OFFERING MEMORANDUM. McDonald s CORDOVA TENNESSEE. 10 More Years Remaining on NNN Ground Lease

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1 OFFERING MEMORANDUM McDonald s CORDOVA TENNESSEE 10 More Years Remaining on NNN Ground Lease

2 CONFIDENTIALITY AND DISCLAIMER The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure 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. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap 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. NON-ENDORSEMENT NOTICE McDonald s Marcus & Millichap Real Estate Investment Services, Inc. ( M&M ) is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of M&M, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of M&M, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

3 Woodland Mills South Fulton 22 Union City TABLE OF CONTENTS Investment Summary...1 Investment Highlights...2 Aerial Map...3 Location Map...4 Site Plan...7 Tenant Summary...9 Location Summary...11 Demographics...13 Contact Information...16 Garland Burlison Gilt Edge Brighton TIPTON Munford Atoka Tiptonville LAKE Ridgely Dyersburg Finley GIBSON DYER Atw Trenton Milan Friendship LAUDERDALE Ripley HAYWOOD Henning Millington Gallaway Whiteville SHELBY Lakeland Bartlett 40 Memphis Germantown Covington Arlington Halls Samburg 21 Hornbeak Troy OBION Obion Sharon Gates Maury City Stanton Mason McDonald s Braden Trimble Kenton Denmark HARDEMAN WEAKLE Martin Rutherford Newbern Yorkville Bradford Dyer 412 Brownsville 64 Alamo Gadsden CROCKETT Bells Adair Somerville Oakland FAYETTE Williston Hickory Valley Gibson Humboldt Moscow Middleton Collierville La Grange Grand Junction Piperton Rossville Saulsbury Rives 45W Toone Bolivar 45E Greenfield 45E Medina Jackson MADISON Medon Silerton Hornsby Dresd 2 2

4 McDonald s INVESTMENT SUMMARY 1206 N HOUSTON LEVEE ROAD, CORDOVA, TN PRICE: $1,685,000 CAP: 4.20% RENT: $70,755 OVERVIEW Price $1,685,000 ANNUALIZED OPERATING DATA Current $70,755 Gross Leasable Area (GLA) Lot Size (approx) 3,400 SF Acres 5/2022 $75,708 1/ Option 1 $82,522 Net Operating Income $70,755 CAP Rate 4.20% Year Built / Option 2 $89,949 1/ Option 3 $98,044 1/ Option 4 $106,868 LEASE ABSTRACT Lease Type Original Lease Term NNN Ground Lease 22 Years Lease Commenced 6/27/2006 Lease Expiration Date 1/26/2028 Renewal Options Increases Roof & Structure 4 Five-Year Options Written Into Lease Tenant Responsible 1

5 McDonald s INVESTMENT HIGHLIGHTS tt True NNN Ground Lease commenced 6/2006 tt tt tt tt tt Lease has 10 years remaining on base term before option periods Corporate guaranteed Out pad to a Kroger anchored shopping center Affluent Memphis suburb where average household income exceeds $110,244 (1 mile radius) Strong street visibility with ease of ingress/egress 97,254 TOTAL POPULATION WITHIN 5-MILE RADIUS $110,244 AVERAGE HOUSEHOLD INCOME WITHIN 1-MILE RADIUS 8,721 VPD 58,647 VPD - MACON ROAD - N GERMANTOWN PKWY 2

6 Walgreens McDonald s Burger King N GER MANT O WN PK WY - 5 8,647 VPD MACON ROAD - 8,721 VPD 3 Walgreens

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8 51 ATOKA MILLINGTON MARION ARLINGTON LAKELAND McDonald s WEST MEMPHIS 79 MEMPHIS BARTLETT CORDOVA 269 TENNESSEE 240 EAST MEMPHIS 240 GERMANTOWN 61 SOUTHHAVEN CAPLEVILLE OLIVE BRANCH 72

