10-15: Shopping Centers, Apartments, Rite Aid for sale. Seminar/Webinar

1.      Shopping center in Pasadena, TX: 163,992 SF established regional shopping center on 13.23 acres lot in Houston metro.  Anchored by Big Lots!, Dollar Tree, Surplus Warehouse, Cato Fashion,  and Value Mart. 95% leased.  NOI $710K/yr. $7.45M. 9.53% cap.

2.      Apartments in Houston, TX: 180-unit apartments built in 1982 on 5.49 acres lot with neighborhood lake and park. 93% occupied.  NOI $501K/yr. $5.65M. 8.6% cap.

3.      Apartments in Pittsburg, CA: 30-unit apartments 30 miles NE of San Fran. 90% occupied.  NOI $206K/yr. $2.95M. 9% cap.

4.      Rite Aid in Marlborough, MA: 13,363 SF drug store on 1.83 acres lot in strong income Boston suburbs.  New 20 yrs absolute NNN lease.  NOI $276K/yr with 10%$ rent bump every 10 yrs.  $3.329M. 8.3% cap.

5.      Bank-owned Shopping Center in Highland, CA: 14,337 SF retail center built in 2007 on 1.97 acres lot in area with strong income.  95% leased.  NOI $182K/yr. $2.6M. 7% cap.

6.      Carl Jr in Norman, OK: 3527 SF restaurant on .86 acres lot in high income area (AHI $72K/yr) with easy access to I-35.  New 20 yrs absolute NNN lease to an operator with 39 units.  Tenant will spend $150K to remodel the property.  NOI $75/yr with 10% rent bump every 5 yrs.  $1M. 7.5% cap.

7.      Condominiums in Garland, TX: 33-unit well-kept condominiums on 2 acres lot in Dallas suburbs.  New paint, new carpet, all new appliances, cabinets and counter tops both in kitchen and all bathrooms. New faucets, lighting, light switches ceiling fans.  80% occupied.  Gross income $196K/yr. $2.15M.

8.      Retail Office Center in Houston, TX: 63,549 SF 2-story retail office complex built in 1986 on 3.74 acres lot. 80% leased.  NOI $345K/yr. $3.84M. 9% cap.  Just $60/SF!

9.      Single tenant retail center in Orem, UT: 3154 SF single-tenant retail building on a hard corner lot with easy access to I-15 in Salt Lake city metro.  10 yrs NNN lease to Techna Glass, a regional tenant with personal guaranty from its CEO. NOI $114K/yr. with 2% annual rent bump.  $1.382M. 8.25% cap.

10.   Shopping Center in Hagerstown, MD: 140,014 SF shopping center on 13.93 acres lot.  Anchored by Save A lot Grocery, and Jo-Ann Fabrics. 96% leased.  NOI $711K/yr. $7.9M. 9% cap.   Just $56/SF. 

© Transmercial 2010.  All rights reserved.

FREE “How to invest in commercial real estate” seminar/webinar. 

Date: Sat Nov 13, 2009

Time: 8:55AM to noon PST

Place: Transmercial at 1340 Tully Rd.  suite 307.  San Jose CA. You can also attend the seminar remotely if you have a PC with Internet access (to see the presentation) and phone (to listen in and ask questions).

Presenter: David Tran

This seminar is intended for investors who would like to understand the fundamentals of commercial real estate investment:

• Compare commercial vs. residential investment properties.
• Commercial real estate terminology: cap rate, NOI, etc.
• Which property type should you invest? Shopping strip, Office building, Apartment, or Gas station? Single tenant or multi-tenant properties?
• How to choose a good investment property.
• Investment returns
• When is a best time to invest in commercial real estate?
• National demographic trends that may influence on where to invest
• Where should you invest?  
• Leases: gross lease, net lease, & percentage lease. Which one investors prefer?
• Property Management issues.
• What you should know about financing for commercial properties.
• The offer process, due diligence.

Please use attached form for reservation for both seminar and webinar. Webinar instruction will be emailed 2 weeks before the presentation date.

As usual, the seminar is absolute free with no obligations whatsoever.  If you feel you learn something very valuable and wish to do something to Transmercial in return, Transmercial encourages you to make a tax-deductible donation to Franciscan Charity.  This organization helps the disabled, orphans, and poor in Vietnam, and Cambodia. With $500 donation you can save a live by paying for a heart surgery!

