The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant McDonald\u2019s ground lease located at 6126 Hickory Flat Highway in Canton, Georgia for $1,370,000.<\/p>\n
The 4,024 square foot \u00a0single tenant McDonald\u2019s is strategically positioned on Hickory Flat Highway, the primary artery connecting Cherokee County and Fulton County.\u00a0 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).\u00a0 The property is located across the street of the Hickory Flat Village anchored by Publix Supermarket, Wells Fargo Bank, Advanced Auto Parts and GNC.\u00a0 Other retailers in the area include Kroger Supermarket, CVS Pharmacy and many other restaurants.\u00a0 The property features a double drive-through.<\/p>\n
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.<\/p>\n
McDonald\u2019s has approximately 9 years remaining on their 20 year lease which expires April 30, 2025.\u00a0 This triple net ground lease features a 10% rent escalation in May 2020 and four 5-year renewal option periods with 10% escalations.\u00a0 McDonald\u2019s is a publicly traded company on the New York Stock Exchange (MCD) and an investment grade rated company with a Standard & Poor\u2019s rating of BBB+.<\/p>\n
\u201cThe market for ground leases with investment grade tenants remains strong as investors are attracted to the typical long term leases with rental escalations.\u201d said Randy Blankstein, President of The Boulder Group.\u00a0 Jimmy Goodman, Partner of The Boulder Group, added, \u201cThe market for McDonald\u2019s ground leases remains active as investors are attracted to investment grade tenanted properties with long term leases.\u201d<\/p>\n