Best Retail Properties Among 246 05/22/09

1. Buffalo Wild Wings in Keller, TX: 5000 SF eye catching restaurant on 1.34 acres outparcel to Home Depot along Hwy-377 in a growing & wealthy Fort Worth suburbs. 10 years remaining on original NNN lease plus 1% annual rent increases by a public company (NASDAG: BWLD) with 2008 revenue of over $422M and networth of over $170M. NOI $186K/yr. $2.126M. 8.75% Cap. Buyer to assume $1.171M. at 6.8% interest rate.
2. Shopping Center in Mesa, AZ: 28,363 SF attractive shopping center with large monument sign at signalized intersection. 100% NNN leased with good tenant mix. NOI $365K/yr. $4.570M. 8% Cap.
3. Walgreen’s Pharmacy in Simpsonville, SC: 14,478 SF pharmacy on 1.94 acres of land near Hillcrest Hospital off of I-385 in a growing (19.98%) middle-class (AHI $70K/yr.) area. Long NNN lease with stable tenant. NOI $340K/yr. $4.569M. 7.44% Cap. Buyer to assume $3.493M at low 5.55% interest rate.
4. Medical Office in Indianapolis, IN: 19,300 SF well located medical office built in 2004 along I-31. 90% leased. NOI $246K/yr. $3.075M. 8% Cap.
   
   
   © Copyright Transmercial 2009. All rights reserved.

When is the Best Time to Buy Commercial Real Estate?

Real Estate Cycles

Historically, commercial real estate values have been cyclical and will continue to be so in the future. The availability and cost of financing is a key component of these cycles. Available capital is affected by the economy, interest rates, supply and demand, and the perception of the market. Real estate prices fluctuate as these factors exert their influence.

To determine the best time to buy, consider where we are in the cycle. Then, see how your particular business or personal financial goals can be strengthened by considering the effects of the cycles.

There are four distinct phases to the commercial real estate cycle: Recession, Recovery, Expansion and Contraction.

1. Recession: The Recession Phase follows a market contraction, when the availability of financing become scarce or expensive and property prices have fallen. Properties experience higher vacancies and owners have difficulty refinancing, selling or leasing. Foreclosures increase and property sellers become motivated. Prices can fall below replacement costs, resulting in many opportunities for those with the liquidity and fortitude to take advantage of the market weakness. This is the absolute best time to buy.
2. Recovery: In The Recovery Phase, the market is improving and prices begin to recover, although some buyers are still hesitant to proceed. More tenants enter the market and property owners refinance as affordable financing becomes available. Owners tend to improve their property and work to maximize rental rates. Prices are increasing. This is a very good time to buy.
3. Expansion: During the Expansion Phase, the real estate market is progressing and expanding and equity investors are plentiful. Financing is readily available and the price of real estate may increase more than seen in previous history. Vacancies are at their lowest point and there is a general sense of well-being, prosperity and abundance. Everyone is talking about buying real estate. This is the time to sell.
4. Contraction: The Contraction Phase is when vacancies are increasing and prices begin to fall from the peaks of the Expansion Phase. The market has become oversaturated and financing is becoming more difficult or expensive. Investors begin to withdraw from the market as vacancy and delinquency rates rise and prices decline. Buying and selling decisions should be based on need, prime property availability and specific sub-market and individual opportunities.
   
   

The phases of the real estate cycle are always in the same order; the only variables are the depth and duration of each phase. By determining the timing of phases along with your own personal and business capability and goals, you can make the best decisions.

As a real estate investor, the most important question is, "When is the best time to buy?" This is when we realize we are either savvy decision makers or merely “one of the herd”. If the market is in the Recession Phase, the stage is set to reap the absolute highest profits by buying at a time when prices are at their lowest. When the market is in the Recovery Phase, it’s still a good time to expand holdings and find deals while building long term wealth.

We have all heard the phrase, “Buy low and sell high.” The best time to buy low is when the cycle is in the Recession Phase, when the lowest prices are available. In this phase, prices can be negotiated and many prime locations are available. The time to sell is during the Expansion Phase, when buyers can easily obtain financing and the market continues to expand. One way to think about this is when everyone is talking about buying, you should be selling. When everyone is talking about the doom and gloom in the Recession Phase, you should be buying.

The challenge with this strategy is that it goes against our basic instincts, even though logic and history dictate otherwise. Our “herd instinct” is affected by the people around us, the media and our resulting emotions. Although we understand that we should not follow the herd mentality, logic and emotion are in conflict. Unfortunately for most, emotion will usually rule over logic. This human tendency creates opportunities for the more logical and less emotional investors.

In this time of uncertainty, one thing that we can be certain of is that that cycles will continue to repeat. History has proven that those with the emotional fortitude and the financial ability to take advantage of the cycles will reap tremendous rewards.