10-14: Rite Aid, Shopping Centers, Apartments For Sale

Welcome new investors.  Each property has a brief description and an one-page flyer (attached).  For a full marketing brochure, please email to maria@transmercial.com.  Previous lists are posted on Transmercial’s blog after 2 weeks delay. Please click here to see how Transmercial selects the following properties among 300-400 properties on the market today.

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.

NNN-: Triple net lease with landlord responsible for roof and structure.  Used by Transmercial only.

1.      Rite Aid in Elk Grove, CA: 17,340 SF drug store with new Customer World design.  Built in 2010 on 2.73 acres hard corner lot in high-growth (89% since 2000), high income (AHI $95K/yr) Sacramento suburbs. 20 yrs absolute NNN lease.  NOI $588K/yr.  with rent bump in options. $7.455M. 7.9% cap.

2.      Strip Center in Murfreesboro, TN: 3970 SF 2-tenant retail center built in 2006 on an outparcel to a shopping center anchored by Kroger supermarket in high-growth middle class Nashville suburbs. 100% NNN by Starbucks and Suntan city (regional tenant with 100+ locations).  NOI $118K/yr. $1.524M. 7.75% cap.

3.      Party City in Bakersfield, CA: 11,232 SF single-tenant 3-yrs old retail center on .85 ac lot in high income area in Bakersfield (AHI $86K/yr). 100% NNN leased to 2020.  NOI $222K/yr. $2.5M. 8.9% cap.

4.      Retail Center in South Elgin, IL: 12,050 SF upscale retail center built in 2009 on 1.62 acres hard corner lot in fast growing upper middle class Chicago metro .  100% NNN leased by 4 tenants.  NOI $318K/yr. $3.729M. 8.53% cap.

5.      Shopping center in Cincinnati, OH: 9835 SF retail center built in 2007 on 1.5 acres outparcel to Wal-mart supercenter in an affluent area with AHI of $138K/yr within 1 mile. Easy access to I-75.  100% NNN leased by 4 national tenants: Starbucks, Chipotle, GameStop, Verizon. NOI $236K/yr. $2.6M. 9.1% cap.

6.      Shopping Plaza in Indianapolis, IN: 84,799 SF stabilized neighborhood center on 10.46 acres lot in middle class area.  Anchored by 58,875 SF Marsh Supermarket, a regional chain with 105 stores.  Shadow anchored by K-mart, Kroger and Sears.  95% leased by 11 tenants.  NOI $517K/yr. $5.75M. 9% cap.

7.      Apartments in Dallas, TX: 111-unit apartments on 3 acres lot in affluent uptown district of Dallas (AHI $99K/yr).  Rehabbed in 2004. 85% leased.  NOI $250K/yr. $2.5M. 10% cap.

8.      Retail center in Shoreline, WA: 14,000 SF retail center in Seattle metro.  Across from Home Depot and Costco.  100% leased.  NOI $289K/yr. $3.41M. 8.5% cap.

© Transmercial 2010.  All rights reserved.

10-13: Commercial Lot, Apartments, Lone Star Steakhouse, Burger King, Mini Storage For Sale

2010 Fastest Growing Cities in the US.  Click here for the article.

1.      Commercially-zoned Land in Cupertino, CA: rare 5.16 acres bank-owned commercially-zoned lot at the corner of I-280 and Wolf in a wealthy city Silicon Valley.  $6.745M.

2.      Shopping Center in Sioux city, IA: 71,987 SF well-established shopping center on 6.86 acres lot across the Street from Southern Hills Regional Mall & Lakeport Commons Power Center. 78% leased.  NOI $413K/yr. $4.135M. 10% cap.

3.      Bank-owned Apartments in Memphis, TN: 559-unit class-C apartments on over 29 acres lot.  Foreclosed by bank with $12M loan.  Property will require $3M rehap. 20% occupied.  Pro forma NOI $1.35M.  $4.5M as is or $8M after $3M rehap.  Just $8K/unit.

4.      Retail Center in Newark, CA: 9800 SF 7-unit strip center built in 2007 on .94 acres lot in high income city in San Fran metro (AHI $101K/yr).  90% NNN leased.  Actual NOI $162K/yr. $2M. 8.16% cap. Upside potential when rent concessions are gone and/or 100% leased.

