NET LEASE INVESTMENT OFFERING MCDONALD S (GL)

Transcription

1 MCDONALD S (GL) 2019 Spirit Lake Road Winter Haven, FL 33880

2 TABLE OF CONTENTS TABLE OF CONTENTS I. Executive Profile Executive Summary Investment Highlights Property Overview II. Location Overview Photographs Aerial Site Plan Map III. Market & Tenant Overview Demographic Report Market Overview Tenant Overview

3 DISCLAIMER STATEMENT DISCLAIMER STATEMENT: The information contained in the following Offering Memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from The Boulder Group and should not be made available to any other person or entity without the written consent of The Boulder Group. This Offering Memorandum 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. The Boulder Group has not made any investigation, and makes no warranty or representation. The information contained in this Offering Memorandum has been obtained from sources we believe to be reliable; however, The Boulder Group has not verified, and will not verify, any of the information contained herein, nor has The Boulder Group 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.

4 EXECUTIVE SUMMARY EXECUTIVE SUMMARY: The Boulder Group is pleased to exclusively market for sale a single tenant McDonald s ground lease located in Winter Haven, Florida. The property is strategically located immediately off of the signalized intersection of two primary thoroughfares in the area. McDonald s has 17 years remaining on their 20 year ground lease which expires October 14, The absolute triple net ground lease features rental escalations every five years of the primary term and in each of the eight 5-year renewal option periods. The next rental escalation is to occur in October The 1.53 acre property is strategically located immediately off of the signalized intersection of Spirit Lake Road and Winter Lake Road, two primary thoroughfares in Winter Haven. The intersection experiences traffic counts of 30,600 vehicles per day. Retailers located in the immediate area include Publix, CVS Pharmacy, Circle K, Shell and MIDFLORIDA Credit Union, one of the top credit unions in the state of Florida. Roughly five miles from the location is LEGOLAND Florida Resort, a 150-acre interactive theme park offers more than 50 rides, shows and attractions, restaurants, shopping, a botanical garden and the LEGOLAND Water Park. There are over 33,000 people living within a three mile radius of the property. There are 17 years remaining on the McDonald s ground lease featuring 10% rental escalation every five years in the primary term and in each of the eight 5-year renewal option periods. The McDonald s also features a double drive-thru and is in an income tax free state. McDonald s is the world s largest chain of hamburger fast food restaurants, serving over 68 million customers daily throughout 120 countries.

5 INVESTMENT HIGHLIGHTS INVESTMENT HIGHLIGHTS: Long term ground lease with 17 years remaining Absolute triple net with zero landlord responsibilities 10% rental escalations every 5-years (next escalation October 2019) Investment grade rated tenant (S&P: BBB+) Double drive-thru location positioned at a signalized intersection Located along two primary thoroughfares which experience traffic counts of 30,600 vehicles per day Over 33,000 people live within three miles of the property Retailers located in the immediate area include Publix, CVS Pharmacy, Shell and Circle K Roughly five miles from LEGOLAND Florida Resort Florida is an income tax free state

6 PROPERTY OVERVIEW PROPERTY OVERVIEW: Price: $1,750,000 Cap Rate: 4.00% 2019 Cap Rate: 4.40% Net Operating Income: $70,000 Rental Escalations: 10% Every 5-Years (next escalation October 2019) Renewal Options: Eight 5-Year; 10% Escalations Lease Commencement Date: October 15, 2014 Lease Expiration: October 14, 2034 Tenant: McDonald s USA, LLC Standard & Poor s Rating: BBB+ Year Built: 2014 Lease Type: Ground Lease - No Landlord Responsibilities Parking: 49 Spaces Building Size: 4,388 SF Land Size: 1.53 Acres Property Address: 2019 Spirit Lake Road, Winter Haven, FL 33880

7 PHOTOGRAPHS

8 AERIAL

9 SITE PLAN

10 MAP

11 MAP

12 DEMOGRAPHIC REPORT DEMOGRAPHIC REPORT: Population 1-Mile 3-Mile 5-Mile Total Population 7,383 33,139 77,326 Total Households 2,639 12,099 28,729 Income 1-Mile 3-Mile 5-Mile Median Household Income $53,160 $40,948 $38,417 Average Household Income $61,808 $52,502 $52,356

13 MARKET OVERVIEW MARKET OVERVIEW: Winter Haven, Florida Winter Haven is a city in Polk County, Florida situated between Tampa and Orlando. The city has a population of over 39,500 people and is a principal city of the Lakeland-Winter Haven Metropolitan Statistical Area. The City stretches over 40 square miles, eight of which take the form of sparkling, fun-filled lakes. Winter Haven is known as the Chain of Lakes City with two chains connected by a renovated canal. Several lakes have waterside parks and eateries, as well as boat ramps and water-sports rentals. On Lake Eloise, LEGOLAND Florida Resort includes Cypress Gardens, a 1930s botanical garden, and Lego-brick attractions, rides and a water park. West of the city, Circle B Bar Reserve has forest trails and alligator-inhabited wetlands. Winter Haven continues to experience steady, quality growth as it transforms into a distinctively unique City, embracing the values and needs of its residents. Partnerships and a cooperative spirit makes Winter Haven an attractive City for new businesses and entrepreneurs. The City s progress and success is owned by each of its residents, and planning for the future can never stop. Winter Haven is an exceptional destination offering all of life s desires within its boundaries.

14 TENANT OVERVIEW TENANT OVERVIEW: McDonald s McDonald s is the world s largest chain of hamburger fast food restaurants, serving over 68 million customers daily throughout 120 countries. 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. McDonald s restaurants offer customers counter service as well as drive-thru service. McDonald s owns approximately 18% of their restaurants, while the remainder of the stores are run my franchisee members or joint venture. McDonald s present corporation dates its founding to the opening of a franchised restaurant by businessman Ray Kroc in Des Plaines, Illinois on April 15, 1955, the ninth McDonald s restaurant overall. Kroc purchased the McDonald brothers equity in the company and led its worldwide expansion. McDonald s is a publically traded company on the New York Stock Exchange using symbol MCD. McDonald s is an investment grade rated company with a Standard & Poor s rating of BBB+. McDonald s moved their global headquarters to Chicago, Illinois in 2017 from Oak Brook, Illinois where they have had their offices since McDonald s USA, LLC, the tenant, operates and franchises McDonald s restaurants in the United States. The company was incorporated in 2004 and is based in Oak Brook, Illinois. McDonald s USA, LLC operates as a subsidiary of McDonald s Corporation. Website: Founded: 1955 Number of Locations: 36,900+ Number of Employees: 375,000+ Standard & Poor s Rating: BBB+ Stock Symbol: MCD (NYSE) Headquarters: Chicago, Illinois

15 Randy Blankstein President Jimmy Goodman Partner Dundee Road, Suite 1801 Northbrook, IL