Tenant Description

Chase Bank, a subsidiary of JP Morgan Chase, provides consumer and commercial banking across 5,200 locations in the United States with deposits of nearly $650 billion as of June 2010. Their typical lease is for a term of 15-20 years with four (4) renewal options at five (5) years per option. Their cap rates are customarily in the lower range of theose in the global net lease world; a by product of their high credit and class A real estate requirements. The typical Chase lease provide for rent growth, with 10% increases every five (5) years as the standard schedule. From a Realty perspective, Chase utilizes 7 different prototypes, depending on location and available site dimensions, with the bank branches spanning from 3K to 4K square feet situated on 0.5 to 1 acre MOL of land. While Chase prefers to own their locations, when a new site is opened as part of a lease agreement, they will retain ownership of the improvements through the utilization of a long term ground lease.

Real Estate Summary

Under Construction.

  • Industry-leading investment-grade credit
  • Compressed cap rates due to high investor demand
  • Rental escalations in base term
  • Generally high rental rates PSF that could prove hard to replace in the event 7-Eleven vacates
  • Low price point relative to similarly strong investment-grade tenants
  • Investor unable to depreciate improvements in ground-leased locations
  • Predominantly Absolute to Modified NNN ground leases with zero to limited landlord responsibilities
  • Widely considered "recession proof"
    and "Amazon proof"
  • Industry-leading market share and track record of profitability
  • Predominantly corner locations in urban markets with excellent demographics and population density
  • One of the lowest relocation rates in the net lease industry
  • Development Criteria Highlights

    • 50,000 +/- square feet of Land
    • Corner or corner wrap w/signage on two major streets.
    • Signalized intersection.
    • Ability to build up to 4,000 sq. ft.
    • Parking to meet all applicable codes.
    • Ability to build to a minimum height of 23’4″.

    Average Cap Rate
    National 12-mo avg.
    (Source: CoStar & proprietary comp data -
    updated quarterly)
    Credit Rating
    Standard & Poor's
    Company Snapshot
    Company Name

    McDonalds Corp.

    Ownership Type


    Stock Symbol



    Oak Brook, IL

    Locations Worldwide


    Locations in the U.S.




    Average Property & Lease
    Sales Price


    Annual Base Rent


    Annual Rent PSF


    Building SF


    Price PSF


    Lot Size

    1.15 Acres

    Ownership Interest

    Fee Simple Land
    (Ground Lease)

    Lease Structure

    Absolute NNN

    Lease Term

    20 Years


    10% Every 5 Years


    McDonald's Corp.

    National 12-mo avg.
    (Source: CoStar & proprietary comp data -
    updated quarterly)