5.      Lone Star Steakhouse in Baton Rouge, LA: 5480 SF restaurant built in 1998 on 1.3 acres with I-12 visibility.  Shadow anchored by Wal-mart and Rave Baton Rouge 16 theater.  100% corp NNN lease till 2022. NOI $174K/yr.  $1.698M. 10.25% cap.

6.      Burger King in Casa Grande, AZ: 2678 SF restaurant in a fast growing city.  Tenant just spent $250K in renovation.  100% NNN leased till 2021 by an operator with 8 locations.  NOI $108K/yr. $1.44M. 7.5% cap.

7.      Apartments in Smyrna, GA: 122 unit well-kept apartments on 6.9 acres lot in quiet setting, middle-class Atlanta metro (AHI $75K/yr).  Amenities include stand alone leasing office, clubroom, swimming pool, laundry center, playground, and picnic area with grills. 81% occupied with low rent. NOI $330K/yr. $3.5M. 9.43% cap.

8.      Mini Storage in Sacramento, CA: 31,420 SF mini-storage facility built in 1996 near Sacramento Executive Airport.  76% occupied.  NOI $192K/yr. $2.752M. 7% cap.

9.      Shopping Plaza in Kent, WA: 73,061 SF shopping center on 7.11 acres corner lot with Hwy 99 frontage in growing middle class South of SeaTac Airport. 88% leased.  NOI $1.046M. $13.5M. 7.75% cap.

© Transmercial 2010.  All rights reserved.

10-12: AutoZone, Office Max, Walgreens, Lone Star Steakhouse For Sale

1.      AutoZone in Fresno, CA: 6786 SF single-tenant retail center on ¾  acres pad in middle class area.  100% leased with 7 yrs remaining.  NOI $147K/yr. $2.146M. 6.85% cap.

2.      Office Max in Phoenix, AZ: 18,000 SF single-tenant retail center built in 2007 as a part of a shopping center anchored by Wal-mart Supercenter. 100% NNN leased till 2018.  NOI $306K/yr. $3.825M. 8% cap.

3.      Shopping Center in Brownsville, TX: 174,400 SF retail center on 23 acres corner lot just off Hwy-83. Renovated in 2007.  Anchored by Big Lots! and Family Dollar.  98% occupied.  NOI $1.186M. $12,487M. 9.5% cap.

4.      Apartments in Seattle, WA: 27-unit well-kept apartments in stable & high income area (AHI $97K/yr).  NOI $153K/yr. $1.985M. 7.72% cap.

5.      Retail center in Rowlett, TX: 28,511 SF 5-yrs old 7-unit retail center on 3.35 acres lot adjacent to Big Lots!  in upper middle class Dallas suburbs. 61% NNN leased with 2 vacant units.  Actual NOI $233K/yr. $3.3M. 7.1% actual cap.  Upside potential (13.6% cap) when 100% leased.

6.      Bank-Owned Apartments in Dallas, TX: 317-unit 10-building apartments built in 1983 on 6.28 acres lot in North East area of Dallas.  84% occupied.  $5.5M.  Just over $17K/unit.

7.      Walgreens in Las Vegas, NV: 15,120 SF drug store built in 1999 on 1.62 acres corner lot. 100% NNN- till 2019.  NOI $405K/yr. $5.192M. 7.8% cap.

8.      Retail Center in Rialto, CA: 23,700 SF single-tenant retail center on 1.88 acres lot as a part of a shopping center anchored by Food 4 Less. 100% NNN leased.  NOI $187K/yr. $2.2M. 8% cap.

9.      Lone Star Steakhouse in Huntsville, AL: 8212 SF steakhouse on 1.47 acres lot at the entrance of 932,000 SF Madison Square Mall.  New 15 yrs corp NNN lease.  NOI $115K/yr with 2% annual rent bump.  $1.211M. 9.5% cap.

10.   Office Building in Costa Mesa, CA: 17,880 SF 2-story 3 building office complex constructed in 1980 on 1.2 acres lot in an affluent city (AHI $125K/yr within 1 mile).   70% occupied.  $2.6M. Just $145/SF!

© Transmercial 2010.  All rights reserved.

10-11: Lone Star Steakhouse, Applebee's, Wakgreen's, Shopping Center For Sale

1.      Lone Star Steakhouse in Littleton, CO: 5835 SF Lone Star Steakhouse with 130 locations in US. Built in 1995 on .94 acres outparcel to Sam’s Club in upper middle-class (AHI $81K/yr) Denver suburbs.  Store with strong $1.676M in sales revenue.  New 15 yrs absolute NNN corp lease.  NOI $100K/yr.  with 2% annual rent bump $1.006M. 10% cap.  Low 6% rent to income ratio, i.e. profitable location.

