08-03-10 - Firestone - Apartments - Shopping Centers - For sale

1.      Pep Boys Auto in Greece, NY: 22,277 SF auto parts and service center across from Elm Ridge Shopping center in a high income part of Rochester with AHI of $84K/yr.  15 yrs absolute NNN corp lease from Pep Boys (NYSE: PBY with S&P rating of B+) with 13 yrs remaining.  NOI $209K/yr. with 1.5% annual rent bump. $2.623M. 8% cap.  Why this is a good investment:

·        Good cap w/ decent annual rent bumps.  If this were an Advance Auto Parts with BBB rating, the cap would be 7.5% and no rent increases for 10 yrs.

·        Recession insensitive tenant

·        National tenant which may enable you to obtain low interest rates which should achieve double-digit total return.

2.      Firestone Auto service center in Northfield, NJ: 7575 SF auto service center under construction on 1.2 ac lot in middle-class Atlantic City metro. New 15 yrs NN lease.  NOI $261K/yr. with rent bump every 5 yrs. $3.482M. 7.5% cap.

3.      Apartments in Tucson, AZ: 48-unit apartments in good area of Tucson.  NOI $163K/yr.  $1.88M. 8.68% cap

4.      Walgreens in Hometown, IL: 14,855 SF drugstore built in 2002 on 1.12 acres hard corner lot in Chicago metro. 100% NNN leased till 2022.  NOI $482K/yr. $6.342M. 7.6% cap.

5.      Strip Center in Yorba Linda, CA: 5789 SF strip mall on ½ acres outparcel to Stater Bros grocery anchored center. High traffic intersection of Imperial hwy and Yorba Linda blvd.  High income area with AHI over $115K/yr.  100% NNN leased by 4 regional and credit tenants: Coffee Bean & Tea Leaf, GameStop, Panda Express, and AT&T.  NOI $290K/yr. $4.31M. 6.75% cap.

6.      Shopping Center in Las Vegas, NV: 29,974 SF 14-tenant shopping center built in 1987 on over 3 acres corner lot in upper middle class area with AHI over $82K/yr. 100% mostly NNN leased.  NOI $601K/yr. $5.6M. 10.7% cap.

7.      Single tenant Office Building in Springfield, MO: 49,908 SF office building on 4.68 acres parcel in a growing and high income area.  100% leased till 2019 by McKesson Corp (, NYSE: MCK, S&P rating A-), a Fortune 20 company and also the largest healthcare company with revenue of over $106B in 2009. NOI $682K/yr. $7.575M. 9% cap.

8.      Retail Center in Sacramento, CA: 14,147 SF retail center on .79 ac lot in high income area.  90% leased by 5 tenants.  NOI $109K/yr. $1.499M. 7.29% cap.

9.      VA Outpatient Clinic in New Port Richey, FL: 38,219 SF VA Clinic on 9.2 acres lot.  20 yrs lease till 2020 guaranteed by US government.  NOI $738K/r. $8.69M. 8.5% cap.

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