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McDonald's Ground Lease 2501 S Us Highway 421 5,952 SF Retail Building Harlan, KY 40831 $2,286,000 ($384.07/SF) 3.50% Cap Rate
INVESTMENT HIGHLIGHTS
- ±22 years remaining on the ground lease, representing the longest McDonald’s lease term currently available in the market.
- Over 40 years of operating history at the site, demonstrating strong unit performance and long-term tenant commitment.
- Freestanding, single-tenant restaurant with prominent visibility and direct access along US-421.
- Recent 20-year lease extension executed in December 2025 with 10% rent increases every five years.
- Exceptional sales volumes supported by investment-grade McDonald’s credit, providing durable income and downside protection.
- Primary fast-food destination serving the Harlan, Kentucky community with limited nearby competition.
EXECUTIVE SUMMARY
Cushman & Wakefield is pleased to offer the opportunity to acquire a single-tenant McDonald’s ground lease located on a prominent parcel along US-421, the primary commercial corridor serving Harlan and the surrounding trade area. US-421 functions as a vital regional thoroughfare, providing direct connectivity to neighboring communities throughout southeastern Kentucky and supporting consistent local and commuter traffic. The property benefits from excellent visibility, direct ingress and egress, and a central in-town location, positioning it as a premier quick-service restaurant destination within the market.
The surrounding area features a strong mix of essential retail, civic uses, and established residential neighborhoods, driving reliable daily traffic and consumer demand. As one of the leading national brands in the region, McDonald’s serves a broad customer base and benefits from limited national QSR competition in the immediate trade area. The site’s long operating history further highlights its status as a well-established, irreplaceable retail location within the Harlan community.
Listed in conjunction with Kentucky licensee.
The surrounding area features a strong mix of essential retail, civic uses, and established residential neighborhoods, driving reliable daily traffic and consumer demand. As one of the leading national brands in the region, McDonald’s serves a broad customer base and benefits from limited national QSR competition in the immediate trade area. The site’s long operating history further highlights its status as a well-established, irreplaceable retail location within the Harlan community.
Listed in conjunction with Kentucky licensee.
PROPERTY FACTS
Sale Type
Investment NNN
Property Type
Retail
Property Subtype
Fast Food
Building Size
5,952 SF
Building Class
C
Year Built
1988
Price
$2,286,000
Price Per SF
$384.07
Cap Rate
3.50%
NOI
$80,010
Tenancy
Single
Building Height
1 Story
Building FAR
0.12
Lot Size
1.15 AC
NEARBY MAJOR RETAILERS
PROPERTY TAXES
| Parcel Number | 083-20-00-023.00 | Improvements Assessment | $523,000 |
| Land Assessment | $227,000 | Total Assessment | $750,000 |
PROPERTY TAXES
Parcel Number
083-20-00-023.00
Land Assessment
$227,000
Improvements Assessment
$523,000
Total Assessment
$750,000
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McDonald's Ground Lease | 2501 S Us Highway 421
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