McDonald’s, Loveland, Colorado

1620 Foxtail Drive no-imageVIEW MAP

Property Information

Price: $3,060,750

Cap Rate: 4.0%
NOI: $122,430
Lease Term: 20 Years with 5+ Remaining
Lease Type: Absolute NNN Ground Lease
Building Size: Approximately 4,150 Square Feet
Year Built: 2000
Status: Available
Lead Broker Information:

Randy Bell


Property Description

Real Capital Investments is pleased to offer to qualified investors a corporately guaranteed McDonald’s ground lease situated on approximately 43,560 square feet or 1.00 acres of land in the highly affluent Centerra neighborhood of Loveland, Colorado. The property is strategically located as an outparcel to Centerra Marketplace, the largest power center in northern Colorado with over 504,000 square feet of retail and restaurant space and anchored by Target. Traffic counts on Eisenhower Boulevard exceed 50,000 vehicles per day, with an additional 81,708 vehicles per day traveling on nearby Interstate 25. This area has experienced tremendous growth with more than 84% population growth in a 5-mile radius since the 2000 census. The property is located in an affluent neighborhood with average household exceeding $101,000 within a 3-mile of the property. In addition to the high population of residents, the area has an extremely high daytime population with over 34,000 employees within a 5-mile radius. Within a half-mile is the UC Health Medical Center of the Rockies, a 174-bed hospital with over 1,400 doctors and staff and generated more than $1.52 billion in patient revenue in 2020. Centerra is a vibrant, 3,000-acre master-planned community that has become northern Colorado’s most successful live-work-play community with over 2.8 million square feet of retail, 1.3 million square feet of office, 2.6 million square feet of industrial and 1,570 apartment units. This McDonald’s offering provides an investor the opportunity to acquire a legacy asset that will bring income for generations. The lease is an absolute NNN ground lease, the safest type of real estate ownership, with no landlord responsibilities whatsoever, creating a safe, passive income stream for an investor.

Investment Highlights

  • Absolute NNN Ground Lease With 3.5+ Years Remaining – Stable Cash Flow Asset – Zero Landlord Responsibilities – Three (5-Year) Options to Renew
  • Rare 15% Rent Increases Every 5 Years Throughout Option Periods, Providing a Strong Hedge Against Inflation
  • Corporately Guaranteed Lease by McDonald’s (NYSE: MCD) with an Investment Grade Credit Rating of BBB+ from S&P
  • Largest Chain of Fast Food Restaurants in the World – McDonald’s Operates Over 37,000 Locations Worldwide
  • Over $21.5 Billion in Revenue and More than $6.2 Billion in Net Income in the Trailing 12 Months
  • Successful Operating History with Over 20 Years at This Site – McDonald’s Recently Exercised Their First Option Period, Showing Their Commitment to the Location
  • Affluent Demographics with Average Household Income Exceeding $101,000 in a 3-Mile Radius of the Property
  • Tremendous Recent Growth – More Than 84% Population Growth in a 5-Mile Radius Since the 2000 Census
  • High Traffic Location – Over 50,000 Vehicles Per Day on Eisenhower Boulevard with an Additional 81,708 Vehicles Per Day Traveling on the Nearby Interstate 25
  • Strategically Positioned as an Outparcel to Centerra Marketplace, the Largest Power Center in Northern Colorado with Over 504,000 Square Feet of Retail and Restaurant Space and Anchored Target
  • Centerra is a Vibrant, 3,000-Acre Master-Planned Community That Has Become Northern Colorado’s Most Successful Live-Work-Play Community with Over 2.8 Million Square Feet of Retail, 1.3 Million Square Feet of Office, 2.6 Million Square Feet of Industrial and 1,570 Apartment Units
  • Loveland Was Ranked #33 by CNN’s Money Magazine 100 Best Places to Live in America
  • Positioned a Half-Mile from the UC Health Medical Center of the Rockies, a 174-Bed Hospital with a Staff Exceeding 1,400 and Generating More Than $1.5 Billion in Total Patient Revenue in 2020
  • Situated 1 Mile from the University of Northern Colorado Loveland, 6 Miles from Aims Community College and 7 Miles from Front Range Community College