mcdonald’s - millenia partnersmillenia-partners.com/wp-content/uploads/mcdonalds_mp_om-02_24...

11929 US Hwy 19Port Richey, FL

M c D O N A L D ’ SGROUND LEASE OFFERING

REPRESENTATIVE IMAGES

ASKING PRICE: $2,200,000

CAP RATE: 3.75%

MCDONALD’S GROUND LEASE OFFERING2

Executive Summary

The OfferingMillenia Partners is pleased to offer for sale the fee simple interest in a soon-to-be constructed, freestanding, NNN leased McDonalds property (the “Property”) located in Port Richey, Florida. Situated in the northern portion of the Tampa MSA, the Property is located on the highly-trafficked retail corridor of US 19 (55,000 AADT). The site currently has a Perkins Restaurant on the premises, with the McDonalds building expected to be delivered by the end of the first quarter of 2017. The Property features a brand new 20 year NNN lease, and will be built to the standards of the newest and greatest McDonalds prototype with two drive-thru lanes. The lease features six, five year renewal option periods with 10% rental escalations in each period. In addition to convenient access via the area’s busiest thoroughfare (US 19), the Property benefits from an immediate surrounding area that is home to numerous national retailers (Walmart Supercenter, K-mart, Dunkin Donuts, Big Lots, Taco Bell, KFC, ROSS, Bealls, and Wendy’s, to name a few), an abundance of densely populated residential neighborhoods, and is proximate to the Simon-owned Gulf View Square Mall. This offering represents a unique opportunity to acquire a newly leased McDonald’s property with a corporate guaranty, which is widely regarded as the safest NNN investment, rated A by Standard & Poor’s.

EXECUTIVE CONTACT:

LEILA HUNTERPrincipal

[email protected]

407.782.5901 // Direct

407.370.3211 // Main Office

MILLENIA PARTNERS4192 Conroy Road, Suite 110Orlando, FL 32819

(31,000 AADT)

(55,

500

AA

DT

)

Executive Summary

Tampa, FL | Regional Map


Executive Summary

PROPERTY OVERVIEW

Name McDonald’s Port Richey

Address 11929 US Highway 19, Port Richey, FL 34668

Tax Parcel # Pasco County 09-25-16-0010-00100-0030

Market Tampa MSA

Sales Price $2,200,000

Cap Rate 3.75%

Net Operating Income (2017) $82,500

Building Size 4,490 square feet

Land Size 1.06 acres

Year Built The McDonald’s building will be completed in the first quarter of 2017.

Ownership Type Ground Lease

Lease Type NNN

Guarantor Corporate

Rent Commencement Date August 1, 2016

Delivery Date Landlord must deliver sole and actual possession of the Leased Property to Tenant on or before August 1, 2016

Lease Expiration Date Twenty (20) years from Delivery Date

Options Six (6), five (5) year options

Increases 10% every five years

Landlord Responsibilities None

Tenant McDonald’s

Website www.mcdonalds.com

Stock Symbol MCD (NYSE)

Credit Rating Standard & Poor’s A Rating; Stable Outlook

Investment HighlightsExcellent Credit with Leading Global Fast Food Retailer – McDonald’s is the #1 fast food company and the 6th Most Valuable Brand in the world. The company serves over 69 million customers daily in 119 countries across more than 36,000 stores. Its S&P credit rating is A with a stable outlook.

Location Amidst Busy Retail Corridor – The Property is located at the intersection of US 19 and SR 52. US 19 is one of Tampa’s major north south arterial highways, and Port Richey’s main retail corridor with 55,000 vehicles a day. SR 52 (31,000 AADT) serves as an important east-west thoroughfare connecting US 19 to dense residential to the east.Within a mile of the site are a plethora of major national retailers, including Walmart Supercenter, Big Lots, K-mart, Bealls, Regal Cinemas, Wendy’s, KFC, and Taco Bell. Additionally, the area’s regional mall is 2.5 miles to the south of the Property.

Dense Population Base – There are over 91,600 people within five miles of the Property.

Desirable, NEW Lease Structure with Corporate Guaranty – The property has a brand, new 20 year ground lease with zero landlord responsibilities and a McDonald’s corporate guaranty. The lease includes desirable 10% rent increases in each period with multiple options to renew.

Excellent Visibility & Access – The Property enjoys prominent visibility from the signalized intersection and has one, right-in, right-out on US 19, and one full access point from SR 52.

