August 12, 2012 Bulletin St. Brigid Parish, Friendsville, PA
McDonald’s - LoopNet · Fairmount Fall Branch Finger Finley Friendship Friendsville Gadsden...
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OFFERING MEMORANDUM 10 More Years Remaining on NNN Ground Lease CORDOVA TENNESSEE McDonald’s
Transcript of McDonald’s - LoopNet · Fairmount Fall Branch Finger Finley Friendship Friendsville Gadsden...
O F F E R I N G M E M O R A N D U M
10 More Years Remaining on NNN Ground Lease
C O R D O V A T E N N E S S E E
McDonald’s
CONFIDENTIALITY AND DISCLAIMERThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure 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. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, 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. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap 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.
NON-ENDORSEMENT NOTICEMarcus & Millichap Real Estate Investment Services, Inc. (“M&M”) is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of M&M, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of M&M, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.
Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOURMARCUS & MILLICHAP AGENT FOR MORE DETAILS.
McDonald’s
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Lewisburg
Lexington
Lynn Garden
Manchester
Martin
McKenzie
Milan
Newport
Powell
Pulaski
Ripley
Rockwood
Savannah
Signal Mountain
Smyrna
Soddy-Daisy
Summit
WinchesterCleveland
Columbia
Hendersonville
Jackson
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Kingsport
Murfreesboro
Oak Ridge
Athens
Bartlett
Bloomingdale Bristol
Cedar Bluff
Cookeville
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East Ridge
Elizabethton
Franklin
Gallatin
Germantown
Greeneville
Halls
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Lebanon
Maryville
McMinnville
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Millington
Morristown
Paris
Red Bank
Shelbyville
Springfield
Tullahoma
Union City
Chattanooga
Knoxville
Clarksville
Memphis
Nashville
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NATCHEZ TRACE PKWY.
FOOTH
ILLS
PKW
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155
18124
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Investment Summary .........................................1
Investment Highlights.........................................2
Aerial Map .........................................................3
Location Map .....................................................4
Site Plan ............................................................7
Tenant Summary ................................................9
Location Summary ...........................................11
Demographics ..................................................13
Contact Information .........................................16
TABLE OF CONTENTS
McDonald’s
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McDonald’s
O V E R V I E W
Price $1,685,000
Gross Leasable Area (GLA) 3,400 SF
Lot Size (approx) 1.006 Acres
Net Operating Income $153,000
CAP Rate 4.20%
Year Built 2008
L E A S E A B S T R A C T
Lease Type NNN Ground Lease
Original Lease Term 22 Years
Lease Commenced 6/27/2006
Lease Expiration Date 1/26/2028
Renewal Options 4 Five-Year Options
Increases Written Into Lease
Roof & Structure Tenant Responsible
A N N U A L I Z E D O P E R AT I N G D ATA
Current $70,755
5/2022 $75,708
1/2028 - Option 1 $82,522
1/2033 - Option 2 $89,949
1/2038 - Option 3 $98,044
1/2043 - Option 4 $106,868
1206 N HOUSTON LEVEE ROAD, CORDOVA, TN 38018
PRICE: $1,685,000 CAP: 4.20% RENT: $70,755
INVESTMENT SUMMARY
McDonald’s
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INVESTMENT HIGHLIGHTS t True NNN Ground Lease commenced 6/2006
t Lease has 10 years remaining on base term before option periods
t Corporate guaranteed
t Out pad to a Kroger anchored shopping center
t Affluent Memphis suburb where average household income exceeds $110,244 (1 mile radius)
t Strong street visibility with ease of ingress/egress
8,721 VPD58,647 VPD
97,254TOTAL POPULATION WITHIN 5-MILE RADIUS
$110,244AVERAGE HOUSEHOLD INCOME WITHIN 1-MILE RADIUS
- MACON ROAD
- N GERMANTOWN PKWY
MACON ROAD - 8,721 VPD
N G
ERM
AN
TOW
N P
KW
Y - 5
8,64
7 VP
D
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McDonald’sWalgreens
Walgreens
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40
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69
269
269
240
240
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MEMPHISWEST
MEMPHIS
EARLE
ATOK A
MARION
MILLINGTON
ARLINGTON
BAR TLE T T
EAST MEMPHIS
CAPLE VILLESOUTHHAVEN
CORDOVA
OLIVE BRANCH
LAKELAND
GERMANTOWN
ROBINSONVILLE
ARKANSAS
TENNESSEE
MISSISSIPPI
McDonald’s
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Industrial Park Macon Hall Elementary School
McDonald’s
Mt. Pisgah Middle School
Cordova Elementary School
Cordova Middle School
Cordova High School
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McDonald’s
N H
OU
STO
N L
EVEE
RD
MACON RD
Kroger
Kroger Fuel C
enter
SITE PLAN
McDonald’s
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McDonald’s
MCDONALD’S
McDonald’s is the leading global food service retailer with more than 36,000 restaurants serving approximately 70 million people in more than 100 countries each day. More than 80% of McDonald’s restaurants worldwide are owned and operated by independent local men and women. McDonald’s is headquartered in Oak Brook, Ill.
