Top Properties Among 400+ 06-23/09

1. Shopping Center in Lancaster, CA: 32,662 SF shopping center built in 2005 on 2.37 acres of land anchored by Dollar Tree at major signalized intersection. 100% NNN leased. NOI $413K/yr. $5.459M. 7.57% Cap.
2. Apartments in Houston, TX: 122-units well maintained apartments on 5.42 acres of parcel with new parking overlays, roofs, carports interior finishes, hardy plank and more. 92% Occupancy. NOI $261K/yr. $3.017M. 8.68% Cap.
3. Shopping Center in Carson, CA: brand new 40,803 SF well located shopping center on 3.56 acres of land at hard corner location along Hwy-91. 94% leased by 9 tenants. NOI $959K/yr. $12.790M. 7.50% Cap.
4. Mini Storage in Deland, FL: 52,201 SF storage facility on 4.31 acres of land at signalized intersection. NOI $224K/yr. $2.8M. 8.02% Cap.
5. Office Depot in Chicago, IL: 23,939 SF retail building on .70 acre lot next to Jewel-Osco in prosperous (AHI $101K/yr) neighborhood. 100% NNN leased. NOI $535K/yr. $6.303M. 8.50% Cap.
6. Shopping Center in Palmdale, CA: 15,250 SF shopping center built in 1998 on 1.38 acres of parcel across Target near Antelope Valley Mall. NNN leased by 6-tenants: Game Stop, Sally Beauty, Panda Express, Shakey’s Pizza and First City Credit Union. . NOI $487K/yr. $6.580M. 7.41% Cap.
7. Starbucks Coffee in Irving, TX: brand new 1750 SF retail building on .64 acre lot off of Fwy-635. 10-yrs NNN corp lease with no early termination clause. NOI $89K/yr. $1.113M. 8% Cap.
8. Fresh & Easy Supermarket in Moreno Valley, CA: 15,000 SF one year old supermarket on 1.35 acres of parcel shadow-anchored by Walgreen’s in fast growing area. Long absolute NNN lease with rent increases. NOI $220K/yr. $2.935M. 7.50% Cap.
9. Christian Brothers Automotive in Dallas, TX: brand new 4790 SF beautiful retail building on .74 acre lot along dominant traffic corridor in well densely populated area. 15-years absolute NNN lease with 1.5% annual rent increases. NOI $155K/yr. $1.937M. 8% Cap. Tenant in resistant-insensitive business.
10. Ross- Dress For Less in Las Vegas, NV: 30,715 SF retail building on 2.53 acres of land located at busy intersection. 100% NNN corp lease. NOI $317K/yr. $4.240M. 7.5% Cap.
11. Retail Center in Brentwood, CA: 6165 SF attractive retail center with excellent visibility leased by Verizon, Wingstop and local tenant. 100% NNN leased. NOI $ 228K/yr. $2.659M. 8.58% Cap.
12. Strip Center in Temecula, CA: 13,630 SF eye-catching strip center built in 2000 on over one acre of land across 1.14M SF regional mall at high traffic location. 100% NNN leased by strong national tenants. NOI $356K/yr. $4.920M. 7.25% Cap.
    
    © copyright Transmercial 2009. All rights reserved.

Top Properties Among 429 on 06/22/09

1. Hotel in Clearwater, FL: 119-room Bank-owned motel directly on US Hwy-19 in Tampa metro. Excellent for experienced operator. $2.9M. Only $24,369 per room.
2. Hotel in Orlando, FL: 335-room Bank-owned motel with full service restaurant/banquet facility and nightclub next to Orlando International Airport. $8.5M.
3. Strip Center in Palmdale, CA: 15,000 SF strip center built in 1997 on 1.75 acres of land across Antelope Valley Mall near Hwy-14. 100% NNN leased by Men’s Wearhouse, AT&T, Cold Stone, Powder & Sun and Silver Depot. NOI $398K/yr. $5.690M. 7% Cap.
4. Arby’s Restaurant in Omaha, NE: 2879 SF restaurant constructed in 2002 on .62 acre lot next to Home Depot at hard corner location. 20-year absolute NNN lease with 8% increases every 5-year. NOI $93K/yr. Price reduced to $1.2M. 7.75% Cap.
5. Office Building in San Jose, CA: 3395 SF charming office building on The Alameda Avenue with new exterior paint/awnings. Close proximity to Fwy-880. $1.350M. Excellent for owner user.
6. Strip Center in West Covina, CA: 16,450 SF 12- tenants mature strip center at high traffic location. 100% NNN leased. NOI %258K/yr. $3.995M. 6.48% Cap.
7. Apartments in North Hollywood, CA: 14-units apartments in growing & high income (AHI $86K/year within 1 mile radius) area. Subject to the Bankruptcy court & short sale approval. $1.299M.
8. Strip Center in Paramount, CA: 9259 SF attractive strip center on .69 acre lot anchored by El Perihuete Mexican Restaurant across from City Hall at signalized intersection. 100% NNN leased. NOI $248K/yr. $3.4M. 7.3% Cap.
9. Apartments in Phoenix, AZ: 24-units nice-looking apartments at downtown location. NOI $76K/yr. $950K. 8% Cap.
10. Strip Center in Sacramento, CA: 12,300 SF strip center built in 2004 on 1.59 acres of parcel at main thoroughfare in fast growing area close to Hwy-99. 100% NNN leased. NOI $312K/yr. $3.750M. 8.30% Cap.
    
    © Copyright Transmercial 2009. All rights reserved.

