Monday, March 30, 2009

Top 8 Properties of 03-23-09

  1. Walgreens in Modesto, CA: 14,820 SF brand new drug store on 1.6 acres lot in a booming& higher income (AHI $77K/yr) part of town. New 25 yrs NNN lease. NOI $413K/yr. $5.8M. 7.12% cap.
  2. Office building in Manteca, CA: 3814 SF free-standing office building in a growing city. 100% NNN leased by DMV till 2014. NOI $138K/yr. $1.825M. 7.58% cap.
  3. Burger King in Houston, TX: 2929 SF restaurant on ¾ acres lot with frontage on I-10 with over 144,000 vehicles/day. New 20 yrs absolute NNN lease. NOI $114K/yr. $1.485M. 7.7% cap.
  4. Shopping center in Dallas, TX: 10,429 SF retail strip built in 2005 on .86 acre outparcel to a Wal-mart center. 100% NNN leased by 4 brand name tenants. NOI $221K/yr. $2.64M. 8.37% cap.
  5. Arby’s restaurant in Peoria, AZ: 3100 SF restaurant built in 2001 on .72 acre pad site to Home Depot & Sears in a growing city. 100% NNN leased till 2021 with strong guaranty by Arby’s Restaurant Group, Inc. with 3500 locations. NOI $131K/yr. with 1% annual rent bump. $1.834M. 7.15% cap.
  6. Applebee’s in Lewisville, TX: 5911 SF restaurant on 1.25 acres lot across the street from 1 million SF Vista Ridge Mall in a fast growing Dallas suburb. 20 yrs NNN lease from an experienced operator with 37 locations and net worth of over $20M. NOI $244K/yr. 3.05M. 8% cap.
  7. Pet supermarket in Smyrna, GA: 9504 SF single-tenant retail store renovated in 2007 in an affluent Atlanta suburb with AHI over $102K/yr. 100% NNN leased by Pet Supermarket with 6 yrs remaining. NOI $156K/yr. $1.565M. 10% cap.
  8. Walgreens in Yorktown, VA: 14,820 SF brand new drugstore on 2.12 acres corner parcel in a stable and high income Norfolk metro. 25 yrs NNN lease. NOI $480K/yr. $6.484M. 7.4% cap.

    © Copyright eFunding Inc 2009. All rights reserved.

Friday, March 27, 2009

Top 6 Properties of 03-20-09

  1. Retail Building in Santa Cruz, CA: 4464 SF mixed use property just blocks from the beach. NNN leases. NOI $87K/yr. $1.4M. 6.24% Cap.
  2. Retail Center in McDonough, GA: 12,000 SF attractive retail building at busy intersection of Hwy-155 & I-75 in the fast growing Atlanta suburbs. 100% Occupancy. NOI $182K/yr. $2M. 9.10% Cap.
  3. Day Care in Flossmoor, IL: brand new 10,000 SF Children of America retail building in affluent (AHI $115K/yr. within 1 mile radius) Chicago metro. New 15-yr NNN corp lease. NOI $240K/yr. $3M. 8% Cap.
  4. Pep Boys Auto in Indio, CA: 19,338 SF retail building on 1.58 acres of land on prominent thoroughfare. 15 years NNN lease with 1.5% increases. NOI $253K/yr. $3.619M. 7% Cap.
  5. Pep Boys Auto in Austin, TX: 22,279 SF retail building on 1.99 acres of parcel with excellent access to Loop-360 surrounded by many national tenants. 15-years NNN lease with 1.5% increases. NOI $227K/yr. $3.137M. Note: Austin is the 2nd fastest growing city in 2008.
  6. Office Buildings in Portland, OR: 23,765 SF comprised to two well maintained buildings at signalized intersection on 1.42 acres of land. NOI $209K/yr. $2.8M. 7.48% Cap. Buyer to assume $1.6M @ 6.625%.
    Upside potential when fully leased.

    © copyright efunding inc. 2009. All rights reserved.

Thursday, March 26, 2009

Top 8 Properties of 03-19-09

  1. Davita Dialysis Center in Sanford, FL: 8585 SF 4-yrs old class-A medical office building on 1.42 acres lot across the street from Central Florida Regional Hospital in the middle-class suburb of Orlando. 15 yrs NNN lease with 12 yrs remaining by Davita Inc. (NYSE: DVA), a leading dialysis provider with annual revenue of over $5.6B. NOI $230K/yr with rent bump every 3 yrs. $3.065M. 7.5% cap. Tenant with recession-proof business.
  2. Chinese Buffet restaurant in Sacramento, CA: 8000 SF buffet restaurant on 2 acres lot in a stable and good income area. 100% NNN leased till 2012. NOI $171K/yr. $1.995M. 8.6% cap!
  3. Pep Boys Auto in Las Vegas, NV: 18,196 SF auto center in a fast growing and high income area with AHI over $85K/yr. New 15 yrs NNN lease. NOI $332K/yr with 1.5% annual rent bump. $4.585M. 7.25% cap.
  4. Inline Shopping center in Katy, TX: 12,250 SF inline retail center next to Kendall’s Food & Drugs in a fast growing (77% since 2000) Houston suburb. 100% NNN leased by 6 tenants. NOI $210K/yr. $2.628M. 8% cap.
  5. Walgreens in Chandler, AZ: 14,820 SF brand new drug store on 1.8 acres lot in a booming (992% since 2000!) Phoenix suburb. 100% absolute NNN lease. NOI $511K/yr. $6.9M. 7.4% cap.
  6. Strip mall in Colleyville, TX: 6800 SF strip mall on ¾ acre lot on a major artery in a fast growing and affluent (AHI $147K/yr) Dallas suburb. 100% NNN leased $144K/yr. $1.6M. 9% cap.
  7. Shopping center in Brownsville, TX: 23,950 SF shopping center built in 2005 on 2.29 acres lot in a booming border town. 100% NNN leased. NOI $370K/yr. $4M. 9% cap.
  8. Quality Inn & Suites in Vallejo, CA: 78-room 2-story motel on 1.75 acres near I-80. Swimming pool and 2 meeting rooms. $6.95M.

    © Copyright eFunding Inc 2009. All rights reserved.

Wednesday, March 25, 2009

Top 7 Properties of 03-18-09

  1. Shopping center in Katy, TX: 24,285 SF 5-yrs old shopping center in a fast growing (82% since 2000) upscale Houston suburb. Excellent visibility. 92% NNN leased by 10 tenants with 1 small vacant unit. NOI $370K/yr. $4.495M. 8.23% cap.
  2. Dollar Tree store in San Jose, CA: 11,972 SF Dollar Tree store (NASDAG: DLTR) on Story road, across the street from Wal-mart. 10 yrs NNN corp lease. NOI $307K/yr. $4.458M. 6.75% cap.
  3. Retail center in Al Cajon, CA: 5114 SF retail building on a busy corner lot in San Diego metro. Recently under $350K renovation. 100% leased by 4 tenants. NOI $127K/yr. $1.675M. 7.3% cap.
  4. Shopping center in Wichita, KS: 14,291 SF shopping center built in 1999 on 1.66 acres lot in a wealthy (AHI $112K/yr). 94% NNN leased by 6 tenants with just 800 SF unit vacant. NOI $206K/yr. $2.43M. 8.5% cap.
  5. Fletcher’s Tire & Auto Service in Tucson, AZ: single-tenant tire and auto service center built in 2006 on 1.07 acres parcel in a booming (50%) area. 25 yrs NNN lease. NOI $160K/yr. $2.13M. 7.5% cap.
  6. Shopping center in Redding, CA: 14,837 SF upscale shopping center built in 2007 on 1.1 acres lot adjacent to 523,000 SF Mt Shasta Mall with easy access to I-5. Surrounded by Walmart, Costco, Lowes, Home Depot, and Target. 100% NNN leased by national and regional tenants. NOI $456K/yr with 3% annual rent bump. $5.5M. 8.3% cap.
  7. Shopping Plaza in Salem, VA: 82,033 SF shopping center anchored by Kroger Supermarket (NYSE: KR) with strong revenue in Roanoke metro. NOI $736K/yr. $7.75M. 9.5% cap.

