McDonald's - Fountain Valley, CA2

Hanley Investment Group Sells Single-Tenant McDonald’s Drive-Thru on Costco Outparcel in Orange County, Calif., for $3.85 Million

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A single-tenant property occupied by a McDonald’s Drive-Thru in Fountain Valley sold for $3.85 mil for the absolute triple-net ground lease, representing a 3.55% cap rate. Built in 2011 on 1.04 acres, the 3.5k sf McDonald’s is located at 11321 Talbert Ave — an outparcel adjacent to a top-performing Costco.

The property benefits from its proximity to the signalized, hard-corner intersection of Talbert Avenue and Newhope Street, with an average daily traffic count exceeding 45,000 cars. It is conveniently located less than a half-mile north of the on/off-ramps for Interstate 405, one of the busiest roadways in the country, averaging 320,000 cars per day.

Bill Asher and Jeff Lefko with Hanley Investment Group Real Estate Advisors, in association with Fred Encinas of Oaks Commercial Real Estate of Eastvale, CA, represented the seller, a family trust based in Newport Beach, California. The buyer, an all-cash, 1031 exchange buyer based in Fountain Valley, was repped by Robert Tran of HPT Realty in Westminster.

“We generated multiple qualified offers at sub-4% cap pricing and secured a local all-cash, 1031 exchange buyer who resides minutes from the property,” Asher said. “With seven years remaining on an initial 20-year lease term, we achieved record pricing for a McDonald’s with 5% increases every five years and a shorter-term lease.”

“A recent interior store remodel reinforced McDonald’s continuing commitment to this location,” said Encinas. “The combination of below-market, long-term sustainable rent, the recent remodel, and prime location positioned at the signalized entrance to the shopping center made the asset exceptionally appealing to the buyer.”

The subject property is one of the top-performing McDonald’s locations nationwide (according to and is strategically positioned as an outparcel to a Costco-anchored shopping center. This Costco is within the top 10% performing Costco locations nationwide (per Other top-performing national/credit tenants at the shopping center, according to, include PetSmart (top 1% nationwide), Ross Dress for Less (top 30% nationwide), Taco Bell (top 30% nationwide), Starbucks, and more, promoting crossover synergy within the center, reports Asher.

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