Best Properties Among 280+ 06/19/09

1. The Goddard School in McKinney, TX: 8068 SF one-year old day care center on 1.43 acres of land bordered by upscale residential homes in growing (903.72% increase from 2000-2008) affluent (AHI $120K/yr. within 3 mile radius) Dallas suburb. 15-years NN lease with credit tenant. 10% rent increases every 5-years. $2.589M. 8.5% Cap.
2. Days Inn Motel in Greeley, CO: 55-room 3-stories successful chained motel built in 1998 at a major artery in growing (35.56%) & well-off (AHI $83K/yr.) area. NOI $262K/yr. $2.6M. 10% Cap.
3. 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.
4. Apartments in Stone Mountain, GA: 180-unit bank-owned apartments renovated in 2000 on 15 acres of land with clubhouse, swimming pool, playground, picnic area and basketball court minutes from Atlanta metro. NOI $380K/yr. $5M. 8.5% Cap.
5. Apartments in Pine Lake, GA: 20-units apartments on over 1 acre lot in a very safe city in Atlanta suburbs. NOI $89K/yr. $890K. 10% Cap.
6. Magnolia Place Apartments in College Park, GA: 2-stories 46-units recently renovated apartment buildings near Woodward Academy (largest private school in the country). 90% Occupancy. $1.350M. 9.29% Cap.
7. Petsmart in Abingdon, MD: 20,087 SF newly constructed retail building on 2.28 acres of parcel shadow-anchored by Lowe’s on a highly visible location in affluent Baltimore suburbs near I-95. NOI $442K/yr. $5.3M. 8.35% Cap.
8. Strip Center in Durham, NC: 8,000 strip center on 1 acre lot located on busy artery with excellent visibility. 60% NNN leased. NOI $119K/yr. $1.450M. 8.27% Cap. Upside potential when fully leased.
9. Best Buy in Sugar Land, TX: 46,059 SF high-quality constructed Best Buy built in 1998 on 4.68 acres of land in prosperous (AHI $115K/yr.) Houston outskirts off of Fwy-59. Absolute NNN lease till 2018. $6.650M. 8.84% Cap.
10. Strip Center in Cathedral City, CA: 6600 SF strip center built in 1982 on .38 acre lot at hard corner location. 90% NNN leased. NOI $122K/yr. $1.299M. 10% Cap.
    
    © Copyright Transmercial 2009. All rights reserved.

Top 10 Properties Among 368 on 06/18/09

1. Shopping Center in Tucson, AZ: 79,121 SF inline shopping center built in 1966 on 5.68 acres of land with outstanding visibility. Located at signalized intersection close to I-10. 93% leased. NOI $538K/yr. $5.695M. 9.46% Cap.
2. National Tire & Battery in Lilburn, GA: 11,082 auto service center constructed in 1988 on one acre lot ½ mile from new Super Mal-Mart in growing Atlanta suburb. 16-years remaining on absolute NNN corp lease. NOI $163K/yr. $2M. 8.2% Cap. Recession insensitive tenant.
3. Office Building in Sacramento, CA: 19,065 SF well maintained office building on 1.37 acres of parcel in filled/middle-class (AHI $78K/yr.) location with only one small unit vacant. NOI $226K/yr. $2.835M. 8% Cap.
4. Office Building in Centennial, CO: 63,380 SF Class-B attractive office building constructed in 1983 on 4.59 acres of land in prosperous (AHI $137K/yr. within one mile radius) Denver suburb. 83% leased. NOI $364K/yr. $4.6M. 7.92% Cap. Potential upside when 100% leased.
5. Strip Center in San Bernardino, CA: 8608 SF well located strip center built in 1980 on .54 acre lot at hard corner lotion with good tenant mix: Metro PCS, Clothing Store, Hair Salon, Massage Salon, Pizza, Liquor Store & Nails Salon. 100% NNN leased. NOI $122K/yr. $1.750M. 7% Cap.
6. 8-Units Apartments in Long Beach, CA: 3-stories recently renovated apartment building constructed in 1989 near Hwy-1. 100% Occupied by 3 tenants. NOI $110K/yr. $1.5M. 7.4% Cap. Buyer to assume $1.2M at 6.2% interest rate.
7. Shopping Center in Bakersfield, CA: 25,559 SF Hacienda-look shopping center built in 1989 on 2.42 acres of land. Great visibility. NNN leases. NOI $432K/yr. $5.995M. 7.21% Cap.
8. Medical Office Building in San Jose, CA: 2240 SF medical office building in the neighborhood of O’Connor Hospital. Price reduced to $785K. Great for owner/user.
9. Apartment in Long Beach, CA: 2-stories 18-units appealing apartment building constructed in 1987 just minutes from the beach. 100% Occupancy. $2.350M. 10.24% Cap. Low gross rent multiplier of 9.7.
10. 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.
    •Exterior of building painted May 2008
    •Strong financially & recession-insensitive tenant with A+ S&P rating.
    •New roof installed April 2008
    
    © Copyright 2009 Transmercial. All rights reserved.

Top 10 Properties Among 280+ 06/17/09

1. Strip Center in Los Angeles, CA: 4768 SF well maintained strip center at hard corner in busy Korean town. 100% leased by six long/stable tenants. NOI $146K/yr. $1.8M. 8.12% Cap. $100K Price Reduction
2. Sticky Fingers in North Myrtle Beach, SC: one-year old 7790 SF retail building on 1.22 acres of land shadow-anchored by Walgreens in upscale (AHI $93K/yr.) coastal town. 14-yrs. remaining on original NNN corp ground lease (you own the land and tenant owns the building) with rent increases every 5-yrs. NOI $95K/yr. $1.188M. 8% Cap.
3. Shopping Center in Lubbock, TX: 29,868 SF newly renovated shopping center on 2.51 acres of land across South Plains Mall at major retail corridor. 100% NNN leased. NOI $480K/yr. $5.6M. 8.58% Cap. Buyer to assume $3.739M. @ 6.28% interest rate.
4. Shopping Center in Fairview Heights, IL: brand new 47,386 SF shopping center on 5.98 acres of land near I-64 anchored by Jo-Ann Fabrics at major retail corridor. 100% NNN leased by national/regional tenant mix NOI $472K/yr. $5.245M. 9.01% Cap.
5. Fresenius Medical Care Center in Knoxville, TN: brand new single-tenant 10,951 SF medical building on 1.44 acres of parcel ½ mile from St. Mary’s Medical Center. Long term NNN lease by a national tenant. NOI $208K/yr. $2.6M. 8% Cap.
6. Rite Aid in Stockbridge, GA: 10,908 SF Rite Aid Pharmacy on 1.52 acres of land in growing Atlanta metro close proximity to I-75. 100% NNN corp lease. NOI $193K/yr. Price reduced to $1.918M. 10.10% Cap!
7. Retail Building in Roseville, CA: 15,122 SF retail building on 1.19 acres of parcel at busy thoroughfare between Kaiser Permanente and I-80 in growing Sacramento suburb. 100% NNN leased by 4 tenants. NOI $323K/yr. Price reduced to $3.799M. 8.10% Cap in California!
8. Shopping Center in Loganville, GA: 43,463 SF center built in 2000 in fast growing Atlanta suburb. 92% leased. NOI $492K/yr. $4.2M. 11.74% Cap.
9. Starbucks Coffee in Humble, TX: 1850 SF retail building constructed in 2008 on ..63 acre lot across Kroger anchored shopping center. 10-yrs NNN corp lease with 10% rent increases after year 5. NOI $68K/yr. Only $855K. 8% Cap. (Attached brochure)
10. Carenow Urgent Care Center in Frisco, TX: 4893 SF single-tenant medical building constructed in 2008 on .84 acre lot in high-growth/affluent area. NNN corp lease till 2023 by a medical provider with 22 urgent care center. NOI $245K/yr. with 8% rent increases every 5-yrs. $3.075M. 8% Cap.
    
