Cathedral City, CA - McDonald's

Description:

SRS National Net Lease is pleased to offer the opportunity to acquire the leased fee interest (land ownership) in an absolute NNN, investment grade (S&P: BBB+), corporate guaranteed (NYSE: MCD) McDonald’s investment property located in Cathedral City, California. The tenant, McDonald’s USA, LLC has 14 years remaining on its lease with 8 (5-year) options to extend, demonstrating their commitment to the site. The lease features 10% rental increases every 5 years throughout the initial term and variable increases at the beginning of each option period, steadily growing NOI and hedging against inflation. The lease is absolute NNN with no landlord responsibilities making it an ideal, management-free investment opportunity for a passive investor.

The asset has excellent position and visibility at the signalized, hard corner intersection of Bob Hope Drive and Varner Road (combined 47,700 VPD). McDonald’s receives significant consumer traffic from its location at the heavily trafficked intersection in addition to its direct accessibility from nearby on/off ramps from Interstate 10 (106,000 VPD) a major highway utilized by commuters throughout Coachella Valley and Palm Desert. Furthermore, McDonald’s generates crossover retail exposure from nearby fast-food brands including In-N-Out Burger, Del Taco, Carl’s Jr., and adjacent Taco Bell and Starbucks pads. The tenant has access to a direct consumer base consisting of many master-planned communities, including the 2,000+ unit Mission Hills Country Club Community, and hotels such as the Agua Caliente Rancho Mirage Resort (340 rooms), the Roadway Inn (116 rooms), and the Best Western (92 rooms). Cathedral City has experienced substantial investment in new commercial projects, including retail centers, entertainment venues, and hotels, strategically positioning itself for sustained economic and population growth nearing 60,000 residents. The 5-mile trade area is supported by a population of over 85,400 residents and 36,000 employees with an affluent average household income of $114,522.