September 29, 2017 – Bob Horvath, Todd Tremblay and Jeremy Black of Horvath & Tremblay have successfully completed the sale of the McDonald’s in Cortland, NY. Horvath & Tremblay exclusively represented the seller to close the property at a sale price of $1,250,000, a 4.32% cap rate.
McDonald’s fully occupies the free standing building located at 877 NY-13 in Cortland, NY. McDonald’s constructed the building at their own expense and took occupancy in 2012. The initial ground lease has 15.5 years remaining plus six, 5-year automatic renewal options which would extend the lease through February 2058. The McDonald’s lease provides for an 8% rent escalation every five years both in the initial term and renewal terms and is fully guaranteed by the parent corporation, McDonald’s USA, LLC. The well-located property is set at a signaled intersection along a busy retail corridor on NY-13. Immediately adjacent to the McDonald’s is a stand-alone Advance Auto Parts and a newer strip-center anchored by Verizon Wireless and Aspen Dental. Across NY-13 is a series of “big box” shopping plazas featuring Lowe’s Home Improvement, a Walmart Superstore, Price Chopper Supermarket, JC Penny, Marshall’s and Kmart.
Horvath & Tremblay is one of the most active and successful Investment Real Estate Brokerage firms in the United States. Our advisors specialize in the sale of single tenant net-lease assets and retail shopping centers. They have experience successfully structuring sale lease-back programs, portfolio dispositions, and 1031 exchanges. Horvath & Tremblay is dedicated to being the best source of information and expertise in the marketplace for private investors, developers, institutions, and industry professionals.