EXCLUSIVE LISTING Offering Memorandum - Actual Site
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McDonald’s |LISTING
EXCLUSIVE Memphis, TN
Offering Memorandum
McDonald’s (Ground Lease) | Memphis, TN
Actual Site
SHEREE STROME, CCIM KEELEE PETERSON
ASSOCIATE DIRECTOR ASSOCIATE DIRECTOR
(404) 900-5629 (404) 492-9469
sstrome@calkain.com kpeterson@calkain.com CCAALLKKAAIIN
N.C
.CO
OMM
1
McDonald’s | Memphis, TN
Offering Memorandum
Financial Summary
3068 S Perkins Rd | Memphis, TN 38118 Investment Highlights
•• Corporate lease
Asking Price $1,119,500 | Cap Rate 4.75%
•• Location established in 1966
Net Operating Income (NOI) $53,174 •• Newly constructed building (2008)
Rent/Month $4,432 •• Strong traffic counts
•• Located off I-240
Rent/SF $12.20
•• McDonald’s has a 30 day Right of First Refusal
Rentable Square Feet 4,360+/- SF
Land Area 0.92+/- Acres
Tenant Name McDonald’s
Credit Rating S&P: BBB
Stock Symbol NYSE: MCD
Guarantor Corporate
Lease Type Ground Lease
Landlord Responsibilities None
Store Opened 1966
Renovated 2008
Lease Term Remaining 4 Years, 9 Months
Rent Commencement 1966
Lease Expiration January 19, 2023
Increases 10% Every 5 Years
Options Two (2), Five (5) Year
McDonald’s has a 30 day Right of First Refusal
2
McDonald’s | Memphis, TN
Offering Memorandum
Site Photos
3
McDonald’s | Memphis, TN
Offering Memorandum
Tenant Overview
About McDonald’s High Growth Markets
McDonald’s is the world’s leading global food service retailer with over 36,000 •• Relatively higher restaurant expansion and franchising potential
locations in over 100 countries. More than 80% of McDonald’s restaurants •• 8 key markets across Asia and Europe (China, Korea, Russia, Poland, Italy,
worldwide are owned and operated by independent local business men and Spain, the Netherlands and Switzerland)
women. •• All share a similar landscape of unpenetrated growth
Reporting Segments Foundational Markets
Beginning July 1, 2015, McDonald’s started operating under a new organizational
•• Largest and most diverse geographical segment spanning over 80 markets
structure with the following four segments that combine markets with similar
across parts of Asia, Europe, Middle East & Africa and Latin America
characteristics, challenges, and opportunities for growth:
•• Markets with potential to operate under a largely franchised model
U.S. Market •• Contains almost all of their DL markets globally
•• The U.S. is the largest market in the McDonald’s System in terms of number •• Home to about 60% of the world’s population and represents about one
of restaurants, revenues and operating income third of global GDP growth
•• McDonald’s has a unique and powerful field organizational structure that,
when optimized, gives them a significant competitive advantage
International Lead Markets
•• Includes some of the largest, best resources and most established markets
in the System with strong, developed economies and, in most cases, similar Tenant
competitive dynamics and opportunities for growth Snapshot
•• Operating from a position of strength: largely reimaged asset base signifi- # of Locations
cant McCafé presence across most markets, and high average unit volumes 36,000+
and franchisee cash flows
Stock Symbol
•• Track record of innovation and sustained investment, particularly around NYSE: MCD
their menu, operations and brand Credit Rating
S&P: BBB+
4
McDonald’s | Memphis, TN
Offering Memorandum
3068 S Perkins Rd | Memphis, TN 38118