Relocation Site – McDonald’s was previously on the eastern side of US 19, and decided to move to this hard corner site highlighting their continued desire to be in this market.

No State Income Tax – Florida has no state income tax, thus is a favorable place to hold real estate investment properties.

RENDERING OF MCDONALD’S AT SUBJECT PROPERTY

MILLENIA PARTNERS 5

Tenant Summary

Term Increase Annual Rent Monthly Rent

Rent Commencement Date through 12/31/2016 Half Rent $3,437.50

1/1/17 – 7/31/22 Full Rent $82,500 $6,875.00

8/1/22 – 7/31/26 10% $90,750 $7,562.50

8/1/26 – 7/31/31 10% $99,825 $8,313.75

8/1/31 – 7/31/36 10% $109,807 $9,150.63

Option 1 10% $120,788 $10,065.69

Option 2 10% $132,867 $11,072.26

Option 3 10% $146,154 $12,179.48

Option 4 10% $160,769 $13,397.43

Option 5 10% $176,846 $14,737.17

Option 6 10% $194,531 $16,210.89

PayWindow

DriveThru

ThankYou

FutureCross Access

ProposedTrash Enclosure

Pick UpWindows

SR 52 (31,000 AADT)

(55,500 AADT)


Tenant Summary

McDonald’sMcDonald’s is the world’s largest chain of hamburger fast food restaurants, serving around 69 million customers daily in 119 countries across more than 36,000 outlets. Founded in San Bernardino, California in 1940, the company began as a barbecue restaurant operated by brothers Richard and Maurice McDonald. The first McDonald’s with the arches opened in Phoenix in March 1953. The present corporation dates its founding to the opening of a franchised restaurant by businessman Ray Krok in Des Plaines, Illinois on April 15, 1955, He subsequently purchased the chain from the McDonald brothers and oversaw its worldwide growth.

McDonald’s restaurants are operated by either a franchisee, an affiliate, or the corporation itself. The McDonald’s Corporation revenues come from the rent, royalties, and fees paid by the

franchisees, as well as sales in company-operated restaurants. In 2014, the company had annual revenues of $27.5 billion and profits of $4.7 billion. According to a 2015 report from Forbes, McDonald’s is the world’s fourth largest private employer—behind Walmart—with 1.9 million employees, 1.5 million of whom work for franchises. Notably, McDonald’s has increased shareholder dividends for 25 consecutive years, making it one of the S&P 500 Dividend Aristocrats.

McDonald’s primarily sells hamburgers, cheeseburgers, chicken, French fries, breakfast items, soft drinks, milkshakes, and desserts. In response to changing consumer tastes, the company has recently expanded its menu to include salads, fish, wraps, smoothies, and fruit.

MILLENIA PARTNERS 7

Tenant Summary


Property Information

Elevations

REPRESENTATIVE IMAGE



MILLENIA PARTNERS 9


N N

N N

N

N

N N



0 -‐ 1414%

15 -‐ 2410%

25 -‐ 349%

35 -‐ 5421%

55 -‐ 6415%

65 +31%

POPULATION BY AGE (1 MILE RADIUS)

Demographics 1 Mile 3 Miles 5 Miles

Population & Income

2015 Estimated Population 7,290 53,190 91,604

2020 Projected Population 7,563 54,018 92,928

Projected Growth 2015 to 2020 3.70% 1.55% 1.45%

Historical Growth 2000 to 2015 4.30% 0% 2.80%

2015 Estimated Households 3,296 23,658 40,054

2020 Projected Households 3,405 23,949 40,512

Projected Annual Growth 2015 to 2020 2.40% 0.10% 0.05%

2015 Median HH Income $28,060 $32,623 $34,007

2015 Average HH Income $36,545 $42,880 $45,022

2015 Educational Attainment

High School or Equivalent 47.3% 41.0% 39.6%

Some College, Associates Degree 30.2% 32.1% 33.4%

Bachelor Degree 6.6% 9.4% 9.3%

> Bachelor Degree 2.1% 3.3% 3.6%

Housing Information

Owner Occupied Housing 73.2% 73.3% 72.0%

Owned Free & Clear 37.9% 33.6% 32.5%

Renter Occupied Housing 26.8% 26.7% 28.0%

2015 Population by Age

0 - 14 13.7% 13.8% 13.9%

15 - 24 9.6% 9.9% 10.1%

25 - 34 9.4% 9.7% 10.1%

35 - 54 21.4% 23.0% 23.5%

55 - 64 14.8% 14.3% 14.8%

65 + 30.9% 29.4% 27.5%

The population cohort is primarily made up of retirees and a large single population that favor convenience over cooking – frozen meals and fast food over grocery store trips. In fact 46% of the population is over the age of 55, many of whom are retired and living on pension funds, retirement income, and social security income. An above average number of the homes (roughly 40%) within one mile of the Property are owned free and clear.

