Hi, my name is Alex Casablanca, Managing Broker at Casablanca Triple Net Lease Advisors. We are a boutique brokerage firm based in Orlando, Florida specializing in selling NNN Investment Properties Nationwide USA. Today I’m going to talk to you about How to Buy a McDonald’s NNN Property.
Investing in a McDonalds NNN property offer singular benefits to investors that are looking to invest their hard-earned money in one of the most recognized companies in the world. Most McDonald’s leases feature an original lease term of 20 Year Absolute NNN Lease with No Landlord Responsibilities. Most leases are Corporate Guaranteed by Mcdonald’s Corporation.
Mcdonald’s is the world’s largest chain of hamburger fast food restaurants, serving around 70 million customers daily in 119 countries across the world with over 35,000 locations.
Now the question is, How to Buy a Mcdonald’s NNN Property? The 5 steps to buy a McDonalds NNN Property are:
Define your price range – Before venturing into looking for a McDonald’s you should define first your price target. The average price of a McDonald’s NNN property is between $2M – $3.5M. The better the area, the higher the price will be. Most Mcdonald’s transactions are all cash since financing in most cases is unsustainable because Mcdonald’s cap rates are lower than the mortgage rates.
Define your risk appetite and cap rate expectations. Mcdonald’s is a very low risk investment, therefore cap rates are going to be lower than other type of Tenants. The average cap rate for a Mcdonald’s is between 4%-5%, so it is important to determine if your cap rate expectations are in line with a Mcdonald’s investment. If you are a conservative investor a Mcdonald’s NNN Property could be ideal for you, but if you are an aggressive investor that is looking for higher cap rates then Mcdonald’s wouldn’t be a good investment for you.
Define the target location or locations that you are interested in. Most investors prefer tax free states such as FL and TX because their rental income will not be subject to state taxes. It is also important to have in mind that the inventory for Mcdonald’s NNN properties is always limited, so is important to expand the target locations as much as possible.
Define the minimum years remaining on the lease you are willing to consider. A new Mcdonald’s will come with a 20 years absolute NNN lease, while an existing Mcdonald’s property could have 10 years remaining on the lease.
Lastly and not least important, hire an experienced and knowledgeable NNN Buyer’s Broker that can help you navigate the complexities of the market and find the right McDonalds for you.
As your Buyer’s Broker, we represent you for Free since we get paid from the seller, so you get our expert advise and representation at no additional cost to you. In addition, we pay for our Buyer’s closing costs up to a maximum of $10k. This incentive will offset or cover completely the major Buyer’s closing costs expenses, such as title insurance, attorney’s fees, recording fees, among other. We Are the Brokers that Give You More in Exchange of your Trust.
At Casablanca, we specialize in representing NNN Buyers and 1031 Exchange Investors that are looking to invest in a Mcdonald’s NNN property. We can assist you finding and negotiating the best Mcdonald’s NNN property, or any other NNN property according to your investment criteria and risk tolerance. We have the knowledge and expertise to guide you along the way, from market research, identifying potential properties, submitting offers and negotiating them, due diligence, up to the closing table.
If you are looking for a Mcdonald’s or any other NNN property, you can contact me directly at 407-205-7570 or you can send me an email at [email protected]. Thank you very much for watching this video and I’m looking forward to being your broker in your next property acquisition.