Single Tenant McDonald’s Sale Arranged Date December 5, 2016
The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant McDonald’s ground lease located at 6126 Hickory Flat Highway in Canton, Georgia for $1,370,000.
The 4,024 square foot single tenant McDonald’s is strategically positioned on Hickory Flat Highway, the primary artery connecting Cherokee County and Fulton County. The location has multiple points of ingress and egress and offers excellent visibility from the heavily trafficked intersection of Hickory Flat Highway & E. Cherokee Drive (approximately 24,000 VPD). The property is located across the street of the Hickory Flat Village anchored by Publix Supermarket, Wells Fargo Bank, Advanced Auto Parts and GNC. Other retailers in the area include Kroger Supermarket, CVS Pharmacy and many other restaurants. The property features a double drive-through.
Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller in the transaction, a private real estate trust. The buyer is an east coast private investor.
McDonald’s has approximately 9 years remaining on their 20 year lease which expires April 30, 2025. This triple net ground lease features a 10% rent escalation in May 2020 and four 5-year renewal option periods with 10% escalations. McDonald’s is a publicly traded company on the New York Stock Exchange (MCD) and an investment grade rated company with a Standard & Poor’s rating of BBB+.
“The market for ground leases with investment grade tenants remains strong as investors are attracted to the typical long term leases with rental escalations.” said Randy Blankstein, President of The Boulder Group. Jimmy Goodman, Partner of The Boulder Group, added, “The market for McDonald’s ground leases remains active as investors are attracted to investment grade tenanted properties with long term leases.”
About The Boulder Group
The Boulder Group is a boutique investment real estate service firm specializing in single tenant net lease properties. The firm provides a full range of brokerage, advisory, and financing services nationwide to a substantial and diversified client base, which includes high net worth individuals, developers, REITs, partnerships and institutional investment funds. Founded in 1997, the firm has arranged the acquisition and disposition of over $3 billion of single tenant net lease real estate transactions. From 2010-2015, the firm was ranked in the top 10 companies in the nation for single tenant retail transactions by both Real Capital Analytics and CoStar. The Boulder Group is headquartered in suburban Chicago. www.bouldergroup.comBack