    © copyright efunding inc 2009. All rights reserved.

Tuesday, March 24, 2009

Top 6 Retial Properties 03-17-09

  1. CVS Pharmacy in Conway, SC: 10,128 SF drug store built in 1998 on 1.36 acres corner lot in a growing town near Myrtle Beach. 20 yrs NNN lease with 10 yrs remaining. Store with strong & increasing annual revenue of over $7.4M in 2008. NOI $196K/yr. $2.33M. Strong 8.4% cap for recession-resistant national tenant.
  2. Strip Center in Rio Rancho, NM: 7924 SF retail strip on .85 ac lot adjacent to Target Supercenter and Albertson’s Grocery in a fast Albuquerque suburb. 100% NNN leased by 3 brand name tenants: Rent A Center, Perfect Teeth (NASDAQ: BDMS), and Subway with below market rent of $14/SF. NOI $106K/yr. $1.25M. 8.5% cap. Note: Intel just announced $2.5B in upgrade in its facilities here.
  3. Shopping Center in Houston, TX: 18,045 SF shopping center on 1.24 acres parcel next to West Oak Mall in a growth path. 91% NNN leased. NOI $282K/yr. $3.295M. 8.56% cap.
  4. Retail Office Plaza in Kissimmee, FL: 13,244 SF 2-story retail office center on a corner lot with excellent visibility in a fast growing and high income Orlando suburb. 100% leased. NOI $172K/yr. $2.05M. 8.4% cap.
  5. Best Western Motel in Lodi, CA: 48-room motel on 1.48 acres parcel near Hwy 99. NOI $340K/yr. $3.8M. 9% cap.
  6. Fresh & Easy Neighborhood Market in Gilbert, AZ: 14,841 SF sing-tenant neighborhood market built in 2000 on 2.2 acres lot in a booming (71%) and affluent (AHI $99K/yr) Phoenix suburb. 20 yrs NNN corp lease with 18 yrs remaining. NOI $291K/yr. $3.646M. 8% cap.

    © copyright efunding Inc 2009. All rights reserved.

What Investors in 2009 Should Know about 1031 Exchange Intermediaries Before It’s Too Late

Revised 3/24/09

Today many investors often exchange their investment properties to avoid paying federal and state capital gain taxes. This 1031 exchange often requires the involvement of a qualified intermediary or 1031 exchange company to avoid constructive receipt. Otherwise your transaction may not be qualified for 1031 tax-deferred exchange. The exchange company will keep all of the money from the relinquished property for up to 180 days while you are looking for a replacement property to complete the exchange. Many investors do not know these companies are in a business that is not regulated by both the Federal government and any of the 50 states. There have been petitions over the years to the Federal Trade Commission (FTC) to regulate the industry. However, the FTC declined the petition as recent as August of 2008. This means these exchange companies can use your money to invest in anything they want. They don’t need to disclose where they invest, what they invest or the risks of their investments. On September 30, 2008 State of California passed Senate Bill 1007 which provided some consumer protections for 1031 exchange investors. This bill prohibits exchange companies in California from

  1. Comingling exchange funds with the operating accounts of the company.
  2. Investing exchange funds in the manner that does not provide sufficient liquidity or does not preserve the principal.


There have been sad stories about exchange companies losing investors money in risky investments and then declaring bankruptcy. Investors can only recover a fraction of their money. On top of that, they may have to pay capital gain taxes because they do not complete the transaction within 180 days! For example:

  1. On November 26, 2008, LandAmerica 1031 Exchange Services, a subsidiary of LandAmerica, a major provider of title insurance company, www.landam.com, filed petitions for Chapter 11 bankruptcy protection. Investors had over $400 Million deposited with the company but its auction-rate securities were illiquid and worth much less.
  2. On December 15, 2008 Summit 1031 Exchange, www.summit1031.com, announced that it has ceased all funding of existing accounts. Its account balances were less than the $24.8M investors deposited. The author knew an investor in San Jose who deposited over $2.5M with this company. As of March 2009, he was able to recover just over $625K. How much more he can recover depends on the result of its assets liquidation.

So the risks are very real and it could happen to anyone. How do you avoid being a victim? To answer this question, you will need to understand a little bit about the exchange business. Most exchange companies make money by charging a fee per transaction. They in turn invest your money somewhere with higher returns, pay you low .5-1% interests, and pocket the difference. This is how exchange companies normally make most of the profits. In the case of LandAmerica, it put much of the customers’ money in high-yield auction-rate securities backed by federally-insured student loans. However, these securities have become very difficult to convert to cash due to the tight credit market. LandAmerica had to sell these securities for less than the value of the securities when the exchange customers need money to complete the exchange. As a result, it did not have enough money to cover its obligations and had to declare bankruptcy.

There are 3 main types of exchange companies:

  1. Some exchange companies are just a division or subsidiary or an entity owned by an escrow or title insurance company. For example:
    - First American Exchange Company (FAEC), www.firstexchange.com is a separate Limited Liability Company (LLC) owned by First American which is also in title & escrow business. FAEC occupies the same office and even has the same phone number as the First American Title office.
    - Old Republic Exchange, www.oreexco1031.com, is a member of The Old Republic Title Insurance group.
  2. Some banks also offer 1031 exchange services. For example
    - Wachovia Securities Bank, www.wachoviasecurities.com.
    - Bay Commercial Bank, www.baycommercialbank.com.
    - Comerica Bank, www.comerica.com.
    - Washington Mutual, www.wamu.com. Note: as of December 2008, Wamu does not accept new customers and is looking for a buyer for this division.
  3. Companies that specialize on 1031 exchange. They could be a mom-and-pop company or a franchise with offices in many states. For example:
    - IPX, Inc. www.ipx1031.com
    - Equity 1031, LLC; www.equity1031.com.
    - Equity Preservation, Inc.; www.equitypreservation.com.


The fees charged by these companies vary from $200 to $750 per transaction. However there are different restrictions:

  1. The company that charges low fee often does not pay interest on your fund or only pays interest if your fund is above a certain amount. If your sales proceed is significant, e.g. several hundred thousand dollars, you may save on the fee but may lose a significant amount on the interest payment.
  2. Some companies may offer to pay savings account rate while another may pay higher money market rate.
  3. Some companies charge higher fee, e.g. First American Exchange charges $750, but may allow you to make as many offers as you want. Each time your offer is accepted, the exchange has to review the contract, and wire the money to the seller’s escrow account.

During the economic downturn many big companies faced big losses and failed. You should choose an intermediary on 2 factors

  1. The most important factor is which company can provide safety, security and timely disbursements of your funds. When the amount of money is substantial, e.g. several million dollars, this is even more critical.
  2. Fees, interest rates, and staff competency should be a distant secondary requirement.

