Investment Summary
Price | $2,675,000 |
Cap Rate | |
NOI | |
Lease Term | 20 Years |
Lease Type | |
Rental Increases | 10% Rental Increases Every 5 Years |
Year Built | Summer 2015 |
Building Size | 4,332 sq. ft. with two-lane drive-thru |
Lot Size | 1.00 Acre (43,560 sq. ft.) |
Status | Sold |
Lead Brokers | Scott Crowle Senior Managing Director 415.604.4288 scott.crowle@cushwake.com CA RE License #01318288 |
Investment Highlights
LONG-TERM ABSOLUTE NNN GROUND LEASE TO INVESTMENT GRADE TENANT
» 20-year NNN ground lease with 10% rental increases every 5 years
» McDonald’s has a credit rating of “BBB+” from S&P – this is a corporate lease
» No landlord obligations – ideal low-management investment for an out-of-area investor
HIGH-TRAFFIC LOCATION AT SIGNALIZED INTERSECTION
» Located at the signalized hard corner of Fair Oaks Boulevard and Arden Way, two primary arterials
» Excellent “main & main” location – 45,467 AADT at intersection
» Hard corner location near top retailers, including Raley’s, 24 Hour Fitness, Whole Foods, Walgreens, and Bel Air
PRIME INFILL SACRAMENTO MSA LOCATION WITH ROBUST DEMOGRAPHICS
» Close proximity to Downtown Sacramento
» Sacramento MSA is the third-fastest growing MSA in California
» Large population of 298,881 within a five-mile radius of the property, with a high average household income of $113,218 within a one-mile radius from the site
NEW 2015 CONSTRUCTION
» Features a 24-hour, dual-lane drive-thru, providing unparalleled customer convenience and boosting sales revenue
» Large lot with ample on-site parking
» Brand new proto-type building constructed by McDonald’s to their standards
Click Here to Download Offering Memorandum
Property Description
SOLD
The property is located at the northeast hard corner of the prominent intersection of Fair Oaks Boulevard, the most heavily traveled street in Carmichael, and Arden Way, a main thouroughfare connecting Carmichael to the Arden-Arcade shopping district. The combined traffic count for this intersection is approximately 45,467 vehicles per day. Northwest of the site, at the intersection of Fair Oaks Boulevard and Walnut Avenue, is a stand-alone Raley’s grocery store with a Peet’s Coffee & Tea located inside the store. Across from Raley’s is a retail center with a UPS Store, Subway restaurant, and a mix of other local businesses. Directly across from the subject property is the 24 Hour Fitness-anchored Five Points Shopping Center, which includes a tenant mix of national and local retailers. Jesuit High School and Rio Americano High School are within walking distance of the property, with a combined student enrollment of 2,663. Average household incomes in the area exceed $113,000 per year within a one-mile radius.