Michael Bull, CCIM

President of Bull Realty

Best Retail Properties Among 264 05/21/09

1. Ross Dress for Less in San Juan Capistrano, CA: 29,000 SF well located retail store built in 1972 on 2 acres of land co-anchored by Big Lots at signalized active intersection in affluent (AHI $135K/yr.) South Orange County. Long NNN lease. NOI $308K/yr. $5.125M. 6.75% Cap.
   -Upside potential as tenant pays only $0.89 per sf.
2. Advance Auto Parts in Parker, CO: 7000 SF high quality construction building constructed in 2004 on over one acre lot shadow anchored by King Soopers in growing Colorado suburbs. NNN corp lease expiring 2019. NOI $129K/yr. $1.8M. 7.17% Cap.
3. Strip Center in Irving, TX: 14,415 SF beautiful strip center built in 2007 on over 3 acres of land across from Wal-Mart Supercenter in close proximity to I-635. 100% NNN leased by good tenant mix. NOI $314K/yr. $3.3M. 9.54% Cap.
4. Smokey Bones Barbeque & Grill in Boca Raton, FL: 6900 SF restaurant built in 1994 on .75 acre lot across West Boca Medical Center in high income neighborhood along I-7. Long absolute NNN corp lease with 1.75% annual rent increases. NOI $236K/yr. $2.623M. 9% Cap.
5. Smokey Bones Barbeque & Grill in Charlotte, NC: 7500 SF restaurant built in 1998 on 1 acre lot across from Carolinas Medical Center surrounded by many national tenants such as Wal-Mart, Best Buy, Holiday Inn, Hilton and more. 20-years absolute NNN corp lease with 1.75% annual increases. NOI $144K/yr. $1.6M. 9% Cap.
6. Next Care Urgent Care in Charlotte, NC: 3493 SF medical office built in 2002 next to CVS Pharmacy in fast growing area. 100% NNN leased till 2015 with 2.5% annual rent increases. NOI $99K/yr. $1.108M. 9% Cap
   
   © Copyright Transmercial 2009. All rights reserved.

Top Retail Properties Among 265 05/20/09

1. Shopping Center in Phoenix, AZ: 19,818 SF shopping center built in 1998 on 2.21 acres of land shadow-anchored by Albertsons/Walgreen’s with great tenant mix near Fwy-101. 89% leased. NOI $344K/yr. $3.825M. 9% Cap on actual income. Upside potential when fully leased.
2. Pep Boys in Las Vegas, NV: 20,886 SF well located retail building on 2.13 acres of land with easy ingress/egress at main thoroughfare near I-95. New 15-years absolute NNN corp lease with 1.5% annual rent increases. NOI $300K/yr. $4.141M. 7.25% Cap.
3. Strip Center in Wilmington, NC: 15,790 SF attractive strip center shadow-anchored by Wal-Mart built in 2003 on 1.52 acres of land at main retail road. 77% leased by good tenant mix. NOI $234K/yr. $2.970M. 7.89% ACTUAL Cap. Great upside potential.
4. Retail Center in Atascadero, CA: 3496 SF recently remodeled retail center shadow-anchored by a 24-hours Walgreen’s at strong freeway exit location. 100% NNN leased by Chase Bank and Verizon Wireless. NOI $107K/yr. $1.539M. 7% Cap.
5. Strip Center in Highlands Ranch, CO: 9919 SF strip center build in 2003 on .77 acre lot adjacent to King Soopers located in affluent (AHI $116K/yr within three mile radius) neighborhood. 100% NNN leased by 3 tenants. NOI $241K/yr. $3.225M. 7.5% Cap.
6. Shopping Center in Scottsdale, AZ: 17,955 SF beautiful shopping center on 1.85 acres of land shadow-anchored by Walgreen’s Pharmacy in fast growing area. 87% NNN leased. NOI $423K/yr. $5.8M. 7.3% ACTUAL Cap.

© Copyright Transmercial 2009. All rights reserved.

Top 8 Retail Properties Among 298 05/19/09

1. Goodwill Store in Lancaster, CA: 11,311 SF retail store on over 1 acre lot across Vons supermarket and surrounded by many national tenants. Highly visible from Fwy-14. Long NNN lease by recession resistant tenant. NOI $196K/yr. $2.7M. 7.29% Cap.
2. Shopping Center in Mesa, AZ: 19,523 SF attractive shopping center consisting of two buildings constructed in 1999 on 4.3 acres of land shadow-anchored by Health Club at signalized intersection with excellent visibility. 34% NNN leased. NOI $301K/yr. $1.995M. 15% Proforma Cap.
   -Listed at $4.850M in 2007
   -Tremendous value added when fully leased
3. Medical Office in Altamonte Springs, FL: 5460 SF medical office close to Florida Hospital Altamonte with easy access to I-4. 100% NNN leased. NOI $153K/yr. $1.8M. 8.5% Cap.
4. Shopping Center in Dallas, TX: 31,424 SF well maintained shopping center built in 1986 at irreplaceable location with excellent tenant visibility off of Fwy-635. 90% leased. NOI $325K/yr. $4.5M. 8.5% Cap.
5. Strip Center in Lancaster, CA: 6000 SF mature strip center in densely populated area. 100% NNN leased by 4 tenants. NOI $51K/yr. $732K. 7% Cap. Great for 1st time investor
   -Upside potential as current tenants pay below market rent
6. Goodyear Tires in Kyle, TX: 7260 SF retail building constructed in 2006 on over 1 acre lot located on IH-35 in a fast growing (394.43%) area. 100% NNN corp lease. NOI $172K/yr. Reduced to $2M. 9.8% Cap.
7. Shopping Center in Norwalk, CT: 16,000 SF attractive shopping center located at main thoroughfare in wealthy (AHI $91K/yr within 1 mile) neighborhood near I-7. 100% NNN leased. NOI $490K/yr. $5.950M. 8.25% Cap.
8. Office Depot in Aurora, CO: 20,000 SF upscale retail building constructed in 2007 on 2.59 acres of parcel shadow anchored by many national tenants such as Wal-Mart, Sam’s Club, Ross Dress for less, Petco and more in booming prosperous Denver suburbs. 100% NNN lease with 9 year remaining on original lease. NOI $292K/yr. $3.660M. 8% Cap.

