Brandywine Crossing - McDonald's Offering ...

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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

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Washington, DC metro location 10 miles south of Capital Beltway and Andrews Air Force Base

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Outparcel to 800,000 sf power center featuring Target, Costco, Safeway and 16 screen Great Escape Theater

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20 year Ground Lease

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High barrier location due to entitlement restrictions

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Traffic count of 85,000 cars per day

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Strong demographics, $90,000+ household income

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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

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