FOR SALE. offering memorandum NET LEASED INVESTMENT arvada (denver) colorado. Bryan Cifranic Direct Line: 559/

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1 FOR SALE offering memorandum NET LEASED INVESTMENT arvada (denver) colorado For further information, please contact: Bryan Cifranic Direct Line: 559/ BRE License # Nathan Negri Direct Line: 559/ BRE License # Colorado Licensed Broker of Record: Leuthold Commercial Properties LIC # EC (CO)

2 INVESTMENT OVERVIEW PROPERTY SUMMARY: TENANT: LOCATION: STORE TYPE: BUILDING SIZE: LAND SIZE: McDonald s USA, LLC West 64th Avenue Arvada, CO Free-Standing Building w/double Drive-Thru ±3,870 SF YEAR BUILT: 2008 RENT SCHEDULE: PRIMARY TERM: OPTION RENT: ±1.74 Acres $90,750.00¹ Annually (August 1, July 31, 2022) $99, Annually (10% Increase) (August 1, July 31, 2028) Option #1-10% Fixed Rent Increase Option #2-10% Fixed Rent Increase Option #3-10% Fixed Rent Increase Option #4-10% Fixed Rent Increase Option #5-10% Fixed Rent Increase Option #6-10% Fixed Rent Increase Option #7-10% Fixed Rent Increase Option #8-10% Fixed Rent Increase ¹ Rent reflects the schedule rent increase to occur on August 1, The listing price and cap rate are reflective of the scheduled rent increase and Seller shall credit the Buyer the monetary rent difference between the Current Rent and Scheduled Rent beginning from the Close of Escrow date until the Schedule Rent increase date of August 1, OFFERING TERMS: OFFERING PRICE: $2,065,000 CAP RATE: 4.25% NET OPERATING INCOME: $87,750² LEASE SUMMARY: TENANT: LEASE TYPE: LEASE TERM: OPTION TERMS: TENANT ROFR: ESTOPPEL: McDonald s USA, LLC, a Delaware limited liability company Ground Lease 10.5 Years Remaining August 22, August 31, 2028 Eight (8) Periods of Five (5) years Each Yes, Thirty (30) Days Twenty (20) Business Days ² The net operating income reflects a $3,000 deduction to the annual rental income to offset shopping center common area maintenance expenses not fully reimbursed by McDonald s. The actual non-recoverable expenses in calendar year 2017 for the subject parcel were $2,688, the underwriting of $3,000 estimated per year was padded for cost fluctuation (primarily snow removal and utility costs). However the non-recoverable cost allocations to the shopping center parcels should be decreasing upon the completion of the final shopping center development parcel (now under construction) once that parcel begins contributing to the common area maintenance expense pool. Contact the listing agent for additional details.

3 INVESTMENT HIGHLIGHTS Investment Grade Tenant McDonald s has a Standard & Poor s Credit Rating of BBB+ (Stable) Pride of Ownership Property Newer 2008 Prototype Construction with Double Drive-Thru and Part of the Well Maintained Indiana Marketplace Shopping Center Passive Investment Coporate Ground Lease with McDonald s USA High Visibility and Accessibility Situated near the Signalized Intersection of West 64th Avenue and Indiana Street with More than 46,000 Average Cars Per Day Affluent Demographics $159,000 Average Household Income and High Population Growth of 25% from with Continued Growth Predicted Part of the Denver Metropolitan Statistical Area Located only 12 Miles from Downtown Denver and includes Nearly 2.7 Million People in the Denver MSA. Ranked #1 Best Places to Live in the USA by U.S. News & World Report

4 PROPERTY IMAGES

5 AERIAL OVERVIEW

6 AERIAL OVERVIEW

7 PROPERTY SITE PLAN *Site Plan Not to Scale

8 TENANT PROFILE S&P CREDIT RATING: BBB+ (STABLE) MOODY S CREDIT RATING: Baa1 (STABLE) # OF LOCATIONS: ±36,000 in More than 100 Countries ±75,717 SF / ±1.74 Acres MCDONALD S CORPORATION (NYSE: MCD) McDonald s Corporation (McDonald s), was incorporated on December 21, 1964 and operates and franchises McDonald s restaurants. Back in 1954, a man named Ray Kroc discovered a small burger restaurant in California and wrote the first page of McDonald s history. From humble beginnings as a small restaurant, they have now become one of the world s leading food service brands with more than 36,000 restaurants in more than 100 countries. The Company s restaurants serve a locally relevant menu of food and drinks sold at various price points in over 100 countries. The Company s segments include U.S., International Lead Markets, High Growth Markets and Foundational Markets and Corporate. McDonald s franchised restaurants are owned and operated under various structures, including conventional franchise, developmental license or affiliate. The Company is primarily a franchisor. Under a conventional franchise arrangement, the Company owns the land and building or secures a longterm lease for the restaurant location and the franchisee pays for equipment, signs, seating and decor. The U.S. segment focuses on offering a platform for authentic ingredients that allows customers to customize their sandwiches. Its High Growth Markets segment includes its operations in markets, such as China, Italy, Korea, Poland, Russia, Spain, Switzerland, the Netherlands and related markets. The International Lead markets segment includes the Company s operations in various markets, such as Australia, Canada, France, Germany, the United Kingdom and related markets. McDonald s High Growth markets are focused on creating customer excitement through menu, promotions and value, and implementing a digital strategy with specific mobile solutions and actions. The Foundational markets and Corporate segment is engaged in operating restaurants and increasing convenience to customers, including through drive-thru and delivery. McDonald s menu includes hamburgers and cheeseburgers, Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, several chicken sandwiches, Chicken McNuggets, wraps, French fries, salads, oatmeal, shakes, McFlurry desserts, sundaes, soft serve cones, pies, soft drinks, coffee, McCafe beverages and other beverages. In addition, the restaurants sell a range of other products during limited-time promotions. McDonald s restaurants in the United States and many international markets offer a full or limited breakfast menu. Breakfast offerings may include Egg McMuffin, Sausage McMuffin with Egg, McGriddles, biscuit and bagel sandwiches, and hotcakes. For more information, visit