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10 Cordova High School Mt. Pisgah Middle School Industrial Park Cordova Middle School Cordova Elementary School 7 Macon Hall Elementary School McDonald s

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12 Kroger Fuel Center McDonald s MACON RD SITE PLAN Kroger N HOUSTON LEVEE RD McDonald s 9

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14 McDonald s TENANT SUMMARY MCDONALD S MCDONALD S McDonald s is the leading global food service retailer with more than 36,000 restaurants serving approximately 70 million people in more than 100 countries each day. More than 80% of McDonald s restaurants worldwide are owned and operated by independent local men and women. McDonald s is headquartered in Oak Brook, Ill. OAK BROOK, IL HEADQUARTERS The company began in 1940 as a barbecue restaurant operated by Richard and Maurice McDonald; in 1948 they reorganized their business as a hamburger stand using production line principles. Businessman Ray Kroc joined the company as a franchise agent in He subsequently purchased the chain from the McDonald brothers and oversaw its worldwide growth. 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 FOUNDED PUBLIC OWNERSHIP 36,000+ LOCATIONS QUICK SERVICE RESTAURANT INDUSTRY STEPHEN EASTERBROOK CEO MIKE SMITH PRESIDENT 11

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16 McDonald s MILLINGTON Miles to Memphis BARTLETT MEMPHIS EAST MEMPHIS 240 CAPLEVILLE LAKELAND ARLIN 64 CORDOVA GERMANTOWN T Minimal QSR Competition in the Immediate Area LOCATION HIGHLIGHTS CORDOVA, TN MEMPHIS MSA / SHELBY COUNTY Out Pad to a Kroger Grocery Center MAJOR EMPLOYERS: 2017 SHELBY COUNTY FedEx Corp 30,000 Tennesse State Government 14,200 United States Government 13,200 Methodist Le Bonheur Healthcare 13,000 Shelby County Schools 11,500 City of Memphis 7,000 The Kroger Company 6,927 Wal-Mart Stores Inc. 6,800 Baptist Memorial Health Care Corp. 6,467 Naval Support Activity Mid-South 6,500 Affluent Memphis Suburb Where Average Household Income Exceeds $110,244 Cordova is One of the Safest Suburbs in Memphis, TN 13

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18 CORDOVA, TN Cordova is a community in Shelby County Tennessee. It s just east of Memphis. A majority of the community was annexed by Memphis. A train station, built in 1869 and still standing, runs through Cordova and was/is one of the main stops on one s way to Memphis. Known for its farming capabilities, the community of Cordova grew from a quiet country farm area to one of the fastest growing neighborhoods of Memphis. Retail blew up at the end of the 20th century thanks to Wolfchase galleria shopping mall (located 6.4 miles from the McDonald s). Cordova enjoys an annual crafts fair to commemorate its history as well as having its own fourth of July parade. Income per capita, household income, and family median income are all above the national average for the US within Cordova TN. Median rent per month as well as price per square foot of properties has steadily gone up within the last year with the crime rate being extremely low within the Cordova community. Since 2000 real estate has appreciated overall by 1.12% with most of the homes being anywhere from 3-4 bedrooms. Some of the highest cash flow is available in Cordova as well as the westward city of Memphis due to a high percentage of investors and low purchase prices. One of the most stable places for real estate since it only declined about 3% in the 2008 stock market crash. Cordova is located Southeastward of the Isaac Hayes memorial Highway and Northeastward of Shelby Farms Park. Additionally, Cordova is just east of the Mississippi River. The largest employers in the region are: Fedex, Shelby County School District with nearly 16,000 employees in the Shelby County, Methodist Le Bon Heur Healthcare Hospital with 1,765 licensed beds and 10,000 employees (located 9 miles from the site). The hospital treats more than 300,000 patients per year, and WalMart Stores is also among the top employers in the region employing over 6,500 and is located 5.4 miles from the McDonald s. In the immediate area, McDonald s shares market share with Sonic and Burger King, both located across N Houston Levee Rd. Beyond these two unrelated QSR (Quick Service Restaurant) flags, there are no other comparable QSR s in the immediate area services this neighborhood and school district. 15

