Eric P. Wohl
CA DRE License #01348614
McDonalds for Sale
McDonalds for sale are one of the most sought after NNN investments available today. McDonalds has locations in all major markets, an excellent S&P Credit Rating of A Stable, and are one of the most recognized retail brands around the world. McDonalds has locations in all markets and is the most recognized fast food restaurant chain in the world. May, 2012 represented McDonalds 110th consecutive month of global comparable sales growth which demonstrates the ongoing customer appeal of McDonald’s great tasting food. McDonalds is the leader in global foodservice having more than 33,000 locations that serve over 64 million people in 119 countries every single day.
McDonald’s Corporation (NYSE: MCD, S&P: A Stable) , together with its subsidiaries, franchises and operates McDonald’s restaurants primarily in the United States, Europe, the Asia Pacific, the Middle East, and Africa. The company’s restaurants offer hamburgers and cheeseburgers, Big Mac, Quarter Pounder with cheese, Filet-O-Fish, chicken sandwiches, chicken McNuggets, chicken selects, snack wraps, french fries, salads, shakes, desserts, sundaes, soft serve cones, pies, cookies, soft drinks, coffee, and other beverages, as well as full or limited breakfast menu. As of December 31, 2011, it operated 33,510 restaurants in 119 countries, including 27,075 franchised restaurants and 6,435 company operated restaurants. The company was founded in 1940 and is based in Oak Brook, Illinois.
McDonalds Real Estate
The national average listing capitalization rate for a single tenant McDonalds for sale with a new 20 year ground lease is 4.25%-5.25%, depending on the property’s location and how much the rental increases are in the lease. This average capitalization rate for a McDonalds real estate is the lowest of any NNN single tenant out there on the market due to the strength of McDonalds as a company, strong AAA locations, corporate guarantees on most of their leases, low purchase price ($1M-$2M), and lack of supply in the marketplace. The average purchase price for a single tenant McDonalds for sale is $1,000,000-$2,000,000, which is an extremely attractive price-point when looking at NNN properties for sale because many investors have the ability purchase these properties on an all cash basis as opposed to getting a loan.
McDonalds prefers to buy their real estate rather than lease when looking for upcoming locations. This makes finding NNN McDonalds for sale hard to find. When you are able to find McDonalds real estate for sale, they are usually ground leases, meaning that you own the fee interest in the dirt (the most secure position). The average ground lease term for a new McDonalds for sale is 20 years with four 5-year options to renew. Usually there will be 10% increases every 5 years throughout the lease term and option periods to help the investor hedge against inflation. The average lot size for a new McDonalds ranges between 0.75-1.5 Acres, depending on the availability of land. McDonalds is notorious in the industry for being able to negotiate low lease rates due to the financial strength behind their corporate signature. This is a benefit for an investor because the rent can be easily replaced by a different tenant should McDonalds ever leave the location.
If you are interested in purchasing or selling McDonalds real estate or any other net lease properties, please contact the President of HI NNN, Eric Wohl, at (949) 585-7673.
About HIG NNN:
HIG NNN is a retail investment division of Hanley Investment Group Real Estate Advisors specializing in the sale and advisory of single-tenant retail net lease properties. With a track record exceeding one billion dollars, HIG NNN creates value for clients by providing highly specialized investment services to build and preserve wealth. HIG NNN is committed to delivering unparalleled service and results by utilizing property-specific marketing strategies and cutting-edge technology to insure the highest value is achieved. HIG NNN’s nationwide relationships with investors, developers, institutions, franchisees, brokers and 1031 exchange buyers are unparalleled in the industry, translating to maximum exposure and pricing for each property marketed and sold. With unmatched service and experience, HIG NNN is a market leader in the disposition and acquisition of single tenant retail net leased investments across the country.