To ensure your money is safe, you should ask the exchange company if

  1. Your money is FDIC-insured (Federal Deposit Insurance Corporation, a US government corporation created by Glass-Steagall Act of 1933). When it comes to deposit insurance of your bank accounts, FDIC insurance probably provides the best protection for your money. The account is insured up to $250K per customer. So if the exchange account is under both husband and wife’s names, it’s insured up to $500K. When you have more than $500K you want the bank to put your money in a Certificate of Deposit Account Registry Service, or CDARS account. Your money is deposited in multiple banks to be insured up to $250K per customer per bank for up to $50 Million. CDARS account is a CD account so you probably want a short term CD to make sure you don’t pay penalty for early withdrawal. An intermediary may advertise that it carries $100M in fidelity bond. However, this bond is intended to protect the company against theft or embezzlement, not investment losses. It may also say that your account is guaranteed by the assets of its publicly-traded parent company. However, this guaranty does not mean much if the company has more liabilities and debts than assets.
  2. Your money is deposited in the operating (comingled) account or separate account under your name. When the money is in the operating account, the exchange company can use it for anything; e.g. pay salary for its employees or invest in the stock market in China. In addition, the money in the operating account belongs to the company. Should the company declare bankruptcy, it’s harder to prove whether the money in the account is your money. On the other hand, the separate account is your account to keep your money for your own use. Should the company declare bankruptcy, it’s easier and faster to recover your money from your separate account. The fact your money is in a separate account does not make your money safer, just easier and faster to claim it’s your money. Normally if you don’t say anything, your money is deposited in a general account.
    - The separate account is called trust account if the exchange company is a subsidiary or a division of a bank. The account name should be something like “John & Jane Smith Trust Account” with your tax ID. This trust account is regulated by the government and the exchange company cannot use money for its business.
    - The separate account is called segregated account if the exchange company is a subsidiary or a division of a title company. The account is under your name and tax ID. This account is not regulated by the government. The exchange company can still invest in the way as other non-segregated accounts if you don’t specify anything.
  3. Where your money is invested, e.g. money market. Again, since this is an unregulated business, it does not need to provide you a prospectus and does not necessarily need to invest in where it says it does. If the money is invested outside the US in which you probably don’t know anyway, there may be a delay from the time you request your money to the time you actually get it.

Conclusion: when you choose an exchange company, you should consider its fees, services, and most importantly the safety, security and timely disbursements of your funds. You should consider an exchange intermediary located in California in which your account is FDIC insured.

Monday, March 23, 2009

The Impact of Federal Reserve Actions

Fed Reserve recently took several actions to fix the problems with the financial market. Last week, it announced plan to buy $1.15 trillion of long term Treasury bonds and mortgage debts. This morning, it announced a plan to buy up to $1 trillion dollars of troubled loans and securities from banks. The effect of these actions is banks will have lots of cash in hands for lending. eFunding believes these actions may not signal the end of the recession but they mark the beginning of the end. Besides having a positive impact on the stock market (6.8% increase on NYSE and NASDAG), they should also have a positive impact on the real estate market (it’s much harder to measure compared to stocks market) as more credits are available to borrowers. If you have been waiting for the “right” time, this may be it.

Disclaimer: the above reflects an opinion of eFunding, Inc. which is known for being wrong before.

Top 6 Retail Properties 03-16-09

  1. Shopping Plaza in Sacramento, CA: 41,247 SF shopping plaza built in 2003 on 4.95 acres corner on the busy Stockton Blvd near Florin Mall. 89% NNN leased by 25 seasoned tenants. Actual NOI of $685K/yr. $8.6M. 7.97% cap on current income.
  2. Shopping Center in Los Angeles, CA: 10,498 SF strip mall built in 2007 on the main Western Avenue with over 950K residents within 5 miles radius. 100% NNN leased. NOI $277K/yr. $3.95M. 7.03% cap.
  3. Pizza Hut in Buena Park, CA: 1260 SF restaurant on the main North-South artery in a city in orange county with over 600K residents within 5 miles. New 15 yrs absolute NNN lease by the largest Pizza Hut franchisee in California with 123 locations. NOI $100K/yr with annual 1.5% rent bump. $1.449M. 6.9% cap.
  4. Shopping center in Tucson, AZ: 99,033 SF shopping center on 8 acres of land. Anchored by Autozone, Grocery store, Family Dollar and Big 5 Sporting Goods. 96% NNN leased with below market rent. NOI $860K/yr. $9.55M. 9% cap.
  5. Auto Repair Center in Carrollton, TX: 31,400 SF multi-tenant auto repair center on 4.5 acres lot in a high-income Dallas suburb. 86% leased with 1 vacant unit. NOI $250K/yr. $2.7M. 9.28% cap.
  6. Strip Center in Douglasville, GA: 11,200 SF strip center on 1.4 acres lot in front of Home Depot in a fast growing city in Atlanta suburb. 100% NNN leased to 4 tenants. NOI $106K/yr. $1.25M. 8.5% cap.

    © Copyright eFunding Inc 2009. All rights reserved.

Friday, March 20, 2009

Top 8 Properties of 03-13-09

  1. Strip Center in Decatur, GA: 8,828 SF strip center along main thoroughfare in fast growing Atlanta, suburbs. 100% leased. NOI $197K/yr. $1.9M. 10.40% Cap.
  2. Benihana Restaurant in Broomfield, CO: 8,921 SF quality constructed restaurant on .38 acre lot built in 2002 adjacent to Flatiron Crossing with great access to US-36 in an affluent (AHI $110K/yr) neighborhood. $2.416M. 9% Cap.
  3. Krispy Kreme Doughnuts in Bentonville, AR: 3,694 SF retail building constructed in 2004 just blocks from Northwest Medical Center near Hwy-71/I-540. 100% NNN corp lease with 10% increases every 5-years. NOI $139K/yr. $1.646M. 8.5% Cap.
  4. Jiffy Lube in Austin, TX: 3,731 SF retail building on .31 acre lot built in 1984 surrounded by many national tenants. 100% absolute NNN corp lease. NOI $102K/yr. $1.136M. 9% Cap.
  5. Medical Office in Covina, CA: 16,300 SF mature office building well located along main highway. 100% leased. NOI $309K/yr. $3.862M. 8% Cap.
  6. Medical Office in Westmont, IL: 15,500 SF beautiful medical office built in 2000 fully occupied by 3 long term stable tenants in prosperous (AHI $152K/yr) Chicago suburbs. NOI $346K/yr. $3.845M. 9% Cap.
  7. Strip Center in Athens, AL: 13,600 SF attractive 2-tenant retail center well located on Hwy-72. 100% NNN leased. NOI $ 116K/yr. $1.475M. 7.89% Cap.
  8. Medical Office in Greenwood, IN: 27,062 SF nice-looking office building on 4.36 acres of land located close to I-65. 100% NNN leased. NOI $313K/yr. $3.189M. 9.83% Cap.

© copyright eFunding Inc 2009. All rights reserved.

