McDonald's

McDonald's

7011 E Shelby Drive
Memphis, TN

Price: $1,688,000
Cap: 4.25%
NOI: $71,705
Building Size: 4,560 SF
Lot Size: 0.91 AC

Investment Highlights

9.5 YEAR ABSOLUTE NNN CORPORATE GROUND LEASE
•Over 9.5 years remaining on a corporate guaranteed ground lease with McDonald’s Corporation.
•Tenant is 100% responsible for all expenses, which include taxes, CAM, insurance, roof and structure.
•Attractive 15% rent increase during initial lease and 10% increases in each of the three, 5-year option periods.
•McDonalds is paying a low $71,705 in rent which makes it unlikely the tenant will leave and equates to a more attractive lower price point.

RARE 15% RENT INCREASE
•This McDonalds has a rare 15% rent increase during the initial lease term in 2024.
•There are also 10% rent increases every 5 years during the option periods.

INVESTMENT GRADE TENANT
•McDonald’s is a publicly traded (NYSE: MCD) Fortune 500 Company and has a BBB+ investment grade credit rating by (S&P).
•McDonald’s has been in business since 1940 and is the largest restaurant chain in the world by revenue with current revenues over $21.07B.
•There are currently over 37,855 McDonald’s locations in 119 countries with 13,482 in the United States.

KROGER OUTPARCEL LOCATION
•This store is well located as an outparcel to a Kroger anchored shopping center (Gleneagles Court), which is an epicenter of shopping for southeast Memphis residents.
•With sales exceeding $22M, Kroger has displayed strong commitment to the center through a recent lease extension and the development of a gas center.
•This strong retail corridor is located within a dense neighborhood with a 5-Mile population of 161,720 and an average household income of approximately $78,000.
•Gleneagles Court is located at the intersection of E Shelby Drive (40,567 VPD) and Riverdale Road (42,769 VPD) with access points to both corridors.
•Additional surrounding national retailers include Walmart Neighborhood Market, Walgreens, Roses, Wendy’s, Taco Bell and more.

MEMPHIS
•Memphis is the second most populous city in the State of TN with a population of 650,618 and an MSA population of 1,348,260.
•The largest employer in Memphis is the multinational courier corporation FedEx, which maintains its global air hub at Memphis International Airport, making it the second-busiest cargo airport in the world.
•Located on the Mississippi River and intersected by five major freight railroads and two Interstate Highways, I-40 and I-55, Memphis is ideally located for commerce in the transportation and shipping industry.
•Founded in 1979 and based in Memphis, AutoZone is the largest aftermarket automotive parts store in America with 6,300 stores across the U.S, Mexico, and Brazil.

Don McMinn
OFFERING MEMORANDUM

Email not recognized.
In lieu of a confidentiality agreement, we request that you complete the following form in order to download an Offering Memorandum or try again.







Principal or Broker?