Investment Summary
Price | $2,603,000 |
Cap Rate | 3.65% |
NOI | $95,000 |
Lease Term | 20 years |
Lease Type | Absolute NNN ground lease, with tenant responsible for all taxes, insurance, maintenance, and repair, including roof, structure, and parking lot |
Rental Increases | 10% rental increases every five (5) years |
Year Built | 2023 |
Building Size | 4,226 SF |
Lot Size | 1.15 acres (50,094 SF) |
Status | Under Contract |
Lead Brokers | Michael T. Yuras, CCIM Vice Chairman 415.481.0788 michael.yuras@cushwake.com CA RE License #01823291 Scott Crowle Executive Managing Director 415.604.4288 scott.crowle@cushwake.com CA RE License #01318288 Jack Hinson Brokerage 704.572.9921 j.hinson@cushwake.com CA RE License #02059267 Vincent Aicale Vice Chairman 415.690.5522 vince.aicale@cushwake.com CA RE License #01728696 Ryan Forsyth Vice Chairman 415.413.3005 ryan.forsyth@cushwake.com CA RE License #01716551 |
Investment Highlights
NEW 20-YEAR ABSOLUTE NNN GROUND LEASE TO INVESTMENT-GRADE TENANT
» New 20-year absolute NNN ground lease with scheduled rental increases every five years in initial term and option periods
» Requires no landlord management, an ideal investment for an out-of-area buyer
» McDonald’s (NYSE: “MCD”) is the world’s largest chain of hamburger fast food restaurants, serving over 69 million customers daily in 120 countries across 39,198 restaurants
» McDonald’s is an investment grade tenant, with a “BBB+” credit rating from Standard & Poor’s and a “Baa1” credit rating from Moody’s
PRIME LOCATION ACROSS FROM WALMART SUPERCENTER AND IN CLOSE PROXIMITY TO ANDERSON LOOP (99,047 AADT)
» Prominent location along Nacogdoches Road with access to 24,353 combined vehicles per day
» Highly accessible location at the confluence of major San Antonio thoroughfares including East Charles William Anderson Loop (99,047 AADT), and Interstate 35 (232,237 AADT)
» Strategic location across from Walmart Supercenter and near Rolling Oaks Mall (100+ stores), providing exposure and access to an ideal and consistent customer base
» Minutes from Methodist Hospital Northeast (237 beds) and Northeast Lakeview College (6,657 students)
» Well-positioned near several schools such as Madison High School (3,285 students), Harris Middle School (1,069 students), and Steubing Ranch Elementary School (993 students)
DENSELY POPULATION SAN ANTONIO RESIDENTIAL COMMUNITY POISED FOR CONTINUOUS GROWTH
» 191,585 residents within a five-mile radius (22% growth since 2010)
» Average annual household income of $95,983 within five miles (projected 13% increase by 2028)
» Projected population and income increase within 1-, 3-, and 5-mile radii over the next five years poise McDonald’s and San Antonio for steady concurrent growth
» Within walking distance from Ascend at 1604 Apartments (424 units)
» 14 miles from Joint Base San Antonio (JBSA), the largest and most diverse joint base in the Department of Defense with 74,289 local employees
» Gateway to Downtown San Antonio, the urban core of Greater San Antonio with 2.5 million people
NEW 2023 CONSTRUCTION IN A TAX-FREE STATE
» New high-quality 2023 construction built to latest McDonald’s prototype
» Site features a dual-lane drive-thru for added customer convenience
» Texas is an income tax-free state
Property Description
» Highly Desirable Location Across from Walmart Supercenter with Proximity to Large Retail Centers: The property boasts a prime location along Nacogdoches Road directly across from a Walmart Supercenter, offering excellent exposure and immediate access to a steady flow of 24,353 daily vehicles. With its prominent placement near Rolling Oaks Mall (100+ stores), the site is poised to tap into a diverse and consistent customer base and take advantage of the thriving retail environment
» Convenient Access to Major San Antonio Thoroughfares: This property has convenient access to major San Antonio thoroughfares, including the East Charles William Anderson Loop and Interstate 35, enhancing visibility and facilitating easy commuter access
» Beneficial Proximity to Education and Community Hubs: The site maintains proximity to Methodist Hospital Northeast, Northeast Lakeview College, and several esteemed schools such as Madison High School, Harris Middle School, and Steubing Ranch Elementary School, which presents a unique opportunity for McDonald’s to cater to the needs of residents, students, and healthcare professionals
» Densely Populated Residential Community: Located in a growing San Antonio residential community, the property is supported by a population of 191,585 within a five-mile radius with an average annual household income of $95,983. The area is poised for continuous growth with a projected increase in population and income within a 1-, 3-, and 5-mile radius, McDonald’s is well-positioned for sustained growth in the promising market
» Gateway to Downtown San Antonio: Positioned just 14 miles from Joint Base San Antonio (JBSA), employing over 74,000 individuals, and serving as the gateway to Downtown San Antonio, this property has a strategic advantage to capitalize on the local workforce and large trade area of 2.5 million people