offering memorandum.
McDonald’s Ground Lease
Jacksonville, NC
$1,875,000
4.00% CAP Rate
••Corporate Absolute NNN Ground Lease
•McDonald’s
•
Corporation is Rated “A-” by S&P
••2014 Construction
••Located in Northpoint Commons Shopping Center
••
•Hard
• Corner Location at Signalized Intersection
••Excellent Visibility & Access along Major Arterials
••
•Highly
• Desirable Market
••
••
~19 Years Remaining
Anchored by Lowes Foods Supermarket
Gum Branch Road & Western Boulevard – 42,000 AADT
Forbes Ranked Jacksonville the 5th Fastest Growing Small
City in the United States in 2014
ACTUAL SITE
This property is listed in conjunction with North Carolina-licensed real estate broker New South Properties of the Carolinas, LLC.
www.maffiateam.com
Disclaimer
Newmark Cornish & Carey (“Broker”) has been retained on an exclusive basis to
market the property described herein (“Property”). Broker has been authorized
by the Seller of the Property (“Seller”) to prepare and distribute the enclosed
information (“Material”) for the purpose of soliciting offers to purchase from
interested parties. More detailed financial, title and tenant lease information may
be made available upon request following the mutual execution of a letter of intent
or contract to purchase between the Seller and a prospective purchaser. You are
invited to review this opportunity and make an offer to purchase based upon your
analysis. If your offer results in the Seller choosing to open negotiations with you,
you will be asked to provide financial references. The eventual purchaser will be
chosen based upon an assessment of price, terms, ability to close the transaction
and such other matters as the Seller deems appropriate.
The Material is intended solely for the purpose of soliciting expressions of interest
from qualified investors for the acquisition of the Property. The Material is not to be
copied and/or used for any other purpose or made available to any other person
without the express written consent of Broker or Seller. The Material does not
purport to be all-inclusive or to contain all of the information that a prospective
buyer may require. The information contained in the Material has been obtained from
the Seller and other sources and has not been verified by the Seller or its affiliates.
The pro forma is delivered only as an accommodation and neither the Seller, Broker,
nor any of their respective affiliates, agents, representatives, employees, parents,
subsidiaries, members, managers, partners, shareholders, directors, or officers,
makes any representation or warranty regarding such pro forma. Purchaser must
make its own investigation of the Property and any existing or available financing,
and must independently confirm the accuracy of the projections contained in the
pro forma.
Seller reserves the right, for any reason, to withdraw the Property from the market.
Seller has no obligation, express or implied, to accept any offer. Further, Seller has
no obligation to sell the Property unless and until the Seller executes and delivers
a signed agreement of purchase and sale on terms acceptable to the Seller, in
its sole discretion. By submitting an offer, a purchaser will be deemed to have
acknowledged the foregoing and agreed to release Seller and Broker from any
liability with respect thereto.
Table of Contents
Property Information
1
Tenant Information
2
site plan
3
aerials
4
about the area
7
Demographics
9
Property walk-throughs are to be conducted by appointment only. Contact Broker
for additional information.
Michael Yuras, CCIM
Vice President
415.481.0788
myuras@newmarkccarey.com
CA RE License #01823291
www.maffiateam.com
Property Information
Location
The property is located at 2401 Gum Branch Road in Jacksonville,
North Carolina.
Net Operating Income
Rent
Return
1-5
$75,000
4.00%
6-10
$82,500
4.40%
Lot Size
11-15
$90,750
4.84%
Approximately 1.147 acres, or 49,960 square feet. Only the land is for
sale.
16-20
$99,825
5.32%
Improvements
Construction was completed in July 2014 of an approximately
4,525 square foot quick-service restaurant building with a doubledrive-thru component for McDonald’s. The improvements were
built by tenant and shall remain property of tenant during the
term of the lease, and upon expiration or termination of the lease,
title to all such improvements shall become vested in landlord; the
improvements are not for sale.
Parking
There are 39 parking spaces on site.
Ground Lease
Leased to McDonald’s USA, LLC, for 20 years from July 2014 to July
2034 at an initial annual net rent of $75,000. There are six five-year
options to renew the lease. The rent increases by 10% every five
years throughout the initial term and by 12% in the option periods.
The lease is absolute net, with the tenant responsible for taxes,
insurance, and all maintenance, including roof and structure.
Years
21-25
(Option 1)
$111,804
5.96%
26-30
(Option 2)
$125,221
6.68%
31-35
(Option 3)
$140,247
7.48%
36-40
(Option 4)
$157,077
8.38%
41-45
(Option 5)
$175,926
9.38%
46-50
(Option 6)
$197,037
10.51%
Price: 1,875,000 (4.00% Return)
Financing
The property will be delivered free and clear of permanent
financing.
Right of First Offer to Purchase
If during the term landlord desires to offer to sell the premises,
then landlord will give tenant 25 days’ notice of such offer setting
forth amount of the proposed purchase price and all other terms
and conditions of such offer. Tenant shall have the first option to
purchase the premises with such 25 day period.
