Fast Food For Sale
5,444 Sq Ft
The subject property is a 5,444-square foot Ground-Lease McDonalds situated on 1.03-acres in Centerville, Ohio. More specifically, the property is located on Far Hills Avenue, just off Interstate 675, which serves as an eastern bypass of Dayton, Ohio. Built in 2013, the property is occupied by an investment grade tenant (McDonalds) on a long-term Absolute Triple-Net Lease.
There are 14-years remaining on the Absolute Triple-Net Ground-Lease (absolutely no landlord responsibilities) including six 5-year options to renew. Additionally, the lease calls for 10% rental increases every 5-years including the option periods (next rental increase scheduled for October 2023 equaling a 4.85% Cap Rate). The average cap rate through the option periods is equal to a 6.65% cap rate.
The corporate guaranteed lease is backed by McDonalds, investment grade tenant with an S&P Credit Rating of BBB+. McDonalds is one of the worlds largest restaurant chains, serving approximately 68 million customers daily in 119 countries across approximately 36,899 locations. According to a BBC report published in 2012, McDonalds is the worlds second largest private employer (behind Walmart with 1.9 million employees), 1.5 million of whom work for franchises. McDonalds Corporation was founded in 1940 and is based in Oakbrook, Illinois.
Centerville, Ohio is an affluent suburb of Montgomery County that is included in the Dayton, Ohio Metropolitan Area. Centerville, Ohio, with a population of just under 25,000, is located approximately 10-miles south of Dayton, Ohio (population approximately 800,000). The subject property is well located along Ohio State Route 48 (Far Hills Boulevard). Route 48 is a north-south highway in Ohio that runs from Goshen, Ohio to Dayton, Ohio. Furthermore, the property benefits from its close proximity to Interstate 675 and numerous local, regional and national retailers including numerous auto dealerships too.