    © Copyright Transmercial 2009. All rights reserved.

Top 10 Properties Among 316 on 06/16/09

1. Rite Aid Pharmacy in Galt, CA: brand new 17,272 SF pharmacy on 1.79 acres of land in growing town between Stockton and Sacramento. 20-yrs NNN corp lease. NOI $435K/yr. w/ 10% rent bump in year 11. $5.117M. 8.5% Cap.
2. Just Tires/Goodyear in Apex, NC: 7600 SF brand new retail building on .90 acre lot outparcel to Lowe’s shopping center in fast growing Raleigh/Durham suburbs. Long NNN corp lease till 2020. NOI $216/yr. $2.7M. 8% Cap.
3. Office Building in Glendale, AZ: 26,573 SF professional office complex built in 1999 on 2.75 acres of land in densely populated area near Fwy-101. 63% leased $3M. 8.55% Actual Cap. Upside potential when fully leased.
4. Strip Center in Moreno Valley, CA: 6240 SF shopping center built in 2008 on .9 acre lot shadow-anchored by Walgreens across from Home Depot. 100% NNN leased by three tenants. NOI $167/yr. $2.230M. 7.5% Cap.
5. Hooters Restaurant in Myrtle Beach, SC: 4598 SF restaurant constructed in 1993 on over 1 acre lot at tourist destination area in wealthy (AHI $80K/yr.) area. Just 1 short block to the beach. NNN ground lease (buyer is buying the land but if tenant does not renew the lease in 4 yrs then buyer owns both land and building). NOI $89K/yr. $1M. 9% Cap.
6. Walgreen’s Pharmacy in Montgomery, IL: brand new 14,820 SF retail building on 1.71 acre of land located in growing area in Chicago suburb. Long NNN corp lease. NOI $420K/yr. $5.915M. 7.10% Cap.
7. Dollar Tree in Twentynine Palms, CA: 15,506 SF retail building on 1.53 acres of land in Stater Bros. Grocery anchored shopping center. NNN corp leased by recession resistant tenant till 2019. NOI $189K/yr. $2.235M. 8.5% Cap.
   --Strong sales since store opened
8. Apollo College in Tucson, AZ: 36,500 SF attractive retail building on 3.10 acres of parcel at hard corner location. NN leased till 2018 by credit tenant. NOI $567K/yr. Annual rental increases. $5.4M. 10.5% Cap.
9. Shopping Center in Wake Forest, NC: 10,280 SF shopping center built in 1998 on 1 acre pad adjacent to Home Depot/Target with excellent tenant mix. 100% NNN leased. NOI $116K/yr. $1.6M. 7.25% Cap.
10. Office Building in Miami, FL: 23,000 SF two-story recently renovated office building on .91 acre lot near I-95. 100% leased. NOI $195K/yr. $2.3M. 8% Cap.
    
    © Copyright Transmercial 2009. All rights reserved.

Top 9 Properties Among 340+ on 06/15/09

1. Shops in Iris Plaza in Moreno Valley, CA: one year old 14,623 SF shopping center on 2.21 acres of land across from Home Depot. Surrounded by strong national tenants: Walgreen’s, Fresh & Easy KFC, Arby’s, Auto Zone and more. 92% NNN leased. NOI $368K/yr. $4.6M. 8% Cap.
2. 2-Tenant Strip Center in Palmdale, CA: 36,031 SF retail center built in 2000 shadow-anchored by Target/Lowes in growing middle-class area. 100% NNN leased by Staples and Party City. NOI $499K/yr. $6.890M. 7.25% Cap.
3. Staples in Woodbury, MN: brand new 20,053 SF high quality constructed retail building on over 2 acres of land at prominent retail location in wealthy (AHI $110K/yr) St Paul suburbs near I-94. 10-yrs NNN lease with rent increase. NOI $320K/yr. $4M. 8% Cap.
4. Strip Center in San Antonio, TX: 22,000 SF strip center between St Luke’s Baptist Hospital and I-10. 100% NNN leased. NOI $247K/yr. $2.750M. 8.20% Cap.
   Upside potential: tenant paying below market rent
5. Shopping Center in Irving, TX: 67,426 SF mature L-shaped shopping center on 6.25 acres of land with tremendous visibility to Airport Freeway. 87% leased. NOI $591K/yr. $7.2M. 8.22% Actual Cap.
   Upside potential when fully leased
6. Cost Plus World Market in Wichita, KS: 18,252 SF beautiful retail building adjacent to Target in fast growing area. 100% NNN leased by a public company. NOI $237K/yr. $2.565M. 9.25% Cap.
7. Old Chicago Restaurant in Mesa, AZ: 5804 SF retail building on 1.50 acres of parcel across Home Depot near regional mall/US 60 Fwy. 100% NNN corp lease. NOI $243K/yr. $1.975M. 12.50% Cap.
8. Applebee’s in Austin, TX: 5015 SF restaurant built in 1995 on over 1 acre lot outparcel to Best Buy/Sam’s Club located at intersection of Hwy-290 and State Hwy-1. Long absolute NNN leased by 22-store franchisee. NOI $198K/yr. with 2% annual rent increases. $2.340M. 8.50% Cap.
9. Medical Building in Huntington Beach, CA: 56,280 SF attractive Class-A medical building across Bella Terra Mall in well-off area with good visibility to I-405. 78% leased. NOI $760K/yr. $10.600M. 7.17% Cap.
   