Thursday, March 19, 2009

Top 9 Commercial Properties of 03-12-09

  1. Knights Inn in Houston, TX: 170-rooms well situated hotel on 3.5 acres of land close to to I-45 near Greenspoint Mall. NOI $355K/yr. $3.550M. 10% Cap.
  2. Medical Office in San Mateo, CA: 3,150 SF attractive medical office in close proximity to Peninsula Hospital. $1.495M.
    Great for owner-user
  3. Office Building in Clearwater, FL: 16,410 SF nice-looking office building on .84 acre lot built in 1982. 95% leased. NOI $122K/yr. $1.286M. 9.5% Cap.
  4. Retail Building in Harrison Township, MI: 15,500 SF West Marine retail building on .95 acre lot built in 2008. 100% NNN corp lease with 10% increases every 5-yrs. NOI $294K/yr. $3.365M. 8.75% Cap.
  5. Office Building in Sewell,NJ: 15,000 SF office building on 5 acres of land built in 2006 near Kennedy Memorial Hospital in growing/middle-class (AHI $76K/yr.) area. 100% NNN leased. NOI $331K/yr. $3.793M. 8.75% Cap.
  6. Just Brakes in Tampa, FL: 3800 SF single-tenant retail building on ..49 acre lot built in 2008 close to I-275. 100% NNN corp lease with rent increases. NOI $102K/yr. $1.280M. 8% Cap.
  7. Arby’s Restaurant in Sterling Heights, MI: 3100 SF restaurant on .86 acre lot in growing/well off (AHI $86K/yr.) area along I-59. 100% NNN corp lease. NOI $144K/yr. $1.703M. 8.5% Cap.

    -The following properties are for sale by court order-
  8. Strip Center in Alabaster, AL: 8838 SF shopping center on .75 acre lot along Hwy-31 in growing Birmingham suburbs. $925K.
  9. Strip Center in Pelham, AL: 13,933 SF strip center on 1.46 acres of land along Hwy-31 in Birmingham suburb. 90% leased. $1.525M.

© copyright eFunding, inc. 2009. All rights reserved.

Wednesday, March 18, 2009

Top 7 Properties of 03-11-09

  1. Shopping Center in Canyon Lake, CA: 8,941 SF well kept shopping center at signalized intersection at the main entrance of a community shopping center near Fwy-15/215 in Riverside county. NOI $104K/yr. $1.675M. 6.22% Proforma Cap. Only $187 per SF.
    *Upside potential
  2. La Petite Academy in Chandler, AZ: 10,000 SF single tenant retail built constructed in 2008 at a highly desirable retail thoroughfare near Fwy-202. 15-years NNN leased by national day care provider with 570+ locations. NOI $259K/yr. $3.448M. 7.54% Cap.
  3. Retail Center in Torrance, CA: 6,632 SF well located retail center next to post office in a growing and middle-class (AHI $77K/yr) Los Angeles metro. 100% Occupancy. NOI $101K/yr. $1.295M. 7.8% Cap.
  4. Advance Auto Parts in Commerce City, CO: 7000 SF retail building on over 1 acre of land located on Stare Hwy-2 in fast growing area in Denver metro. Long NNN lease. NOI $132K/yr. $1.772M. 7.5% Cap.
  5. Strip Center in Loganville, GA: 12,000 SF attractive strip center built in 1998 on 1.40 acres of land with solid national/local tenants in Atlanta metro. 100% NNN leased. NOI $178K/yr. $2.040M. 8.75% Cap. Buyer to assume $1.630M at below market 5.78% rate.
  6. Retail Center in Pittsburg, CA: 6,808 SF shopping center built in 1979 at busy thoroughfare close to Hwy-4. NNN leases. NOI $105K/yr. $1.460M. 7.23% Cap.
  7. Office Building in Elk Grove, CA: 3358 SF beautiful office building constructed in 2005 at highly visible location near I-5 in a high income Sacramento metro. 100% NNN leased. NOI $87K/yr. $1.120M. 7.78% Cap.

    © copyright eFunding, inc. 2009. All rights reserved.

Tuesday, March 17, 2009

Top 9 Retail Properties of 03-10-09

  1. Shopping Center in Pomona, CA: 34,597 SF eye-catching shopping center on 2.38 acres of land built in 1990 under recent major upgrades. On busy thoroughfare with easy access to Fwy-71/60. 97% leased. NOI $620K/yr. $8.950M. 7% Cap.
  2. Jiffy Lube in Pearland, TX: brand new 4155 SF retail building on 1.53 acres of parcel in booming Houston suburbs. 100% NNN leased by 3rd largest franchisee currently operating 112+ stores. NOI $151K/yr. $1.896M. 8% Cap.
  3. Medical Office in Redding, CA: beautiful 5320 SF medical office built in 2007 at intersection across DMV. NOI $81K/yr. $1.250M. 6.5% Cap. Sale price is subject to Short Sale approval.
  4. Advance Auto Parts in Birmingham, AL: 6,000 SF retail building on 1.61 acres of land next to Publix supermarket anchored center situated at intersection near I-459/65. 100% absolute NNN copr lease. NOI $138K/yr. $1.826M. 7.6% Cap.
  5. Retail Center in Gilbert, AZ: 7,500 SF upscale retail building recently constructed across Safeway at a highly visible location. NNN. NOI $210K/yr. $2.8M. 7.5% Cap.
  6. Lone Star Steakhouse in Dayton, OH: 6792 SF free standing restaurant along I-75. 100% NNN leased with corp guarantee plus 2% annual rent boost. NOI $460K/yr. $4.605M. 10% Cap.
  7. Strip Center in North Palm Beach, FL: 15,888 SF stable shopping center on 1.68 acres of land along boulevard near US-1. 100% NNN leased. NOI $224K/yr. $2.999M. 7.50% Cap.
  8. Dollar General in Houston, TX: 9,014 SF retail building built in 2007 close to Fwy-45 in fast growing city. 100% NNN corp lease. NOI $82K/yr. $1.029M. 8% Cap.
  9. Applebee’s Restaurant in Chanhassen, MN: 5463 SF restaurant on 1.23 acres of land built in 1999 next to Walgreens off of Hwy-5 in affluent (AHI $121K/yr) Minneapolis suburbs. NOI $178K/yr. $2.230M. 8% Cap.

    © copyright eFunding Inc 2009. All rights reserved.

Monday, March 16, 2009

Top 7 Commercial Properties 03-09-09

  1. Days Inn Motel in Tampa, FL: 132-room well-maintained motel on over 2 acres of land near Tampa International Airport and off of I-4. $3.750M. 8.6% Cap.
  2. Neighborhood Shopping Center in College Park, GA: 74,710 SF shopping center on 8.13 acres of land anchored by Wayfield Foods on a highly visible location with a solid mix of tenants. 98% NNN leased. NOI $541K/yr. $5.750M. 9.42% Cap.
  3. Retail Center in Lithia Springs, GA: 8,080 SF attractive retail center built in 1995 close to I-20 in fast growing Atlanta suburb. 100% NNN leased. NOI $110K/yr. $1.295M. 8.5% Cap.
  4. Shopping Center in San Marcos, CA: 19,164 SF nice looking center on 1.39 acres of parcel built in 1982 in growing area. NOI $280K/yr. $4.1M. 6.85% Cap.
  5. Office Building in Portland, OR: 15,089 SF concrete block office building on .69 acre lot built in 1998. 100% NNN leased. NOI $235K/yr. $2.895M. 8.13% Cap.
  6. Pep Boys Retail Building in Greece, NY: 22,227 SF single tenant building on 3.41 acres of land renovated in 2007 on retail corridor. 100% absolute NNN leased with 1.5% annual increases. NOI $206K/yr. $2.757M. 7.5% Cap.
  7. Strip Center in Lawndale, CA: 7,200 SF stable strip center located on busy street with excellent visibility. 100% leased by 5 tenants. NOI $91K/yr. $1.499M. 6.10% Cap.