Subject Site
159,
235
Knight Arnold Road
VPD
240 Perkins Rd 31,204 VPD
5
McDonald’s | Memphis, TN
Offering Memorandum
3068 S Perkins Rd | Memphis, TN 38118
Perkins Rd 31,204 VPD
240 1 Mile to I-240
Subject Site
GATTAS PLAZA
SHOPPING CENTER
Knight Arnold Road 18,750 VPD
6
McDonald’s | Memphis, TN
Offering Memorandum
3068 S Perkins Rd | Memphis, TN 38118
Knight Ar
nold Road
18,750 VP
D
Subject Site
GATTAS PLAZA
SHOPPING CENTER
PD
20 4V
1,
d3
insR
Perk
7
McDonald’s | Memphis, TN
Offering Memorandum
Location Overview
Distance To:
Jackson, TN 80 miles
Huntsville, AL 203 miles
Nashville, TN 207 miles Nashville, TN
40
Jackson, TN
40
Memphis, TN
Subject Site
Huntsville, AL
22
8
McDonald’s | Memphis, TN
Offering Memorandum
Demographics
Radius 1 Mile 3 Miles 5 Miles
Population
2017 Population 17,539 84,457 201,232
2022 Population 18,054 86,512 206,077
2010-2017 Annual Rate 0.66% 0.51% 0.49%
2017-2022 Annual Rate 0.58% 0.48% 0.48%
2017 Male Population 48.4% 47.8% 47.1%
2017 Female Population 51.6% 52.2% 52.9%
2017 Median Age 29.3 31.5 33.5
Households
2017 Total Households 5,572 30,266 77,397
2022 Total Households 5,717 30,931 79,141
2010-2017 Annual Rate 0.54% 0.39% 0.42%
2017-2022 Annual Rate 0.52% 0.44% 0.45%
2017 Average Household Size 3.15 2.78 2.56
Median Household Income
2017 Median Household Income $36,068 $38,278 $41,941
2022 Median Household Income $37,483 $40,834 $45,725
2017-2022 Annual Rate 0.77% 1.30% 1.74%
Average Household Income
2017 Average Household Income $45,812 $51,479 $65,185
2022 Average Household Income $50,801 $57,728 $72,369
2017-2022 Annual Rate 2.09% 2.32% 2.11%
Per Capita Income
2017 Per Capita Income $14,520 $18,692 $25,360
2022 Per Capita Income $16,046 $20,899 $28,075
2017-2022 Annual Rate 2.02% 2.26% 2.05%
9
McDonald’s | Memphis, TN
Offering Memorandum
Demographics | 3 Mile Radius
AGE PYRAMID
10McDonald’s | Memphis, TN
Offering Memorandum
Market Overview
Memphis, TN
Memphis is a city in the southwestern corner of the U.S. state of Tennessee and
the county seat of Shelby County. The city is located on the fourth Chickasaw
Bluff, south of the confluence of the Wolf and Mississippi rivers.
Memphis had a population of 652,717 in 2016, making it the second largest city in
the state of Tennessee. The greater Memphis metropolitan area, including adjacent
counties in Mississippi and Arkansas, had a 2014 population of 1,317,314. This
makes Memphis the second-largest metropolitan area in Tennessee, surpassed by
metropolitan Nashville.
Memphis is the youngest of Tennessee’s major cities, founded in 1819 as a planned
city by a group of wealthy Americans including judge John Overton and future
president Andrew Jackson. A resident of Memphis is referred to as a Memphian,
and the Memphis region is known, particularly to media outlets, as Memphis and
the Mid-South.
Downtown Memphis rises from a bluff along the Mississippi River. The city and
metro area spread out through suburbanization, and encompass southwest
Tennessee, northern Mississippi and eastern Arkansas. Several large parks were
founded in the city in the early 20th century, notably Overton Park in Midtown
and the 4,500-acre Shelby Farms. The city is a national transportation hub and
Mississippi River crossing for Interstate 40, (east-west), Interstate 55 (north-
south), barge traffic, Memphis International Airport (FedEx’s “SuperHub” facility)
and numerous freight railroads that serve the city.