The company began in 1940 as a barbecue restaurant operated by Richard and Maurice McDonald; in 1948 they reorganized their business as a hamburger stand using production line principles. Businessman Ray Kroc joined the company as a franchise agent in 1955. He subsequently purchased the chain from the McDonald brothers and oversaw its worldwide growth.
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.
TENANT SUMMARY
OAK BROOK, ILHEADQUARTERS
OWNERSHIP INDUSTRY
LOCATIONSFOUNDED
QUICK SERVICE RESTAURANT
36,000+1955
PUBLIC
CEO
STEPHEN EASTERBROOK
PRESIDENT
MIKE SMITH
MCDONALD’S
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McDonald’s
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269
240
240
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MEMPHISWEST
MEMPHIS
EARLE
ATOK A
MARION
MILLINGTON
ARLINGTON
BAR TLE T T
EAST MEMPHIS
CAPLE VILLESOUTHHAVEN
CORDOVA
OLIVE BRANCH
LAKELAND
GERMANTOWN
ROBINSONVILLE
ARKANSAS
TENNESSEE
MISSISSIPPI
LOCATION HIGHLIGHTS
Affluent Memphis Suburb Where Average
Household Income Exceeds $110,244
Cordova is One of the Safest Suburbs
in Memphis, TN
Minimal QSR Competition in the
Immediate Area
Out Pad to a Kroger Grocery
Center
CORDOVA, TNMEMPHIS MSA / SHELBY COUNTY
M A J O R E M P L O Y E R S : 2 0 1 7S H E L B Y C O U N T Y
FedEx Corp 30,000
Tennesse State Government 14,200
United States Government 13,200
Methodist Le Bonheur Healthcare 13,000
Shelby County Schools 11,500
City of Memphis 7,000
The Kroger Company 6,927
Wal-Mart Stores Inc. 6,800
Baptist Memorial Health Care Corp. 6,467
Naval Support Activity Mid-South 6,500
23 Miles to Memphis
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Cordova is a community in Shelby County Tennessee. It’s just east of Memphis. A majority of the community was annexed by Memphis. A train station, built in 1869 and still standing, runs through Cordova and was/is one of the main stops on one’s way to Memphis. Known for its farming capabilities, the community of Cordova grew from a quiet country farm area to one of the fastest growing neighborhoods of Memphis. Retail blew up at the end of the 20th century thanks to Wolfchase galleria shopping mall (located 6.4 miles from the McDonald’s).
Cordova enjoys an annual crafts fair to commemorate its history as well as having its own fourth of July parade.
Income per capita, household income, and family median income are all above the national average for the US within Cordova TN. Median rent per month as well as price per square foot of properties has steadily gone up within the last year with the crime rate being extremely low within the Cordova community. Since 2000 real estate has appreciated overall by 1.12% with most of the homes being anywhere from 3-4 bedrooms. Some of the highest cash flow is available in Cordova as well as the westward city of Memphis due to a high percentage of investors and
low purchase prices. One of the most stable places for real estate since it only declined about 3% in the 2008 stock market crash. Cordova is located Southeastward of the Isaac Hayes memorial Highway and Northeastward of Shelby Farms Park. Additionally, Cordova is just east of the Mississippi River.
The largest employers in the region are: Fedex, Shelby County School District with nearly 16,000 employees in the Shelby County, Methodist Le Bon Heur Healthcare Hospital with 1,765 licensed beds and 10,000 employees (located 9 miles from the site). The hospital treats more than 300,000 patients per year, and WalMart Stores is also among the top employers in the region employing over 6,500 and is located 5.4 miles from the McDonald’s.
