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McDonald’s Absolute NNN Ground Lease$1,450,000 (4.02% Cap Rate)

Laurence SaperSenior Vice President310.436.1767 • [email protected] CA BRE Lic. #00886797

Confidential Offering Memorandum Presented By:

In Association With:Todd C. MinorA Licensed Texas Broker#0329879

2819 West WashingtonStephenville, TX




McDonald’s Absolute NNN Ground Lease2819 West WashingtonStephenville, TX

Disclaimer

No warranty, express or implied, is made as to the accuracy of the information contained herein. this information is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and is subject to any special listing conditions imposed by our principals. cooperating brokers, buyers, tenants and other parties who receive this document should not rely on it, but should use it as a starting point of analysis, and should independently confirm the accuracy of the information contained herein through a due diligence review of the books, records, files and documents that constitute reliable sources of the information described herein. NAI Capital CA BRE #01990696

Table of Contents

Executive Summary

Financial Summary

Location Information

Tenant Information

Retail Map

Location Maps

Site Plan

Demographics Map

Disclosures

I

II

III

IV

V

VI

VII

VIII

IX




Section I

Executive Summary

Property OverviewThe subject property has 12 years left and boasts high traffic counts and newer 2009

construction. This is a perfect 1031 opportunity with scheduled increases in the rent

and one of the best net leased guarantees in the industry.

Property Highlights

• Long Term NNN Ground Lease

• Zero Landlord Obligations

• 10% Increases in Rent every 5 Years

• S & P Rated BBB+ Investment Grade Credit- NYSE:MCD

• Close Proximity to Walmart, Starbucks, & Tarleton State University

• Tax Free State

Property Details

Price $1,450,000

CAP Rate 4.02%

CAP Rate April 2019 4.42%

Net Operating Income $58,299.96

Net Operating Income April 2019 $64,130.04

Building Size 5,360 SF

Lot Size 59,991 SF

Year Built 2009

McDonald’s - Absolute NNN Ground Lease





Section II

Financial Summary



Tenant Name McDonald’s

Square Footage 5,360 SF

Lot Size 59,991 SF

Lease Began 8/6/2008

Lease Ends 4/25/2029

Annual Rent$58,299.96 Currently

$64,130.04 April 2019

Increases 10% Every 5 Years

Options Six, 5 Year

Section II

Operating Summary

$1,450,000 (4.02% CAP RATE)

Operating Summary

Net Operating Income Cap Rate

CURRENT $58,299.96 4.02%

Apri l 2019 $64,130.04 4.42%

Apri l 2024 $70,542.96 4.87%

OPTION 1 $77,597.28 5.35%

OPTION 2 $85,357.08 5.89%

OPTION 3 $93,892.68 6.48%

OPTION 4 $103,281.96 7.12%

OPTION 5 $113,610.24 7.84%

OPTION 6 $124,971.24 8.62%









Section III

Location Information

20• Stephenville is the county seat of Erath County and has a population of approximately 21,950

(2017 estimate). It is located approximately 65 miles southwest of Fort Worth, Texas.

• Stephenville, Texas has also been included in Norman Crampton’s “100 Best Small Towns

in America” published by Prentice Hall, and is also sometimes referred to as the “Cowboy

Capital of the World”.

• The McDonalds sits at the front entrance to one of FMC Technologies manufacturing

facilities that employs approximately 500± workers at this location.

• Other major employers and schools in the area include:

• Walmart, Saint Gobain Abrasives, Tarleton State University – Stephenville

Campus, Stephenville ISD, Harris Methodist Hospital, HEB Grocers, Norton

Company and Schreiber Foods

• Other Neighboring Retailers and Businesses in the immediate vicinity include:

• Walmart Supercenter, Taco Bell, Jack-in-the-Box, Staples, Starbucks, KFC,

Subway, Chili’s, CVS, Walgreens, Cinemark Cinema 6, Tractor Supply, Anytime

Fitness, Bealls, AT&T, Whataburger, Farmer & Merchants Bank, Holiday Inn

Express, EconoLodge and a La Quinta Inn & Suites.

For additional information on the City of Stephenville, please visit www.StephenvilleTX.gov.

The Subject Property is located on the north side of State Highway 377 (W. Washington) between Wolfe Nursery Road and S. Lockhart Road in Stephenville, Texas.






Section IV

Tenant Information

McDonald’s Corporation operates and franchises McDonald’s

restaurants in the United States, Europe, the Pacific/Asia, the Middle East, Africa,

Canada and Latin America. The company’s restaurants offer various food products, soft

drinks, coffee, and other beverages.