© Copyright Transmercial 2009. All rights reserved.

Top 6 Retail Properties Among 273 05/18/09

1. Strip Center in Dallas, TX: well located 16,245 SF brick strip center built in 1988 on 1.46 acres of land adjacent to Richland College near Fwy-635. 100% NNN leased. NOI $183K/yr. $2.160M. 8.5% Cap. Buyer to assume $1.305M at 6.67% interest rate.
2. Retail Building in Des Moines, IA: 12,000 SF attractive retail building recently remodeled on 1.48 acres of parcel along I-69 at main entrance of Office Max shadow-anchored center. 100% NNN leased by four tenants. NOI $235K/yr. $2.694M. 8.75% Cap.
3. Merchant’s Tire & Auto Center in Raleigh, NC: 6220 SF Merchant’s Tire & Auto center built in 1995 on 1 acre lot in fast growing (55.02%) & wealthy (AHI $113K/yr within 1 mile radius) neighborhood close to Fwy-540. 100% NNN lease guaranteed by Merchant’s Inc. NOI $155K/yr. $1.726M. 9% Cap.
4. Green Frog Grocery Market in Bakersfield, CA: 19,988 SF established grocery store on 2.25 acres of land at signalized intersection. 10-years NNN lease. NOI $143K/yr. $1.860M. 7.74% Cap.
   -This is a sale leaseback investment
   -Supermarket operating at this site since 1934
5. Home Town Buffet in Laguna Woods, CA: 9055 SF upscale retail building constructed in 2004 on 1.13 acres of parcel in a prosperous neighborhood in densely-populated Southern California. 100% absolute NNN corp leased by strong operator with 540 restaurants in the US. NOI $295M. $3.699M. 8% cap.
6. 7-Eleven in Phoenix, AZ: 2400 SF mature retail building on .51 acre lot at signalized intersection off of Fwy-10. 100% absolute NNN corp lease. NOI $47K/yr. $775K. 6.11% Cap. Excellent for 1st time investor.
   -Strong store sales

© Copyright Transmercial 2009. All rights reserved.

Top 5 Properties Among 278 5/15/08

1. Shopping Center in South Sioux City, NE: 40,760 SF attractive shopping center on 5 acres of land shadow-anchored by a new Wal-Mart Supercenter along I-77. 96% NNN leased by national/regional tenants: Dollar Tree, CATO, Payless Shoesource, Ameri-Cash, Rent-a-Center, Tan World, Green Tea Salon, GameStop, Snap Fitness, Nail Salon, Cell Phone, Chinese Buffet and Air Purification Store. NOI $406K/yr. $4.710M. 8.64% Cap.
2. Shopping Center in Moreno Valley, CA: 14,623 SF Class-A shopping center built in 2008 on 2.21 acres of land shadow-anchored by Walgreen’s Pharmacy at main retail blvd. Surrounded by strong national tenants in fast growing Southern-CA area. 91% NNN leased. NOI $368K/yr. $4.6M. 8% Cap.
3. Shopping Center in San Antonio, TX: 2-years old 32,626 SF upscale shopping center on 3 acres of parcel conveniently located at hard corner with strong visibility to Loop-1604. 92% NNN leased. NOI $575K/yr. $6.5M. 8.86% Cap.
4. Strip Center in Desoto, TX: 6259 SF strip center shadow-anchored by Albertsons & across from CVS Pharmacy in a fast growing (213.48%) & well-off (AHI $93K/yr within 1-mile radius) Dallas suburbs. $1.099M. 8.89% Cap.
5. Burger King in Rialto, CA: 3558 SF well located modern restaurant on ..97 acre lot shadow-anchored by Wal-Mart at a high traffic location off of I-10. 100% NNN leased by successful franchisee with 36 restaurants including Coco’s & Denny’s. NOI $114K/yr. $1.750M. 6.57% Cap.
   
   © Copyright Transmercial 2009. All rights reserved.

