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6270 Far Hills Ave
Dayton, OH 45459 Outer Centerville/Kettering

$1,685,000

Fast Food For Sale  •  5,444 Sq Ft

Property Details

  • Property Type Fast Food
  • Total Building Size 5,444 Sq Ft
  • Lot Size 1.03 ac
  • Building Class B
  • Year Built 2013
  • Cap Rate 4.41 %
  • Tenancy Single
0 Transit Score
63 Walk Score

Description

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.

Highlights

McDonald's Corporate Guaranty | S&P: BBB+ | NASDAQ: MCD
Absolute Triple-Net Ground Lease (No Landlord Responsibilities)
10% Rental Increases Every 5 -Years (Next Increase 2023 = 4.85% Cap Rate)

Property Flyers

Cap Rate: 4.41 %

Major Tenants

Tenant SF Occupied Lease End Date
McDonald's Ground Lease 5,444 SF 10/31/2033

Amenities

  • Drive Thru

Public Transportation

AirportDriveWalkDistance
Dayton International Airport 34 min - 20.6 mi

Parking Details

Parking Available: No
Reserved: No
Type: Surface
Included in Rent: Yes
Edward Nelson 916-724-1400 Marcus & Millichap Real Estate Investment Services
Edward Nelson 916-724-1400 Marcus & Millichap Real Estate Investment Services