2.      Lone Star Steakhouse in Elgin, IL: 5503 SF Lone Star Steakhouse with 130 locations in US.  Built in 1997 on 1.47 acres outparcel to Marcus Elgin Cinema just off Hwy-20 exit in high income (AHI $85K/yr) Chicago suburbs.  Store with strong $1.734M in sales revenue. New 15 yrs absolute NNN corp lease.  NOI $104K/yr.  $1.04M. 10% cap. Low 6% rent to income ratio, i.e. profitable location.

3.      Office Building in Milford, MA: 90,000 SF 2-story class-A office building completed in 2000 on 9.56 acres lot about 20 minutes from Boston.  100% Leased to Jarden's Consumer Solutions (NYSE: JAH, a leading provider of niche consumer products with 20,000 employees) through Dec 2015.  NOI $920K/yr. $8M. 11.5% cap.

4.      Applebee’s in Rogers, MN: 5149 SF restaurant built in 2004 on 1.85 acres lot as part of a Super Target and Kohl's Anchored Shopping Center in Minneapolis metro.  New 20 yrs absolute NNN lease.  NOI $109K/yr with 7.5% rent bump every 5 yrs.  $1.277M. 8.55% cap.

5.      Shopping Center in Montgomery, AL: 18,820 SF shopping center built in 2008 o over 2 acres lot in fast growing upper middle class area with AHI $85K/yr within 1 mile.  100% NNN leased by 5 tenants.  NOI $288K/yr. $3.037M. 9.25% cap.

6.      Walgreens in Stockbridge, GA: 15,120 SF pharmacy built in 2001 on 2 acres lot with 3 points of access from 3 different roads in fast growing middle class Atlanta metro. 100% NNN- leased till 2021.  NOI $360K/yr.  $4.577M. 7.87% cap.

© Transmercial 2010.  All rights reserved.

10-08: Red Robin, Red Roof Inn, Fresenius, Burger King, Applebee's For sale

1.      Red Robin in Algonquin, IL: 6429 SF franchised restaurant on 1.44 acres parcel in fast growing and affluent (AHI 100K/yr) Chicago suburbs. Nearby national retailers include Home Depot, Walmart Supercenter, Office Depot, Best Buy, Target, Walgreens and JCPenney.  New 20 yrs absolute NNN lease.  NOI $242K/yr. with 7% rent bump every 5 yrs.  $2.868M. 8.46% cap.

2.      Bank-owned Retail Plaza in Las Vegas, NV: 18,685 SF 11-unit inline retail center built in 1997 in high growth (94% since 2000) middle-class area.  Shadow anchored by CVS Pharmacy and Checker Auto.  Across from Home Depot, Office Depot, Petsmart, and Vons Supermarket.  79% leased.  Current NOI $226K/yr.  $2.95M.  7.68% actual cap.  Upside potential when 100% leased.

3.      Office building complex in Turlock, CA: 39,650 SF 9-building medical/professional office complex on 3.3 acres lot.  NOI $806K/yr.  $6.2M. 11% cap.

4.      Office building in Flower Mound, TX: 11,013 SF medial/professional office building in growing & affluent (AHI $111K/yr) Dallas suburbs. 100% leased.  NOI $221K/yr. $2.8M. 7.9% cap.

5.      Red Roof Inn in Houston, TX: 122-unit hotel built in 1997 on 3.34 acres lot with frontage on US-290.  NOI $206K/yr.  $2.75M.  Priced below replacement cost.

6.      Short-sale Apartments in Fresno, CA: 124 unit apartments built in 1984 on 5.14 acres lot.  NOI $429K/yr. $4.2M. 10.23% cap.

7.      Fresenius Medical in Berwyn, IL: 11,918 SF dialysis center on .94 ac corner parcel in a densely-populated area with over 600K residents within 5 miles.  Tenant recently spent $1.5M remodeling the property.  100% corp NNN lease till 2019.  NOI $197K/yr. $2.385M. 8.28% cap.

8.      Shopping Center in Lodi, CA: 123,736 SF shopping center on 10.9 acres lot.  Anchored by K-mart and shadow anchored by Orchard Supply and Big Lots.  97% leased.  NOI $898K/yr. $11.23M. 8% cap.

