NNN Leased McDonald's

NNN Lease Market News

Calkain Companies Featured Listing (NNN) Lease McDonald's

Absolute NNN 20 Year Corporate McDonald's with 10% rent bumps every 5 years Zero Landlord Obligations. McDonald's Corporation operates over 31,300 restaurants in 118 countries. McDonald’s (S&P: A, NYSE: MCD) Triple Net (NNN) originally meant net of taxes, net of insurance, and net of maintenance. According to the terms of an absolute NNN, the tenant is responsible for all property operating expenses, including insurance, taxes and internal and external maintenance.

NNN properties offer the benefit of little or no management responsibilities, as the tenant pays for most, if not all, of the expenses depending on the terms of the lease. The investor receives the rent with little to no other involvement. With an absolute triple net lease, the tenant is responsible for all expenses, making this a true passive investment for the owner.

LEASE SUMMARY

Total NOI $136,000*

Tenants McDonald's & Marathon Petroleum

Guarantee Corporate

Lease Commencement March 2008

MCDONALD'S

NOI $65,000*

Rentable Square Feet 2,726 +/- sf

Lease Type NNN

Lease Term 10 years

Increases Percentage Rent & 10% increase in base rent beginning with the 2nd renewal option

Options Automatic Six (6), five (5) year

 Includes percentage rent MARATHON PETROLEUM

NOI $71,000

Rentable Square Feet 3,040 +/- sf

Lease Type NNN

Lease Term 15 years

Increases 10% every 5 years

Options Automatic Five (5), five (5) year

 HIGHLIGHTS

•Rent-to-Sales ratio of approximately 3%, growing sales year over year

•Corporate Backed Leases by McDonald's and Harper Oil

•15-year Accelerated Depreciation

•Only McDonald's within 20 mile radius Multiple Locations Nationwide

http://www.calkain.com/

Commercial NNN Lease Terms

NNN Lease Terms

General Terms and Definitionsin describing the manner in which services and expenses are paid by the tenant to the landlord; different commercial leasing terminologies are used. Though there is no limitation to the commonly-used terms in a contract, there are some common terms that are found in the majority of commercial real estate contracts. These include:

Net lease - As the term indicates, this is a rent payment that applies exclusively to real estate. This means that other potential operating expenses such as estate taxes, insurance, utilities, etc. are not incorporated in the rental amount as opposed to A Triple Net Lease is also known as Net Net Net Lease or NNN Lease. This is a type of net lease in which the tenant pays all or part of the taxes, insurance, and maintenance associated with use of the property. These fees are paid in addition to the tenant's regular monthly rent.
Triple Net leases almost always favor the landlord and should be carefully negotiated to limit how much the landlord can increase NNN fees each year.

 Gross lease - This usually means that some of the operating expenses are included in the tenant’s payment, such as the real estate taxes. Optionally, building insurance and/or common area maintenance (CAM) could be included as well. Tenants should ask what this amount includes especially any of the escalation clauses included in the agreement.


Modified net lease - This is a term that is a compromise of the triple net lease and the gross lease terms. Usually, this is the term used when both parties enter into an agreement to split maintenance expenses, while the insurance and tax expenses would be shouldered by the tenant. This type of contract term is a common one for either side to easily consider because of its ability to be flexible and creative.

Full service lease - This term implies that the tenant’s payment incorporates all of the occupancy cost. This typically includes base rent, insurance, C.A.M., real estate taxes and even garbage disposal. In some instances, a full service lease may also include an additional charge for electricity.