The Boulder Group, a net leased investment brokerage firm, has completed the sale of a new construction McDonald’s ground lease located at 2019 Spirit Lake Road in Winter Haven, FL for $1,750,000.
The newly constructed McDonald’s property
is located along State Road 540, a primary east-west thoroughfare in the area
that experiences traffic counts of approximately 20,000 vehicles per day. The
property is benefitted by its location across the street from a CVS and a Publix
grocery store. There are 20 years remaining on the McDonald’s ground lease and
the buyer closed on the property upon rent commencement.
Randy Blankstein
and Jimmy Goodman of The Boulder Group represented the buyer in the
transaction, a private family trust in a 1031 exchange. The seller was a Michigan based developer.
The
new McDonald’s ground lease is for twenty years. There are 10% rental
escalations every five years throughout the lease. McDonald’s is an investment
grade rated company (S&P: A) and is publicly traded with a market
capitalization in excess of $91 billion.
“The
market for ground leases with investment grade tenants remains highly active 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, “McDonald’s ground lease properties continue to trade
at the most aggressive cap rates in the entire net lease market due to their
investment grade rating (S&P: A), rental escalations, and relatively low
price point.”
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 $1.8 billion of
single tenant net lease real estate transactions. From 2011-2013, 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.
