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McDonald’s Ground Lease, McKinleyville, CA

McDonald’s Ground Lease

CA, USA

Price $1,725,000
Cap Rate
NOI
Lease Term 7 Years Remaining
Lease Type Absolute NNN Ground Lease, with Tenant Responsible for Taxes
Rental Increases 15% Rental Increases in Each Option Period
Year Built 1995
Building Size 3,014 SF
Lot Size 0.6 Acres (26,136 SF)
Status Sold
Lead Broker Information Vincent Aicale
Cushman & Wakefield
415.690.5522
vince.aicale@cushwake.com
CA RE License #01728696

Ryan Forsyth
Cushman & Wakefield
415.413.3005
ryan.forsyth@cushwake.com
CA RE License #01716551

Michael T. Yuras, CCIM
Cushman & Wakefield
415.481.0788
michael.yuras@cushwake.com
CA RE License #01823291

Scott Crowle
Senior Director
415.604.4288
scott.crowle@cushwake.com
CA RE License #01318288

Investment Highlights

ABSOLUTE NNN GROUND LEASE TO LONG-STANDING TENANT
» Absolute NNN ground lease, with tenant responsible for all taxes, utilities, insurance, and maintenance, including roof, structure, and parking lot
» No landlord management, providing an ideal investment for an out-of-area investor
» Long-standing tenancy since 1995, with recent five-year lease extension, demonstrating long-term commitment to the location
» McDonald’s invested additional capital with full remodel of the property

CORPORATE LEASE TO INVESTMENT GRADE TENANT
» McDonald’s (NYSE: “MCD”) has a “BBB+” credit rating from Standard & Poor’s and a “Baa1” credit rating from Moody’s
» Iconic tenant with strong brand recognition
» McDonald’s serves over 69 million customers daily in 120 countries across 37,241 outlets

HIGH-TRAFFIC LOCATION IN DENSE RETAIL CORRIDOR
» Prime location at the signalized entrance to Mills Creek Marketplace on Central Avenue, with excellent visibility and access to 14,978 vehicles per day directly in front of the property
» Convenient access to U.S. Highway 101, the region’s primary transportation corridor, with a traffic count of 19,000 vehicles per day near the property
» Outparcel to Mills Creek Marketplace—a large retail center featuring Kmart, Rite Aid, Ray’s Food Place, and Denny’s—which draws traffic from Humboldt County’s northern towns, including Arcata, Glendale, Clam Beach, Korbel, and more

CLOSE PROXIMITY TO IMPORTANT COMMUNITY AMENITIES
» Minutes from California Redwood Coast – Humboldt County Airport, the largest airport in Humboldt County and the region
» Close to Humboldt State University, with over 8,500 students and 1,454 employees
» Near several schools, including Morris Elementary (322 students), McKinleyville Middle School (368 students), and McKinleyville High School (621 students)


Property Description

SOLD

The property is located at the signalized entrance to Mills Creek Marketplace on Central Avenue, with excellent visibility and access to 14,978 vehicles per day directly in front of the property. The property, which also enjoys interparcel access to an additional 12,900 vehicles per day on School Road, is outparcel to Mills Creek Marketplace, a large retail center featuring a strong mix of national, regional, and local retailers, including Kmart, Ray’s Food Place, Rite Aid, Denny’s, and HealthSport. Mills Creek Marketplace is located approximately half a mile from U.S. Highway 101 (19,000 AADT) and draws customers from Humbolt County’s northern towns. The property is centrally located on Central Avenue, McKinleyville’s primary retail and commercial corridor. Mills Creek Marketplace is directly adjacent to Mill Creek Cinema and is near a number of notable tenants, including Grocery Outlet, Safeway, AutoZone, CVS, Round Table Pizza, Starbucks, True Value Hardware, and O’Reilly Auto Parts, amongst many others. The property is also conveniently located less than half a mile from Six Rivers Brewery, an award-winning brewery whose craft beers have developed a cult following and have been featured at iconic events such as the gift suites for the Oscars and Emmys, celebrity parties, and special events at the famous LA Supper Club. Six Rivers operates a vibrant brewpub in McKinleyville, which functions as a social and cultural hub in the town and boasts a loyal clientele of Humboldt County locals.

A number of important community amenities are located near the property, including several school and recreation areas. The property is close to a number of schools, including Morris Elementary (322 students), McKinleyville Middle School (368 students), and McKinleyville High School (621 students). Sites of natural beauty surround the property, including Mad River County Park and Azalea State Natural Reserve. Additional recreational opportunities can be found nearby at Hiller Park and Beau Pre Golf Club. The property is also just minutes from California Redwood Coast – Humboldt County Airport, located in north McKinleyville, and Humboldt State University, located in the neighboring city of Arcata.

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