Top 6 Properties 02-19-10

1. Long John Silver’s restaurant in Desoto, TX: 2706 SF franchised restaurant on 1/3 ac next to I35 exit in a fast growing suburban Dallas. 20 yrs absolute NNN lease by an operator with 119 restaurants. NOI $63K/yr with 10% rent bump every 5 yrs. $795K. 8% cap. Great for 1st time investors.
2. Kroger supermarket in Cincinnati, OH: 54,920 SF grocery store on 4.88 acres lot near I-74 in a middle-class area with AHI $77K/yr. 100% NNN lease by Kroger, the second largest supermarket chain in the US with over 2400 locations and $76 Billion in sales. Tenant spent over $4.3M in improvements in 2004. Store with strong sales of over $559/SF (over $30M/year). NOI $631K/yr. $7.43M. 8.5% cap.
3. Burger King in Perris, CA: 2800 SF to-be-built restaurant on ½ acre outparcel to a 500,000 SF power center anchored by Home Depot and WinCo Foods. Boom town with 103% pop growth from 2000-2008. 20 yrs absolute NNN lease by an operator with 12 locations. NOI $112K/yr. with 10% rent bump every 5 yrs. $1.4M. 8%. Note: this is not an ordinary transaction. Investor needs $1.4M cash to buy this to-be-built property. Franchisee will construct the building with the fund and spend an extra $300-400K of its money for the restaurant equipments.
4. Dennys in Gurnee, IL: 5542 SF family restaurant on 1.08 acres lot next to Gurnee Mills Mall in the upper middle class Chicago suburbs (AHI $110K/yr). New 20 yrs NNN lease by an operator with 27 locations (this is the 3rd strongest in sales among 27). NOI $150K/yr. $1.875M. 8% cap.
5. Advance Auto Parts in Houston, TX: 6127 SF auto part store built in 2008. 15 yrs NNN corp lease. NOI $125K/yr. $1.518M. 8.25% cap.
6. Macaroni Grill Restaurant in Burlington, MA: 7956 SF franchised Italian restaurant on 2.66 acres lot next to 1,246,000 SF 170-shop Burlington Mall in an affluent (AHI $117K/yr) Boston suburb. 100% NNN lease. NOI $268K/yr. $3.352M. 8% cap.
   
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