Top 3 Properties Among 278 5/14/09

1. Pep Boys in Tucson, AZ: 22,815 SF store front retail building on 2.37 acres of land along main thoroughfare in growing Arizona area. 100% NNN corp lease with 1.5% annual rent increases. NOI $254K/yr. $3.503M. 7.25% Cap.
2. Big O Tires in Phoenix, AZ: nice looking 5100 SF retail building constructed in 2004 on .70 acre lot shadow-anchored by Walgreen’s in one of the most dominant intersections. 100% absolute NNN corp lease with 3% annual rent increases. NOI $144K/yr. $1.990M. 7.25% Cap.
3. Strip Center in Lithonia, GA: 7242 SF 2-tenant strip center at main entrance to anchored shopping center less than ½ mile from Dekalb Medical Center. 100% NNN leased by national tenants. NOI $133K/yr. $1.337M. 10% Cap.

© Copyright Transmercial 2009. All rights reserved.

Top 9 Properties Among 319 05/13/09

1. Walgreen’s Pharmacy in Warr Acres, OK: 13,905 SF drug store on 1.28 acres of land across West Park Mall at a signalized intersection in a densely-populated Oklahoma suburb. 100% NNN leased. NOI $185K/yr. $2.040M. Unusually high 9.1% Cap.
   New roof installed April 2008
   Exterior of building recently painted
   Strong financially & recession-insensitive tenant with A+ S&P rating.
2. IHOP Restaurant in Macon, GA: 5020 SF restaurant built in 1999 on .91 acre lot in fast growing Atlanta metro. Long NNN corp lease with rent increases. NOI $143K/yr. $1.977M. 7.25% Cap.
3. Strip Center in Zion, IL: 16,010 SF attractive strip center on 1.21 acres lot shadow-anchored by Big K-Mart and Piggly Wiggly Grocery. 100% NNN leased by Dollar General,Comcast Cable and Future Wireless. NOI$ 97K/yr. $1.385M. 7.85% Cap.
4. Burger King in Carson, CA: 3319 SF restaurant built in 1996 shadow-anchored by Super Kmart with great visibility to I-110. NNN leased with 17-years remaining on original lease and 7% rent increases every 5-years. NOI $124K/yr. $1.921M. 6.50% Cap.
5. Retail Center in Brentwood, CA: 7969 SF recently constructed upscale retail center on .90 acre lot in growing/rich (AHI $87K/yr) area. 100% NNN lease. NOI $245K/yr. $2.825M. 8.7% Cap.
6. Medical Office in San Mateo, CA: 3150 SF well located medical office near the top-quality-care Mills Peninsula Hospital at hard signalized intersection. $1.295M. Great for owner user.
7. Strip Center in Calumet City, IL: 7995 strip center built in 2005 on 1.4 acres of land adjacent to River Oaks Shopping Center near Hwy-94 in Chicago suburbs. 100% NNN leased. NOI $160K/yr. $2.1M. 7.62% Cap.
8. Retail Center in Hollywood, FL: 11,653 SF stable retail center built in 1980 anchored by NAPA Auto Parts at high traffic location. 100% NNN lease. NOI $208K/yr. $2.916M. 7.16% Cap.
9. Retail Center in Tempe, AZ: 9671 SF well located retail center on .91 acre lot at hard corner location with great tenant mix near I-10.100% NNN lease. NOI $110K/yr. $1.225M. 9% Cap.
   Recent Improved: new roof, new monument sign and parking recently striped.

© Copyright Tranmercial 2009. All rights reserved.

Top 7 Properties Among 338 05/12/09

1. Shopping Center in Houston, TX: 13, 880 SF recently renovated shopping center on over 1 acre lot in fast growing (51.62%) middle-class (AHI $73K/yr. within 1 mile radius) area. 100% NNN leased. NOI $150K/yr. $1.580M. 9.5% Cap.
2. Shopping Center in San Ysidro, CA: 30,625 stable shopping center on 1.83 acres of land shadow-anchored by Longs Drugs ¼ mile from I-805/I-5. 100% NNN leased. NOI $451K/yr. $5.785M. 7.79% Cap.
3. Strip Center in Moreno Valley, CA: 6240 SF eye-catching strip center built in 2008 on 0.9 acre lot shadow-anchored by Walgreens, Auto Zone, Goodyear and more across Home Depot. 100% NNN leased by Arby’s, The Water Store and Furniture Palace. NOI $167K/yr. $2.230M. 7.5% Cap.
4. Carl’s JR in Poway, CA: 3064 SF restaurant built in 1998 on .83 acre lot shadow-anchored by Target and Albertsons on wealthy (AHI $108K/yr. within 1 mile radius) San Diego suburbs. Long absolute NNN corp lease. NOI $120K/yr. $2M. 6.02% Cap.
5. Strip Center in Douglasville, GA: 11,200 SF well maintained strip center on 1.40 acres of parcel adjacent to Home Depot along busy retail corridor in fast growing Atlanta suburb. 100% NN leased. NOI $106K/yr. $1.250M. 8.50% Cap.
6. Burger King in Nashville, TN: 3250 SF retail building remodeled in 2005 on .82 acre lot near I-40/I-65. Long absolute NNN corp lease with increases. NOI $116K/yr. $1.667M. 7% Cap.
7. Office Building in San Jose, CA: 2269 SF office building conveniently located off of Hwy-880. $995K. Excellent for owner user!
   
