1604 Chestnut St
Philadelphia, PA 19103
McDonald's | Additional Tax Benefit · Commerce de détail Propriété À vendre

New 20-Year Corporate Lease - McDonald’s USA, LLC executed a new 20-year NNN lease scheduled to commence rent in March 2026. The lease includes 10% rental increases every five years throughout the base term and option periods, with exception to a rare 15% increase in year 6 – providing an exceptional hedge against inflation. This outsized rent increase has an 0.15% impact on the overall yield on the property throughout its base term versus the typical 10% every 5-year increase structure.
Relocation Store to Highest Pedestrian-Count Block of Center City – McDonald’s return to this corridor comes nearly five years after a fire led to the demolition of their longtime Market Street location just a few blocks away. (The former location is going to be redeveloped vertically, so it is no longer available for lease). With 17 feet of frontage, only one building removed from the southwest corner of 16th Street, the property is surrounded by dense retail, office, residential, and tourist activity. This flagship location benefits from exceptional foot traffic and proximity to major destinations including Rittenhouse Square, the Central Business District, City Hall, and the Theater District. In fact, according to studies conducted in 2021 and 2022, the intersection of 16th and Chestnut records the highest pedestrian counts in all of Center City with average daily pedestrian volume of 28,860. The property is highly visible to both vehicular and foot traffic, and is supported by excellent transit connectivity, with multiple SEPTA rail lines and bus routes, including one immediately out front.
Rare Depreciation Benefits – This offering provides rare depreciation benefits as most McDonald’s assets operate under NNN ground leases. This fee-simple offering provides the valuable ability to depreciate the improvements, creating meaningful tax shelter and enhancing after-tax yield. Further strengthening the investment, McDonald’s occupies the property at an at-market rental rate, ensuring that the income stream is supportable and easily replaceable should the tenant ever vacate in the future.
At the Heart of Center City Philadelphia - Philadelphia, the sixth-largest city in the country, is a dynamic, historically rich, and economically diverse metropolitan hub that continues to attract residents, businesses, and investors. Anchored by world-class “eds and meds” institutions—including the University of Pennsylvania, Drexel University, Thomas Jefferson University, and the nation-leading Penn Medicine health system—the city benefits from a stable employment base and consistent demand drivers. Its strategic location along the Northeast Corridor positions Philadelphia within easy reach of New York City, Washington, D.C., and Baltimore, supported by robust transportation infrastructure and a growing population drawn to the region’s relative affordability compared to nearby gateway markets.
World’s Leading QSR Brand – McDonald’s is the world’s leading quick-service restaurant brand, operating more than 40,000 locations across over 100 countries. Founded in 1955, McDonald’s has built one of the most recognizable brands globally and continues to demonstrate exceptional financial performance, with systemwide sales exceeding $120 billion annually. The company is publicly traded on the New York Stock Exchange (NYSE: MCD) and maintains an investment-grade credit rating (S&P: A).