Top 7 Properties 07-19-10

NOI: Net Oper Income—income after tax, insurance and maintenance expenses paid.

AHI: Avg. Household Income

NNN: Triple net lease in which tenants pay taxes, insurance and maintenance expenses

1.  Bank-owned retail center in Cathedral City, CA: 13,920 SF 3-yrs-old multi-tenant 2-building 10-unit retail center on 1.68 acres lot in fast growing and high income Palm Springs.  Shadow anchored by CVS Pharmacy.  36% occupied.  Proforma NOI $192K/yr. $1.895M.  Just $136/SF! 
2. KFC in Morton, IL: 2500 SF fast-food restaurant on .92 ac parcel in middle-class Peoria.  $140K remodel in 2008.  New 15 yrs NNN lease by 43-unit operator.  NOI $85K/yr. $1M. 8.5% cap. 
3. Burger King in West Monroe, LA: NEW 2800 SF restaurant on 2/3 acres corner lot.  New 20 yrs absolute NNN lease by 205-unit franchisee with $241M in annual sales.  NOI 110K/yr with 2% annual rent bump starting from year 6. $1.425M. 7.75% cap. 
4. Medical Building in Sacramento, CA: 24,808 SF medical office building on 2.37 acres lot on 162-bed acute care Methodist Hospital campus and next to Kaiser Permanente.  100% leased by 10 medical tenants.  NOI $417K/yr. $5.8M. 7.2% cap. 
5. CVS Pharmacy in Hempstead, NY: 10,080 SF drug store built in 1995 on 1 acre lot in middle class New York suburbs.  CVS just exercised 5 yrs option.  NOI $208K/yr.  $2.6M. 8% cap. 
6. Apartments in Fort Worth, TX: 170-unit 9 two-story-building apartments on 3.45 acres parcel in high income area with AHI over $79K/yr. 79% occupied.  Actual NOI $186K/yr.  $2.04M.  Just $12K/unit.  9% cap. Hugh upside potential when 95-100% occupied. 
7. Strip Center in Damien, IL: 14,000 SF retail center built in 1999 in wealthy Chicago suburbs (AHI over $100K/yr). 100% NNN leased by 6 tenants.  NOI $248K/yr. $2.758M. 9% cap.

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