   © Copyright Transmercial 2009. All rights reserved.

Top Properties Among 337 on 05/11

1. Shopping center in McAllen, TX: 30,250 SF 3-yrs old shopping center on 4.4 acres parcel in a fast growing & high income city. 100% NNN leased by 3 brand name tenants: Old Navy, Dots Fashion, and Shoes Carnival. Shadow Anchored by Best Buy, Target, Ross, Marshalls, Hobby Lobby, Bealls & PetSmart. Across from a 46-acre Plaza Del Norte Lifestyles shopping center. Adjacent to Home Depot, and HEB Supermarket. NOI$464K/yr. $5.5M. 8.45% cap.
2. O’Reilly Auto Parts in Decatur, GA: 6800 SF brand new auto parts store on 1.43 ac lot in Atlanta metro. 20 yrs NNN corp lease. NOI $109K/yr. $1.466M. 7.5% cap.
3. 24 Hour Fitness center in Phoenix, CA: 49,302 SF retail center built in 1997 on 4 acres of land next to 1,400,000 SF Metrocenter Mall. Anchored by 35,992 SF 24-Hr fitness center with a NNN lease till 2022. 78% leased with 8 small vacant units. Actual NOI $735K/yr. $6.7M. 11% cap. Upside potential when 100% leased. Note: this is a short sale subject to lender’s approval.
4. Joe’s Crab Shack restaurant in Sanford, FL: 8046 SF restaurant on 1.77 acres at the entrance to Town Center Mall in the fast growing Orlando metro. 19 years absolute NNN lease by a corp with 120 locations. NOI $262K/yr with 10% rent bump every 5 yrs. $3.105M. 8.45% cap.
5. Dollar Tree store in Twenty-nine Palms, CA: brand new 15,506 SF Dollar Tree store on 1.5 acres lot on a Stater Bros grocery anchored shopping center. New 10 yrs NNN corp lease. NOI $190K/yr. with 10% rent increase in year 6. $2.235M. 8.5% cap. Recession resistant tenant.
6. Firestone Auto Center in Arlington, TX: 14,114 SF auto care center on 2.14 acres outparcel to Six Flags Mall with close proximity to the new Cowboys Stadium. 100% corp leased. NOI $103K/yr. $936K. 11% cap.
7. Shopping Plaza in Rialto, CA: 23,854 SF shopping plaza on 4.5 acres lot as part of an 87,000 SF 11-acre shopping center anchored by a 35,232 SF Stater Bros Grocery and Pep Boys automotive. 100% NNN leased. NOI $326K/yr. $4.3M. 7.59% cap. Owner will cary with 25% down payment.
8. Office Depot in San Ramon, CA: 30,122 SF Office Depot store on 2.88 acres lot near I-680 in an affluent city with AHI of over $152K/yr. new 15 yrs corp NNN lease. NOI $542K/yr with 10% rent bump every 5 yrs. $6.9M. 7.85% cap.
9. Chase Bank Center in Dallas, TX: 9100 SF multi-tenant retail center built in 2005 on .95 acre outparcel to a Wal-mart supercenter with I-30 frontage. Anchored by Chase Bank. 100% NNN leased by 4 good tenants: bank, dentist, pizza restaurant and a prominent CPA firm. NOI $209K/yr. $2.705M. cap
10. Medical Building in Garden Grove, CA: 7240 SF medical office building on .55 acre lot in a high-income densely-populated city with over 750K resident within 5 miles radius in Orange County. 85% leased by a Dental Implant center and an Optometrist. NOI $156K/yr. $1.95M. 8% cap.
    
    © Copyright Tranmercial 2009. All rights reserved.

Top 6 Properties On 05-08-09

1. Carl’s Jr. Restaurant in Manteca, CA: 2877 SF restaurant on .49 acre outparcel to a 171,900 SF shopping center anchored by Save Mart Supermarkets, Sears, Dollar Tree & Rite Aid. 100% NNN corp lease. Tenant has been here since 1990. NOI $114K/yr. $1.825M. 6.25% Cap.
2. Americas Best Value Inn in Fresno, CA: 134-room well kept motel on over 4 acres of land on main retail thoroughfare off of Hwy-41. $5.3M.
3. Mini mall in Compton, CA: 25,281 SF eye-catching two story mini mall built in 2003 on over 1 acre lot in densely populated area. 90% NNN lease. NOI $354K/yr. $5.065M. 7% Cap.
   Upside potential: income based on the 1st floor income.
4. Shopping Center in San Antonio, TX: 21,415 SF well located shopping center built in 1983 on 1.58 acres of land with huge monument sign at highly visible location. 100% leased. NOI $184K/yr. $1.983M. 9.31% Cap.
5. Shopping Center in Mesa, AZ: 82,373 SF shopping center consisting of two buildings renovated in 2003 on 8.70 acres of land in hard corner at signalized intersection. 90% leased. $6.995M. 8.25% Cap.
6. Strip Center in Perris, CA: 9,955 SF strip center build in 1990 anchored by AutoZone in growing area in Riverside county. 100% leased. NOI $154K/yr. $2.2M. 7.04% Cap.
   