   © Copyright Transmercial 2009. All rights reserved.

Top Properties Among 261 on 06-12-09

1. Grocery Store in Mission Viejo, CA: 24,240 SF grocery store in an affluent city (AHI over $110K/yr) in Orange county. 100% NNN leased by Henry’s Market with 30 locations in Southern CA. NOI $479K/yr. $8M. 6% cap.
2. Shopping Center in Lake Elsinore, CA: 34,850 SF shopping center on 2 acres lot near I-15 exit in a booming town with high income. 100% NNN leased by 14 tenants. NOI $391K/yr. $4.89M. 8% cap.
3. Jiffy Lube w/ Car wash in Gilbert, AZ: 7000 SF Jiffy Lube with car wash facilities on .6 acre parcel in a growing and high income (AHI over $97K/yr) Phoenix suburb. 100% NNN leased till 2016. NOI $157K/yr with strong 3% annual rent bump. $2.095M. 7.5% cap.
4. Dick’s Sporting Goods in Irving, TX: 55,000 SF Sporting goods store on 4.86 acres lot as part of a 30-acre retail complex anchored by Best Buy and 24-hr Fitness. Adjacent to Wal-mart supercenter. 100% NNN leased. NOI $801K/yr. $9.155M. 8.75% cap.
5. Staples in Phoenix, AZ: 24,500 SF single-tenant retail building developed in 1996 in front of Wal-mart supercenter. 100% NNN leased. NOI $301K/yr. $3.975M. 7.55% cap.
6. Medical Office building in Gilbert, AZ: 32,674 SF 8-yr old class-A medical office building in a fast growing and wealthy Phoenix suburb with AHI over $102K/yr. 100% NNN leased by 8 medical & dental tenants. NOI $728K/yr. $10.3M. 7.07% cap.
   
   © Copyright Transmercial 2009. All rights reserved.

Walgreens, CVS or Rite-Aid: Which Tenant Is Best in 2009?

Walgreens, CVS or Rite-Aid: Which Tenant Is Best in 2009?

There are 3 major drugstore chains in the US: Walgreens, CVS, and Rite Aid. The table below ranks the companies by market capitalization and sales revenue as of June 2009:

1. Walgreens ranks #1 with market cap of $31.46 Billion, $61 Billion in revenue, 6443 stores and S&P rating of A+.
2. CVS ranks #2 with market cap of $45.2 Billion, $89.54 Billion in revenue (CVS revenue alone is less than Walgreens if revenue from its Caremark group is taken out), 6923 stores and S&P rating of BBB+.
3. Rite Aid ranks #3 with market cap of $1.1 Billion, $26.29 Billion in revenue, 4901 stores and S&P rating of B+.

Investors purchase properties occupied by these drugstore chains for the following reasons:

1. The drugstore business is very recession-insensitive. People need medicine when they are sick, regardless of the state of the economy. Both rich and poor people in the US have access to medicine. Some even argue that low-income people use more medicine due to free or low-cost drugs offered by government-assisted programs.
2. The drugstore business has a good prospect in the US:

· People are living longer and need more medicine to sustain longevity. Older people tend to use more medicine than younger ones. As the 78 million baby boomers are getting closer to retiring age starting from 2008, the drugstore chains anticipate the demand for medicine to increase in next 20 years.

· The drug market continues to expand as the US population will continue to grow.

· There are new drugs to treat old or previously untreatable illnesses, and new diseases, e.g. Viagra for men’s unhappiness, Zoloft for depression, Avastin for colon cancer, Herceptin for breast cancer, Nicotine patches for smokers to kick the habit, Tamiflu for a potential bird flu pandemic, vaccine for swine (H1N1) flu pandemic, Tekturna/Rasilez for hypertension and various new drugs for AIDS and Attention Deficit Disorder (ADD). The new medicines are very expensive, e.g. a year’s supply of Avastin costs about $55,000. Eli Lilly has sold about $4.8 billion of Zyprexa in 2007 for schizophrenia and yet most people have never heard of this medicine.

· Big advances in genetics, biology and stem cells research are expected to produce a new class of drugs to treat diabetes, Parkinson’s and various rare genetic disorders. For example the new drug Ilaris from Novartis targets genetic causes of an inherited disorder that there are only 7000 known cases worldwide. However, Novartis hopes to gradually broaden its drugs to a blockbuster drug to more common disorders caused by similar genetics.

· Technology and modern life introduce and require new products, e.g. pregnancy test kits, diabetic monitors, electronic toothbrushes, contact lenses, lenses cleaners, diet pills, vitamins, birth-control pills, IUDs, nutrition supplements and Cholesterol-lowering pills (Americans spent nearly $26B in 2006 on Cholesterol medications alone per IMS Health, a Connecticut-based consulting company that monitors pharmaceutical sales.) There are also more surgeries: C-sections, Kidney transplants, open-heart triple by-pass, and breast augmentations. More surgeries mean more medicines are needed such as potent pain killers, and Warfarin to prevent blood clots in surgeries.

· Before the customers can get to the medicine aisles or pharmacy counters, they have to pass by chocolates, sodas, digital cameras, watches, toys, dolls, wines, cosmetics, video games, flowers, fragrances, greeting cards, etc. As a result, customers buy more than their prescriptions and medicine in these drugstores. CVS reported that non-pharmacy sales represented 30% of the company’s total sales in January of 2007. The figure for Walgreens is 34% and 33% for Rite Aid. Many pharmacy locations are in effect convenience stores especially ones that are in residential or rural areas.

3. These companies sign very long-term, NNN leases, guaranteed by their corporate assets. This makes the investment in the underlying property fairly low risk, especially for Walgreens with an A+ S&P rating. In fact, these properties are sometimes referred to as investment-grade properties. Once the drugstore chains sign the lease, they pay the rent promptly and timely. This author is not aware of any properties leased by one of these drugstore chains in which the tenants failed to pay rents. Even when the stores are closed due to weak sales (Walgreens closed 119 stores in 2007), these companies may sublease the properties to other companies and continue to pay rents on the master leases.