1
Tenant Information
McDonald’s Corporation (NYSE: “MCD”), together with its subsidiaries, operates as a worldwide foodservice retailer. It
franchises and operates McDonald’s restaurants that offer various food items, soft drinks, coffee, and other beverages.
McDonald’s is the world’s largest chain of hamburger fast food restaurants, serving around 69 million customers daily in
119 countries across 35,000 outlets. The company operated over 36,000 restaurants in 119 countries. More than 80% of
their restaurants worldwide are owned and operated by Franchisees. McDonald’s Corporation was founded in 1948 and is
based in Oak Brook, Illinois.
For the recent quarter ended June 30, 2015, McDonald’s Corporation reported revenues of $6.498 billion with net income of $1.202 billion and net
worth of $10.561 billion. McDonald’s Corporation is rated “A-” by Standard & Poor’s and is ranked #106 on the 2014 Fortune 500.
McDonald’s USA, LLC, the entity on the lease, is a subsidiary of McDonald’s Corporation. It had 2007 sales of $8.455 billion and employed
approximately 390,000 people. More recent financials are not readily available. This is a corporate lease.
2
Site Plan
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About the Area
General Overview
Onslow County, with a population of 177,772, is
made up of five towns along the coast of North
Carolina, including the county seat of Jacksonville
(70,115 people). Jacksonville is thriving. In 2014
Forbes Magazine ranked Jacksonville as the 5th
fastest-growing small city in the United States and
demographically it is the youngest city in the United
States. Jacksonville’s strong economy is fueled by
a skilled workforce and a large military presence.
There are over 134,000 Marines and Sailors stationed
at nearby Marine Corps Base (MCB) Camp Lejeune
and Marine Corps Air Station (MCAS) New River.
MCB Camp Lejeune, one of the largest bases in the
country, is the home of the II Marine Expeditionary
Force, the newly created U.S. Marine Corps Forces
Special Operations Command, and Marine Corps
Installations East – which implements policy,
develops strategy and allocates resources across
Marine Corps installations throughout the East Coast.
MCAS New River supports and enhances the Marine
Corps Aviation Combat Element, including serving
as the Marine Corps’ training center for the MV-22
“Osprey” aircraft.
About the Area
Site Information
The subject property is strategically situated on the
northwest corner of Gum Branch Road and Western
Boulevard. It benefits from excellent visibility and
access along these major arterials, which collectively
experience an annual average daily traffic count of
approximately 42,000 vehicles in front of the site. The
subject property serves as an outparcel to Northpoint
Commons Shopping Center, a 57,500 square foot
neighborhood center. The center is anchored by a
49,195 square foot Lowes Foods Supermarket and
will be home to several other national and regional
retailers including a freestanding Dunkin’ Donuts.
The concentration of retail in the immediate area
gives rise to excellent exposure at this signalized
intersection. CVS Pharmacy and Food Lion operate
within the northwest quadrant of the intersection.
The grocer-anchored center features such tenants
as Wendy’s, Domino’s Pizza, and Tokyo Express
Grill. Additionally, Western Boulevard has been
experiencing major growth as a retail corridor.
Traveling approximately two miles southeast along
Western Boulevard are a number of retail centers
which contain national credit retailers such as Target,
Sam’s Club, Walmart, Dick’s Sporting Goods, Ross
Dress for Less, and Chipotle, among others. Coastal
Carolina Community College, one of the largest
employers in Jacksonville, is located within close
proximity to the subject property. Adjacent to the
college is Jacksonville Mall, which is the market’s only
regional mall within 50 miles. The mall encompasses
over 495,000 square feet of retail area and includes
anchors such as J.C. Penney and Sears. Other notable
stores and restaurants within the mall include Forever
21, ULTA, Chick-fil-A, Starbucks, Belk and Red Robin,
among others.
Demographics
2401 Gum Branch Rd, Jacksonville, NC 28546
1 Mile
3 Miles
5 Miles
2010 Total Population
5,612
30,295
60,206
2015 Total Population
8,344
37,444
67,763
2020 Total Population
9,885
42,733
74,923
2015-2020 Annual Rate
3.45%
2.68%
2.03%
2015
$60,505
$60,664
$57,494
2020
$65,337
$66,287
$63,608
2015
$182,220
$176,467
$176,420
2019
$201,187
$199,501
$201,083
Population Summary
Average Household Income
Median Home Value
Major Employer - Onslow County
# of Employees
Defense Ex Army Navy Air Force
1,000+
Department of Defense
1,000+
Onslow County Board of Education
1,000+
Camp Lejeune Mccs
1,000+
Wal-Mart Associates Inc.
1,000+
County of Onslow
1,000+
Onslow Memorial Hospital
1,000+
Food Lion
500-999
Coastal Carolina Community College
500-999
Convergy's Customer Mgmt. Group
500-999
9
901 Mariners Island Boulevard, Suite 120
San Mateo, CA 94404
Michael Yuras, CCIM
Vice President
415.481.0788
myuras@newmarkccarey.com
CA RE License #01823291
www.maffiateam.com