Management-Free Solution for 1031 Exchange Buyer

The Denver Apartment Buildings For Sale website announces that Greg Johnson and Kyle Malnati of Madison Commercial Properties sold a triple net lease this month for a McDonald’s restaurant in Fruita, Colorado. Greg and Kyle represented the buyer, a Denver apartment owner, who was completing a 1031 Exchange. This investment will yield the buyer a net return of $64,500 annually. Details below:

555 Jurassic Ct. - McDonalds in Fruita Photo

555 Jurassic Ct. Brochure

Tenant’s Name: McDonald’s
Price: $1,175,000 (List Price: $1,228,571)
CAP Rate: 5.50% (List CAP Rate: 5.25%)
Year Built: 1994/2015 Remodel
Company Type: Public
Net Operating Income: $64,500
Lease Guarantor: McDonald’s USA, LLC
Lease Type: Absolute NNN
Lease Term: 5 Years (1st option period extension)
Lease Commencement Date: 9/12/1994
Lease Expiration Date: 11/30/2020
Options to Renew: One, Five-Year Option
Rentable SF: +/- 4,052
Land SF: +/- 49,658

Investment Highlights:
– McDonald’s has been located at this site, since 1994 and just renewed their lease for another 5 years.
– Absolute NNN lease, no landlord responsibilites
– McDonald’s remodeled the interior and exterior of this property earlier in 2015
– Fruita was voted “Top Adventure Town” by Elevation Outdoors Magazine 2015
– This McDonald’s is located across the street from the Dinosaur Journey: Museum of Western Colorado, a busy tourist destination.

Kyle & Greg - no background 2016 photo
Greg Johnson (303-343-8333)
Kyle Malnati (303-358-4250)
Madison & Company Properties
1221 S. Clarkson St. #410, Denver, CO 80210

2 responses to “Management-Free Solution for 1031 Exchange Buyer

  1. Smart dialog. Beat this drum, fellas. Great post!

    All the best, Martin Gibeau 303-807-5000 Sent from my iPhone

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