    © copyright eFunding, inc. 2009. All rights reserved.

Friday, March 13, 2009

Top 10 Retail Properties 03-06-09

  1. Shopping Center in Richmond, TX: 16,195 SF recently constructed shopping center on 1.88 acres of land next to Walgreens. 100% leased by local/regional tenants. NOI $343K/yr. $3.8M. 9.04% Cap.
  2. Strip center in Carol Stream, IL: 9655 SF attractive strip center built in 2006 on over 1 acre lot at signalized intersection in prime retail corridor. 100% NNN leased. NOI $128K/yr. $1.840M. 7% Cap.
  3. Shopping Center in Lehigh Acres, FL: 31,770 SF shopping center on 3.36 acres of land built in 2005 shadow-anchored by Tax Collectors Office. 100% NNN leased. NOI $444K/yr. $5.282M. 8.5% Cap.
  4. Strip Center in Las Vegas, NV: 4165 SF 2-tenants strip center on .46 acre lot across Walgreens in fast growing area. 100% NNN leased. NOI $150K/yr. $1.670M. 9% Cap.
  5. Retail Center in Northglenn, CO: 7,048 SF retail center built in 1991 newly renovated near Hwy-25. 100% NNN leased by urgent care/coffee chain. NOI $178K/yr. $2.225M. 8% Cap.
  6. Strip Center in Webster, TX: 18,250 SF mature strip center on 1.24 acres of land located on State Hwy-3 at signalized intersection. 95% NNN leased by seven tenants. NOI $178K/yr. $2.1M. 8.49% Cap.
  7. Retail Center in San Bernardino, CA: 4874 SF good-looking retail center in densely populated area. 100% NNN leased by 4 stable tenants with 3.5% annual rent increase. NOI $142K/yr. $1.626M. 8.75% Cap.
  8. Shopping Center in Elk Grove, CA: 26,074 SF mature shopping center on 2.33 acres of land on main commercial artery. 95% NNN leased. NOI $418K/yr. $5.575M. 7.5% Cap.
  9. Popeye’s Restaurant in San Antonio, TX: 2940 SF Popeye’s Restaurant on .82 acres of lot built in 1997 near Central Park Mall. 100% NNN corp leased. NOI $93K/yr. $1.119M. 8.35% Cap.
  10. Strip Center in Tulsa, OK: 14,550 SF nice looking strip center built in 2002 close to I-64 shadow-anchored by Stein Mart. 100% NNN leased. NOI $213K/yr. $2.850M. 7.5% Cap

    © copyright eFunding Inc. 2009. All rights reserved.

Thursday, March 12, 2009

Top 9 Properties 03-05-09

  1. Childtime Learning Center in Midlothian, VA: 6380 SF childcare center on .8 acre lot in a growing and middle-class (AHI $99K/yr) Richmond metro. 100% NNN leased till 2021 by a national childcare provider. NOI $89K/yr. $963K. 9.25% cap.
  2. Shopping center in Santee, CA: 20,518 SF 2-story shopping/office complex in San Diego metro. 88% leased with 4 small vacant units. NOI $296K/yr. Price reduced to $3.895M. 7.6% cap.
  3. Carl’s Jr restaurant in Chandler, AZ: 6015 SF fast food restaurant on 1.10 acres parcel in a growing Phoenix metro. 20 yrs NNN lease by an operator with 134 locations. NOI $120K/yr. $1.548M. 7.75% cap.
  4. Days Inn in Fairfield, CA: 102 room motel on 1.64 acres parcel just off I-80 exit in a high income city with AHI over $104K/yr. NOI $509K/yr. $5.8M. 8.79% cap.
  5. Medical building in Saginaw, TX: 4500 SF medical building constructed in 2007 in a booming Dallas suburb (111% since 2000). 100% NNN leased by 2 medical tenants: a Doctor and Orthodontist. NOI $88K/yr. $1.045M. 8.5% cap.
  6. Speedy Cash in Las Vegas, NV: 2000 SF free-standing retail store on ¼ acre parcel. 100% NNN leased by a regional tenant with over 80 locations. NOI $99K/yr. $1.081M. 9.15% cap.
  7. Office building in Arvada, CO: 12,250 SF single-tenant office building in Denver metro. 100% leased by county Health Department in the past 18 yrs. NOI $87K/yr. $850K. 10.3% cap.
  8. Rite Aid in Charlotte, NC: 10,908 SF drug store built in 1997 on 1.26 acres parcel on a main artery. 100% absolute NNN leased till 2017. NOI $211K/yr. $2.29M. 9.25% cap.
  9. Carrow’s restaurant in Santa Maria, CA: 5450 SF restaurant on .8 acres parcel in a stable and strong income city. 20 yrs corp absolute NNN lease with 7 yrs remaining. NOI 4145K/yr with up to 9% rent bump every 3 yrs. $1.933M. 7.5% cap.

    © Copyright eFunding Inc. 2009. All rights reserved.

Wednesday, March 11, 2009

Top 7 Retail Properties of 03-04-09

  1. Checker Auto Parts in Colorado Springs, CO: 7000 SF Auto parts store on an outparcel to Lowe’s in wealthy area with AHI over $105K/yr. 15 yrs NN lease. NOI $133K/yr with 10% rent increase every 5 yrs. $1.797M. 7.4% cap. Recession insensitive tenant.
  2. Shopping center in Los Angeles, CA: 18,404 SF 2-story shopping/office center in a densely-populated area with 800K residents within 5 miles radius.97% occupied. NOI $249K/yr. 8% cap.
  3. Popeye’s in Tampa, NC: 2157 SF chained restaurant on 1.33 acres lot across the street from Walmart in a stable and high income city. 30 yrs NNN lease with 5 yrs remaining from the largest Popeye’s franchisee with 160 locations. NOI $58K/yr with 10% rent increase in 2010. Only $706K. 8.25% cap.
  4. Retail center in Glendale, AZ: 12,388 SF retail building developed in 2003 across the street from Arrowhead Towne Center Mall in a fast growing and middle class Phoenix suburb. 100% NNN leased by 2 good tenants: Goodyear Tire and Boot Barn. NOI $187K/yr. $2.435M. 7.7% cap.

    Below are 3 regional chained restaurants (with 70 locations in the US) located at the entrance (super premium location) to 3 regional malls in Florida.
    · The rent to revenue ratio is low which means the locations are very profitable and thus should be able to pay the rent.
    · The cap is high, 9% which mean you should get very strong returns.
    · All 3 properties have new 20 yrs absolute NNN lease with 1.75% annual rent increase. If you make a 10% cap offer, there is a good chance the seller may accept it.
    · Last but not least, eFunding may be able to get financing from an international bank which is a good news in this tight credit market.


