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McDonalds Ground Lease
 

McDonalds Ground Lease

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Mcdonalds ground lease for sale in the Detroit MSA

Mcdonalds ground lease for sale in the Detroit MSA

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    McDonalds Ground Lease McDonalds Ground Lease Document Transcript

    • Randy Blankstein | President 847.562.0003 rblank@bouldergroup.com Jimmy Goodman |Partner 847.562.8500 jimmy@bouldergroup.com www.bouldergroup.com McDonald’s (Ground Lease) Grand River Avenue & Drake Road Farmington Hills, MI 48335 (Affluent Detroit Suburb) Representative Rendering NET LEASED INVESTMENT OFFERING
    • Randy Blankstein | President 847.562.0003 rblank@bouldergroup.com Jimmy Goodman |Partner 847.562.8500 jimmy@bouldergroup.com www.bouldergroup.com CONFIDENTIALITY & DISCLAIMER 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
    • NET LEASE OPPORTUNITY Randy Blankstein | President 847.562.0003 rblank@bouldergroup.com Jimmy Goodman |Partner 847.562.8500 jimmy@bouldergroup.com www.bouldergroup.com MCDONALD’S (GROUND LEASE) - FARMINGTON HILLS, MI Grand River Avenue & Drake Road, Farmington Hills, MI 48335 EXECUTIVE SUMMARY Representative Rendering MCDONALD’S (GROUND LEASE) FARMINGTON HILLS, MI (AFFLUENT DETROIT SUBURB) The Boulder Group is pleased to exclusively market for sale a single tenant McDonald’s ground lease located in Farmington Hills, one of the most affluent communities in Michigan. Residents living within five miles of the property generate household income in excess of $88,000 annually. The 4,500 square foot building is located on 1.39 acres along a heavily trafficked roadway. This McDonald’s features a long term ground lease with a 20 year primary term with rental escalations. The property is modern day McDonald’s prototype featuring a double drive-thru. McDonald’s is an investment grade rated company with a Standard & Poor’s rating of A. The property is located along Grand River Avenue, a primary thoroughfare in the area. Grand River Avenue experiences traffic volume in excess of 21,000 VPD. The property benefits from the signalized intersection at Grand River Avenue and Drake Road which creates consistent traffic near the site. Nearby retailers include O’Reilly Auto Parts, Panera Bread, Rite Aid, Bank of America, Comerica Bank and Busch’s Fresh Food Market grocery store. Additionally, a Toyota and Harley Davidson dealership are located in close proximity to the property. McDonald’s lease term is for 20 years with four 10-year renewal options and the rent is expected to commence October 2013. The base rent increases in the primary term as well as each renewal option period. McDonald’s is a publicly traded company on the New York Stock Exchange (MCD), with a market capitalization of $96 billion. McDonald’s is an investment grade rated company with a Standard & Poor’s rating of A.
    • NET LEASE OPPORTUNITY Randy Blankstein | President 847.562.0003 rblank@bouldergroup.com Jimmy Goodman |Partner 847.562.8500 jimmy@bouldergroup.com www.bouldergroup.com Price: Cap Rate: Type: Building Size: Site Size: Year Built: Lease Start Date: Lease Expiration: $1,402,439 4.10% Ground Lease 4,500 SF 1.39 acres 2013 October 1, 2013* September 30, 2033 Rent Schedule: Renewal Options: Landlord Obligations: $57,500 $62,500 $75,000 $80,000 $85,000 $95,000 Four 10-Year Options None 10/1/2023 10/1/2033 (Option 1) 10/1/2038 (Option 2) 10/1/2043 (Option 3) 10/1/2048 (Option 4) MCDONALD’S (GROUND LEASE) FARMINGTON HILLS, MI (AFFLUENT DETROIT SUBURB) Representative Rendering Escalation Date *Estimated PROPERTY OVERVIEW
    • NET LEASE OPPORTUNITY Randy Blankstein | President 847.562.0003 rblank@bouldergroup.com Jimmy Goodman |Partner 847.562.8500 jimmy@bouldergroup.com www.bouldergroup.com PROPERTY HIGHLIGHTS  Long term ground lease with 20 years remaining  Located within the Detroit MSA in one of the most affluent communities in Michigan  McDonald’s is an investment grade tenant (S&P: A)  No landlord responsibilities  Average household income in excess of $88,000 within five miles of the property  Brand new construction  Traffic volume along Grand River Avenue in excess of 20,000 VPD  9% rental escalation in the primary term  20% rental escalation in the first renewal option  Approximately 200,000 people living within five miles of the property DEMOGRAPHICS Population: Total Households Avg. Household Income: 1-MILE 13,251 6,278 $78,947 3-MILE 70,039 29,811 $88,226 5-MILE 194,470 81,333 $88,430 MCDONALD’S (GROUND LEASE) FARMINGTON HILLS, MI (AFFLUENT DETROIT SUBURB)
    • NET LEASE OPPORTUNITY Randy Blankstein | President 847.562.0003 rblank@bouldergroup.com Jimmy Goodman |Partner 847.562.8500 jimmy@bouldergroup.com www.bouldergroup.com LOCATION OVERVIEW Farmington Hills is an affluent community in southeastern Michigan and the second largest city in Oakland County. At the time of the 2010 U.S. Census, the population in Farmington Hills was 79,740. Farmington Hills is located 25 miles northwest of downtown Detroit and 30 miles northeast of Ann Arbor. Farmington Hills consistently ranks as one of the safest cities in the United States, as well as in the state of Michigan. In 2010, the area ranked as the 30th safest city in America by CQ Press and Sage Publications The largest employers in Farmington Hills include Botsford Hospital, Bosch, Gale, TD Auto Finance, Nissan Technical Center of North America and Quicken Loans. In April 2013, Farmington Hills had an unemployment rate of 6.3%, a full percent lower than the national average. Detroit is the largest city in the state of Michigan and the county seat of Wayne County. At the time of the 2010 U.S. Wayne County was ranked as the 15th most populous county in the United States with a population of 1,820,584. The Detroit MSA is the 13th most populated metropolitan area in the United States with 4,296,250 residents. The Detroit metropolitan area, commonly referred to as Metro Detroit, is widely known as the automobile industry hub of North America. Most notably, Detroit is known for the “Big Three” automobile companies, General Motors, Ford and Chrysler, all headquartered in Metro Detroit. The Detroit auto industry employs over 70,000 people. Downtown Detroit is home to the Compuware world headquarters, Blue Cross Blue Shield, HP Enterprise Services, and Quicken Loans, who recently relocated its headquarters and 4,000 employees downtown. Detroit also benefits from the casino gaming industry. Detroit is the largest city in the United States to offer casino resort hotels and is home to the MGM Grand Detroit, MotorCity Casino and Greektown Casino. MCDONALD’S (GROUND LEASE) FARMINGTON HILLS, MI (AFFLUENT DETROIT SUBURB)