   © Copyright Transmercial 2009. All rights reserved.

Top 5 Properties Among 298 of 05-07-09

Shopping Center in Fairview Heights, IL: 47,386 SF brand new retail center on 6 acres lot near 1.1 Million SF St Clair Square Mall just off I-64 in St Louis suburb. 100% NNN leased by 3 national and regional tenants: Jo-Ann Fabrics, Monkey Joe’s, and Archiver’s. NOI $472K/yr. $5.245M. 9% cap.
National Tire & Battery in League City, TX: 7895 SF brand new single-tenant retail building on 1 acre lot with I-45 frontage in Houston suburb. 25 yrs NNN lease by a public company with a networth over $500M. NOI $191K/yr with 10% rent increase every 5 yrs. $2.546M. 7.5% cap.
Shopping Center in Rancho Mirage, CA: 25,789 SF upscale shopping center built in 2007 on 2.25 acres lot in a wealthy town with AHI over $174K/yr. NOI over $1M. $13.83M. 7.25% cap. Buyer to assume $10.9M at low 5.95% interest. Low 21% down payment.
Shopping center in Yorba Linda, CA: 19,511 SF 14-unit retail center on 1.75 acres lot in an affluent city (AHI over $111K/yr) in Orange county. Shadow anchored by Stater Brothers Grocery. 85% leased. Proforma NOI $412K/yr. $6M. 6.87% cap.
Compass Bank building in Beaumont, TX: 49,639 SF office building on 2.64 acres lot. 7 yrs NNN leased by Compass Bank with S&P rating of A+ and 587 branches in 6 states. $3.75M. 8.94% cap.

© copyright Transmercial 2009. All rights reserved.

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.

If you are interested on a particular property and would like additional information, i.e. a brochure, please email to maria@transmercial.com. It’s good idea to provide Maria with:

• The date the property was selected (not posted date.) This is on the subject of the post.
• Name of the property, e.g. Walgreens in Dallas, TX.
  

You will notice that the properties are posted 1 week after the date they are selected. The reason for this 1 week delay is we don’t want other companies to take advantage of our research work. If you are an investor and would like to receive the list daily without one week delay, we invite you to join Transmercial investors club. The daily list of best properties is emailed to members by 6PM PST, Monday-Friday. The email also contains a 1-page flyer for each selected properties with picture, address, and a brief description about the properties.

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© Copyright Transmercial 2009. All rights reserved.

Top 9 Properties Among 289 on 05-06-09

1. Walgreens in Burlington, NC: 14,500 SF new drug store on 2 acres lot across from Burlington Square Mall. 20 yrs NNN lease. NOI $545K/yr. $7.266M. 7.5% cap.
2. Medical Building in Sacramento, CA: 5880 SF multi-tenant medical office building. 100% leased by 5 established tenants. NOI $75K/yr. $1.065M. 7.08% cap.
3. Strip Mall in Oxnard, CA: 13,048 SF convenience center on 1.07 acres parcel at a signalized corner with excellent visibility. 100% leased. NOI $188K/yr. $2.95M. 6.4% cap.
4. Jack In The Box in Gilroy, CA: rare 2637 SF restaurant built in 1998 with drive thru on 1.2 acres lot near Hwy 101 exit in a high-income Silicon Valley suburb. 18 yrs absolute NNN corp lease with 7 yrs left. NOI $128K/yr with 10% rent bump every 5 yrs. $1.9M. 6.62% cap.
5. Medical Office Building in Whittier, CA: 40,659 SF high-image 3-story medical office building constructed in 1988 on 1.8 acres lot in a densely populated city in Los Angeles. 93% leased. NOI $763K/yr. $10.75M. 7.1% cap.
   · One mile from Presbyterian Intercommunity Hospital
   · Anchored by Surgery Center and Imaging Center
   · On-site pharmacy and lab
6. Shopping Center in McKinney, TX: 27,450 SF shopping center built in 1997 on 3.36 acres lot in the suburb of Dallas. Shadow anchored by Wal-mart, Sam’s Club. 100% NNN leased. NOI $410K/yr. $4.95M. 8.3% cap.
7. Retail Center in Orange, CA: 5978 SF retail center on ½ acre corner lot with easy access to Riverside Fwy. 100% leased. NOI $112K/yr. $1.8M. 6.22% cap.
8. Denny’s in Burbank, CA: brand new 5280 SF Denny’s restaurant on .9 acre parcel near Burbank airport in a densely-populated area with almost 500K residents within 5 miles. 20 yrs absolute NNN ground lease (you buy the land and tenant owns the building). NOI $126K/yr with 12% rent increase every 5 yrs. $1.8M. 7% cap.
9. Retail Building in Atascadero, CA: 3496 SF high-image retail building close to HW 101 exit. 100% leased by 2 brand name tenants: Chase and Verizon Wireless. NOI $107K/yr. $1.539M. 7% cap.
   
