OUTPARCEL TO SINGLE TENANT ABSOLUTE NNN GROUND LEASE McDonald s Corp (NYSE: MCD) - S&P Rated A ; Moody s Rated A2 6098 State Highway 37, Massena, NY 13662 COLLIERS INTERNATIONAL 3 PARK PLAZA, SUITE 1200 IRVINE, CA 92814 SNYDER/CARLTON TEAM
Table Of Contents Property Summary Lease Abstract Investment Highlights Aerial Overview Tenant Overview Massena, NY Regional Map Demographics Daytime Population Map Household Income Map Confidentiality Agreement Pg. 3 Pg. 4 Pg. 5 Pg. 8 Pg. 10 Pg. 11 Pg. 13 Pg. 14 Pg. 15 Pg. 16 Pg. 17 Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. This publication is the copyrighted property of Colliers International and /or its licensor(s) 2015. All rights reserved
Property Summary We are pleased to offer to qualified investors an absolute NNN investment fully leased to McDonald s Corporation in the city of Massena, NY. The property is located on approximately.92 acres of land and is positioned as an outparcel to the St. Lawrence Centre, which is a shopping mall managed by Carlyle Development Group. There are approximately 44 stores with 4 anchor tenants, totaling over 550,000 SF of GLA. McDonald s has operated at this location since 1993. There are approximately 7 years remaining with 3-5 Year option periods. There are 8% rental increases each option. The current rent is $48,315 per annum, which is significantly below market rent. McDonald s Corporation (NYSE: MCD) is an investment grade tenant that is currently rated A by S&P and A2 by Moody s. McDonald s is the world s leasing global food service retailer with over 3,000 locations serving approximately 69 Million customers in 119 countries each day. McDonald s was ranked the #5 Most Valuable Global Brand in 2014 and ranked #4 in the world for Financial Soundness. This is a unique opportunity to acquire an established, proven McDonald s investment at a low price with an absolute NNN lease structure (zero landlord obligations), below market rent and attractive 10% increases. Pricing List Price $880,000 NOI $48,315 CAP Rate 5.50% Operating Expense Data Annual Rent $48,315 Operating Expense Taxes NNN Insurance NNN CAM NNN Net Operating Income $48,315 MCDONALD S P. 3
Lease Summary Lease Abstract Tenant Trade Name: McDonald s Restaurant Lease Commencement December 01, 1993 Lease Expiration December 31, 2023 Lease Term Term Remaining On Lease 25 Years 7 Years Base Rent $48,315 Rent PSF $15.10 Rental Adjustments Option Periods 10% Rent Bumps Every 5 Yrs. 12/16/2018 $53,148 6-5 Year Option Periods 8% Increases Every 5 Years 12/16/2023: $57,399.84 12/16/2028: $61,991.88 12/16/2033: $66,951.12 12/16/2038: $72,307.20 12/16/2043: $78,091.80 12/16/2048: $84,339.24 Property Details Parcel 405889-010-031-0003-001 Right of First Refusal No Building Area 3,200 SF Lease Type Absolute NNN Ground Lease Land Area 40,075 SF (.92 Acre) Roof And Structure Tenant Responsible Land Use Fast Food Franchise MCDONALD S P. 4
Investment Grade Credit McDonald s Corp (NYSE: MCD) - S&P Rated A ; Moody s Rated A2 Leading Global Food Service Retailer - Over 36,000 Locations Serves 69 Million Customers in 119 Countries - #5 Most Valuable Global Brand S&P 500 Component - Over $25 Billion in Revenue - Over $4.5 Billion in Net Income Over 420,000 Employees - Headquartered in Oak Brook, IL MCDONALD S P. 5
Absolute NNN Lease Absolute NNN Ground Lease - Zero Landlord Obligations Approximately 7 Years Remaining with 3-5 YR Options - 8% Increases Each Option Currently Paying $15.10 PSF / YR - Significantly Below Market - Low Downside Risk 3,200 Square Feet on Approximately 0.92 Acres of Land MCDONALD S P. 6
Ideal 1031 Exchange Opportunity Absolute NNN Lease Structure - Zero Landlord Obligations - Coupon Clipper Investment Grade Tenant - McDonald s Corp (NYSE: MCD) - S&P Rated A Significantly Below Market Rent - 8% Rental Increase At Next Option Established, Proven McDonald s Location - Outparcel to Shopping Mall Free and Clear of Existing Debt - Take Advantage of Low Interest Rates MCDONALD S P. 7
Aerial Overview SMITH RD. MAIL RD. NY-37 37 MAIL RD. Outparcel to Shopping Mall Outparcel to St. Lawrence Centre - Over 550,000 SF of GLA Tenants include JCP, Bon-Ton, Ollie s, BJ s and Taco Bell Located Directly Along Route 37, Near Intersection of Route 37 & Route 131 Directly Adjacent to Massena International Airport Massena, NY - Near Canadian Border - North New York Massena, NY Home of America s Seaway Locks MCDONALD S P. 8
Aerial Overview NY-37 INDUSTRIAL 37 MAIN ST. 37 MASSENA INTERNATIONAL AIRPORT N. RAQUETTE RIVER RD. Massena, NY Home of America s Seaway Locks MCDONALD S P. 9
McDonald s Company Profile S&P Rated A, Moody s Rating A2 McDonald s is the world s leading global foodservice retailer with over 3,000 locations serving approximately 69 million customers in 119 countries each day. More than 80% of McDonald s restaurants worldwide are owned and operated by independent local business men and women. Serving billions of hamburgers has put a shine on these arches. There are more than 14,250 Golden Arches locations in the US. The popular chain is well-known for its Big Macs, Quarter Pounders, and Chicken McNuggets. Most of the outlets are free-standing units offering dine-in and drive-through service, but McDonald s also has many eateries located in airports, retail areas, and other high-traffic locations. Awards & Recognition 2014 #5 Most Valuable Global Brand ~ BrandZ 2014 #9 Most Valuable Brand In the World ~ Business Insider 2013 #6 World s Most Valuable Brand 2012 #7 World s Most Powerful Brand ~ Forbes MCD (Common Stock) Exchange: NYSE (US Dollar) Price: $124.04 2014 #22 World s Most Admired Company Ranked #3 among all companies for Management Quality Ranked #7 among all companies for Global Competitiveness Ranked #4 among all companies for Financial Soundness McDonald s also ranked #2 in the Food Services category ~ Fortune Nov. 2014-Mar.2015(MCD) Serving approximately 69 Million people around the world Every Day Volume: 2,768,736 Market Cap: 108.88B 05/24/15 2:25 PM ET MCDONALD S P. 10