9.      Burger King in Springfield, MO: 3437 SF restaurant on 1 acres outparcel to a shopping center.  100% NNN lease with 8 yrs remaining.  NOI $123K/yr. $1.543M. 8% cap.

10.   Applebee’s in Kansas City, KS: 5852 SF family restaurant in the heart of Village West Retail Center anchored by Target, JCPenny, Legends 14 Theater Complex, Nebraska Furniture Mart, Kansas Speedway, Hollywood Casino, KC Soccer Stadium.  Restaurant has been here for 7 yrs.  New 20 yrs NNN lease.  NOI $177K/yr. $2.36M. 7.5% cap.

FREE “How to invest in commercial real estate” seminar/webinar. 

Date: Sat Nov 13, 2009

Time: 8:55AM to noon PST

Place: Transmercial at 1340 Tully Rd.  suite 307.  San Jose CA. You can also attend the seminar remotely if you have a PC with Internet access (to see the presentation) and phone (to listen in and ask questions).

Presenter: David Tran

This seminar is intended for investors who would like to understand the fundamentals of commercial real estate investment:

• Compare commercial vs. residential investment properties.
• Commercial real estate terminology: cap rate, NOI, etc.
• Which property type should you invest? Shopping strip, Office building, Apartment, or Gas station? Single tenant or multi-tenant properties?
• How to choose a good investment property.
• Investment returns
• When is a best time to invest in commercial real estate?
• National demographic trends that may influence on where to invest
• Where should you invest?  
• Leases: gross lease, net lease, & percentage lease. Which one investors prefer?
• Property Management issues.
• What you should know about financing for commercial properties.
• The offer process, due diligence.

Please use attached form for reservation for both seminar and webinar. Webinar instruction will be emailed 2 weeks before the presentation date.

As usual, the seminar is absolute free with no obligations whatsoever.  If you feel you learn something very valuable and wish to do something to Transmercial in return, Transmercial encourages you to make a tax-deductible donation to Franciscan Charity.  This organization helps the disabled, orphans, and poor in Vietnam, and Cambodia. With $500 donation you can save a live by paying for a heart surgery!

© Transmercial 2010.  All rights reserved.

10-07: Wendys, Shopping Centers, Apartments, Joes Crab Shack, Apartments For Sale

Welcome new investors.  Each property has a brief description and an one-page flyer (attached).  For a full marketing brochure, please email to maria@transmercial.com.  Previous lists are posted on Transmercial’s blog after 2 weeks delay. Please click here to see how Transmercial selects the following properties among 300-400 properties on the market today.

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.

NNN-: Triple net lease with landlord responsible for roof and structure.  Used by Transmercial only.

1. Wendy’s Restaurant in Stone Mountain, GA: 3123 SF Wendy’s Restaurant across from Wal-Mart in fast growing Atlanta suburbs. 15-years remaining on a 20-year absolute NNN lease with 1.5% annual rent increased starting in 2011. NOI $179K/yr. $2.055M. 8.75% Cap.
2. Shopping Center in The Colony, TX: 18,900 SF well-maintained shopping center shadow-anchored by Wal-Mart with excellent visibility in fast growing wealthy Dallas/Fort Worth metro. NOI $274K/yr. $3.330M. 8.25% Cap.      
3. Shopping Center in Decatur, GA: 30,430 SF established shopping center built in 1988 on 4.54 acres lot in Atlanta metro.  Anchored by AutoZone.  100% leased.  NOI $267K/yr. $2.2M. 12.15% cap.
4. Apartments in Fresno, CA: 140-units attractive multi-family apartments consisting of eight 2-story buildings.  Completely remodeled and upgraded in 2003.  Conveniently located close to transportation, freeways, colleges and shopping centers. NOI $401K/yr. $3.6M. 11.13% Cap. This is a short-sale opportunity.
5. Bank-owned Retail Center in McDonough, GA: 9930 SF retail center built in 2003 with excellent egress/ingress along major road. 63.75% leased. NOI $59K/yr. $760K. 7.85% Cap. Upside potential when fully leased.
6. Joe’s Crab Shack in Austin, TX: 6702 SF single-tenant retail restaurant constructed in 1996 on 1.50 acres of land adjacent to heavily traveled Rout-183 surrounded by great mix of retail, office and residential properties. 100% absolute NNN corp lease. 10% rent increases every 5-years. NOI $240K/yr. $3.010M. 8% Cap.
7. Goodwill in Mesa, AZ: 18,646 SF free-standing retail building across from Fiesta Mall anchored by Dillards, Best Buy, Macy’s & Sears at hard corner location. 100% NNN leased. NOI $241K/yr. $2.845M. 8.5% Cap. Recession resistant tenant.
8. Shopping Center in San Diego, CA: 14,042 SF shopping center anchored by Subway, It’s A Grind, Bank of America and Supercuts at signalized intersection. 100% NNN leased by ten-tenants. NOI $527K/yr. $6.5M. 8.11% Cap.
9. Shopping Center in Houston, TX: 20,140 SF retail plaza built in 2008 on 1.62 acres lot.  87% leased.  Current NOI $282K/yr.  Price reduced to $3.15M from $3.4M. 9% cap.  Upside potential thru lease-up.