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20 DEMOGRAPHICS / CORDOVA, TN 97,254 Total Population Within 5-Mile Radius $104,293 Average Household Income Within 5-Mile Radius $77,403 Median Household Income Within 5-Mile Radius 38,073 Total Households Within 5-Mile Radius 51.40% From MILE RADIUS

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22 POPULATION 1 MILE 3 MILES 5 MILES 2022 Projection Total Population 11,787 38, , Estimate Total Population 9,174 31,659 97, Census Total Population 8,181 29,455 92, Census Total Population 2,582 14,547 65,248 Current Daytime Population 2017 Estimate 5,539 19,651 68,659 HOUSEHOLDS 1 MILE 3 MILES 5 MILES 2022 Projection Total Households 4,351 14,560 43, Estimate Total Households 3,304 11,595 38,073 Average (Mean) Household Size Census Total Households 2,976 10,876 36, Census Total Households 884 5,119 25,146 Occupied Units 2022 Projection 4,351 14,560 43, Estimate 3,532 12,263 40,377 HOUSEHOLDS BY INCOME 1 MILE 3 MILES 5 MILES 2017 Estimate $150,000 or More 16.80% 16.62% 15.63% $100,000 - $149, % 20.75% 19.39% $75,000 - $99, % 18.35% 16.74% $50,000 - $74, % 20.50% 19.75% $35,000 - $49, % 7.86% 10.63% Under $35, % 15.92% 17.87% Average Household Income $110,244 $107,830 $104,293 Median Household Income $78,853 $82,302 $77,403 Per Capita Income $39,758 $39,519 $40,905 HOUSEHOLDS BY EXPENDITURE 1 MILE 3 MILES 5 MILES Total Average Household Retail Expenditure $79,202 $81,008 $78,095 Consumer Expenditure Top 10 Categories Housing $20,745 $21,307 $20,511 Transportation $14,295 $14,741 $14,048 Shelter $11,871 $12,211 $11,660 Personal Insurance and Pensions $8,527 $8,870 $8,291 Food $8,390 $8,572 $8,233 Health Care $5,073 $5,263 $5,165 Utilities $4,716 $4,789 $4,632 Entertainment $2,931 $3,082 $3,082 Cash Contributions $2,588 $2,736 $2,624 Apparel $2,348 $2,341 $2,169 POPULATION PROFILE 1 MILE 3 MILES 5 MILES Population By Age 2017 Estimate Total Population 9,174 31,659 97,254 Under % 29.19% 26.20% 20 to 34 Years 20.30% 20.08% 21.26% 35 to 39 Years 8.03% 7.80% 6.95% 40 to 49 Years 14.87% 14.92% 13.88% 50 to 64 Years 17.18% 18.91% 20.14% Age % 9.11% 11.57% Median Age Population 25+ by Education Level 2017 Estimate Population Age 25+ 5,731 20,603 65,724 Elementary (0-8) 1.52% 1.29% 1.18% Some High School (9-11) 2.62% 2.57% 2.54% High School Graduate (12) 19.83% 17.51% 17.84% Some College (13-15) 22.61% 23.74% 24.75% Associate Degree Only 7.86% 8.08% 7.45% Bachelors Degree Only 30.08% 30.23% 30.05% Graduate Degree 15.29% 16.36% 15.92% 19

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24 McDonald s CORDOVA TENNESSEE LIOR REGENSTREIF SENIOR MANAGING DIRECTOR INVESTMENTS SENIOR DIRECTOR, NET LEASED PROPERTIES GROUP ENCINO OFFICE Tel: (818) Fax: (818) Lior.Regenstreif@marcusmillichap.com License: CA