McDonald’s (Ground Lease) 5739 West Silver Spring Drive

Subject Property

Randy Blankstein |President

847.562.0003

[email protected]

www.bouldergroup.com

McDonald’s (Ground Lease)

5739 West Silver Spring Drive

Milwaukee, WI 53218

Representative Rendering

NET LEASED INVESTMENT OFFERING

Jimmy Goodman |Partner

847.562.8500

[email protected]


CONFIDENTIALITY & DISCLAIMER

The information contained in the following Offering Memorandum is proprietary and strictly confidential. It is intended to be

reviewed only by the party receiving it from The Boulder Group and should not be made available to any other person or entity

without the written consent of The Boulder Group. This Offering Memorandum has been prepared to provide summary, unverified

information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information

contained herein is not a substitute for a thorough due diligence investigation. The Boulder Group has not made any investigation,

and makes no warranty or representation. The information contained in this Offering Memorandum has been obtained from

sources we believe to be reliable; however, The Boulder Group has not verified, and will not verify, any of the information contained

herein, nor has The Boulder Group conducted any investigation regarding these matters and makes no warranty or representation

whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate

measures to verify all of the information set forth herein.

CONFIDENTIALITY & DISCLAIMER


847.562.0003

[email protected]


847.562.8500

[email protected]

NET LEASE OPPORTUNITY


MCDONALD’S (GROUND LEASE) - MILWAUKEE, WI 5739 West Silver Spring Drive, Milwaukee, WI 53218

EXECUTIVE SUMMARY

MCDONALD’S (GROUND LEASE) - MILWAUKEE, WI

The Boulder Group is pleased to exclusively market for sale a single tenant McDonald’s ground lease located in Milwaukee. The McDonald’s is

located within a densely populated area with limited restaurant options. This McDonald’s restaurant operates as a 24 location and has successfully

operated at this property since 2001. There are over seven years remaining on the McDonald’s ground lease which features a 10% rental escalation

in the primary term and in each renewal option period. There are absolutely no landlord responsibilities.

The 44,713 square foot McDonald’s property is strategically positioned just off of the heavily trafficked signalized intersection of West Silver

Spring Drive and North 60th Street. This intersection experiences traffic counts in excess of 40,000 vehicles per day. West Silver Spring Drive is a

primary east-west thoroughfare in the trade area. The immediate area features limited restaurant and dining options which contributes to the strength

of this McDonald’s location. The property is located in a densely concentrated infill area with high barriers to entry. The surrounding area is densely

populated with approximately 20,000 people living within a one mile radius of the property. Furthermore, there are over 146,000 people living

within a three mile radius of the property. The McDonald’s property is located across 60th Street from the Westlawn Gardens apartment and

housing complex which is currently undergoing a massive redevelopment that will feature 706 new apartments and houses.

McDonald’s has over seven years remaining on their ground lease which expires January 31, 2023. The lease features 10% rental escalations every

five years and no landlord responsibilities. This McDonald’s is a 24 hour location with drive thru. McDonald’s is an investment grade rated tenant

(S&P: A-) and is publicly traded (NYSE: MCD) with a market capitalization in excess of $106 billion.

Subject Property


847.562.0003

[email protected]


847.562.8500

[email protected]



Price:

Cap Rate:

Lease Type:

Building Size:

Site Size:

Year Built:

$871,000

5.00%

Ground Lease

2,500 SF

44,713 SF

2001

Rent Commencement:

Lease Expiration:

Rent Schedule:

Renewal Options:

Landlord Obligations:

October 15, 2001

January 31, 2023

$43,560

$47,916

$52,704

$57,984

$63,780

$70,152

Four 5-Year Remaining

None

2/1/2018

2/1/2023 (Option 1)

2/1/2028 (Option 2)

2/1/2033 (Option 3)

2/1/2038 (Option 4)

Representative Rendering

Escalation Date PROPERTY OVERVIEW


Subject Property


847.562.0003

[email protected]