  1. Smokey Bones Barbeque & Grille in Tampa, FL: 8200 SF restaurant built in 2002 on 1.8 acres lot at the entrance to 150-store Westfield Citrus Park Mall. NOI $271K/yr. $3.01M. 9% cap.
  2. Smokey Bones Barbeque & Grill in Brandon, FL: 6900 SF restaurant built in 1991 on 2.13 acres lot at the entrance of 974,000 SF Westfield Brandon Town Center in a fast growingTampa suburb. NOI $242K/yr. $2.698M. 9% cap.
  3. Smokey Bones Barbeque & Grille in Orlando, FL: 7680 SF restaurant on 1.67 acres lot at the entrance to Waterford Lakes Town Mall in a booming (102% since 2000) Orlando. NOI $244K/yr. $2.71M. 9% cap.

    © copyright eFunding Inc 2009. All rights reserved.

Tuesday, March 10, 2009

Top 4 Properties of 03-03-09

  1. Eyeglass World in Port Charlotte, FL: 4185 free standing retail building constructed in 2001 on .6 acre lot. 20 yrs NNN lease with 12 yrs remaining by Eyeglass world, recently acquired by National Vision with over 500 stores. NOI $98K/yr with 10% rent bump every 5 yrs. $1.128M. 8.75% cap.
  2. Surgical Center in Altamonte Springs, FL: 5460 SF surgical center on .8 acre lot in Orlando metro plus surgical license. 100% NNN leased. NOI $133K/yr. $1.775M. 7.5% cap.
  3. Independent Motel in Chula Vista, CA: 42 room motel near I-5 exit in San Diego metro. NOI over $300K/yr. $2.19M. 13.7% cap. Here is your chance to own your own business.
  4. Strip center in Lithonia, GA: 7242 SF strip center built in 1996 on .89 acre out parcel to a shopping center anchored by Kroger Supermarket. 100% NNN corp leased by Blockbuster and Pap John Pizza. NOI $133K/yr. with 10% rent increase every 5 yrs. $1.337M. 10% cap.

    © copyright eFunding Inc. 2009. All rights reserved.

What Are Your Investment Objectives for Commercial Properties

Investors often ask me to show them only the best commercial properties. This requirement is at least not clear or specific enough for this advisor. A best property for one investor may not be suitable for another investor. This is because each investor has different set of investment objectives. You should at least consider the following:

1. Investment returns: when you deposit your money in CDs, you get 1.5% interest for 6- month CDs, so what kind of return, i.e. cap rate is acceptable to you when you invest in commercial real estate? The current cap rate in 2009 varies between 5% to 12% depending the property type, property condition, location, and various other factors. Properties in California tend to have lower cap than those outside of California due to higher demand.

2. Appreciation: one of the benefits in real estate investments is its potential for appreciation. However, this potential also varies from one property to another. There are several factors that impact appreciation. Some you have little control, e.g. demand and supply. However, you know the demand is weak and supplies are abundant in declining rust-belt areas, e.g. Detroit. And thus the properties in these areas will not likely to appreciate. Some you have control, e.g. rents or net operating income of the property. So if appreciation is important to you, focus on properties with

--Below market rents. When the leases expire, the rent will be adjusted to higher market rents. As a result, the value will likely go up. Sometimes a tenant may pay 10-25% below market rent because the landlord does not know how to get the highest rents for his property. It’s not easy to determine by yourself if the rent is below market so you may need a professional to help you.

--Annual rent bump located in stable or growing areas with high barriers for entry. When the rent increases, the operating income increases; and the property is likely to appreciate in value. You can review the rent roll to see if there are any rent increases. It’s very common that the rent goes up 2-3% annually on multi-tenant shopping centers.

3. Investment risks: there are risks associated with almost any investments. For commercial properties, one may have higher risks than another. Walgreens should do well during the recession. In addition, it also has very strong A+ S&P rating and so it should be able and willing to pay the rent on time. On the other hand, single-tenant car dealers selling big-ticket items may not fare well during tough economic times and so your rent checks may not come. Of course, there are other properties in which risks are somewhere in between Walgreens and Car dealers, e.g. multi-tenant strip malls. Life also throws a curved ball at you as risks also vary from times to times. Properties occupied by banks, e.g. Wamu were once considered very safe investments a very few years ago until many banks closed down due to subprime problems.

Investment risks and returns tend to go in opposite directions. In general, the lower the risk the lower the returns but there are also moderately low-risk properties offering high returns. They are called good buys. You may need a professional to help identify these. So should you choose a bullet-proof safe investment over moderate risk properties? Imagine that you work for a company that does not give you a raise in 30 years. It however offers a lifetime employment and consistently pays you a modest salary each month. Will you be a happy employee? If your answer is yes because you don’t ever want to be unemployed in your life then you will consider investing in Walgreens or Autozone. Their rent is often flat for 15 to 30 years and the cap rate is modest--in the 6.5% to 7.5% and so the investment returns are low. On the other hand, you know money does not bring happiness but you need more money for shopping which is proven to make you happy. In that case you will need to endure a reasonable dose of risk. Sit-down restaurants in which business is moderated affected by the recession tend to offer higher returns--8% to 11% cap.

To minimize or reduce the risks of your investment, you should

1. Choose a property at a great irreplaceable location (refer to the article “What ‘location’ means in commercial real estate” by this author.) Tenants will come and go but location does not change. Want to know how important a great location is to a business? A lousy business will be successful at a great location while a good business will fail at a bad location. It’s that important! That’s why some restaurants are still crowded during the recessions. If your property is at a great location, you will likely receive your rent checks on time and regularly.

2. Invest in multi-tenant properties. When one tenant vacates your property you will only lose a portion of the total income.

As an investor you need to do soul searching and determine the amount of risks that you feel comfortable with. On top of that, you also have different expectation regarding investment returns and appreciation. All these factors will determine what properties that you would consider. And now you know why there is no single best property for all investors.

© copyright eFunding Inc. 2009. All rights reserved.

Monday, March 9, 2009

Top 8 Properties of 03-02-09

  1. Buca Di Beppo restaurant in Las Vegas, NV: 7601 SF Italian chained restaurant built in 2000 on 1..17 acres corner lot parcel in a densely-populated high income area. New 15 yrs absolute NNN lease with corp guaranty. NOI $194K/yr with 7.5% rent increase every 5 yrs. $2.154M. 9% cap.
  2. Shopping center in Euless, TX: 12,019 SF 2-yr old strip center on 1.46 acres outparcel to an 1 million SF lifestyle retail center anchored by Bed, Bath & Beyond, Marshall's, PetSmart, Ross, Staples, Lowe's and L.A. Fitness in an affluent city (AHI $98K/yr) in Dallas suburb. NOI $314K/yr. $4.215M. 7.47% cap.
  3. Ace Hardware in Aurora, IL: 20,000 SF single-tenant retail building on 2.2 acres lot in Chicago metro. 100% corp lease till 2014 with low rent of $6/SF/year. NOI 4121K/yr. $1.379M. 8.81% cap.
  4. Shopping center in Dallas, TX: 10,429 SF retail strip built in 2005 on .86 ac outparcel to Wal-mart and Sam’s Club. 100% NNN leased by 4 brand name tenants; Monarch Dental, Check Into Cash, Foot Locker, and Pizza Hut. NOI $221K/yr. $2.64M. 8.37% cap.
  5. Buffalo Wild Wings restaurant in Keller, TX: 5000 SF 4-yr old chained restaurant (listed on NYSE: BWLD) with over 550 locations in 38 states. Located on 1.4 acres lot ina a fast growing and high income Dallas suburb. 100% NNN leased till 2019. NOI $186K/yr. with annual rent bump. $2.255M. 8.25% cap.
  6. Shopping Center in Tucson, AZ: 79,121 SF well-maintained shopping center on 5.6 acres of land in a stable city. Anchored by Save A Lot supermarket and Family Dollar store. Over 90% leased. NOI $514K/yr. $5.725M. 9% cap.
  7. Advance Auto Parts in Commerce City, CO: newly-built auto parts store in Denver metro. 15 yrs NNN lease. NOI $133K/yr. $1.772M. 7.5% cap.
  8. Pier 1 Imports in Tucson, AZ: 11,287 SF single-tenant retail building on 1.5 acres lot. Surround by Best Buy, Cost Plus, BevMo, OfficeMax, TJ Maxx, Famous Footwear, LA Fitness, Target, Petco, Toys R Us, and Barnes & Noble. 100% NNN leased till 2015. NOI $270K/yr. $3.2M. 8.47% cap. Buyer to assume $2.635M loan at low 5.51% interest yielding over 14% cash on cash!

