Top 10 properties of 12-14-09

NOI: Net Oper Income
AHI: Avg Household Income

1. Dialysis center in Pittsburg, CA: 7000 SF new dialysis center on 2/3 acre lot just 1 block from Walmart. 12 yrs NNN lease by Davita, Inc. (NYSE: DVA) with $5.66B in revenue and 1500 locations in the US. NOI $194K/yr with unusually generous 15% rent bump every 5 yrs. $2.775M. 7% cap. While starting cap is just OK, cap will hit over 8% after 5 yrs and 9.25% after 10 yrs due to strong rent increase.
2. Single tenant retail in Converse, TX: 17,500 SF single-tenant retail building on 1.6 acres lot in San Antonio metro. 100% NN lease by Dollar Tree (NYSE: DLTR) with over 3800 locations in the US. NOI $157K/yr. $2.072M. 7.6% cap. Recession insensitive tenant.
3. Single tenant retail in Lancaster, CA: 11,311 SF retail center renovated in 2008 on over 1 acre lot near Hwy 14. Surrounded by Walmart Supercenter, Home Depot, Cinemark Theaters, Food 4 Less, Kmart and Antelope Valley Hospital in a growing city. 10 yrs NNN lease by recession-resistant Goodwill Industries of CA with 62 locations. NOI $196K/yr with 10% rent bump every 5 yrs. $2.715M. 7.25% cap.
4. Shopping Center in Glendale, AZ: 24,308 SF lender-owned shopping center built in 2007 on 4.24 acres lot in a fast growing part of Phoenix. Shadow anchored by Walmart neighborhood market and anchored by Checker Auto. 55% NNN leased. Actual NOI $180K/yr. $2.8M. 6.4% actual cap. Strong upside potential when fully leased.
5. Apartments in Euless, TX: 193-unit bank-owned apartments complex on 9 acres lot in Dallas metro. 70% occupied. Proforma NOI $338K/yr. $3.75% cap. Less than $20K/unit!
6. Shopping Center in Tulsa, OK: 59,100 SF 3-yr old shopping center on 5 acres lot in a booming and high income (AHI $99K/yr w/i 3 miles ring). Adjacent to 20 Screen Theater & 5,000 Seat Event Center. 98% NNN leased by 16 tenants. NOI $750K/yr. $8.3M. 9% cap.
7. Smart & Final Store in Modesto, CA: 16,125 SF single tenant retail store in Modesto. 100% NNN leased till 2019 by Smart & Final – a warehouse grocery store (NASDAG: ANV) with 280 locations. NOI $163K/yr with CPI-based rent increase every 5 yrs. Price reduced from $2.336M to $2.15M 7.6% cap.
8. Burger King in Waukegan, IL: 3100 SF franchised restaurant on an outparcel to a Kmart in North Chicago. 20 yrs absolute NNN lease with 15 yrs remaining from an operator with 48 locations. NOI $149K/yr. with annual rent bump. $1.895M. 7.86% cap.
9. CVS Pharmacy in Homestead, FL: 14,579 SF drug store built in 2006 on 1.59 acre corner lot in a booming suburban Miami (122% since 2000). 20 yrs NNN lease with full CVS corp guaranty. NOI $360K/yr. $4.675M. 7.72% cap.
10. Walgreens in Sarasota, FL: 14,560 SF brand new drug store on 1.8 acres parcel corner lot in the Tampa metro. 20 yrs NNN lease. NOI $415K/yr. $5.6M. 7.4% cap.
    
    Sales Activities:

1. Office building in West Des Moines, IA: closed escrow.
2. Apartments in Benicia, CA: closed escrow.
3. Restaurant in Sparks, NV: closed escrow.
4. Walgreens in Fresno, CA: closed escrow.
5. Rite Aid Pharmacy in Marietta, GA: closed escrow
6. Rite Aid Pharmacy in Alpharetta, GA: closed escrow.
7. Office building in Newport Beach, CA: closed escrow.
8. Office building in San Bernardino, CA: closed escrow.

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