© Transmercial 2010.  All rights reserved.

10-06: Home Depot, Office Buildings, Family Dollar, Fitness center, Shopping Centers For Sale

1.      Home Depot in Orange Park, FL: 108,578 SF single-tenant big box built in 1992 on 11.37 acres lot in middle-class Jacksonville metro.  Adjacent to 187,000 SF Super Target and across from 120-store Orange Park Mall.  100% absolute corp NNN leased to Home Depot till 2017.  NOI $1.13M with 5% rent bump in 2012.  Unpriced but broker said 8% cap ($14M) offer will be accepted.

2.      Auction - Office building in Bedford, TX: 86,000 SF 5-story class-B office building on 5.65 acres lot in high income Dallas metroplex. Vacant but previously used as call center for an insurance company.  Closed bid auction on Nov 16 with reserved price of $2.575M, i.e. lender will sell if winning bid is above this price.       

3.      Shopping Center in Las Vegas, NV: 108,794 SF grocery-anchored neighborhood center on 9 acres lot at the intersection of 2 major arteries. 86% NNN leased.  NOI $1.184M. $13.1M. 9.04% cap.

4.      Family Dollar in Tucson, AZ: 9180 SF single-tenant new retail center on 1.89 acres lot.  10 yrs corp NN lease.  NOI $129K/yr with 10% rent bump every 5 yrs.  $1.48M. 8.75% cap.  Recession insensitive tenant.

5.      Shopping center in Elgin, IL: 20,300 SF 16-unit 2-story retail center built in 1989 on 1.6 acres lot in middle class Chicago metro.  Currently occupied by 14 tenants.  NOI not avail.  Price reduced to $1.995M from $2.399M.

6.      24 Hr Fitness Center in Vista, CA: 35,000 SF fitness center built in 2009 near Hwy 78 exit in growing middle-class San Diego suburbs.  Surrounded by National Retailers Including Wal-mart, Target, Sam's Club, Ross and more. 15 yrs corp NNN lease.  NOI $797K/yr. with 10% rent bump every 5 yrs.  $7.25M. 11% cap.

7.      Office Building in Dallas, TX: 51,043 SF 4-story class-B office building on 2.1 acres lot with I-30 frontage.  Recent $500K renovation.  90% occupied. NOI $362K/yr. $3.62M. 10% cap.

8.      Strip Center in Orange Park, FL: 8000 SF retail center built in 2001 on an outparcel to Publix supermarket. 100% NNN leased to 6 tenants.  NOI $122K/yr.  $1.475M. 8.3% cap.

9.      Retail Center in Duluth, GA: 15,441 SF bank-owned shopping center built in 2006 in fast growing upper middle class Atlanta metro.  Shadow anchored by Walmart.  $1.3M.  Upside potential when leased up.

© Transmercial 2010.  All rights reserved.

10-05: Shopping centers, Office Depot, CVS, Rite Aid, Medical Office Buildings For Sale

1.      Shopping Center in Orlando, FL: 77,254 SF shopping center built in 2001.  Anchored by 31,896 SF TJ Maxx, 12,000 SF Petco, and 13,800 SF Shoe Carnival.  Shadow anchored by 183,119 SF Super Target and CVS pharmacy.  90% NNN leased.  Current NOI $765K/yr.  $8.05M. 9.5% cap.  Just $104/Sf.  Upside potential when 100% leased.

