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Bank

PNC Bank with McDonald's Ground Lease | 15YR NNN Leases

28720 Northwestern Hwy, Southfield, MI 48034

Listing Price: $7,250,000

Cap Rate
4.50%
Tenant Name
PNC Bank
Years Remaining On Lease
14.9
Gross SF
3,040
Guarantor
Corporate Guarantee
Rentable SF
3,040
Price/Gross SF
$2,384.87
Lease Type
Triple Net (NNN)
Rent Per Square Feet
$106.05

Investment Overview

Marcus & Millichap is pleased to offer for sale this single-tenant PNC Bank with McDonald’s Ground Lease located in an affluent Oakland County, MI submarket. PNC and McDonald’s are operating under rare 30-year corporate leases, each with approximately 15 years of term remaining and rental increases within the initial lease term. This is an exceptionally strong branch for PNC with deposits at the location exceeding $106 million. McDonald’s has a long, successful history in the area as this was a relocation site from one-half of a mile away. McDonald’s owns their building and parcel but is ground leasing 0.27 acres necessary for their drive-through and additional parking. PNC and McDonald’s both have top tier credit ratings from Standard and Poor’s, PNC with an “A-” rating and McDonald’s with a “BBB+” rating.   Located on a hard corner in Southfield, on the border of Farmington Hills, the PNC Bank has excellent visibility with access from both Northwestern Highway and Franklin Road. Traffic counts are in excess of 55,000 vehicles per day. This asset also benefits from its close proximity and ease of access to the Interstate-696, M-10 (Lodge Freeway) and US-24 (Telegraph Road) interchange which brings an additional 294,000 vehicles to the immediate area. The PNC and McDonald’s are in the heart of a dense office and retail market. There are over 30 million square feet of office space and over 12 million square feet of retail within a five-mile radius. Demographics are strong with more than 193,000 people with an average household income of nearly $110,000 within a five-mile radius. The daytime population exceeds 250,000. PNC Financial Services Group, Inc. is the fifth largest bank by number of branch offices in the United States. More than eight million customers and small businesses use PNCs various deposit, lending, credit card, cash management, and investment services. PNC’s solid footing and strong investment grade credit rating (S&P: A-), make it a very attractive tenant. Southfield, Michigan is a dominant commercial and business center for the metropolitan Detroit area; several internationally recognized corporations have major offices and headquarters in Southfield. According to the Southeast Michigan Council of Governments (SEMCOG), over 75,000 people commute to the City of Southfield for work. The bank is also situated in close proximity to Lawrence Technological University, a private university with approximately 3,100 students. This PNC Bank with McDonald’s ground lease provides an investor with the opportunity to own an asset with strong intrinsic value and high caliber tenancy.

Investment Highlights

  • Ideal 1031 Exchange Property – Generational Asset
  • 15 Years Remaining on PNC's NNN Lease and McDonald's Ground Lease - Rental Increases
  • NYSE: PNC | S&P: A-; NYSE: MCD | S&P: BBB+
  • Exceptionally Strong PNC Branch | Deposits Exceed $106 Million
  • Top Tier McDonalds Placer.ai Data | Top 23% of All Michigan Locations (#113)
  • Highly Visible Location: Traffic Counts Exceed 55,000 Vehicles Per Day Immediate Vicinity of I-696, M-10 and US-24 Expressways (294,000 VPD Combined)
  • Surrounded by Over 30 Million Square Feet of Office Space Within a Five-Mile Radius
  • 193,000 Residents With an Average Household Income Exceeding $110,000 Within Five Miles

Exclusively Listed By

Bank

PNC Bank with McDonald's Ground Lease | 15YR NNN Leases

Listing Price: $7,250,000

Cap Rate
4.50%
Tenant Name
PNC Bank
Years Remaining On Lease
14.9
Gross SF
3,040
Guarantor
Corporate Guarantee
Rentable SF
3,040
Price/Gross SF
$2,384.87
Lease Type
Triple Net (NNN)
Rent Per Square Feet
$106.05

Investment Highlights

  • Ideal 1031 Exchange Property – Generational Asset
  • 15 Years Remaining on PNC's NNN Lease and McDonald's Ground Lease - Rental Increases
  • NYSE: PNC | S&P: A-; NYSE: MCD | S&P: BBB+
  • Exceptionally Strong PNC Branch | Deposits Exceed $106 Million
  • Top Tier McDonalds Placer.ai Data | Top 23% of All Michigan Locations (#113)
  • Highly Visible Location: Traffic Counts Exceed 55,000 Vehicles Per Day Immediate Vicinity of I-696, M-10 and US-24 Expressways (294,000 VPD Combined)
  • Surrounded by Over 30 Million Square Feet of Office Space Within a Five-Mile Radius
  • 193,000 Residents With an Average Household Income Exceeding $110,000 Within Five Miles

Investment Overview

Marcus & Millichap is pleased to offer for sale this single-tenant PNC Bank with McDonald’s Ground Lease located in an affluent Oakland County, MI submarket. PNC and McDonald’s are operating under rare 30-year corporate leases, each with approximately 15 years of term remaining and rental increases within the initial lease term. This is an exceptionally strong branch for PNC with deposits at the location exceeding $106 million. McDonald’s has a long, successful history in the area as this was a relocation site from one-half of a mile away. McDonald’s owns their building and parcel but is ground leasing 0.27 acres necessary for their drive-through and additional parking. PNC and McDonald’s both have top tier credit ratings from Standard and Poor’s, PNC with an “A-” rating and McDonald’s with a “BBB+” rating.   Located on a hard corner in Southfield, on the border of Farmington Hills, the PNC Bank has excellent visibility with access from both Northwestern Highway and Franklin Road. Traffic counts are in excess of 55,000 vehicles per day. This asset also benefits from its close proximity and ease of access to the Interstate-696, M-10 (Lodge Freeway) and US-24 (Telegraph Road) interchange which brings an additional 294,000 vehicles to the immediate area. The PNC and McDonald’s are in the heart of a dense office and retail market. There are over 30 million square feet of office space and over 12 million square feet of retail within a five-mile radius. Demographics are strong with more than 193,000 people with an average household income of nearly $110,000 within a five-mile radius. The daytime population exceeds 250,000. PNC Financial Services Group, Inc. is the fifth largest bank by number of branch offices in the United States. More than eight million customers and small businesses use PNCs various deposit, lending, credit card, cash management, and investment services. PNC’s solid footing and strong investment grade credit rating (S&P: A-), make it a very attractive tenant. Southfield, Michigan is a dominant commercial and business center for the metropolitan Detroit area; several internationally recognized corporations have major offices and headquarters in Southfield. According to the Southeast Michigan Council of Governments (SEMCOG), over 75,000 people commute to the City of Southfield for work. The bank is also situated in close proximity to Lawrence Technological University, a private university with approximately 3,100 students. This PNC Bank with McDonald’s ground lease provides an investor with the opportunity to own an asset with strong intrinsic value and high caliber tenancy.

Exclusively Listed By

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