Investment Risks

Although the pharmacy business in general is recession-insensitive, there are risks involved in your investment:

1) The main downside about investing in pharmacies is there is little or no rent bump for a long time, e.g. 20-50 years, especially for Walgreens. So the rent is effectively reduced after inflation is factored in. This is one of the main reasons these properties do not appeal to younger investors.

2) The 3 drugstore chains now have a new formidable competitor, Wal-mart. Wal-mart sells prescription drugs in more than 4000 Wal-mart, Sam’s Club and Neighborhood Market stores in 49 states. The retail giant is known for launching in 2006 a highly-publicized $4 generic prescription drug program which now sells 350 generic medications for a 30-day supply. The actual number of medications is less as the medications with different strengths are counted as different medications. For example, Metformin 500 mg, 850 mg, and 1000 mg are counted as 3 medications.

3) Investment in a property leased by Rite Aid is riskier compared to one leased by Walgreens.

Among 3 drugstore chains, Walgreens and CVS pharmacies in general have the best locations—at major intersections while Rite Aid has the worst locations. The new Rite Aid pharmacies tend to concentrate in smaller cities where it may be the only pharmacy in town with little or no competition.

1) Walgreens: Walgreen Company was founded in 1901 by Charles Walgreen, Sr. in Chicago. While the company has existed for more than 100 years, most stores are only 5-10 years old. This is the best managed company among the three drugstore chains and also among the most admired public companies in the US. Due to its superior financial strength--S&P A+ rating-- and premium irreplaceable locations, properties with leases from Walgreens get the highest price per square foot and/or the lowest cap rate among the 3 drugstore chains. In addition, Walgreens gets flat rent or very low rent increase for 20 to 60 years. The cap rate is often in the low 6% to 7.25% range in 2009. Investors who buy Walgreens tend to be closer to retirement age. They are looking for a safe investment where it’s more important to get the rent check than appreciation. They often compare the returns on their Walgreens investment with the lower returns from US treasury bonds or Certificate of Deposits from banks.

2) CVS Pharmacy: CVS Corporation was founded in 1963 in Lowell, MA by Stanley Goldstein, Sidney Goldstein, and Ralph Hoagland. The name CVS stands for “Consumer Value Stores”. As of 2009, CVS has about 6300 stores in the US, mostly through acquisitions. In 2004, CVS bought 1,200 Eckerd Drugstores mostly in Texas and Florida. In 2006, CVS bought 700 Savon and Osco drugstores mostly in Southern California. And in 2008 CVS acquired 521 Longs Drugs stores in California, Hawaii, Nevada and Arizona for $2.9B dollars. The acquisition of Long Drugs appears to be a good one as it CVS does not have any stores in Northern CA and Arizona. Besides, the price also included real estate. It is also bought Caremark, the largest pharmaceutical services company and changed the corporation name to CVS Caremark. When CVS bought 1,200 Eckerd stores, it formed a single-entity LLC (Limited Liability Company) to own each Eckerd store. Each LLC signs the lease with the property owner. In the event of a default, the owner can only legally go after the assets of the LLC and not from any other CVS-owned assets. Although the owner loses the guaranty security from CVS corporate assets, this author is not aware of any incident where CVS closes a store and does not pay rent.

3) Rite-Aid: Rite Aid opened its first store in 1962 as “Thrif D Discount Center” in Scranton, Pennsylvania. It officially incorporated as Rite Aid Corporation in 1968. Rite Aid is the weakest financially among the 3 drugstore chains. In 2007, Rite-Aid acquired about 1,850 Brooks and Eckerd drugstores, mostly along the East coast to catch up with Walgreens and CVS. In the process, it added a huge long term debt (currently owes over $6 Billion) and is the most leveraged drugstore chain. The integration of Brooks and Eckerd did not seem to go well. Revenue from some of these stores went down as much as 20% after they change the sign to Rite Aid. As of 2009, Rite-Aid has over 4900 stores and over $26 Billion in revenues. Compared to Walgreens and CVS, Rite Aid is the weakest financially. Its one-year stock price declined by 92%. On January 21, 2009 Moody’s Investor Services downgraded Rite Aid from “Caa1” to “Caa2”, eight notches below investment grade. Both ratings are “junk” which indicate very high credit risk. Rite Aid has contacted a number of its landlords in 2009 trying to get rent concession to improve the bottom line.

Things to consider when invested in a pharmacy

If you are interested in investing in a property leased by drugstore chains, here are a few things you should consider:

1. If you want a low risk investment, go with Walgreens. In stable or growing areas, the degree of safety is the same whether the property is in California where you get a 6% cap or Texas where you may get a 7.5% cap. So, there is no significant advantage to invest in properties in California as the property value is based primarily on the cap rate. In 2009, the offered cap rate for Walgreens seems to increase about 1% compared to previous years. So you might be able to get some appreciation in your investment when you sell at a lower cap rate in the future.
2. If you are willing to take more risk, then go with Rite-Aid. Some properties outside of California may offer up to 9.5% cap rate in 2009. However, among the 3 drug chains, Rite Aid has a very real high risk of going under in 2009. Should it declare bankruptcy, Rite Aid has the option to pick and choose which locations to keep open and which locations to terminate the lease. To minimize the risk that the store is shuttered, choose a location with strong sales and low rent to revenue ratio. This is especially critical on Rite Aid in smaller cities as Rite Aid seems-- for reasons unknown to this author-- to pay premium rents, i.e. 25-50% higher than market rents for properties in small towns.
3. If you are not a conservative investor or risk taker, you may want to consider a CVS pharmacy. It has BBB+ S&P credit rating. Its cap rate is higher than Walgreens but lower than Rite Aid. Some leases may offer better rent bumps. On the other hand, some CVS leases, especially for properties in hurricane areas are not truly NNN leases where landlords are responsible for the roof and structure. So make sure you adjust the cap rate down accordingly. Some of the CVS locations have onsite Minuteclinic staffed by registered nurses. Since this clinic idea was introduced recently, it’s not clear having a clinic inside CVS is a plus or minus to the bottom line of the store.
4. All 3 drugstore chains have similar requirements. They all want highly visible, standalone, rectangular property around 12,000 - 14,000 SF on a 1.5 - 2 acre lot, preferably at a corner with about 75 - 80 parking spaces in a growing and high traffic location. They all require the property to have a drive-thru. Hence, you should avoid purchasing an inline property, i.e. not standalone and property with no drive-thru windows, as there is a chance that these drugstores may not want to renew the lease. In addition, if you acquire a property that does not meet the new requirements, for example a drive-thru, you may have a problem getting financing as lenders are aware of these requirements.
5. If the pharmacy is opened 24 hours a day, it is in a better location. Drugstore chains do not open the store 24 hours day unless the location draws customers.
6. Some properties may have a percentage lease, i.e. the landlord can get additional rent when the store’s annual revenue exceeds a certain figure, e.g. $5M. However, the revenue used to compute percentage rent often excludes a page-long list of items, e.g. wine and sodas, tobacco products, items sold after 10 PM, drugs paid by governmental programs, etc. The excluded sales revenue could account for as much as 70% of store’s gross revenue. As a result, this author has never seen a store in which the landlord is able to collect additional percentage rent. The store with a percentage rent is required to report its monthly sales to the landlord. As an investors, you want to invest in a store with strong gross sales, e.g. over $500 per square foot a year. In addition, you also want to check the rent to revenue ratio. If the figure is in the 2-3% range, the store is likely to be very profitable so the chance the store is shut down is low.
7. It does not matter how good the tenants are, avoid investing in declining and/or low-income areas or small towns with less than 30,000 residents. These properties are easy to buy now and hard to sell later. In 2009 where the credit market is tight, you won’t be able to get any lenders to finance these properties.
8. Many properties have an existing loan that the buyer must assume. If you have a 1031 exchange, think twice about buying this property. You should clearly understand loan assumption requirements of the lenders before moving forward. Should you fail to assume the existing loan (assuming an existing loan is a lot more difficult than getting a new loan), you may run out of time for a 1031 exchange and may be liable to pay capital gain.
9. About 10% of the drugstore properties for sale and typically CVS pharmacies require very small amount of equity to acquire, e.g. 10% of the purchase price. However, you are required to assume an existing fully-amortized loan with zero cash flow. That is, all of the rent paid by the tenant must be used to pay down the loan. The cap rate may be in the 7% range, and the interest rate on the loan could be attractive in the 5.5% to 6% range. Hence, the investor pays off the loan in 10 to 20 years. However, the investor has no positive cash flow. This requires you to come up with outside cash to pay income tax on the rental profits (the difference between the rent and mortgage interest). The longer you own the property, the more outside cash you will need to pay income taxes as the mortgage interest will get less and less toward the end. So who would buy this kind of property?

- The investors who have substantial losses from other properties or stocks market. By acquiring this zero cash flow property, they may offset the income from the drugstore tenant against the losses from other properties or stocks market. For example, a property has $105,000 of rental profits a year, and the investor also has rental losses of $100,000 from other properties. As a result, the combined profits are only $5,000.

- The uninformed investors who fail to consider that they have to raise additional cash to pay income taxes.

Top 8 Properties Among 294 on 6/11/09

1. Retail building in Northfield, IL: 5018 SF retail building constructed in 1993 anchored by Starbucks Coffee across from Walgreens in prosperous (AHI $212K/yr within 1 mile radius) Chicago metro just off of I-94. 100% NNN leased by two tenants. NOI 173K/yr. $2.4M. 7.2% cap. Busy Starbucks with over 700 customers per day!
2. Strip Center in Johnson City, TN: 9490 SF inline retail center built in 2002 on 1.44 acres of land between Walgreens and Advance Auto Parts close to I-26. 100% NNN leased by national/local tenants. NOI $149K/yr. $1.895M. 7.9% Cap.
3. Denny’s in Commerce, CA: 4480 SF mature restaurant on .79 acre pad at the ramp of I-5. 12-yrs remaining NNN lease with 5% increases every 3-yrs. NOI $97K/yr. $1.690M. 5.75% Cap.
4. Ace Hardware in Atlanta, GA: 11,360 SF nice looking retail building on .70 acre lot in fast growing area close to I-20. Long NNN corp lease. NOI $180K/yr. $2M. 9% Cap.
5. Retail Pad in Temecula, CA: 6,750 SF attractive retail center built in 2000 on .96 acre pad surrounded by national tenants at signalized intersection. 100% leased by Sprint PCS, Baja Fresh & Cold Stone Creamery. NOI $230K/yr. $3.180M. 7.25% Cap.
6. Strip Center in Temecula, CA: 15,490 SF strip center built in 200 on 1.28 acres of land pad to 1.14 Million SF Promenade Mall near I-15 in a boom town (77% growth since 2000). 100% NNN leased. NOI $533K/yr. $7.360M. 7.25% Cap.
7. Office Building in Saint Louis, MO: 6496 SF well maintained office building built in 1996 near St. Anthony’s Medical Center. 100% NNN leased. NOI $81K/yr. $900K. 9% Cap. Excellent for 1st time investors.
8. Shopping Center in Winston-Salem, NC: 31.000 SF shopping center on 3.5 acres of land shadow anchored by Food Lion in growing area in close proximity to I-40. 100% leased. NOI $ 263K/yr. $3.050M. 8.63% Cap.
   
   © Copyright Tranmercial 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.

Membership to Transmercial investors club is FREE. Click here for details. Don’t worry; there are absolutely no obligations of anything from you to us for being a member. Of course, we hope that you like our work and will eventually ask us to represent you. However, it’s all up to you as you have no contractual obligations to us for anything.