MILLENIA PARTNERS 11

Executive Summary

N N

N N

N

N

N N


Market Overview

Market Overview

PORT RICHEY

Port Richey is a suburban, predominantly retirement community, located in the northern portion of the Tampa-St. Petersburg MSA in Pasco County. Located along the Gulf of Mexico about 35 miles northwest of Tampa, Port Richey’s riverfront landscape blends nature, beaches and shopping with restaurants, culture and business – all with a small-town feel. Rich in history, Port Richey frequently comes alive with festivals and special events. For instance, the 11-day Chasco Fiesta, held along the riverbanks, celebrates Native American heritage with a pow-wow, floats, a boat parade and more. The Cotee River Bike Fest draws thousands of people every fall to the quaint downtown area of New Port Richey. The warm weather and low cost of living makes Port Richey a haven for retirees, who are drawn from all across the United States to the area every year.

TAMPA ST. PETERSBURG MSA

Port Richey is considered part of the Tampa Bay area, a popular tourist destination with major attractions, recreation, sports and culture. The MSA is composed of roughly 4.44 million residents, making it the second largest metropolitan statistical area in the state, and the fourth largest in the Southeastern United States, behind Miami, Washington D.C., and Atlanta. According to Nielson demographic data, the MSA is expected to realize a 5.4% growth rate by 2020, or a gain of 238,630 permanent residents. While the region is popular amongst retirees, Tampa also was recently ranked among the Top 10 large metro areas for college-educated young talent on the move.

Tampa Bay is home to a diverse set of industries and employers. In 2014, there were over 50 companies employing over 1,000 people in the region. The area is home to a number of large company headquarters including Publix, Raymond James Financial, Jabil, and Tech Data. The Baycare Health System alone includes 54 hospitals and over 20,000 employees. The area is also home to nearly 1,600 public and private schools. Tampa has a wide range of higher educational options from community colleges to award winning private colleges and universities to its nationally ranked public university, University of South Florida. Over 30,000 degrees are conferred on an annual basis in the Tampa area.

Rich in culture and activities, the region has 60 theater groups, 36 major museums, a variety of film festivals, theme parks, beautiful beaches and an expansive bay, and other natural attractions. Tampa has an NFL team (Tampa Bay Buccaneers), an NHL team (Tampa Bay Lightning), an MLB team (Tampa Bay Rays), and an American Soccer League team (Tampa Bay Rowdies) who play their home games in neighboring St. Petersburg, Florida.

The Tampa area is easily accessible as it is served by three international airports including Tampa International Airport, St. Petersburg-Clearwater International, and Sarasota Brandon International. Tampa International Airport is served by 25 major, national and foreign air carriers – an average of 230 daily nonstop departures and in the past year, handled almost 17 million passengers.

PORT RICHEY

Port Richey

Raymond James Stadium

Tampa Bay

TAMPA BAY MSA4.4Mpeople

Largest MSA in Southeastern US

Best Place to Retire Wallet Hub 2015

Best Airport in the U.S. (Tampa Intl’) Conde Naste Traveler 2015

Best Place to Live Money Magazine 2015

4th

#1

#2

#1


Company Profile

About Millenia Partners

Millenia Partners, (formerly Grandstaff Development Equities,) was incorporated in 2003 to offer real estate development and brokerage services to an ever growing central & south Florida submarket. As one of Central Florida’s top 25 largest commercial real-estate firms, Millenia is proud to have an incredibly experienced team (averaging 18 years per associate) that understands the complexity of all phases of development, brokerage, investment sales, management, and construction services. We execute every aspect of the process from start to finish and adapt to our clients’ needs as market conditions change. Millenia’s professional and individual expertise, combined with access to market knowledge that few companies can match, has helped us achieve and surpass our clients’ expectations in all markets of real estate: Retail, Office, Industrial, Hotel, and Multi-Family.

