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.
   
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