As of December 31, 2016, it operated 36,899 restaurants, including 31,230 franchised

restaurants comprising 21,559 franchised to conventional franchisees, 6,300 licensed

to developmental licensees, and 3,371 licensed to foreign affiliates; and 5,669 company

operated restaurants. The company was founded in 1940 and is based in Oak Brook, Illinois.

Brand

Company Type Public (NYSE:MCD)

2016 Employees 375,000

2016 Net Income $4.68 Billion

Fiscal Year End December

2016 Revenue $24.62 Billion

2016 Assets $31.02 Billion

S & P Rating BBB+

Website www.mcdonalds.com






Section V

Retail Map






Section VI

Location Maps






Section VII

Siteplan

W Washington St






Section VIII

Demographics


2819 West WashingtonStephensville, TX

POPULATION 1 Mile 3 Miles 5 Miles

TOTAL POPULATION 3,439 10,168 18,051MEDIAN AGE 31.8 29.8 28.4MEDIAN AGE (MALE) 28.8 27.7 27.2MEDIAN AGE (FEMALE) 37.3 33.5 30.7

HOUSHOLDS & INCOME 1 Mile 3 Miles 5 Miles

TOTAL HOUSEHOLDS 1,230 3,674 6,691# OF PERSONS PER HH 2.8 2.8 2.7AVERAGE HH INCOME $52,106 $49,884 $48,109AVERAGE HOUSE VALUE $247,639 $166,403 $157,311

RACE 1 Mile 3 Miles 5 Miles

% WHITE 89.0% 88.6% 87.6%% BLACK 2.0% 1.9% 1.9%% ASIAN 3.2% 2.1% 1.3%% HAWAIIAN 0.3% 0.2% 0.1%% INDIAN 0.0% 0.1% 0.2%% OTHER 3.4% 5.1% 7.0%

ETHNICITY 1 Mile 3 Miles 5 Miles

% HISPANIC 11.2% 13.5% 15.3%




McDonald’s Absolute NNN Ground Lease2819 West WashingtonStephenville, TX

Disclaimer

This is a confidential Memorandum intended solely for your limited use and benefit in determining whether you

desire to express further interest in the acquisition of the Property. This Memorandum contains selected information

pertaining to the Property and does not purport to be a representation of the state of the affairs of the Property or

the owner of the Property (“Owner”), to be all-inclusive or to contain all or part of the information which prospective

investors may require to evaluate a purchase of real property. All financial projections and information are provided for

general reference purposes only and are based on assumptions relating to the general economy, market conditions,

competition and other factors beyond the control of the Owner and NAI Capital, Inc. Therefore, all projections,

assumptions and other information provided and made herein are subject to material variation. All references to

acreage, square footages, and other measurement are approximations. Additional information and an opportunity to

inspect the Property will be made available to interested and qualified prospective purchasers. In this Memorandum,

certain documents, including leases and other materials, are described in summary form. Theses summaries do not

purport to be complete nor necessarily accurate description of the full agreements referenced. Interested parties

are expected to review all such summaries and other documents of whatever nature independently and no rely on

the contents of this Memorandum in any manner. Neither the Owner or NAI Capital, Inc., nor any of their respective

directors, officers, Affiliates or representatives make any representation or warranty, expressed or implied, as to

the accuracy or completeness of this Memorandum or any of its contents, and no legal commitment or obligation

shall arise by reason of your receipt of this Memorandum or use of its contents; and you are to rely solely on your

investigations and inspections of the Property in evaluating a possible purchase of the real property. The Owner

expressly reserved the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase

the Property, and/or to terminate discussions with any entity at any time with or without notice which may arise as a

result of review of this Memorandum. The Owner shall have no legal commitment or obligation to any entity reviewing

this Memorandum or making an offer to purchase the Property unless and until written agreement(s) for the purchase

of the Property have been fully executed, delivered and approved by the Owner and any conditions to the Owner’s

obligations therein have been satisfied or waived. By receipt of this Memorandum, you agree that this Memorandum

and its contents are of a confidential nature, that you will hold and treat it in the strictest confidence and that you will

not disclose this Memorandum or any of its contents to any other entity without the prior written authorization of the

Owner or NAI Capital, Inc. You also agree that you will not use this Memorandum or any of its contents in any manner

detrimental to the interest of the Owner or NAI Capital, Inc.

Download - McDonald’s Absolute NNN Ground Lease - CoStar AHimages4.loopnet.com/d2/yuM1O8xu17YGwZ_3MgjchIHaR_NKaZHiNqn… · McDonald’s Absolute NNN Ground Lease $1,450,000 ... 310.436.1767

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