   © Copyright Transmercial 2009. All rights reserved.

Best 7 Properties 05-05-09

1. Medical office complex in Houston, TX: 48,513 SF class-A medical office complex built in 2002-2005 on 7.27 acres lot on the campus of 500-bed Northwest Houston Medical Center. Near I-45. 100% NNN leased by 100% medical tenants with mostly 10 yrs leases. Extensive build out with MRI and CAT Scan centers. NOI $924K/yr with annual 1.5% rent bumps. $10.95M. 8.5% cap.
2. Retail Plaza in Ogden, UT: 6470 SF 3-unit retail plaza on ½ acres hard corner lot across from New Gate mall and just East of Costco in Salt Lake city metro. 100% NNN leased. NOI $83K/yr. $925K. 9% cap.
3. O’Reilly Auto Parts in Brownsville, TX: 6800 SF brand new auto part store on ¾ acre lot in a fast growing border city. New 20 yrs NNN corp lease. NOI $85K/yr. $1.15M. 7.4% cap.
4. Jiffy Lube in Omaha, NE: 3113 SF Jiffy Lube built in 2008 on 1/3 acre lot in a stable city. 20 yrs absolute NNN lease by a corp with 430 locations. NOI $74K/yr. with 10% rent bump every 5 yrs. $926K. 8% cap.
5. Wendy’s in Atlantic Beach, FL: 3400 SF restaurant on ¾ acre hard corner lot in front of a grocery anchored shopping center in Jacksonville metro. 20 yrs NNN lease by an franchisee with 69 locations. Store with strong sales of over $1.1M. Tenant plans to spend $170K in remodeling. NOI $88K/yr with annual CPI-based rent increase starting in year 6. $1.18M. 7.5% cap.
6. Advance Auto Parts in Minneola, FL: 7000 SF auto part store on 1 acres lot in Orland suburb. 15 yrs NNN corp lease. NOI $165K/yr. $2.1M. 7.88% cap.
7. Hardee’s restaurant in Conyers, GA: 2643 SF completely remodeled Black Angus burger restaurant on .8 acre lot just off I-20 in Atlanta suburb. New 20 yrs absolute NNN lease by an franchisee with 115 locations. NOI $90K/yr with strong 12% rent bump every 5 yrs. $1.168M. 7.7% cap.
   
   © Copyright Transmercial 2009. All rights reserved.

Top 9 Proeprties 05-04-09

1. Arby’s in Peoria, AZ: 3100 SF 8-yr old restaurant on .72 ac pad to Home Depot and Sears just off Loop 101 in Phoenix. 100% absolute NNN corp lease with 12 yrs remaining. NOI $131K/yr with annual rent bump. $1.749M. 7.5% cap.
2. Goodyear Auto Service Center in Kyle, TX: 7260 SF 3-yr old auto service center on 1 ac lot just off I-35 10 minutes from Austin. 100% NNN lease till 2016. NOI $172K/yr. $2M. 8.6% cap.
3. Sprint Store in San Leandro, CA: 2900 SF single-tenant retail store sale and lease back. New 7 yrs absolute NNN lease. NOI $74K/yr with annual rent increase. Only $935K. 8% cap.
4. Retail building in Campbell, CA: 2600 SF retail building on Bascom Ave. 100% NNN leased by a beauty salon and optometrist. NOI $72K/yr. $1.15M. 6.27% cap.
5. Arby’s in Omaha, NE: 2879 SF 7-yrs old restaurant on .62 outparcel in front of Home Depot on a major artery in a stable city. New 20 yrs absolute NNN lease by an experienced operator with 19 locations. NOI $93K/yr with 8% rent bump every 5 yrs. $1.2M. 7.75% cap.
6. La Petite Academy in Memphis, TN: 5050 SF childcare center on .71 acres lot in front of Kroger Supermarket and adjacent to Walmart. 100% NNN lease by a national childcare provider. NOI $178K/yr. $1.275M. 14% cap!
7. Advance Auto Parts in Leesburg, FL: 7000 SF auto part center on 1.9 acres lot in a inland town. New 15 years NNN lease. NOI $176K/yr. $2.25M. 7.82% cap. Recession-insensitive tenant.
8. Ryan’s restaurant in Fredericksburg, VA: 11,302 SF chained restaurant on 2 acres parcel as part of 2,200,000 SF Center Park Shopping Center. This is the 2nd largest shopping center in the East Coast with over 250 businesses and anchored by Kohl' s, Lowe' s, Target, Wal-Mart, Best Buy, Borders, Office Depot, The Sports Authority, Toys R Us, Old Navy, and the Regal Theaters 15. Long term NNN corp lease. NOI $224K/yr with annual rent bump. $2.355M. 9.5% cap.
9. Strip mall in Phoenix, AZ: 7534 SF retail strip built in 2005 on 1 acre parcel on a main thoroughfare. 100% NNN leased by 6 good tenants: Little Caesar' s Pizza, Ace Cash Express, Water N Ice, Circket Wireless, a party store and a barber shop. NOI $161K/yr. $1.888M. 8.55% cap.
   
