MCDONALD S CORPORATE TWO TENANT NNN LEASED INVESTMENT

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1 JOHN HEEREN 5858 Ridgeway Center Parkway Memphis, Tennessee FAX: TEL: Johnhe@smpo.com MCDONALD S CORPORATE TWO TENANT NNN LEASED INVESTMENT 516 NORTH DICKSON STREET, RUSK, TEXAS Note: The property information contained herein is subject to errors, ommissions, change of price,and other terms prior to sale or withdrawal notice. We make no warranties, either expressed or implied, as to the completeness or accuracy of information contained herein.

2 SALES PRICE: $1,590, LANDLORD OBLIGATIONS Landlord is obligated to pay property taxes, insurance and maintain the exterior of the building as well as the Common Areas subject to monthly CAM reimbursements from each of the two tenants. Landlord shall also maintain structural portions of the building without reimbursement from the tenants so it is possible some provisions need to be made for future reserves for those items not reimbursed by the tenants. Building Size: Approximately 5,050 square feet with drive-thru lane for McDonald s restaurant Lot Size: Approximately acres Cap Rate: 6.15% TENANT OBLIGATIONS AND CAM REIMBURSEMENT Each tenant shall pay monthly their proportionate share of the expense of property taxes, insurance, and allowable CAM. Landlord may hire a third party property manager and include their management fees in the CAM expenses so that the property can be a passive NNN investment to the new owners. COMMENTS The Rusk property was developed as a build-to-suit for McDonald s. In addition to the McDonald s, the building was designed to feature a second retailer who would have synergy Texas is a Tax Free State (no income tax) The McDonald's is on heavily traveled State Highway 69. Trade area exceeding 50,000 people. Fee simple investment. from the draw & traffic of the McDonald s use. The McDonalds restaurant is enjoying tremendous success and has developed a loyal following and strong community support. Not only are the Rusk residents proud of their McDonald s, it is reported that McDonald s is drawing customers from a 30 mile radius of the site with a trade area exceeding 50,000 people. Most McDonald s restaurants are land leases, but this is a fee simple investment allowing an investor to take depreciation on the building improvements which is very unique in a McDonald s investment.

3 PRIMARY LEASE TERM A ten (10) year primary lease term that commenced August 1, 2011 and expires July 31, TENANT McDonald s USA, a Delaware limited liability company. LEASABLE AREA Approximately 3,300 square feet with in-door dining, drive thru, and outdoor patio areas. ANNUAL RENT MONTHLY $75, NNN $ 6, (years 1-10) Options Three (3) Ten (10) year option periods: Years $82,500 NNN (10% increase) Years $90,750 NNN (10% increase) Years $99,825 NNN (10% increase) TENANT INFORMATION McDonald s has more than 33,000 restaurants in more than 120 countries serving nearly 68 million people daily total revenue exceeded $27 billion and McDonald s net worth is in excess of $14.5 billion. McDonald s is the largest restaurant company in the world and one of the most profitable in the industry. Please visit the McDonald s company website at for additional information. PRIMARY LEASE TERM A five (5) year primary term that commenced approximately October TENANT Cottonwood Financial, LTD, Managing Member Riverchase Capital, LLC, 1901 Gateway Dr #200, Irving, TX DBA: Cash Store LEASABLE AREA Approximately 1,750 square feet of retail space ANNUAL RENT MONTHLY $22,750 NNN $1, Options Three (3) Three (3) year option periods: Years 6 8 $23,888 NNN (5% increase) Years 9 11 $25,078 NNN (5% increase) Years $26,320 NNN (5% increase) TENANT INFORMATION The Cash Store is a full service consumer loan company founded in Revenues for 2013 were $220.9 Million. The firm employs 993 people and operates 330 financial service centers under the Cash Store banner. The company website is available at: Cash Store has recently vacated this space and is obligated to pay rent to August They are current with all payments. TOTAL ANNUAL RENT $97,750 NNN

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6 JOHN HEEREN 5858 Ridgeway Center Parkway Memphis, Tennessee FAX: TEL: Johnhe@smpo.com

7 JOHN HEEREN 5858 Ridgeway Center Parkway Memphis, Tennessee FAX: TEL: Johnhe@smpo.com