NET LEASED INVESTMENT OFFERING
Representative Photo
McDonald’s Ground Lease Brandywine, MD
Faison is pleased to offer for sale to qualified buyers an attractive ground lease with McDonald’s located in Brandywine, Maryland. McDonald’s restaurants are found in 119 countries and territories around the world and serve 68 million customers each day. McDonald’s operates over 34,000 restaurants worldwide.
DC METRO GROUND LEASE Offering Price: $2,220,000 Cap Rate: 4.25% Investment Highlights
FOR ADDITIONAL INFORMATION PLEASE CONTACT:
Peter Robinson Phone: Email:
704-972-2613
[email protected] David Lampke Phone: Email:
704-972-2519
[email protected] Faison & Associates
121 W. Trade Street, 27th Floor Charlotte, NC 28202 Main: 704-972-2500 Fax: 704-972-2680 www.faison.com
Washington, DC metro location 10 miles south of Capital Beltway and Andrews Air Force Base
Outparcel to 800,000 sf power center featuring Target, Costco, Safeway and 16 screen Great Escape Theater
20 year Ground Lease
High barrier location due to entitlement restrictions
Traffic count of 85,000 cars per day
Strong demographics, $90,000+ household income
Offered free and clear of existing debt
NET LEASED INVESTMENT OFFERING
McDonald’s — Brandywine Crossing — Brandywine, MD
Tenant Overview McDonald's Corporation is the world's largest chain of quick-service restaurants (QSR), serving nearly 68 million customers daily, with about 35,000 restaurants serving burgers and fries in about 119 countries. McDonald's Corporation franchises and operates McDonald's restaurants that serve a varied, limited, value-priced menu in more than 100 countries globally. McDonald's restaurants are either company-owned and operated or operated by franchisees. Nearly 80% of the restaurants are run by franchisees or affiliates. The corporations' revenues come from the rent, royalties and LEASE ABSTRACT
fees paid by the franchisees, as well as sales in company
Location:
US Route 301 & Timothy Branch Drive Brandywine, MD 20613
Offering Price:
$2,220,000
Cap Rate:
4.25%
Tenant:
McDonald’s USA, LLC
Building Size:
4,587 sf
largest restaurant company in the world and one of the
Land Area:
+/- 45,055 sf
most profitable in the industry.
Year Built:
2013
Base Lease Term:
20 years, 10/23/13 commencement, 10/22/2033 expiration
Renewal Options: Annual Rent:
-operated restaurants. 2013 total revenue exceeded $28 billion and McDonald’s net worth is in excess of $16 billion. McDonald’s is the
Base Rent Schedule: Years
Rent
Rent/SF
Six (6), Five (5) year options
Current - Years 1-20
$94,406
$20.58
$94,406
Option 1 - Years 21-25
$138,220
$30.13
Rent Increases:
In option periods
Option 2 - Years 26-30
$152,042
$33.15
Lease Type:
Ground Lease. Tenant pays the taxes on their parcel and a pro-rata share of the common area expenses, estimated at $6,000 annually for year 1
Option 3 - Years 31-35
$167,246
$36.46
Option 4 - Years 36-40
$183,971
$40.11
Option 5 - Years 41-45
$202,368
$44.12
Option 6 - Years 46-50
$183,971
$48.53
Option To Purchase:
In year 21, for a sum that is the greater of (i) Fair market Value or (ii) 7.125% cap
BC 2
NET LEASED INVESTMENT OFFERING
McDonald’s — Brandywine Crossing — Brandywine, MD
Project Description Located in Maryland’s fastest growing region, the 800,000 square foot Brandywine Crossing serves as the regional retail center for a major portion of southern Maryland. Phase I of the project includes Costco, Target, Safeway, Marshalls and Jo-Ann Fabrics & Craft, and one or two additional anchors along with 60,000 square feet of specialty retail and several out parcels. Phase II, which totals an additional 30 acres, includes a 60,000 square foot 16 screen Great Escape Theater, CarMax, specialty retail, and restaurants (including Hanabi Japanese Steakhouse, Fuddruckers and McDonald’s). Location Brandywine Crossing is located at the intersection of US Route 301/MD Route 5 and Chadds Ford (Prince George’s County), MD 10 miles south of the Capital Beltway and Andrews Air Force Base. The existing critical mass of retail, 85,000 cars per day traffic count, and difficult entitlement barriers combine to create a scarce quality investment opportunity. Demographics Brandywine Crossing is located at the confluence of the most heavily traveled road network serving the Southern Maryland region, offering the greatest and most convenient reach to this regions’ growing population base. Population Average Household Income Households Total Business Establishments Total Daytime Employment
3 MILE
5 MILE
7 MILE
16,846
54,926
129,407
$106,384 $106,175
$108,430
5,957
19,450
44,803
424
2,309
3,717
4,800
25,710
40,798
BC 3
Brandywine Crossing
NET LEASED INVESTMENT OFFERING
McDonald’s — Brandywine Crossing — Brandywine, MD
Brandywine Crossing
BC 4
NET LEASED INVESTMENT OFFERING
McDonald’s — Brandywine Crossing — Brandywine, MD
BC 5
NET LEASED INVESTMENT OFFERING
McDonald’s — Brandywine Crossing — Brandywine, MD
BC 6
NET LEASED INVESTMENT OFFERING
McDonald’s — Brandywine Crossing — Brandywine, MD
BC 7
Built On Reputation
BC 8