Best picks of 09-25-08

AHI: Avg Household Income
NOI: Net Operating Income

1. Neighborhood center in Corning, CA: 53,034 SF 8-tenant retail center on 5.25 acres of land right off I-5 exit. Anchored Safeway and Rite Aid. 100% NNN leased. NOI $366K/year. $5.75M. 6.38% cap.
   - Safeway just spent $3M to renovate its unit into “lifestyle” format
   - Buyer to assume $3.3M loan at 6.245% interest.
2. Fitness Center in San Diego, CA: 20,800 SF Frog’s Fitness center on 2.37 acres lot just off I-15 exit. 100% NNN leased till 2016. NOI $366K/yr with 6% rent increase every 2 yrs. $5.4M. 6.8% cap.
   - Prime commercial corridor.
   - Located in a desirable & high income Poway City with AHI $105K/yr.
3. Office building in Bakersfield, CA: 32,036 SF 6-unit medical office building on over 3 acres parcel. 89% occupied with just 1 vacant unit. Proforma NOI $330K/yr. $4.2M. 7.85% cap.
   - Anchored by Office Depot with 4 other medical tenants
   - Upside potential, only $131/SF.
4. Retail Center in Sacramento, CA: 10,791 SF 7-unit brand new retail center on the busy Stockton blvd. 89% NNN leased with 1 vacant space. NOI $313K/yr. $4.48M. 7% cap.
   - Just off Hwy 99 exit
   - Near Costco, Kaiser Hospital, Methodist Hospital.
5. Retail center in Taylor, AZ: 15,008 SF 2-tenant retail center on over 1 ac lot. 100% NNN leased. NOI $147K/yr. $1.661M. 8.91% cap.
   - Anchored by Dollar Tree store (Nasdaq: DLTR)
   - Renovated in 2008
6. Medical building in Murrieta, CA: 18,480 SF brand new class-A medical office building on 1.64 acres of land next to Rancho Springs Medical Center just off I-15 and I-215. 100% NNN leased to several prominent area physicians. NOI $442K/yr. $5.95M. 7.44% cap.
   - Fast growing (77% since 2000) and high income (AHI$82K/yr) Riverside county.
   - Strong cash flow, trophy property
7. Office building in Martinez, GA: 15,722 SF 11-unit office building on 1.33 acres lot in the growing Augusta metro. 91% leased. NOI $137K/yr. Price reduced to $1.3M. Over 10% cap!
8. Single-tenant retail tenant in San Dimas, CA: 15,120 SF retail center as part of a larger neighborhood center. 100% NNN leased by Pacific Kitchen & Bath Center. NOI $215K/yr. $3.085M. 7% cap.
   - Lease guaranteed by Best Buy Co. (NYSE: BBY)
   - Below market rent of $1.19/SF means upside potential
   - Densely populated Los Angeles county (over 300K residents within 5 miles) and high income (AHI $83K/yr)
9. Smokey Bones restaurant in Kennesaw, GA: 6900 SF restaurant built in 1993 on 1.88 acres lot at the entrance of Town Center Mall between I-75 and I-575 in Atlanta metro. 20 yrs absolute NNN lease. NOI $158K/yr. with 1.75% annual rent increase. $1.919M. 8.25% cap. Note: eFunding’s client offered 9% cap for a nearby Smokey Bones and got accepted! Looks like seller is very motivated.
   - Lease with corporate guaranty
   

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