In the immediate area, McDonald’s shares market share with Sonic and Burger King, both located across N Houston Levee Rd. Beyond these two unrelated QSR (Quick Service Restaurant) flags, there are no other comparable QSR’s in the immediate area services this neighborhood and school district.
CORDOVA, TN
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3 - M I L E R A D I U S
97,254Total Population Within 5-Mile Radius
$104,293Average Household Income
Within 5-Mile Radius
$77,403Median Household Income
Within 5-Mile Radius
3 8,073Total Households Within
5-Mile Radius
51.40% From 2000
DEMOGRAPHICS / CORDOVA, TN
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POPULATION 1 MILE 3 MILES 5 MILES2022 Projection
Total Population 11,787 38,865 110,6712017 Estimate
Total Population 9,174 31,659 97,2542010 Census
Total Population 8,181 29,455 92,0392000 Census
Total Population 2,582 14,547 65,248Current Daytime Population
2017 Estimate 5,539 19,651 68,659
HOUSEHOLDS 1 MILE 3 MILES 5 MILES2022 Projection
Total Households 4,351 14,560 43,7942017 Estimate
Total Households 3,304 11,595 38,073
Average (Mean) Household Size 2.82 2.74 2.552010 Census
Total Households 2,976 10,876 36,3302000 Census
Total Households 884 5,119 25,146Occupied Units
2022 Projection 4,351 14,560 43,7942017 Estimate 3,532 12,263 40,377
HOUSEHOLDS BY INCOME 1 MILE 3 MILES 5 MILES2017 Estimate
$150,000 or More 16.80% 16.62% 15.63%
$100,000 - $149,000 20.02% 20.75% 19.39%$75,000 - $99,999 16.02% 18.35% 16.74%$50,000 - $74,999 22.03% 20.50% 19.75%$35,000 - $49,999 7.91% 7.86% 10.63%Under $35,000 17.21% 15.92% 17.87%
Average Household Income $110,244 $107,830 $104,293
Median Household Income $78,853 $82,302 $77,403
Per Capita Income $39,758 $39,519 $40,905
HOUSEHOLDS BY EXPENDITURE 1 MILE 3 MILES 5 MILESTotal Average Household Retail Expenditure $79,202 $81,008 $78,095Consumer Expenditure Top 10 Categories Housing $20,745 $21,307 $20,511Transportation $14,295 $14,741 $14,048Shelter $11,871 $12,211 $11,660Personal Insurance and Pensions $8,527 $8,870 $8,291Food $8,390 $8,572 $8,233Health Care $5,073 $5,263 $5,165Utilities $4,716 $4,789 $4,632Entertainment $2,931 $3,082 $3,082Cash Contributions $2,588 $2,736 $2,624Apparel $2,348 $2,341 $2,169
POPULATION PROFILE 1 MILE 3 MILES 5 MILESPopulation By Age
2017 Estimate Total Population 9,174 31,659 97,254Under 20 31.47% 29.19% 26.20%20 to 34 Years 20.30% 20.08% 21.26%35 to 39 Years 8.03% 7.80% 6.95%40 to 49 Years 14.87% 14.92% 13.88%50 to 64 Years 17.18% 18.91% 20.14%Age 65+ 8.15% 9.11% 11.57%Median Age 33.88 35.47 36.82
Population 25+ by Education Level2017 Estimate Population Age 25+ 5,731 20,603 65,724Elementary (0-8) 1.52% 1.29% 1.18%Some High School (9-11) 2.62% 2.57% 2.54%High School Graduate (12) 19.83% 17.51% 17.84%Some College (13-15) 22.61% 23.74% 24.75%Associate Degree Only 7.86% 8.08% 7.45%Bachelors Degree Only 30.08% 30.23% 30.05%Graduate Degree 15.29% 16.36% 15.92%
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C O R D O V A T E N N E S S E E
McDonald’s
LIOR REGENSTREIFSENIOR MANAGING DIRECTOR INVESTMENTS
SENIOR DIRECTOR, NET LEASED PROPERTIES GROUPENCINO OFFICE
Tel: (818) 212-2730Fax: (818) 212-2710
[email protected]: CA 01267761
