mcdonald’s
Reduced Price
HIGH GROWTH TEXAS
metro LOCATION
All Photos are of the Actual Store
NNN long-term Ground Lease
high traffic retail corridor
24 hour store with double drive-thru
4315 Old Highway 77, Brownsville TX
Rick Sanner
Bob Sanner
[email protected] | (415) 274-2709
CA BRE# 01792433
[email protected] | (415) 274-2717
CA BRE# 00869657
John Andreini
Chris Kostanecki
[email protected] | (415) 274-2715
CA BRE# 01440360
Capital Pacific collaborates. Click here to meet the rest of our San Francisco team.
[email protected] | (415) 274-2701
CA BRE# 01002010
In conjunction with TX Licensed Broker:
Peter Ellis (210) 325-7578 | [email protected]
McDonald’s Ground Lease
reduced PRICE: $1,941,000
CAP: 3.9%
LAND AREA. . . . . . 35,082 SF
LEASE TYPE. . . . . . NNN Ground Lease
Investment Highlights
YEAR BUILT. . . . . . 2012
excellent location
Brownsville is one of the fastest growing cities in the United States. From 1990 to 2010, the city’s population went from
approximately 99,000 to over 175,000: a 77% increase.
The Brownsville-Harlingen metropolitan area had a 2010 population of more than 415,000. Including the city of
Matamoros just across the U.S.-Mexico border, the total area population was over 1,136,000.
This McDonald’s is open 24 hours and has a double drive-thru. It is on a major commercial street in Brownsville with
traffic counts of 50,000 VPD. It is in front of Academy Sports and adjacent to AT&T. Las Tiendas Plaza, a major Targetanchored center, which opened in 2006 and has 350,000 SF, is across the freeway.
The multi-lane freeway alongside the property is I-69 East or I-69 E. McDonald’s is on the I-69 E frontage road with
good visibility.
Space Exploration Technologies Corporation (“SpaceX”), the privately-owned space-transport company founded by Tesla
and PayPal pioneer Elon Musk, has just broken ground on its own launch site close to Brownsville (projected cost $115+M).
See more information on page 11.
credit tenant
Guaranteed by McDonald’s Corporation
S&P investment grade rating of “A” with stable outlook
McDonald’s operates over 34,000 restaurants in 119 countries and has 1,800,000 employees worldwide
Lease Highlights
20 year corporate NNN ground lease (17+ years remain)
8% rental increases in the primary term
Six 5-year options with 10% rental increases
Mcdonald’s | 2
ulevard
Pablo Kisel
Boulevard
E Alton Gloor Bo
69E
Vila
Middle School
E Morris
on Road
000
50,
83
ILY
DA
77
BROWNSVILLE
COUNTRY CLUB
oad
Old
ison R
Paredes
Elementary
MORRISON CROSSING CENTER
way
77
SUNRISE COMMONS
Paredes Line Road
High
Morr
SUNRISE MALL
San
Antonio
Sr.
M. Torres
E Rubenoulevard
B
69E
83
77
Mcdonald’s | 3
Income & Expense
PRICE
$1,941,000
Capitalization Rate:
3.9%
Total Rentable Area (SF):
35,082*
Lot Size (Acres):
STABILIZED INCOME
0.81
Per Square Foot
Scheduled Rent
$2.16
$75,700
Effective Gross Income
$2.16
$75,700
LESS
Per Square Foot
Taxes
NNN
$0.00
Insurance
NNN
$0.00
Total Operating Expenses
EQUALS NET OPERATING INCOME
$0.00
$75,700
* the improvements, owned by the tenant, are 3,099 SF
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or
implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
Mcdonald’s | 4
Rent Roll
TENANT INFO
Tenant Name
McDonald’s
Totals:
LEASE TERMS
Sq. Ft.
35,082
Term
RENT SUMMARY
Current
Rent
Monthly
Rent
Yearly
Rent
Monthly
Rent/FT
Yearly
Rent/FT
$75,700
$6,308
$75,700
$0.18
$2.20
11/1/2012
10/31/2022
11/1/2022
10/31/2027
$6,812
$81,748
$0.20
$2.38
11/1/2027
10/31/2032
$7,357
$88,280
$0.21
$2.57
Option1
11/1/2032
10/31/2037
$8,092
$97,098
$0.24
$2.82
Option2
11/1/2037
10/31/2042
$8,900
$106,798
$0.26
$3.11
Option3
11/1/2042
10/31/2047
$9,789
$117,467
$0.28
$3.42
Option4
11/1/2047
10/31/2052
$10,767
$129,204
$0.31
$3.76
Option5
11/1/2052
10/31/2057
$11,843
$142,114
$0.34
$4.13
Option6
11/1/2057
10/31/2062
$13,026
$156,316
$0.38
$4.55
$6,308
$75,700
$0.18
$2.20
34,380
$75,700
Note: the improvements are 3,099 SF, owned by the tenant
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
Mcdonald’s | 5
McDonald’s
About mcdonald’s
for the year ending
december 31, 2013,
mcdonald’s reported
revenues of $28.1
billion.