In 2013, USA Today readers voted Beale Street as America’s Best Iconic Street
and Graceland as the Best Iconic American Attraction. The National Civil Rights
Museum (at the Lorraine Motel, the site of Rev. Martin Luther King’s assassination)
ranked third in the poll of national attractions.
Shelby County is located over four natural aquifers, one of which is recognized
as the “Memphis Sand Aquifer” or simply as the “Memphis Aquifer”. Located 350
to 1,100 feet underground, this artesian water source is considered soft and
estimated by Memphis Light, Gas and Water to contain more than 100 trillion US
gallons of water.
11McDonald’s | Memphis, TN
Offering Memorandum
About Calkain
Who Are We?
Calkain Companies LLC is a national commercial real estate firm that provides With the growth in staff, seasoned professionals have been attracted to Calkain’s
consulting and brokerage services to both private and institutional clientele model of innovation, entrepreneurship and the fostering of long-lasting and
with an expertise on triple net lease investments. We pride ourselves on being meaningful relationships. Industry experts have joined Calkain in the hopes of
a world class leader by providing our clients a full array of commercial real estate implementing the skills they have honed in complementary aspects of real estate
investment brokerage and asset management solutions, including advisory, investment.
research, estate planning and wealth management. Through a tremendous endeavor, tireless hours have been committed to
We have built solid relationships throughout our decades of experience and continually prove that Calkain is America’s Net Lease Company®. Its countless
innovation, implementing long-term allocation within the context of each client’s accolades received from the world’s leading business publications, including
particular risk tolerance and identifying how best to acquire and dispose of income Forbes™, Fortune™ and the New York Times™ have confirmed that Calkain is a
producing properties for each entities’ specific set of investment criterion. At true leader in triple net lease investing services.
Calkain, our foresight and past performance are leading the net lease investment
industry.
Client Testimonial
Our History
Like most success stories, Calkain was formulated from humble beginnings.
“USRA has worked with Calkain on numerous occasions. They have always been
meticulous in their work ethic, providing superior service and extremely prompt
Jonathan W. Hipp, President and CEO, took the initiative to build upon his
attention to our needs. I highly recommend them.
decades of experience and performance and left a large international brokerage
firm to become an independent and innovative leader within the triple net lease - Jack Genende, Partner | U.S. Realty Advisors, LLC. (USRA)
investment community. Armed with a sole employee and a single office, the firm
has grown exponentially since its infancy in 2005.
$11.5 Billion $350 Million
in Closed Transactions in Active Listings
SHEREE STROME, CCIM KEELEE PETERSON
ASSOCIATE DIRECTOR ASSOCIATE DIRECTOR
(404) 900-5629 (404) 492-9469
sstrome@calkain.com kpeterson@calkain.com CCAALLKKAAIIN
N.C
.CO
OMM
12Contact Us Corporate Headquarters Washington, DC 12930 Worldgate Drive | Suite 150 Herndon, VA 20170 T: (703) 787-4714 • F: (703) 787-4783 Fort Lauderdale 200 SW 1st Avenue | Suite 880 Fort Lauderdale, FL 33301 T: (813) 282-6000 Atlanta 111 Village Parkway, Building 2 | Suite 202 Marietta, GA 30067 T: (404) 900-5629 Boston 101 Federal Street | Suite 1900 Boston, MA 02110 T: (617) 261-8584 CALKAIN.COM DISCLAIMER: The information contained in this document is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Calkain and its subsidiaries, and should not be made available to any other person or entity without the written consent of Calkain. This document has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property(s). The information contained herein is not a substitute for a thorough due diligence investigation. Calkain and its subsidiaries have not made any investigation, and make no warranty or representation, with respect to the income or expenses for the subject property(s), the future projected financial performance of the property, the size and square footage of the property(s) and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regula- tions, 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(s). The information contained in this document has been obtained from sources we believe to be reliable; however neither Calkain and its subsidiaries nor the Seller have verified, and will not verify, any of the information contained herein, nor has Calkain and its subsidiaries or the Seller conducted any investigation regarding these matters and make 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.
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