield (650 employees). McDonald’s original lease term is for 21 years and the amended lease expires in October 2018. McDonald’s exercised their final renewal option in 2011 with no future renewal options remaining. This allows a prospective investor to add value by potentially increasing the ground rent. McDonald’s is a publicly traded company on the New York Stock Exchange (MCD), with a market capitalization of $94 billion. McDonald’s is an investment grade rated company with a Standard & Poor’s rating of A. INVESTMENT HIGHLIGHTS • Investment grade rated company with an S&P rating of A • Longstanding tenant for almost forty years • Proven location as tenant recently executed their last renewal option for five additional years • Potential to add value by increasing the ground rent • Dirksen Parkway experiences traffic volumes of approximately 14,000 VPD • Triple net ground lease • Positioned directly off Interstate 55 (50,000 VPD) • Nearby retailers include AMC Theater, Big Lots and Anytime Fitness EXECUTIVE SUMMARY EXECUTIVE SUMMARY
  • 5. NET LEASED INVESTMENT OFFERING www.bouldergroup.com PROPERTY OVERVIEW PROPERTY OVERVIEW Price: $766,080 Cap Rate: 5.00% Net Operating Income: $38,304 Renewal Options: None Lease Commencement Date: December 15, 1975 Lease Expiration Date: October 31, 2018 Tenant: McDonald’s Credit Rating: A (Standard & Poor’s) Year Built: 1975 Lease Type: Ground Lease - NNN Rentable Square Feet: 4,134 Land Size: 37,409 SF
  • 6. NET LEASED INVESTMENT OFFERING www.bouldergroup.com AERIAL AERIAL N 900+ EMPLOYEES STEVENSONDRIVE 18,200VPD S. DIRKSEN PARKWAY 13,900 VPD 50,700 VPD 55 DREAMLAND PARK 650 EMPLOYEES
  • 7. NET LEASED INVESTMENT OFFERING www.bouldergroup.com SITE PLAN SITE PLAN N S. DIRKSEN PARKWAY
  • 8. NET LEASED INVESTMENT OFFERING www.bouldergroup.com MAPS MAPS
  • 9. NET LEASED INVESTMENT OFFERING www.bouldergroup.com McDonald’s Corporation (NYSE: MCD) is the world’s largest chain of hamburger fast food restaurants, serving around 69 million customers daily throughout 118 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 20% of their restaurants, while the remainder of the stores are run my franchisee members or joint venture. In 2012 McDonald’s had total revenue of $27 billion. Website: www.mcdonalds.com Number of Locations: 34,480 Stock Symbol: MCD: NYSE Standard & Poor’s Rating: A Market Capitalization: $94 billion Employees: 1.8 million TENANT PROFILE TENANT PROFILE
  • 10. NET LEASED INVESTMENT OFFERING www.bouldergroup.com Population 3-mi 5-mi 7-mi Total Population 36,741 102,996 144,679 Total Households 14,496 44,485 62,667 Income Median Household Income $38,612 $40,126 $45,410 Average Household Income $52,128 $54,747 $61,151 DEMOGRAPHIC COMPARISON REPORT DEMOGRAPHIC COMPARISON REPORT
  • 11. NET LEASED INVESTMENT OFFERING www.bouldergroup.com Springfield is the capital of the State of Illinois and the county seat of Sangamon County. At the time of the 2010 U.S. Census, Springfield had a total population of 116,250 making it the sixth most populated city in Illinois. Springfield is located in central Illinois approximately 170 miles southwest of downtown Chicago and 85 miles north east of downtown St. Louis, Missouri. Springfield has a rich history dating back to U.S. President Abraham Lincoln, who started his political career in Springfield. The city draws tourist from all over the United States to visit the Lincoln Home National Historic Site, the Lincoln-Herndon law offices, the Lincoln Tomb, the Old State Capitol, and the Lincoln Depot. The economy in Springfield is centered around state government, headquartered in Springfield. The state of Illinois is the largest employer in Sangamon County with over 17,000 employees. Additionally, transportation and utilities, and the health care industry each provide between 17,000 and 18,000 jobs to the city. Memorial Medical Center is the largest private sector employer in Springfield with just under 6,000 employees. www.springfield.il.us LOCATION OVERVIEW LOCATION OVERVIEW
  • 12. NET LEASED INVESTMENT OFFERING www.bouldergroup.com 666 Dundee Road, Suite 1801 Northbrook, IL 60062 Randy Blankstein President 847.562.0003 rblank@bouldergroup.com Jimmy Goodman Partner 847.562.8500 jimmy@bouldergroup.com CONTACT INFORMATION CONTACT INFORMATION