Top 10 Properties Among 304 on 06/10/09

1. Retail Building in Lodi, CA: 3000 SF Spanish styled retail building located in fast growing area just 16-miles North of Stockton. 100% leased by four tenants. NOI $59K/yr. $749K. 8% Cap. Excellent for 1st time investor!
2. Office Depot in El Paso, TX: 25,000 SF retail building on 1.60 acres of land next to Target across Sunland Park Mall off of I-10. 100% absolute NNN corp lease. NOI $330K/yr. $4.131M. 8% Cap.
3. Dollar General in Jacksonville, FL: brand new 9100 SF retail building on over 1 acre lot next to JCPenny anchored center. 15-yrs NN corp lease. NOI $107K/yr. $1.282M. 8.35% Cap.
4. CVS Pharmacy in Bakersfield, CA: brand new 13,225 SF CVS Pharmacy on over 2 acres of land across Food Max. 100% absolute NNN lease till 2035. NOI $190K/yr. $3.166M. 6% Cap.
5. Blockbuster Retail Building in San Jose, CA: 6033 SF attractive retail building shadow-anchored by Dollar Tree/24 Hour Fitness across from Target/Mi Pueblo Supermarket anchored center off of Fwy-680. 100% NNN leased. NOI $116K/yr. $2.1M. 5.53% Cap.
6. Guitar Center in Independence, MO: 15,418 SF nice looking retail building constructed in 1995 on 1.47 acres of parcel next to Wal-Mart across Independence Center Mall off of I-470. 100% NNN corp lease. NOI $227K/yr. $3.250M. 7% Cap.
7. Michael’s in Mountain View, CA: rare 21,579 SF retail building recently renovated on 1.41 acres across from Best Buy/Bath Bath and Beyond anchored shopping center just off the Fwy-101 in the heart of Silicon Valley. 100% NNN lease. NOI $513K/yr. $7.175M. 7.15% Cap. Buyer to assume $5.310M. at 6.5% interest rate.
8. Strip Center in Woodbury Heights, NJ: brand new 15,000 SF retail building in growing middle-class ($75K/yr) area. 100% NNN leased by two tenants: Goodwill and Mr. Tire. NOI $236K/yr. $3.150M. 7.5% Cap.
9. Inline Center in Palmetto, FL: 12,100 SF retail building recently constructed in growing Tampa Suburbs. 100% NNN leased by good tenant mix. NOI $188K/yr. $2.050M. 9.21% Cap.
10. Medical Building in Tampa, FL: 21,354 SF attractive medical building at busy blvd near University community Hospital. 100% NNN leased. NOI $362K/yr. $3.9M. 9.3% Cap.
    
    Copyright Transmercial 2009. All rights reserved.

Top Properties Among 228 on 06/09/09

1. Strip Center in Omaha, NE: 11,440 SF mature brick strip center with excellent visibility near I-680. 91% Leased. NOI $91K/yr. 1.020M. 9% Cap.
   Upside potential as tenant pay very low rents
2. Shopping Center in Omaha, NE: 31,044 SF 13-yrs old inline shopping center near Alegent Health Lakeside Hospital located in affluent (AHI $103K/yr) and fast growing (25.75% since 2000) neighborhood. NOI $408K/yr. $5.2M. 7.85% Cap.
3. Pep Boys in Las Vegas, NV: 20,886 SF retail building on 2.13 acres of land at busy thoroughfare in close proximity to I-515. New 15-yrs absolute NNN corp lease with 1.5% annual rent increases. NOI $300K/yr. $4.141M. 7.25% Cap.
4. Shopping Center in Merrillville, IN: 30,642 SF shopping center on 4.59 acres of parcel on busy street close to I-65. 91% NNN leased. NOI $267K/yr. $2.850M. 9.4% Cap.
5. Strip Center in Hawthorne, CA: 17,675 SF strip center built in 1988 on 1.28 acres of land anchored by Subway at signalized intersection near I-405/105. 100% NNN leased. NOI $521K/yr. $6.750M. 7.73% Cap.
6. Retail Building in Lompoc, CA: 23,500 SF attractive retail building on 2.18 acres of parcel surrounded by many national tenants close to Hwy-1 in beautiful Santa Barbara County. 15-yrs NNN leased. NOI $380K/yr. $4.7M. 8% Cap.
7. Petco in Dardenne Prairie, MO: 15,000 SF retail building on 1.47 acres of land outlot to new center shadow-anchored by Target in fast growing (52.31%) St. Louis suburbs. 10-yrs NNN corp lease. NOI $252K/yr. $2.975M. 8.5% Cap.
8. AutoZone in For Wayne, IN: brand new 6840 SF AutoZone retail building on over 1 acre pad at signalized busy intersection. NNN corp lease till 2029. NOI $127K/yr. $1.648M. 7.75% Cap.
9. Orchard Supply Hardware in Santa Rosa, CA: 35,563 SF retail building on 2.73 acres of land next to Coddingtown Mall off of Hwy-101. NNN corp lease till 2023 with rent increases. NOI $759K/yr. $9.489M. 8% Cap.
10. Office Building in San Jose, CA: 1390 SF office building on corner lot across from Santa Clara Valley Medical Center with easy access to Fwy-280. $850K. IDEAL FOR OWNER USER!
    
    © Copyright Tranmercial 2009. All rights reserved.

Top 9 Properties Among 500+ 06/08/09

1. Joe’s Crab Shack Restaurant in Duluth, GA: 9160 SF restaurant built in 2004 on over 2 acres of land near I-85 in rapidly growing Atlanta metro. Long NNN corp lease. NOI $157K/yr. $1.890M. 8.35% Cap.
2. Shoney’s Restaurant in Greensboro, NC: 5798 SF Shoney’s restaurant on 1.74 acres of parcel next to Motel-6 off of I-40. Absolute NNN corp lease. NOI $88K/yr. $1.105M. 8% Cap.
3. Shopping Center in McKinney, TX: 27,450 SF shopping center built in 1997 on 3.36 acres of land shadow-anchored by Super Wal-Mart/Sam’s Club with great visibility to Hwy-75/380. NOI $442.750M. 8.75% Cap. Price not disclosed. Buyer to assume $3.085M at 6.12% interest rate.
4. Medical Office in San Antonio, TX: 24,922 SF attractive medical building on 2.56 acres of parcel near Methodist Specialty Hospital/St Luke’s Baptist Hospital just blocks from I-10. NOI $315K/yr. $4.250M. 7.4% Cap.
5. Strip Center in Temecula, CA: 9450 SF 3-tenant retail center built in 2000 on over 1 acre pad surrounded by national tenants. 100% NNN leased. NOI $260K/yr. $3.590M. 7.25% Cap.
6. Ryan’s Grill Buffet in Indianapolis, IN: 9601 SF restaurant situated on US-31 in fast growing area. 100% NNN corp lease. NOI $188K/yr. $1.884M. 10% Cap.
7. Del Taco Restaurant in Lancaster, CA: 2066 SF nice-looking restaurant with drive-thru built in 1995 on .58 acre lot shadow-anchored by CVS/Vons. 100% NNN corp lease with 2.25% rent increases every two years. NOI $110K/yr. $1.7M. 6.5% Cap.
8. Kohl’s in Eureka, CA: 61,173 SF retail building on 5.48 acres of land located at Regional Bayshore Mall anchored by Sears, Borders, Bed Bath & Beyond. 100% NNN corp lease with rental increases. NOI $486K/yr. $6.085M. 8% Cap. Only $99.48 per SF.
9. Brand New Starbucks in Irving, TX: 1750 SF retail building on .64 acre lot surrounded by many national tenants in prosperous (AHI $202K/yr within 1 mile radius) Dallas suburbs. NOI $89K/yr. $1.236M. 7.20% Cap.
   