847.562.8500

[email protected]


5-MILE

350,718

134,555

$55,163

Population:

Total Households

Avg. Household Income:

1-MILE

19,574

6,836

$38,654

3-MILE

146,986

55,175

$44,043


PROPERTY HIGHLIGHTS

Located within the Milwaukee MSA

Investment grade rated tenant (S&P: A -)

10% rental escalation in the primary term and in each

renewal option period (next escalation in February 2018)

No landlord responsibilities

24 hour location

Positioned across the street from the Westlawn Gardens

apartment and housing complex which is undergoing a

massive redevelopment that will feature 700+ apartments

and homes

Densely populated area with approximately 20,000 people

living within a one mile radius of the property

Positioned just off the heavily trafficked signalized intersection

of West Silver Spring Drive and North 60th Street which

experiences traffic counts in excess of 40,000 vehicles per day

Limited competition in the immediate area

Long and successful operating history at this location (since

2001)

DEMOGRAPHICS



847.562.0003

[email protected]


847.562.8500

[email protected]



Aerial



847.562.0003

[email protected]


847.562.8500

[email protected]



Site Plan



847.562.0003

[email protected]


847.562.8500

[email protected]



Photos



847.562.0003

[email protected]


847.562.8500

[email protected]



TENANT OVERVIEW

McDonald's Corporation operates and franchises McDonald's restaurants in the United States, Europe,

the Asia/Pacific, the Middle East, Africa, Canada, and Latin America. The company's restaurants offer

various food products, soft drinks, coffee, and other beverages. As of December 31, 2014, it operated

36,258 restaurants, including 29,544 franchised restaurants comprising 20,774 franchised to

conventional franchisees, 5,228 licensed to developmental licensees, and 3,542 licensed to foreign

affiliates; and 6,714 company-operated restaurants. The company was founded in 1940 and is based in

Oak Brook, Illinois.

McDonald's primarily sells hamburgers, cheeseburgers, chicken, french fries, breakfast items, soft

drinks, milkshakes, and desserts. In response to changing consumer tastes, the company has expanded

its menu to include salads, fish, wraps, smoothies, fruit, and seasoned fries.

McDonald’s Corporation is publicly traded on the New York Stock Exchange (MCD) with a market

capitalization in excess of $106 billion. McDonald’s Corporation is an investment grade rated

company with a Standard & Poor’s rating of A-.



847.562.0003

[email protected]


847.562.8500

[email protected]

Website: www.mcdonalds.com

Number of Locations: 36,528

Stock Symbol: MCD : NYSE

Market Capitalization: $106 billion

Credit Rating: Investment Grade (S&P: A-)

Headquarters: Oak Brook, IL

http://www.mcdonalds.com



LOCATION OVERVIEW

Milwaukee is the largest city in Wisconsin and the 28th most populous city in the United States.

Milwaukee is located on the southwestern shore of Lake Michigan. According to the 2010 U.S.

Census, the City of Milwaukee had a population of 594,833 and the Milwaukee MSA had a population

n of 1,751,316.

Milwaukee and its suburbs are the home to the international headquarters of 13 Fortune 1000

companies, including Johnson Controls, Northwestern Mutual, Manpower Inc., Jefferson Wells,

Kohl's, Harley-Davidson, Rockwell Automation, Fiserv, Inc., Hal Leonard, Wisconsin Energy, Briggs

& Stratton, Joy Global, Bucyrus International, A.O. Smith, GE Healthcare Diagnostic Imaging and

Clinical Systems and MGIC Investments. The Milwaukee metropolitan area ranks fifth in the United

States in terms of the number of Fortune 500 company headquarters as a share of the population.

http://city.milwaukee.gov



847.562.0003

[email protected]


847.562.8500

[email protected]

http://city.milwaukee.gov

Documents

McDonald’s (Ground Lease) 5739 West Silver Spring Drive