cal EXCLUSIVE LISTING Memphis, TN · McDonald’s Memphis, TN Offering Memorandum High Growth...

McDonald’s | Memphis, TNOffering Memorandum

SHEREE STROME, CCIMASSOCIATE DIRECTOR

(404) 900-5629 [email protected]

KEELEE PETERSONASSOCIATE DIRECTOR


Actual Site

EXCLUSIVE LISTINGOffering Memorandum

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C A L K A I N .C O MC A L K A I N .C O M

McDonald’s (Ground Lease) | Memphis, TN


Investment Highlights • Corporate lease

• Location established in 1966

• Newly constructed building (2008)

• Strong traffic counts

• Located off I-240

• McDonald’s has a 30 day Right of First Refusal

3068 S Perkins Rd | Memphis, TN 38118

Asking Price $1,025,000 | Cap Rate 5.20%

Net Operating Income (NOI) $53,174

Rent/Month $4,432

Rent/SF $12.20

Rentable Square Feet 4,360+/- SF

Land Area 0.92+/- Acres

Tenant Name McDonald’s

Credit Rating S&P: BBB

Stock Symbol NYSE: MCD

Guarantor Corporate

Lease Type Ground Lease

Landlord Responsibilities None

Store Opened 1966

Renovated 2008

Lease Term Remaining 4 Years, 9 Months

Rent Commencement 1966

Lease Expiration January 19, 2023

Increases 10% Every 5 Years

Options Two (2), Five (5) Year

McDonald’s has a 30 day Right of First Refusal

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Financial Summary


Site Photos

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High Growth Markets

• Relatively higher restaurant expansion and franchising potential

• 8 key markets across Asia and Europe (China, Korea, Russia, Poland, Italy, Spain, the Netherlands and Switzerland)

• All share a similar landscape of unpenetrated growth

Foundational Markets

• Largest and most diverse geographical segment spanning over 80 markets across parts of Asia, Europe, Middle East & Africa and Latin America

• Markets with potential to operate under a largely franchised model

• Contains almost all of their DL markets globally

• Home to about 60% of the world’s population and represents about one third of global GDP growth

About McDonald’sMcDonald’s is the world’s leading global food service retailer with over 36,000 locations in over 100 countries. More than 80% of McDonald’s restaurants worldwide are owned and operated by independent local business men and women.

Reporting SegmentsBeginning July 1, 2015, McDonald’s started operating under a new organizational structure with the following four segments that combine markets with similar characteristics, challenges, and opportunities for growth:

U.S. Market

• The U.S. is the largest market in the McDonald’s System in terms of number of restaurants, revenues and operating income

• McDonald’s has a unique and powerful field organizational structure that, when optimized, gives them a significant competitive advantage

International Lead Markets

• Includes some of the largest, best resources and most established markets in the System with strong, developed economies and, in most cases, similar competitive dynamics and opportunities for growth

• Operating from a position of strength: largely reimaged asset base signifi-cant McCafé presence across most markets, and high average unit volumes and franchisee cash flows

• Track record of innovation and sustained investment, particularly around their menu, operations and brand

Tenant Snapshot# of Locations

36,000+

Stock SymbolNYSE: MCD

Credit RatingS&P: BBB+

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Tenant Overview



240 Perkins Rd 31,204 VPD

159,235 VPD

Knight Arnold RoadSubject Site

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Perkins Rd 31,204 VPD

1 Mile to I-240240

Subject Site

GATTAS PLAZA SHOPPING CENTER

Knight Arnold Road 18,750 VPD

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https://www.google.com/maps/@35.0650978,-89.9056079,3a,75y,128.01h,92.14t/data=!3m6!1e1!3m4!1sbfMqV4Xcxnc2lgYONLbqjA!2e0!7i13312!8i6656


Perkins Rd 31,204 VPD


Subject Site GATTAS PLAZA SHOPPING CENTER

Knight Arnold Road 18,750 VPD

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40

40

Distance To:Jackson, TN 80 miles

Huntsville, AL 203 miles

Nashville, TN 207 miles Nashville, TN

Huntsville, AL

Jackson, TN

Memphis, TN

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Location Overview

Subject Site

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Radius 1 Mile 3 Miles 5 MilesPopulation2017 Population 17,539 84,457 201,232

2022 Population 18,054 86,512 206,077

2010-2017 Annual Rate 0.66% 0.51% 0.49%

2017-2022 Annual Rate 0.58% 0.48% 0.48%

2017 Male Population 48.4% 47.8% 47.1%

2017 Female Population 51.6% 52.2% 52.9%

2017 Median Age 29.3 31.5 33.5

Households2017 Total Households 5,572 30,266 77,397

2022 Total Households 5,717 30,931 79,141

2010-2017 Annual Rate 0.54% 0.39% 0.42%

2017-2022 Annual Rate 0.52% 0.44% 0.45%

2017 Average Household Size 3.15 2.78 2.56

Median Household Income2017 Median Household Income $36,068 $38,278 $41,941

2022 Median Household Income $37,483 $40,834 $45,725

2017-2022 Annual Rate 0.77% 1.30% 1.74%

Average Household Income2017 Average Household Income $45,812 $51,479 $65,185

2022 Average Household Income $50,801 $57,728 $72,369

2017-2022 Annual Rate 2.09% 2.32% 2.11%

Per Capita Income2017 Per Capita Income $14,520 $18,692 $25,360

2022 Per Capita Income $16,046 $20,899 $28,075

2017-2022 Annual Rate 2.02% 2.26% 2.05%

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Demographics

Demographics | 3 Mile Radius


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AGE PYRAMID


Memphis, TNMemphis is a city in the southwestern corner of the U.S. state of Tennessee and the county seat of Shelby County. The city is located on the fourth Chickasaw Bluff, south of the confluence of the Wolf and Mississippi rivers.

