NET LEASE INVESTMENT OFFERING MCDONALD S (GL) 1880 E Market Street Harrisonburg, VA 22801

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1 MCDONALD S (GL) 1880 E Market Street Harrisonburg, VA 22801

2 TABLE OF CONTENTS TABLE OF CONTENTS I. Executive Profile Executive Summary Investment Highlights Property Overview II. Location Overview Photographs Aerials Site Plan Map III. Market & Tenant Overview Demographic Report Market Overview Tenant Overview

3 DISCLAIMER STATEMENT DISCLAIMER STATEMENT: 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.

4 EXECUTIVE SUMMARY EXECUTIVE SUMMARY: The Boulder Group is pleased to exclusively market for sale a single tenant McDonald s ground lease located in Harrisonburg, Virginia. The property is strategically located at a signalized intersection across from a regional mall in a dominant retail corridor. McDonald s has over 16 years remaining on their 20 year ground lease which expires March 31, The absolute triple net ground lease features rental escalations every five years of the primary term and in each of the eight 5-year renewal option periods. The next rental escalation is to occur in April The 1.27 acre property is strategically located in a regional retail corridor on Market Street (US Route 33) at a signalized intersection. Market Street is the primary north-south thoroughfare in the area. The property is located across from the Valley Mall, a 506,000 square foot regional mall anchored by Target, Dick s Sporting Goods, JCPenney, Belk, and H&M. Other retailers in the immediate area include Walmart Supercenter, The Home Depot, Lowe s Home Improvement, Kroger, Kohl s and Regal Cinemas to name a few. There are roughly 52,000 people living within a three mile radius of the property. There are over 16 years remaining on the McDonald s ground lease featuring 10% rental escalation every five years in the primary term and in each of the eight 5-year renewal option periods. The McDonald s also features a double drive-thru. McDonald s is the world s largest chain of hamburger fast food restaurants, serving over 68 million customers daily throughout 120 countries.

5 INVESTMENT HIGHLIGHTS INVESTMENT HIGHLIGHTS: Long term ground lease with over 16 years remaining Absolute triple net with zero landlord responsibilities 10% rental escalations every 5-years (next escalation April 2019) Investment grade rated tenant (S&P: BBB+) Double drive-thru location positioned at a signalized intersection Roughly 52,000 people live within three miles of the property Well positioned in a strong retail corridor featuring the Valley Mall (Target, Dick s Sporting Goods, JCPenney, Belk, H&M), Walmart Supercenter, The Home Depot, Lowe s Home Improvement, Kroger, Kohl s and Regal Cinemas

6 PROPERTY OVERVIEW PROPERTY OVERVIEW: Price: $2,062,500 Cap Rate: 4.00% 2019 Cap Rate: 4.40% Net Operating Income: $82,500 Rental Escalations: 10% Every 5-Years (next escalation April 2019) Renewal Options: Eight 5-Year; 10% Escalations Lease Commencement Date: September 30, 2013 Lease Expiration: March 31, 2034 Tenant: McDonald s USA, LLC Standard & Poor s Rating: BBB+ Year Built: 2013 Lease Type: Ground Lease - No Landlord Responsibilities Parking: 50 Spaces Building Size: 2,702 SF Land Size: Acres Property Address: 1880 E Market Street. Harrisonburg, VA 22801

7 PHOTOGRAPHS

8 AERIAL

9 SITE PLAN

10 MAP

11 MAP

12 DEMOGRAPHIC REPORT DEMOGRAPHIC REPORT: Population 1-Mile 3-Mile 5-Mile Total Population 5,465 51,976 69,220 Total Households 2,106 17,040 23,590 Income 1-Mile 3-Mile 5-Mile Median Household Income $34,446 $38,884 $42,030 Average Household Income $54,781 $57,503 $59,903

13 MARKET OVERVIEW MARKET OVERVIEW: Harrisonburg, Virginia Harrisonburg is a city in the Shenandoah Valley region of Virginia. Harrisonburg is the county seat of the surrounding Rockingham County and the Harrisonburg Metropolitan Statistical Area has a population of over 130,000 people. Harrisonburg is the fastest growing city in Virginia and the Harrisonburg MSA is the second fasting growing in the state. The market was recognized as one of the top twenty emerging metros in the U.S. as job gains, wages, real retail sales growth, and building permits continue to outpace most of Virginia on a percentage basis. Harrisonburg is home to James Madison University (JMU), a public research university with an enrollment of over 20,000 students, and Eastern Mennonite University (EMU), a private, Mennonite-affiliated liberal arts university. Harrisonburg has won several awards in recent years, including #6 Favorite Town in America by Travel + Leisure in 2016, the #15 Best City to Raise an Outdoor Kid by Backpacker in 2015, and the #3 Happiest Mountain Town by Blue Ridge Country Magazine in 2016.

14 TENANT OVERVIEW TENANT OVERVIEW: McDonald s McDonald s is the world s largest chain of hamburger fast food restaurants, serving over 68 million customers daily throughout 120 countries. McDonald s primarily sells hamburgers, cheeseburgers, chicken, french-fries, breakfast items, soft drinks, shakes and desserts. In response to changing consumer tastes, the company has expanded its menu to include salads, wraps, smoothies and fruit. McDonald s restaurants offer customers counter service as well as drive-thru service. McDonald s owns approximately 18% of their restaurants, while the remainder of the stores are run my franchisee members or joint venture. McDonald s present corporation dates its founding to the opening of a franchised restaurant by businessman Ray Kroc in Des Plaines, Illinois on April 15, 1955, the ninth McDonald s restaurant overall. Kroc purchased the McDonald brothers equity in the company and led its worldwide expansion. McDonald s is a publically traded company on the New York Stock Exchange using symbol MCD. McDonald s is an investment grade rated company with a Standard & Poor s rating of BBB+. McDonald s moved their global headquarters to Chicago, Illinois in 2017 from Oak Brook, Illinois where they have had their offices since McDonald s USA, LLC, the tenant, operates and franchises McDonald s restaurants in the United States. The company was incorporated in 2004 and is based in Oak Brook, Illinois. McDonald s USA, LLC operates as a subsidiary of McDonald s Corporation. Website: Founded: 1955 Number of Locations: 36,900+ Number of Employees: 375,000+ Standard & Poor s Rating: BBB+ Stock Symbol: MCD (NYSE) Headquarters: Chicago, Illinois

15 Randy Blankstein President Jimmy Goodman Partner Dundee Road, Suite 1801 Northbrook, IL