Massena, NY Overlooking the great St. Lawrence River in northernmost New York State, Massena was the fastest-growing commercial and industrial center in St. Lawrence County during the 20th century. From the development of Alcoa operations in 1902, to the arrival of the St. Lawrence Centre Mall and the wide spread of nearby shopping facilities in the 1980 s and 1990 s, Massena firmly established itself as St. Lawrence County s center for commercial, industrial and manufacturing progress throughout the past century, and thus attracting folks to the community from throughout northern New York and southeastern Canada. In addition to a large base of employment opportunities, Massena offers several tourist attractions such as the St. Lawrence Seaway, St. Lawrence-Franklin D. Roosevelt Power Project, the Robert Moses State Park and other recreational facilities. Now into the 21st century and the new millennium, Massena stands ready to assist in improving its current commercial base while welcoming new and compatible business and industry. Economy The economy of early Massena was partly based on health spas, but the modern town is involved in power production, aluminum production at ALCOA, and the commerce of the St. Lawrence Seaway. Massena is home to an Alcoa Aluminum plant, the longest continually operating aluminum facility in the world, and a former Reynolds Metals Company plant, now called Alcoa East (temporarily idled in July 2009). Alcoa currently employs over 1100 people at its facilities in Massena, making it one of the largest private employers in New York north of Syracuse, contributing over $340 million annually to the area s economy. The New York Power Authority also operates a hydroelectric power generating dam, the St. Lawrence-FDR Power Project, on the St. Lawrence River adjacent to Massena. Curran Renewable Energy manufactures wood pellet fuel and mulch in the town. MCDONALD S P. 11
St. Lawrence Centre The St. Lawrence Centre is a shopping mall in Massena, New York managed by Carlyle Development Group. There are approximately 44 stores with 4 anchor tenants, totaling over 550,000 SF of GLA. Anchor stores include The Bon-Ton, and J.C. Penney. MCDONALD S P. 12
Regional Map MCDONALD S P. 13
Demographics Population 3-MILE 5-MILE 7-MILE Estimated Population (2015) 7,184 14,580 17,353 Projected Population (2020) 7,186 14,528 17,339 Households 3-MILE 5-MILE 7-MILE Estimated Households (2015) 3,065 6,254 7,350 Projected Households (2020) 3,089 6,272 7,390 $$ $ Income 3-MILE 5-MILE 7-MILE Avg. Household Income (2015) $47,237 $52,567 $52,516 Median Household Income (2015) $38,681 $40,958 $41,011 Business Facts 3-MILE 5-MILE 7-MILE Total # of Businesses (2015) 319 763 841 Total # of Employees (2015) 3,205 6,933 7,632 MCDONALD S P. 14
Approximately 14,528 Residents Within a 5-Mile Radius Population Density MCDONALD S TACO WENDY S BELL P. 15
Average Household Income of $52,567 Within a 5-Mile Radius Median Household Income MCDONALD S P. 16
This Offering Memorandum contains select information pertaining to the business and affairs of McDonald s, Massena, NY It has been prepared by Colliers International. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Colliers International. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness or this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence. By acknowledging your receipt of this Offering Memorandum from Colliers, you agree: 1. The Offering Memorandum and its contents are confidential; 2. You will hold it and treat it in the strictest of confidence; and 3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller. Owner and Colliers International expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered. If you wish not to pursue negotiations leading to the acquisition of McDonald s, Massena, NY in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum. A prospective purchaser s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Colliers International or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property. This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum. Colliers International 3 Park Plaza, Suite 1200 Irvine, CA 92814 Snyder/Carlton Team Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. This publication is the copyrighted property of Colliers International and /or its licensor(s) 2015. All rights reserved MCDONALD S P. 17
For More Information Contact: Eric Carlton Senior Vice President License No. 01809955 949.724.5561 eric.carlton@colliers.com Jereme Snyder Executive Vice President License No. 01360233 949.724.5552 jereme.snyder@colliers.com John Sharpe Senior Associate License No. 01800769 949.724.5546 john.sharpe@colliers.com THE SNYDERCARLTON TEAM WWW.THENNNETWORK.COM