   © Copyright Transmercial 2009. All rights reserved.

Top 7 Properties of 05-01-09

1. Shopping center in Katy, TX: 24,285 SF shopping center built in 2004 on 1.39 acres of parcel in an upscale neighborhood in Houston suburbs. 94% leased. NOI $370K/yr. $4.495M. 8.23% Cap.
   Great tenant mix: Papa John’s Pizza, Plaster Funhouse, Insurance, Curves, Hair Salon, Dentist, Casual Patio and Katy Tile.
2. Strip center in Romeoville, IL: 11,167 SF attractive strip center built in 2004 on 1.44 acres of land at a busy intersection in Chicago suburb. 100% NNN leased. NOI $157K/yr. $1.9M. 8.29% Cap.
3. Retail center in Flower Mound, TX: 14,242 SF good-looking retail building built in 2001 on over 2 acres of land with excellent national/regional tenant mix in affluent D/FW suburb. 100% NNN leased. NOI $345K/yr. $4.2M. 8.23% Cap.
4. Strip center in Chicago, IL: 7,671 SF 2-years old strip center on .46 acre lot at signalized intersection. 100% NNN lease by four tenants. NOI $152K/yr. $1.750. 8.07% Cap.
5. Shopping center in Oakland Park, FL: 9,416 SF mature retail center along busy boulevard near I-95. 100% NNN leased by stable tenants. NOI $133K/yr. $1.665M. 8.03% Cap.
6. Shopping center in Humble, TX: 24,939 SF eye-catching shopping center built in 2004 on 2.12 acres of land in Houston suburb. Shadow-anchored by a Wal-Mart supercenter. 92% leased. NOI $507K/yr. $6.3M. 8.06% Cap.
7. Alpine Inn & Spa in South Lake Tahoe, CA: 39-room motel on .48 acre lot across from Harrah’s Casino. NOI $170K/yr. $1.850M. 9.20% Cap.
   
   © Copyright Transmercial 2009. All rights reserved.

Top 5 Properties 04-30-09

1. Shopping center in Mesa, AZ: 82,373 SF well located recently renovated shopping center on 8.70 acres of land with great visibility near Fwy-202. 96% NNN leased. NOI $606K/yr. $6.995M. 8.67% Cap.
   Great Signage: two monuments signs along two busy streets
2. Goodyear Tire & Rubber retail building in Spring Hill, FL: 6,101 SF retail building contrasted in 2006 on .53 acre lot shadow-anchored by Sweetbay Supermarket on prime retail location. 100% NNN corp lease. NOI $100K/yr. $1.178M. 8.5% Cap.
3. Office building in Houston, TX: 34,805 SF class-A office building constructed in 2005 on 2.39 acres of land near Hwy-249/290 in fast growing area. 100% NNN leased. NOI $402K/yr. $4.8M. 8.4% Cap.
4. Medical office in Waco, TX: 2,972 SF medical office on .86 acre lot across from the Waco VA Medical Center. Long NNN lease. NOI $93K/yr. $1.129M. 8.25% Cap.
5. Strip center in Memphis, TN: 7525 SF well situated strip center on 1.21 acres of parcel with excellent visibility on busy thoroughfare near I-40. 100% NNN leased. NOI $73K/yr. $870K. 8.5% Cap. Excellent for 1st time investors!
   
   © Copyright Transmercial 2009. All rights reserved.

Top 5 Properties 04-29-09

1. Burger King Restaurant in Lake Worth, FL: 3,586 SF restaurant on .81 acre lot on a pad site to shopping center close to JFK Medical Center on active retail location. 100% NNN corp lease. NOI $88K/yr. $1.5M. 5.9% Cap.
2. Medical Office in Jupiter, FL: 5310 SF beautiful medical building along main thoroughfare near I-95 in wealthy (AHI $111K/yr within 3 mile radius) neighborhood. 100% NNN leased. NOI $ 154K/yr. $1.938M. 8.32% Cap.
3. Strip Center in Sunrise, FL: 9354 SF mature strip center with excellent visibility to high traffic boulevard at hard corner location. 100% leased. NOI $141K/yr. $1.850M. 7.7% Cap.
4. Family Dollar Store in Laredo, TX: brand new 9281 SF retail store on over 1 acre lot in fast growing area. Long NNN corp lease. NOI $119K/yr. $1.443M. 8.25% Cap.
5. Retail building in Aurora, CO: 9705 SF nice-looking retail building shadow-anchored by Starbucks at hard signalized intersection. 100% leased. NOI $140K/yr. $1.650M. 8.5% Cap.
   
   © copyright Transmercial 2009. All rights reserved.