Top 10 Properties 03-23-10

Transmercial Advisory:
· Cap rate: the cap has gradually come down, probably about 1/2 % compared to 6-12 months ago. This cap rate reduction is expected as the economy continues to improve.
· New Health care law: with about 32 M people with new insurance coverage to pay for prescriptions and medical services, Transmercial believes drugstore & medical tenants will be even more stable.

1. MRI medical center in Montgomery, AL: 4293 SF MRI center constructed in 2000 and close to Baptist Medical Center East. 100% NNN lease with 6 yrs remaining by Medical Quest Associates with 103 imaging centers in 13 states. NOI $98K/yr. $1.161M. 8.44% cap.
2. Taco Bell in Windsor, CO: 2405 SF fast food restaurant built in 2004 on .7 acre in a high income small town. 100% NNN lease till 2013. NOI $120K/yr. $1.3M. 9.23% cap.
3. Walgreens in Mesa, AZ: 13,905 SF drug store built in 1998 on 1.9 acres corner lot in a upper middle class Phoenix metro. 100% NN lease with 8 yrs remaining. NOI $254K/yr. $2.994M. 8.5% cap.
4. Sweet Tomatoes restaurant in Houston, TX: 8080 SF restaurant on 1.69 acres lot next to 160-store Willowbrook Mall. 20 yrs NNN lease with 10 yrs remaining. NOI $249K/yr. with 10% rent bump in Dec 2010. $3.215M. 7.75% cap.
5. Rite Aid in Woonsocket, RI: 11,850 SF new drug store on 1 acre lot in Providence suburbs. 20 yrs absolute NNN lease. NOI $185K/yr. $2.197M. 8.45% cap.
6. Apartments in Sacramento, CA: 46-unit apartments complex on 1.43 acres lot in a higher income part of the city. NOI $191K/yr. $2.775M. 6.89% cap.
7. Office Max in Leawood, KS: 14,000 SF upscale retail center built in 2007 as part of a 1.4 Million SF retail hub in a very wealthy Kansas city metro (AHI $126K/yr). Directly facing Target, Wal-mart Supercenter, Lowe's, Linens 'N Things & CVS. 10 yrs NNN corp lease. NOI $284K/yr with $14K rent bump every 5 yrs. $3.256M. 8.75% cap.
8. Shopping Center in Broomfield, CO: 17,460 SF high-quality construction retail center in a upper middle class Denver metro. 93% leased. NOI $298K/yr. $3.725M. 8% cap.
9. Shopping Plaza in San Antonio, TX: 12,331 SF retail center on an outparcel to a power center anchor by Target, Home Depot, Ross, Petco and HEB. 100% NNN leased by 6 national and regional tenants. NOI $255K/yr. $2.992M. 8.75% cap.
10. Retail center in San Mateo, CA: 3200 SF 2-unit retail center on the busy El Camino Real in a wealthy Silicon Valley town with AHI $138K/yr. 50% leased by Starbucks with 1 avail unit. $1.649M.
    
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