McDonald’s (Ground Lease) - LoopNet

McDonald’s (Ground Lease)2315 West Ogden AvenueChicago, Illinois 60608

Net Lease Investment Offering

www.bouldergroup.com | Confidential Offering Memorandum| 2 |

McDonald’s | Chicago, IL

Offering SummaryExecutive Summary ................................................................... 1

Investment Highlights ............................................................. 2

Property Overview ...................................................................... 3

Location OverviewPhotographs ...................................................................................4

Location Aerials ............................................................................ 5

Site Plan ..............................................................................................6

Location Map ................................................................................. 7

Market OverviewDemographics ..............................................................................8

Market Overview ..........................................................................9

Tenant SummaryTenant Profile ............................................................................... 10

Table of Contents

TABLE OF CONTENTS


McDonald’s | Chicago, ILExecutive Summary

EXECUTIVE SUMMARY

The Boulder Group is pleased to exclusively market for sale a single tenant ground leased McDonald’s property located within Chicago, Illinois. The McDonald’s ground lease began on May 5, 2018 following the completion of construction. The ground lease features 20 years of term with 7.0% rental escalations every 5 years which continues through the eight 5-year renewal options.

The 4,247 square foot McDonald’s benefits from its location on a signalized hard corner along Ogden Avenue (20,000 VPD) and Roosevelt Road (25,900 VPD) which is a primary east – west thoroughfare. The property is well positioned in the Illinois Medical District which is occupied by entities such as University of Illinois at Chicago College of Pharmacy, Rush University Graduate College, The Department of Disability and Human Development, the FBI’s Chicago Field Office, and the Illinois State Police Forensic Laboratory. Retailers within the area include Costco Wholesale, Jewel-Osco, Chase Bank, Shell Gasoline, and Starbucks. There are 410,003 people living within 3 miles of the property with an average household income in excess of $89,000 annually.

The McDonald’s ground lease expires on May 27, 2038 and features eight 5-year renewal options. McDonald’s Corporation is an investment grade rated company (S&P: BBB+) and is the world’s largest chain of hamburger fast food restaurants, serving over 69 million customers daily throughout 100 countries. As of 2019, they have 38,695 restaurants total. This McDonald’s Property is located only 2 miles from the McDonald’s headquarters on West Randolph Street.



INVESTMENT HIGHLIGHTS

■ Over 17 years remaining on the primary lease term

■ 2018 Construction

■ NNN Ground Lease – no landlord responsibilities

■ 7.0% rental escalations every 5 years in primary term and options

■ Eight 5-year renewal options

■ Located in Chicago and 2 miles from the McDonald’s headquarters on West Randolph Street

■ McDonald’s is an investment grade rated company (S&P: BBB+)

■ Well positioned in the Illinois Medical District which is inhabited by entities such as University of Illinois at Chicago College of Pharmacy, Rush University Graduate College, The Department of Disability and Human Development, the FBI’s Chicago Field Office, and the Illinois State Police Forensic Laboratory

■ Retailers within the area include Costco Wholesale, Jewel-Osco, Chase Bank, Shell Gasoline, and Starbucks

■ There are 410,003 people living within 3 miles of the property with an average household income in excess of $89,000 annually

Investment Highlights



PROPERTY OVERVIEW

Price: $3,888,889

Cap Rate: 3.60%

Lease Commencement Date: 5/28/2018

Lease Expiration Date: 5/27/2038

NOI: $140,000

Renewal Options: Eight 5-year

Rental Escalations:7.0% every 5 years in primary term

and options

Lease Type: NNN – Ground Lease

Tenant: McDonald’s USA, LLC

Year Built: 2018

Building Size: 4,247 SF

Land Size: 0.89 AC

Property Overview


McDonald’s | Chicago, ILPhotographs


McDonald’s | Chicago, ILLocation Aerial


McDonald’s | Chicago, ILSite Plan


McDonald’s | Chicago, ILLocation Map

JOHN H. STROGER JR. HOSPITAL

HEADQUARTERS



1-Mile 3-Mile 5-Mile

Total Population: 30,700 410,003 1,124,399

Total Households: 10,554 154,806 444,241

1-Mile 3-Mile 5-Mile

Average Household Income: $38,442 $54,877 $60,996

Median Household Income: $54,317 $89,134 $100,676

Population Income

DEMOGRAPHICS

Demographics



City ofChicago, Illinois

Chicago is the most populous city in the Midwestern United States and the third most populous city in the United States with 2,700,000 residents. Chicago is the county seat of Cook County, the second largest county in the United States. The Chicago MSA is the third most populated metropolitan area in the United States with 9,580,567 residents. The MSA covers over 1,300 square miles and six counties. Chicago has many nicknames, the best-known being the Windy City.

The Chicago metropolitan area is home to the corporate headquarters of 57 Fortune 1000 companies, including Boeing, McDonald’s, Motorola, Discover Financial Services and United Airlines. Chicago is a major hub for industry, telecommunications and infrastructure and O’Hare International Airport is the second busiest airport in the world in terms of traffic movement.

The metro is a major financial center in North America, and is home to the largest futures exchange in the United States, the CME Group. Chicago is third in the world on the Global Financial Centers Index which ranks the competitiveness of financial centers based on people, business environment, market access, infrastructure and general competitiveness. As of 2016, Chicago had the third largest gross metropolitan product in the United States at $630.3 billion. The city of Chicago also hosts 12 Fortune Global 500 companies and 17 Financial Times 500 companies. The city claims one Dow 30 company: aerospace giant Boeing, which moved its headquarters from Seattle to the Chicago Loop in 2001. Two more Dow 30 companies, Kraft Foods and McDonald’s are in the Chicago suburbs, as are Sears Holdings Corporation and the technology spin-offs of Motorola. The headquarters of United Continental Holdings, are in the United Building and its operations center and its United Airlines subsidiary are in the Willis Tower in Chicago.

In 2014, Chicago attracted 50.17 million domestic leisure travelers, 11.09 million domestic business travelers and 1.308 million overseas visitors. These visitors contributed more than $13.7 billion to Chicago’s economy. Upscale shopping along the Magnificent Mile and State Street, thousands of restaurants, as well as Chicago’s eminent architecture, continue to draw tourists. The city is the United States’ third-largest convention destination. A 2011 study by Walk Score ranked Chicago the fourth most walkable of fifty largest cities in the United States.

www.cityofchicago.org

Market Overview



Mcdonald’sMcDonald’s Corporation is the world’s largest chain of hamburger fast food restaurants, serving over 69 million customers daily throughout 100 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 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 1971.

Website: www.mcdonalds.comFounded: 1955Number of Locations: 38,695Number of Employees: 235,000Standard & Poor’s Rating: BBB+Stock Symbol: MCD (NYSE)Headquarters: Chicago, Illinois

Tenant Overview

Jimmy [email protected]

EXLUSIVELY LISTED BY:

Randy [email protected]

The Boulder Group3520 Lake Avenue, Suite 203Wilmette, Illinois 60091

www.bouldergroup.com

CONFIDENTIALITY & DISCLAIMERThe 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.

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