The Boulder Group, a net leased investment brokerage firm, has completed the sale of a McDonald’s ground lease located at 1070 North Roselle Road in Hoffman Estates, Illinois for $2,990,000.
McDonald’s is the sole occupant of the property that features a 4,388 square foot building. The 0.97 acre parcel is located at the signalized intersection of Roselle Road and Golf Road, which experiences traffic counts in excess of 79,000 vehicles per day. The McDonald’s position in front of Party City, TJ Maxx, Savers, and Petland makes it highly visible to customers visiting the center. The property is fully leased to McDonald’s with twenty years of lease term remaining and 8% rental increases every five years in both the primary term and renewal option periods.
Randy Blankstein and Jimmy Goodman of The Boulder Group represented the buyer and the seller in the transaction. The buyer and seller were Midwest based real estate investment firms.
McDonald’s is a publicly traded company on the New York Stock Exchange (MCD), with a market capitalization of $101.6 billion. McDonald’s is an investment grade rated company with a Standard & Poor’s rating of BBB+.
“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.”
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 $3 billion of single tenant net lease real estate transactions. From 2010-2015, the firm was ranked in the top 10 companies in the nation for single tenant retail transactions by both Real Capital Analytics and CoStar. The Boulder Group is headquartered in suburban Chicago. www.bouldergroup.com