9 ARVADA (DENVER)

10 DEMOGRAPHICS POPULATION 1-MILE 3-MILE 5-MILE INCOME 1-MILE 3-MILE 5-MILE Estimated Population (2017) 9,038 57, ,675 Est. Avg. Household Income (2017) $159,382 $150,521 $136,944 Projected Population (2022) 9,532 61, ,844 Proj. Avg. Household Income (2022) $194,994 $182,922 $164,712 Census Population (2010) 7,912 52, ,823 Est. Avg. Family Income (2017) $173,974 $166,411 $153,763 Census Population (2000) 7,074 45, ,057 Est. Med. Household Income (2017) $110,817 $111,968 $104,385 Projected Annual Growth ( ) 494 (1.1%) 3,174 (1.1%) 8,169 (1.1%) Proj. Med. Household Income (2022) $129,697 $130,802 $121,759 Historical Annual Growth ( ) 1,126 (2.0%) 5,536 (1.5%) 15,852 (1.8%) Est. Med. Family Income (2017) $126,507 $126,752 $120,798 Historical Annual Growth ( ) 828 (1.2%) 6,949 (1.5%) 4,766 (0.4%) AGE Estimated Population Density 2,878 psm 2,050 psm 1,830 psm Estimated Median Age HOUSEHOLDS RACE Estimated Households (2017) 3,301 21,759 57,647 White 8,432 (93.3%) 53,593 (92.5%) 129,699 (90.3%) Projected Households (2022) 3,457 22,775 60,486 Black or African American 38 (0.4%) 411 (0.7%) 1,471 (1.0%) Census Households (2010) 2,956 20,091 52,697 American Indian/Alaska Native 28 (0.3%) 258 (0.4%) 969 (0.7%) Census Households (2000) 2,418 16,565 48,214 Asian 264 (2.9%) 1,409 (2.4%) 3,314 (2.3%) Estimated Households with Children 1,134 (34.3%) 7,020 (32.3%) 16,561 (28.7%) Other Race 110 (1.2%) 1,030 (1.8%) 4,312 (3.0%) Estimated Average Household Size Two or More Races 163 (1.8%) 1,209 (2.1%) 3,825 (2.7%) Not Hispanic or Latio Pop. 8,437 (93.4%) 53,003 (91.5%) 126,668 (88.2%) Hispanic or Latine Pop. 601 (6.6%) 4,935 (8.5%) 17,007 (11.8%) Source: REGIS Online, 2017

11 CONFIDENTIALITY AGREEMENT The information contained herein does not purport to provide a omplete or fully accurate summary of the Property or any of the documents related thereto, nor does it purport to be all-inclusive or to contain all of the information which prospective buyers may need or desire. All financial projections are based on assumptions relating to the general economy, competition, and other factors beyond the control of the Owner and Broker and, therefore, are subject to material variations. This Offering Memorandum does not constitute an indication that there has been no change in the business or affairs of the Property or the Owner since the date of preparation of the information herein. Additional information and an opportunity to inspect the Property will be made available to interested and qualified prospective buyers. Neither Owner nor Broker nor any of their respective officers, Agents or principals has made or will make any representations or warranties, express or implied, as to the accurracy or completeness of this Offering Memorandum or any of its contents, and no legal commitment or obligation shall arise by reason of the Offering Memorandum or its contents. Analysis and verification of the information contained in the Offering Memorandum is solely the responsibility of the prospective buyer, with the Property to be sold on as-is, where-is basis without any representations as to the physical, financial or environmental condition of the Property. Owner and Broker expressly reserve the right, at their sole discretion, to reject any or all expressions of interests or offers to purchase the Property and/or terminate discussions with any entity at any time with or without notice. Owner has no legal commitment or obligations to any entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until such sale of the Property is approved by Owner in its sole discretion, a written agreement for purchase of the Property has been fully delivered, and approved by Owner, its legal counsel and any conditions to the Owner s obligations thereunder have been satisfied or waived. This Offering Memorandum and its contents, except such information which is matter of public record or is provided in sources available to the public (such contents as so limited herein called the Contents), are of a confidential nature. By accepting this Offering Memorandum, you unconditionally agree that you will hold and treat the Offering Memorandum and the Contents in the strictest confidence, that you will not photocopy or duplicate the Offering Memorandum or any part thereof, that you will not disclose the Offering Memorandum or any of its Contents to any other entity (except in the case of a principal, who shall be premitted to disclose to your employees, contractors, investors and outside advisors retained by you, or to third-party institutional lenders for financing sought by you, if necessary, in your opinion, to assist in your determination of whether or not to make a proposal) without the prior authorization of the Owner or Broker, and that you will not use the Offering Memorandum or any of the Contents in any fashion or manner detrimental to the interest of the Owner or Broker.

12 NET LEASED INVESTMENT arvada (denver) colorado For further information, please contact: Bryan Cifranic Direct Line: 559/ BRE License # Nathan Negri Direct Line: 559/ BRE License # Colorado Licensed Broker of Record: Leuthold Commercial Properties LIC # EC (CO)