    © copyright eFunding Inc 2009. All rights reserved.

Thursday, March 5, 2009

How properties are selected

Every day there are about 300-350 new retail and office properties between $700K to $15M on the market in all 50 states listed by various companies. Out of these hundreds of listings, only the top 5-10 properties make it to the list that you see on this blog. By focusing on the short list of best properties, you will save time and are more likely to be successful with your investments.
Below are some of the selection criteria:
1. Price range: most investors look for properties between $700K and $15M.
2. Property types: most if not all investors of eFunding want to invest in retail properties and office buildings where tenants sign long term low-risk NNN leases, i.e. tenants pay for property taxes, insurance and maintenance expenses, in favor of landlords. They prefer not to invest in apartments where leases are mostly riskier gross, i.e. landlords pay for taxes, insurance and unpredictable maintenance expenses. Besides, apartment tenants normally don’t have much money which may affect their ability to pay the rent on time.
3. Cap rate: the return of investment must be “reasonable”, e.g. generally higher than the interest rate. The cap rate is typically lower in CA and higher in other states. However cap rate is not everything.
4. Property condition: investors prefer properties with little deferred maintenance.
5. Demographics: the selected properties tend to be in growing, high income and bigger cities/metros as they have better chance to appreciate and easier to find tenants. Besides they are easier to sell if needed.
· You won’t see properties in an area where people are moving out, e.g. Detroit downtown. These properties are easy to buy but hard to sell. In addition, it’s hard to get attractive financing, if at all, for these properties.
· Properties in a middle of nowhere won’t make it to the lists. These are also easy to buy but hard to sell.
· Properties in cities where the average household income is way below the national average, e.g. $28,000/year, also won’t make it to the list as these are most likely high-crime areas.
6. Occupancy: close to 100%.
7. Good Visibility: properties tend to have most if not all units facing the road to show case the tenant businesses. Tenants love visibility. What’s good for tenants is also good for investors.
8. Great locations: properties on a major artery with heavy traffic, near the freeway exit, on corner lot, near a mall, on an outparcel to a shopping center.
9. Land: if land is not included then it does matter how beautiful the property is, it will not be selected. This is the type of property that is easy to buy but hard to sell.
10. Lease Type: most likely NNN leases.
11. Parking spaces: at least 4 spaces per 1000 SF of leasable space.. It’s hard to lease a retail property unless it has sufficient parking spaces.
12. Age: not over 20 yrs old unless the property is well-maintained or recently renovated.
13. Price per square foot: sometimes a property is selected because the price per SF is low, e.g. less than $200/SF for a retail property in California. The main reason for the selection is appreciation potential.
14. Low rent: there is upside potential if the rent is below market. When the leases expire, the rent is adjusted to market rent which increases the value of the property.
15. Financing: sometimes a property may be selected because it offers attractive financing. For example, the seller is willing to carry 80% LTV at low interest rate or buyer can assume a loan at 5.5% interest, fixed for 10 years. This in turn may increase the overall return or cash on cash. On the other hand, a property may be screened out because it is difficult to get reasonable financing. For example, in this tight credit market it is extremely difficult to get financing for a single-tenant mom-and-pop restaurant.
16. Misc: A property could be selected or screened out for other reasons
· If a property has a dry cleaner with onsite cleaning, it will not be selected due to potential soil contamination by a chemical called Perc used in the cleaning process.
· A property in an affluent Santa Monica, CA could be selected simply because it’s rarely available.
· A vacant restaurant in front of a mall in San Francisco Bay Area could make the list because it may have lots of interests from investors in CA.

Top 5 Properties of 02-27-09

Recession Insensitive Business: during the recession, people stop buying new cars. So they have to spend money maintaining existing ones. And thus auto parts stores, car care shops are very insensitive to recession.

  1. Pep Boy Autos in Las Vegas, NV: 20,886 SF on 2.13 acres lot in a densely populated area. 15 yrs absolute NNN lease by Pop Boys (NYSE: PBY). NOI $300K/yr. $4.199M. 7.15% cap.
  2. Jack In the Box in Carlsbad, CA: 2303 SF recently remodeled restaurant on .68 acres outparcel to a shopping center just off I-5 exit in a wealthy (AHI $141K/yr) coastal city in San Diego. New 10 yrs NNN lease with corporate guaranty. NOI $90K/yr. with rent bump every 5 yrs. $1.5M. 6% cap.
  3. Strip center in Orange, CA: 5680 SF strip center on .4 acre lot on a major artery with easy access to I-5, hwy 57 & 22 in a densely-populated are with over 750K residents within 5 miles radius. 100% leased by 5 good tenants. NOI $110K/yr. $1.574M. 7% cap.
  4. Shopping center in Norco, CA: 45,102 SF shopping center on 4.77 acres lot in a growing and high income Riverside area. Anchored by a grocery store. 100% leased by 15 tenants. NOI$462K/yr. $6.606M. 7% cap. Only $146/SF!
  5. LA Fitness Center in Orlando, FL: 51,160 SF retail center anchored by 47,634 SF LA Fitness center with a new 15-yr lease. NOI $888K/yr. $10.957M. 8.11% cap.

    © copyright eFunding Inc. 2009. All rights reserved.