Memphis had a population of 652,717 in 2016, making it the second largest city in the state of Tennessee. The greater Memphis metropolitan area, including adjacent counties in Mississippi and Arkansas, had a 2014 population of 1,317,314. This makes Memphis the second-largest metropolitan area in Tennessee, surpassed by metropolitan Nashville.

Memphis is the youngest of Tennessee’s major cities, founded in 1819 as a planned city by a group of wealthy Americans including judge John Overton and future president Andrew Jackson. A resident of Memphis is referred to as a Memphian, and the Memphis region is known, particularly to media outlets, as Memphis and the Mid-South.

Downtown Memphis rises from a bluff along the Mississippi River. The city and metro area spread out through suburbanization, and encompass southwest Tennessee, northern Mississippi and eastern Arkansas. Several large parks were founded in the city in the early 20th century, notably Overton Park in Midtown and the 4,500-acre Shelby Farms. The city is a national transportation hub and Mississippi River crossing for Interstate 40, (east-west), Interstate 55 (north-south), barge traffic, Memphis International Airport (FedEx’s “SuperHub” facility) and numerous freight railroads that serve the city.

In 2013, USA Today readers voted Beale Street as America’s Best Iconic Street and Graceland as the Best Iconic American Attraction. The National Civil Rights Museum (at the Lorraine Motel, the site of Rev. Martin Luther King’s assassination) ranked third in the poll of national attractions.

Shelby County is located over four natural aquifers, one of which is recognized as the “Memphis Sand Aquifer” or simply as the “Memphis Aquifer”. Located 350 to 1,100 feet underground, this artesian water source is considered soft and estimated by Memphis Light, Gas and Water to contain more than 100 trillion US gallons of water.

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Market Overview


SHEREE STROME, CCIMASSOCIATE DIRECTOR


KEELEE PETERSONASSOCIATE DIRECTOR


Who Are We? Calkain Companies LLC is a national commercial real estate firm that provides consulting and brokerage services to both private and institutional clientele with an expertise on triple net lease investments. We pride ourselves on being a world class leader by providing our clients a full array of commercial real estate investment brokerage and asset management solutions, including advisory, research, estate planning and wealth management.

We have built solid relationships throughout our decades of experience and innovation, implementing long-term allocation within the context of each client’s particular risk tolerance and identifying how best to acquire and dispose of income producing properties for each entities’ specific set of investment criterion. At Calkain, our foresight and past performance are leading the net lease investment industry.

Our HistoryLike most success stories, Calkain was formulated from humble beginnings. Jonathan W. Hipp, President and CEO, took the initiative to build upon his decades of experience and performance and left a large international brokerage firm to become an independent and innovative leader within the triple net lease investment community. Armed with a sole employee and a single office, the firm has grown exponentially since its infancy in 2005.

With the growth in staff, seasoned professionals have been attracted to Calkain’s model of innovation, entrepreneurship and the fostering of long-lasting and meaningful relationships. Industry experts have joined Calkain in the hopes of implementing the skills they have honed in complementary aspects of real estate investment.

Through a tremendous endeavor, tireless hours have been committed to continually prove that Calkain is America’s Net Lease Company®. Its countless accolades received from the world’s leading business publications, including Forbes™, Fortune™ and the New York Times™ have confirmed that Calkain is a true leader in triple net lease investing services.

Client Testimonial

“USRA has worked with Calkain on numerous occasions. They have always been meticulous in their work ethic, providing superior service and extremely prompt attention to our needs. I highly recommend them.

- Jack Genende, Partner | U.S. Realty Advisors, LLC. (USRA)

$11.5 Billion in Closed Transactions

$350 Million

in Active Listings

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C A L K A I N .C O MC A L K A I N .C O M

About Calkain

DISCLAIMER: The information contained in this document is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Calkain and its subsidiaries, and should not be made available to any other person or entity without the written consent of Calkain. This document has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property(s). The information contained herein is not a substitute for a thorough due diligence investigation. Calkain and its subsidiaries have not made any investigation, and make no warranty or representation, with respect to the income or expenses for the subject property(s), the future projected financial performance of the property, the size and square footage of the property(s) and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regula-tions, 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(s). The information contained in this document has been obtained from sources we believe to be reliable; however neither Calkain and its subsidiaries nor the Seller have verified, and will not verify, any of the information contained herein, nor has Calkain and its subsidiaries or the Seller conducted any investigation regarding these matters and make 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.

Corporate Headquarters Washington, DC12930 Worldgate Drive | Suite 150 Herndon, VA 20170 T: (703) 787-4714 • F: (703) 787-4783

Fort Lauderdale200 SW 1st Avenue | Suite 880 Fort Lauderdale, FL 33301 T: (813) 282-6000

Atlanta111 Village Parkway, Building 2 | Suite 202 Marietta, GA 30067 T: (404) 900-5629

Boston101 Federal Street | Suite 1900 Boston, MA 02110 T: (617) 261-8584

CALKAIN.COM

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