Millenia’s Investment Services Division specializes in the acquisition and disposition of retail centers, mixed-use developments and office buildings in Florida. Whether working with national REITs, private equity groups, or high net-worth individuals, Millenia utilizes local market knowledge, in-depth experience, and an understanding of capital markets to create maximum value on both the income and growth end of the investment spectrum. With team members located in Orlando, Tampa and Fort Lauderdale our Investment Service Division is poised to be able to serve a vast clientele in several different sectors of Florida’s investment real estate market.

EXECUTIVE CONTACT:

LEILA HUNTERPrincipal

[email protected]

407.782.5901 // Direct

407.370.3211 // Main Office


OUR SINGLE TENANTINVESTMENT TEAM HAS OVER

$500,000,000IN NATIONWIDE SALES$

As a Principal with Millenia Partners, Leila’s responsibilities include the procurement and sale of investment properties, including but not limited to single-tenant, net leased retail and office properties, land, and multi-tenant retail properties. Leila also exclusively represents investors looking for specific buyer needs. Leila comes to Millenia Partners with nearly a decade of experience, having worked most recently for JLL as a Senior Associate with the Florida Capital Markets Retail Investment Sales team. She has expertise in the marketing and listing of commercial real estate properties, extensive market analysis for successful disposition strategies, broker opinion of value analysis, and the associated due diligence and closing processes. Leila was recently involved in a multitude of investment sale closings throughout Florida, including The Grove at Isleworth, Universal Plaza, Intracoastal Mall, and Shops at Shelby Crossing, to name a few. In all, she has been involved in over $350 million worth of transactions in the southeastern and Midwestern United States.

Millennia Mall

MILLENIA PARTNERS 15

Company Profile

CONFIDENTIALITY AGREEMENT & DISCLAIMER

The Confidentiality Agreement (“Agreement”) is made and agreed to for the benefit of the undersigned party (“Prospect”), the owner of the subject property (the “Seller”) and undersigned agent Millenia Partners, LLC (“Broker”). Now therefore in consideration of the privileges granted to Prospect with respect to receiving certain confidential information, and other good and valuable consideration, the Prospect hereby agrees to the following:

I. Confidential Information: Prospect will receive confidential information regarding property referred to as 11929 US Highway 19, Port Richey, FL 34668. Prospect agrees to not disclose to any person that the Property or the note may be available for sale or lease, or that discussions or negotiations are taking place concerning a possible purchase of the Property or the note, nor any terms, conditions, or other facts with respect to the Property or the note, including but not limited to tenant information, lease rates, lease expirations, income and expenses, and any such possible purchase, including the status thereof. The term “person” used in this agreement shall be interpreted broadly and shall include, without limitation, any corporation, company, partnership or individual other than parties to which Broker approves in writing. Prospect agrees to not contact the Seller, the management, the tenants, the lender, the vendors, the insurers, the employees or the customers of any business at the site.

II. Acting as a Principal: Prospect hereby warrants that it is acting as a principal only, and not as a broker or agent, regarding the contemplated transaction. Prospect acknowledges and agrees that MIllenia Partners, LLC will act in an agency capacity representing the Seller and will be used as the sole broker or agent in connection with the purchase of the Property. Millenia Partners, LLC will be paid a commission by the Seller. Prospect agrees to not be involved in any arrangement to lease or purchase the Property, in whole or in part, as a lender, partner, buyer of the note, buy in foreclosure, buy from bankruptcy court, or in selling agent and is compensated as described herein. Prospect reserves the right to involve any lender, underwriter, equity partners, attorney or other advisor in the transaction provided said party is paid by the Prospect, and said party has agreed in writing to this confidentiality agreement.

III. Governing Law: This Agreement shall be governed and construed in accordance with the laws of the State of Florida. Accepted and agreed to this______ day of _______________, 2016.

Signature: ________________________________________

Printed Name: ________________________________________

Title: ________________________________________

Phone: ________________________________________

Fax: ________________________________________

Company Name: ________________________________________

Address: ________________________________________

Email: ________________________________________

Disclaimer: Information contained herein may have been provided by outside sources and while deemed to be reliable, may be estimated, projected, subject to change, and/or limited in scope, and therefore should not be relied upon as accurate. Information should be independently confirmed with an applicable due diligence period.

mcdonald’s - millenia partnersmillenia-partners.com/wp-content/uploads/mcdonalds_mp_om-02_24...

Documents