Monday, May 12, 2014

The Boulder Group Arranges Sale of a McDonald’s Ground Lease in Farmington Hills, MI (Detroit MSA)

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a brand new McDonald’s ground lease located along Grand River Avenue in the Detroit MSA for $1,350,000.

McDonald’s is the sole occupant of the property that features a 4,500 square foot building. The 1.39 acre parcel is located along Grand River Avenue, which experiences traffic counts in excess of 21,000 vehicles per day. The property is benefited by its close proximity to the signalized intersection of Grand River Avenue and Drake Road, which creates consistent traffic near the site.  There are many national retailers nearby including O’Reilly Auto Parts, Panera Bread, Rite Aid, and Bank of America.  The property is fully leased to McDonald’s with twenty years of lease term remaining and escalating rents in both the primary term and renewal option periods.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller, a Chicago based investment firm. The buyer was a high net worth investor in a 1031 exchange based in California.

McDonald’s has twenty years of lease term remaining on an original 20 year ground lease that commenced November 2013. McDonald’s is a publicly traded company on the New York Stock Exchange (MCD), with a market capitalization of $95 billion. McDonald’s is an investment grade rated company with a Standard & Poor’s rating of A and has over 34,000 locations worldwide.

“The market for ground leases with investment grade tenants remains strong as investors are attracted to the typical long term leases with rental escalations.” said Randy Blankstein, President of The Boulder Group.  Jimmy Goodman, Partner of The Boulder Group, added, “The market for McDonald’s ground leases remains active as investors are attracted to investment grade tenanted properties with long term leases under $2 million dollars.”

About The Boulder Group

The Boulder Group is a boutique investment real estate service firm specializing in single tenant net lease properties. The firm provides a full range of brokerage, advisory, and financing services nationwide to a substantial and diversified client base, which includes high net worth individuals, developers, REITs, partnerships and institutional investment funds. Founded in 1997, the firm has arranged the acquisition and disposition of over $1.7 billion of single tenant net lease real estate transactions. In 2011 and 2012, the firm was ranked in the top 10 companies in the nation for single tenant retail transactions by Real Capital Analytics. The Boulder Group is headquartered in suburban Chicago.