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Calkain Companies, a national net lease real estate brokerage firm, recently brokered the sale of a McDonald’s ground lease investment property in Fredericksburg, VA. The 2.08 acre investment property was leased to McDonald’s (NYSE: MCD) on a triple net lease basis for 20 years, with structured rent increases and renewal options. The sellers, a private family interested in liquidating the asset in a compressed cap rate environment, and the private buyer was completing a 1031 exchange. The property sold at full-price $2.9MM which is a cap rate of 4.50%.
Calkain’s Andrew Fallon, Assistant Vice President, exclusively represented the private seller, and provided marketing and transaction support services throughout the sales process. After working with the seller over the course of a few years, the property was introduced to the marketplace in Q2 2012, allowing Calkain to facilitate the sale at a cap rate of 4.50%. Fallon explains the circumstances, “After re-casting a new 20 year lease with McDonald’s, the seller was able take advantage of the compressed cap rate environment. We recognized that 2012 was going to be a seller's market given the combination of low interest rates, investor flight to quality, and the laws of supply and demand.” The buyer was a California-based 1031 investor seeking a passive replacement property. As a NNN ground lease, this investment requires that the tenant pay for real estate taxes, insurance, and maintenance expenses, which effectively provides the landlord with a passive, bond-like income stream by through commercial real estate ownership.
The transaction occurred within the last thirty days and will be recorded in the public records.
Calkain Companies is a boutique commercial real estate brokerage firm which specializes in assisting buyers and sellers with single and multi-tenant retail, industrial, hotel and office net leased transactions. While licensed to conduct business in many states, nationally, Calkain has multiple office locations throughout the Mid-Atlantic, Southeast and Northeast United States. Additional information about the firm and listings may be found at www.calkain.com.
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