McDonald’s is the leading global food service retailer with more
than 35,000 local restaurants serving nearly 69 million people in
119 countries each day. For the year ending December 31, 2013,
the company reported revenues of $28.1 billion with a net income
of $5.58 billion and a net worth of $14.0 billion.
McDonald’s primarily sells hamburgers, cheeseburgers, chicken,
French fries, breakfast items, soft drinks, milkshakes, and desserts.
In response to changing consumer tastes, the company has
expanded its menu to include salads, fish, wraps, smoothies, and
fruit.
COMPANY TYPE
PUBLIC (NYSE: MCD)
EMPLOYEES
1.8 MILLION
S&P CREDIT RATING
A
S&P 500 RANKING
#111
Mcdonald’s | 6
Site Plan
six lane
I-69 E
Traffic
counts in
excess of
50,000 vpd
(See Note)
Morrison Road
Drive-thru
Side Road
Frontage Road
NOT A PART
Old Highway 77
Academy Sports
NOT A PART
Note: Morrison Road goes under I-69 E and connects to major retailers on the other side of the interstate
Mcdonald’s | 7
Photos
This mcdonald’s
Location has a
double Drive-Thru
and Outdoor
Seating
Mcdonald’s | 8
Regional Map
lle,
i
v
s
n
w
o
Br
ion
t
a
c
o
L
TX
Traffic counts
in excess of
50,000 vpd on
i-69 e
Mcdonald’s
Brownsville
Mcdonald’s | 9
Houston, Texas
Location & Demos
Brownsville, TX Overview
Brownsville, the county seat of Cameron County, is located at the southernmost
tip of Texas on the northern bank of the Rio Grande, directly across the border
from Matamoros, Mexico. The Brownsville-Harlingen metropolitan area had
a 2010 population of over 415,000. As noted earlier, Brownsville is one of
the fastest growing cities in the United States 77% growth from 1990-2010.
With one of the fastest growing manufacturing sectors in the nation,
Brownsville’s economy is mainly based on its international trade with
Mexico through the Port of Brownsville, which provides linkage between
the road networks of nearby Mexico and the Gulf Intracoastal Waterway.
There is a non-stop commercial air service to Houston and Dallas at the
Brownsville airport, about five miles from the city.
Brownsville’s economy also benefits from its universities: University of Texas
at Brownsville, Texas Southmost College, and the Brownsville campus of The
University of Texas Health Science Center. Together, these universities enroll
about 22,000 students and are among Brownsville’s top employers.
Population
1-Mile
3-Mile
5-Mile
8,633
9,076
9,765
75,599
78,612
83,819
131,857
136,277
144,533
1-Mile
3-Mile
5-Mile
$48,915
$36,549
$49,792
$35,379
$45,429
$30,476
2010
2012
2018
2013 Household incomes
Average
Median
Top Employers in Brownsville
Brownsville Independent School District
Caring For Your Home Health
Cameron County
University of Texas at Brownsville
Brownsville just announced a major hi-tech employer - SEE NEXT PAGE
Mcdonald’s | 10
Location
This is a rendering of what the spacex site in brownsville will look like
New Rocket Launch Site under construction in brownsville
On August 4, Space Exploration Technologies Corporation (“SpaceX”), the privately-owned space-transport company founded by Tesla and
PayPal pioneer Elon Musk, announced it would build its own launch site at Boca Chica Beach 17 miles from Brownsville. The official groundbreaking, featuring Elon Musk as a speaker, was held on September 22.
The company has been successfully launching commercial satellites and rockets since 2008, but renting time and facilities at various US
government launch sites in Florida and California. This will be the first private, commercial vertical launch site in the world.
It has said it intends to launch 12 rockets per year from Brownsville, starting as soon as 2016. Based on the experience of other U.S. launch
locations, a launch brings in thousands of tourists who enjoy watching the lift-off.
The $115+ million project cost is being jointly funded by: the company itself; the state of Texas development office; and the city of Brownsville
development office.
In addition to the hundreds of highly-paid jobs created directly, Elon Musk has stated in the past it is “logical” that his company would consider
building an additional facility, nearby its chosen launch site, actually to construct the rockets. This would obviously add even more employment.
It has been speculated that SpaceX will offer “space tourism” to wealthy individuals.
The University of Texas - Brownsville is also involved with this project, which will include a 12,000 SF tracking center.
The announcement:
http://www.reuters.com/article/2014/08/04/us-space-spacex-texas-idUSKBN0G421L20140804
More information:
http://www.techtimes.com/articles/12141/20140805/spacex-will-build-commercial-spaceport-in-brownsville-texas-heres-why.htm
Mcdonald’s | 11
A unique HUMAN
RESULTS-DRIVEN
client experience
The capital pacific experience - our daily commitment to our clients
[ www.CapitalPacific.com ]
Rick Sanner
Bob Sanner
[email protected] | (415) 274-2709
CA BRE# 01792433
[email protected] | (415) 274-2717
CA BRE# 00869657
John Andreini
Chris Kostanecki
[email protected] | (415) 274-2715
CA BRE# 01440360
In conjunction with TX Licensed Broker:
Peter Ellis (210) 325-7578 | [email protected]
[email protected] | (415) 274-2701
CA BRE# 01002010
Copyright © 2014 [Capital Pacific Real Estate Brokerage Company]
10-10-11
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