   © Copyright Tranmercial 2009. All rights reserved.

"How To Invest In Commercial Real Estate" Seminar

Where: Transmercial.
1340 Tully Road, suite 307, San Jose CA 95122
When: Saturday 07/11/09 at 8:55AM-noon.
Contact: Maria 408-288-5500 for schedule and sign up
Web: http://www.transmercial.com/
By: David V. Tran

TESTIMONIALS

"...You [David] are not only after the sale but [also] make sure the future investments of you clients are sound. ...I have had a very good experience with eFunding. I will not take my business any other place"Marianna Guevarra, Silver Creek Valley Country Club, San Jose CA.

"At first I was a little skeptical coming to David's seminar. But in 2 hours, I learned more about Commercial Real Estate Investing than I have from books or other investment programs." Michael Cuthrell

"I found it [seminar] very informative and well presented [by David]."Steve Freeman, Stonecrest Financial.

"I enjoyed the seminar last Saturday. I thought it was an excellent introduction to commercial property investment."Dr. A. Singh.

"I worked with several commercial brokers before but eFunding is more professional & trustworthy."John Nguyen, Fremont CA.

Seminar is presented by David V. Tran, President/Chief Investment Advisor at Transmercial. David is the #1 commercial real estate expert author in the US (among over 400) on ezinearticles.com. David will share with you his current knowledge & experience from his own practice in commercial real estate investments.

Who should attend this seminar?
- Babyboomers who need additional income to supplement SS benefits.
- Investors who have never invested in commercial real estate.
- Investors who are not happy with yields from CDs.
- Professionals who are looking for second sources of income.
- Investors who are looking for alternative investments other than stocks and mutual funds.
- Self-directed IRA investors

•Compare commercial vs. residential investment properties.
•Commercial real estate terminology: cap rate, NOI, GLA, etc.
•Which property type should you invest? Shopping strip, Office building, Apartment, or Gas station? Single tenant or multi-tenant properties?
•How to choose a good investment property.
•Investment returns
•When is a best time to invest in commercial real estate?
•National demographic trends
•Where should you invest? In San Jose or somewhere else?
•Leases: gross lease, net lease, & percentage lease. Which one investors prefer?
•Property Management issues.
•What you should know about financing for commercial properties.
•The offer process, due diligence.

Other companies charge up to $5997 for a similar seminar!

Please call Maria at 408-288-5500 for schedules and sign up.

Top 10 Properties Among 291On June 5, 2009

Free "How To Invest In Commercial Real Estate for Early Retirement Income" Seminar

Please click to download form for July 2009

AHI: Avg Household Income
Please email brochure request to maria@transmercial.com

1. Walgreens in Winter Park, FL: 13,739 SF new drug store on 1.4 acres corner lot in Orlando metro. 100% NNN leased till 2033. NOI $556K/yr. $7.67M. 7.25% cap.
2. Michaels in Beaumont, TX: 25,725 SF single-tenant retail store in a prime commercial corridor near the local mall. Surrounded by Wal-mart, Office Depot, Barns and Noble, Marshalls, Lowes, and Best Buy. 100% NNN lease. Tenant has been here for over 10 yrs and just renewed lease for another 5 yrs. NOI $228K/yr. $3.05M. 7.5% cap.
3. Retail Center in Temecula, CA: 10,000 SF retail center built in 2000 on 1 acre pad to 1.14 Million SF Promenade Mall near I-15 in a boom town (77% growth since 2000). 100% NNN leased by 2 national tenants: Vitamin Shoppe and Verizon Wireless. NOI $339K/yr. $4.68M. 7.25% cap.
4. Del Taco restaurant in Hesperia, CA: 1932 SF restaurant on 1 acre lot in a growing city. 100% NNN corp lease till 2013. Store with strong sales revenue of over $1.4M. NOI $70K/yr. $1M. 7% cap.
5. Shopping Center in Charlotte, NC: 42,440 SF mature shopping center on 4.31 acres parcel. 100% leased. NOI $223K/yr. $2.237M. 10% cap.
6. Ryan’s Grill Buffet in Simpsonville, SC: 10,607 SF restaurant built in 1997 on 2 acres outparcel to a Wal-mart with I-385 frontage in Greenville metro. 100% NNN leased till 2027 with corp guaranty. NOI $188K/yr. $1.884M. 10% cap.
7. Office Building in Concord, CA: 14,514 SF office building in a high-income area with AHI over $108K/yr. 90% leased. NOI $126K/yr. $1.95M. Only $134/SF! Upside potential!
8. Office building in Monterey, CA: 3870 SF 2-story office building in a high-income coastal town. Partially leased. $950K. Just 100 ft from the beach!
9. Strip center in Mansfield, TX: 10,151 SF strip center just off hwy-287 in a fast growing Dallas suburb. Anchored by Davita Dialysis. 80% NNN leased. NOI $120K/yr. $1.5M. 8% cap.
10. Mixed Use in Half Moon Bay, CA: rare new 3030 SF 2-story mixed use property in an affluent coastal town (AHI over $150K/yr) South of San Fran. 1st floor is leased. 2nd floor 3br/2ba avail. 1 block from the beach. $1.2M.
    
    © Copyright Tranmercial 2009. All rights reserved.