McDonald’s Corp. is once again facing pressure to spin off its real estate holdings, as shareholder and hedge fund manager Larry Robbins claims the move could unlock $20 billion in value. McDonald’s owns 70 percent of its restaurant buildings and 45 percent of the land those buildings are built on at a time when net-leased real estate is highly prized.
The market reacted positively to Robbins’ suggestion, as the company’s shares rose by almost 2 percent on Monday, according to The Street.
As a long-term investor, you don’t want to trade short-term cash for long-term competitive advantage. This is exactly what the real estate assets are to McDonald’s.
Our net lease selection of this week is McDonald’s.
Northwest corner of 35TH AND SOUTHERN AVENUES
PHOENIX, ARIZONA, USA
SINGLE TENANT ABSOLUTE NNN INVESTMENT (NNN CRE)
- PRICE: $1,842,000
- CAP RATE: 3.8%
- RENTABLE SF: ±5,000 SF
- LAND SF: ±58,990 SF
- McDonald’s absolute NNN single tenant ground lease investment opportunity
- McDonald’s corporate guarantee
- Brand new 20 year ground lease
- 10% rental increases every five years in the initial term and option periods
- Over 31,042 vehicles per day at the intersection
- McDonald’s is publically traded (NYSE Symbol: MCD) with a S&P “A” investment grade credit rating
- McDonald’s has approximately 35,000 locations in over 100 countries worldwide
- Low ground lease rent of $69,996 per year
- This site is located on the hard corner and sits on ±1.35 acres of land
Related NNN CRE information
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3592 Rosemead Boulevard – Rosemead – California 91770