Wednesday, March 4, 2009

Best Retail Properties Among 380+ 02/26/09

  1. Burger King in McDonough, GA: 3500 SF restaurant in with outdoors playground on 1.25 acres pad site to Walmart supercenter and Lowe’s just off I-75 exit in Atlanta suburb. 20 yrs NNN absolute lease by an experienced operator with 11 locations. NOI $110K/yr with 6% rent bump every 3 yrs. 7.5% cap.
  2. Citibank Building in Santa Clara, CA: rare 6100 SF bank on .56 acre parcel near San Tomas Expressway. New 10 yrs NN lease by Citibank (S&P rating A+). NOI $166K/yr. with CPI-based annual rent bump. $2.67M. 6.25% cap.
  3. Jack In The Box in Fresno, TX: 2036 SF franchised restaurant built in 2002 on 1 acre lot on a busy artery in a fast growing and high income Houston suburb. 100% absolute NNN corporate ground lease (investor owns the land) with 12 years remaining. NOI $115K/yr with 8% rent increase every 5 yrs. $1.495M. 7.7% cap.
  4. Shopping Center in Lovejoy, GA: 46,700 SF shopping center on 6.82 acres outparcel to a Walmart Supercenter in Atlanta metro. 97% NNN leased by many brand name tenants. NOI $671K/yr. $8.15M. 8.24% cap. Buyer to assume existing $5.7M loan at low 5.27% interest. 11% total yield!
  5. Long Horn Steakhouse in Olathe, KS: 5800 SF chained steakhouse built in 2007 as part of a 85-acre entertainment lifestyle center in an upper middle-class Kansas suburb. 15 yrs absolute NNN ground lease (investor owns the land) by #1 casual dining operator in North America, Darden Restaurants (NYSE: DRI). NOI $120K/yr with 10% rent bump every 5 yrs. $1.55M. 7.7% cap.
  6. Arby’s in Kissimmee, FL: 3365 SF restaurant on ¾ acre parcel on a busy highway in a booming and high income Orlando metro. New 10 yrs NNN lease with corporate guaranty. NOI $85K/yr. with 8% rent increase every 5 yrs. $1.141M. 7.5% cap.
  7. Microtel Hotel & Suites in Morgan Hill, CA: 60-room hotel built in 1999 on 1 acre lot with hwy-101 visibility in a growing and high income (AHI $126K/yr) city South of Silicon Valley. $3.995M.
  8. Office Building in Southlake TX: 7056 SF class-A office building on .6 acre parcel in a wealthy Dallas suburb with AHI of $193K/yr. 100% NNN leased by a dentist and Kumon Learning Center. NOI $120K/yr. $1.5M. 8% cap.
  9. Starbucks in Lakeland, FL: 1816 SF 2-yr old coffee house on ½ ac parcel in a growing city 30 miles East of Tampa. Surrounded by 10 national-branded hotels. 10 yrs NNN lease. NOI $113K/yr. $1.455M. 7.83% cap.
  10. Shopping Plaza in Keizer, OR: 61,838 SF shopping center shadow anchored by Albertsons Grocery at a hard corner in a stable Salem metro. 95% leased. NOI $584K/yr. $7.3M. 8% cap.

    © copyright eFunding Inc. 2009. All rights reserved.

Tuesday, March 3, 2009

Top 10 Properties Among 400 of 02-25-09

  1. Walgreens in North Highland, CA: 14,490 SF new drugstore on 1.8 acres corner lot in Sacramento metro. 25 yrs NNN lease with no landlord responsibilities. NOI $412K/yr. $5.843M. 7.05% cap.
  2. Firestone Auto Care Center in League City, TX: 8142 SF Car Care center on 1.57 acres parcel in a growing & high income Houston suburb. 15 yrs NNN lease with corp guaranty. NOI $164K/yr with rent bump every 5 yrs. $2.115M. 7.75% cap.
  3. AppleBee’s restaurant in Saint Louis, MO: 5115 SF restaurant on 1.25 acres lot at a 4-way signalized intersection. 20 yrs absolute NNN lease. NOI $204K/yr. $2.55M. 8% cap.
  4. Medical Center in Houston, TX: 31,575 SF class-A medical center built in 2007 on 3.85 acres lot with 598 ft frontage on Beltway 8 with over 91,000 car per day traffic. Anchored by Texas Children’s Pediatric. 95% NNN leased. NOI $536K/yr. $6.384M. 8.4% cap. Recession-insensitive tenants.
  5. Sonic Drive In Restaurant in Sparks, NV: 1726 SF restaurant on 1 acre lot across from Kohl’s and Walmart center. 20 yrs absolute ground lease (you own the land and tenant owns the improvement). NOI $87K/yr with 10% rent bump every 5 yrs. $1.25M. 7% cap.
  6. Monterey Bay Lodge in Monterey, CA: 45-room hotel just 100 ft from the beach in a high-income coastal resort town. NOI $630K/yr. $7M. 9% cap.
  7. Shopping Plaza in Wichita, KS: 14,291 SF retail plaza on 1.66 acres parcel in affluent (AHI $112K/yr) area near the 1.16 Million SF Towne East Square Mall. Anchored by McAllister Deli. 94% NNN leased. Actual $2.43M. NOI $206K/yr. 8.5% cap. Upside potential when 100% leased. Only $170/SF.
  8. Strip Mall in Mesa, AZ: 6773 SF 3-yrs old strip center as part of a big shopping center just off Superstition hwy exit. 100% NNN leased by 4 tenants. NOI $171K/yr. Price reduced to $2.194M. 7.8% cap.
  9. Shopping center in Sunnyvale, CA: rare 18,122 SF well-maintained 10-unit retail center on 1.97 acres lot with easy access to Hwy 237 in the middle of Silicon Valley. 91% NNN leased with just 1 vacant unit. NOI $412K/yr. $6.35M. 6.5% cap.
  10. Medical Office building in San Jose, CA: 13,669 SF medical office building on Santa Clara street. $2.599M.

    © copyright eFunding inc. 2009. All rights reserved.

Monday, March 2, 2009

Best Retail Properties 02-24-09

Fact: according bankrate.com, the average rate for 6-month CDs fell to 1.2% this week from 3.6% in August 2007.

  1. Goddard Childcare in Pflugerville, TX: 8000 SF brand new Goddard School (recently named #1 childcare franchise in the US in 7 consecutive years) on 1.2 acres lot in a booming (80% growth)Austin metro. New 20 yrs NNN lease. NOI $192K/yr with 12% rent increase every 5 yrs. $2.26M. 8.5% cap.
  2. Hardee’s restaurant in Louisville, KY: 3000 SF fast food franchised restaurant on a pad site in front of a new Walmart Supercenter. New 20 yrs NNN lease from a franchisee with 133 locations. NOI $178K/yr with 5% rent increase every 5 yrs. $1.7M. 10.5% cap. Why settle for 1.2% CD rate?
  3. Jiffy Lube in Pearland, TX: 4155 SF brand new Jiffy Lube on 1.5 acres lot in a fast growing (86%) and high income (AHI $86K) Houston suburb. 20 yrs absolute NNN lease by an operator with 112 locations. NOI $151K/yr with 10% rent increase every 5 yrs. $1.896M. 8% cap.
  4. Shopping Center in Flower Mound, TX: 32,110 SF shopping center on 4.77 acres lot in a fast growing (35%) and affluent (AHI $117K/yr) Dallas suburban. 75% leased with actual NOI of $476K/yr. $4.5M. 10.5% actual cap.
    · $1.5M below tax value
    · Upside potential of 14.3% cap when 100% leased.
  5. Shopping Center in Sacramento, CA: 45,245 SF mature shopping center on 3.1 acres parcel. 93% leased by 16 tenants with just 3000 SF vacant unit. NOI $267K/yr. $4.5M. Less than $100/SF!
  6. Kohl single-tenant center in Henderson, NV: 86,098 SF retail building on 5.6 acres lot as part of Galleria at Sunset Mall in a high income Las Vegas metro. 100% NNN leased by Kohl Department Store with corp guaranty. NOI $860K/yr with 10% rent increase every 5 yrs. $12.1M. 7.12% cap.
  7. Buca Di Beppo restaurant in Garden Grove, CA: 8000 SF Italian chained restaurant on 1.2 acres of prime commercial land on Harbor Blvd in Orange County with easy access to I-5 and Hw 22. 100% NNN leased. NOI $121K/yr. $2.428M. 5.02% cap. Note: don’t judge this property on the low cap.

    © copyright eFunding Inc 2009. All rights reserved.