2.      Office Depot in East Palo Alto, CA: 30,988 SF Office Depot on 2.65 ac lot as part of a power center anchored by IKEA, Best Buy, Sports Authority, Mi Pueblo Grocery, and Home Depot.  Just off hwy 101 in wealthy Silicon Valley (AHI $154K/yr within 3 miles radius).  Area with extreme high barrier to entry.  10 yrs corp NNN lease with 8 yrs remaining.  NOI $898K/yr. with 10% rent bump every 5 yrs.  $12.8M. 7% cap.

3.      Medical Building in Rio Rancho, NM: 3478 SF single-tenant 2-yrs old medical office building in growing and strong income area.  6 yrs NNN lease to Rio Grande Dermatology with 4 yrs remaining.  NOI $83K/yr. with 3% annual rent bump. $1.043M. 8% cap.

4.      Shopping center in Fort Worth, TX: 22,797 SF shopping center on 1.62 acres lot on a major artery in high income area.  100% leased to 8 tenants.  NOI $278K/yr. $2.8M. 9.95% cap.

5.      CVS Pharmacy in Cooper City, FL: 14,776 SF drug store on 1.75 acres corner lot in an affluent (AHI $110K/yr) Ft Lauderdale metro with easy access to I-75.  100% NNN leased till 2025.  NOI $387K/yr. $5.24M. 7.5% cap.

6.      Shopping Center in Powell, OH: 48,750 SF upscale shopping center built in 2002 on 9.18 acres lot in wealthy (AHI $123K/yr) Columbus suburbs.  Shadow anchored by a recently expanded Kroger Supermarket. 100% NNN leased.  NOI $726K/yr. $8.35M. 8.7% cap.

7.      Rite Aid in Roseville, CA: 17,700 SF drug store on 2 acres lot in middle class Sacramento suburbs. 100% NNN leased.  NOI $476K/yr. $5.96M. 8% cap.

8.      Apartments in Austin, TX: 103 unit apartments built in 1983 on 2.84 acres lot in stable & high income area (AHI $81K/yr).  99% occupied.  NOI $388K/yr. $5.2M. 7.5% cap.

9.      Shopping Center in Fort Collins, CO: 21,633 SF trophy shopping center on 2.63 acres parcel in high income (AHI 93K/yr) city North of Denver.  Great visibility: frontage on 3 streets.  95% NNN leased. NOI $398K/yr. $4.8M. 8.23% cap.

10.   Executive Inn in Omaha, NE: 212-unit hotel on 4.5 acres lot near I-80 with traffic exceeding 200K cars/day.  Pro forma NOI $800K/yr. $4M. 20% pro forma cap.

© Transmercial 2010.  All rights reserved.

10-04: Medical office, retail centers, REO apartments, Alehouse, Hargees For Sale

1.      Strip Center in Garden Grove, CA: 11,649 SF 10-unit retail center on .91 acres lot in densely-populated (over 550K residents within 5 miles ring) middle-class (AHI $87K/yr) area in Southern California.  48% occupied.  Pro forma NOI $233K/yr.  $2.1M. 11.11% pro forma cap.  Note: high vacancy due to owner plan to get tenants out for renovation.  He later canceled his plan.

2.      Medical Office Building in Wichita, KS: 8995 SF medical office building part of 100,000 SF office park on a major artery.  100% NNN leased by 3 tenants.  NOI $123K/yr. $1.299M. 9.5% cap.

3.      Retail Center in Folsom, CA: 22,108 SF class-A retail center built in 1999 in a fast growing (42% since 2000) and high income (AHI $109K/yr) Sacramento metro. 95% NNN leased.  NOI  $466K/yr. $5.81M. 8% cap.

4.      Office building in San Jose, CA: 29,708 SF 2-story meticulously maintained office building constructed in 1983 on 1.54 acres lot at the corner of Almaden and Capitol expressways.  Many extras: back-up power, elevator, 50-MBPS high speed internet access. 100% leased to Manpower, Inc. (NYSE: MAN) till 2011. Tenant will most likely renew the lease with less space.  NOI $416K/yr. $2.95M. 14% cap. Just $99/SF!  Strong upside potential!

5.      Shopping center in  Austin, TX: 49,200 SF trophy shopping center anchored by 20,898 SF Office Depot.  Shadow anchored by Wal-mart Supercenter.  At the corner of US 290 and I-35.  96% NNN leased with many national tenants: Subway, T-Mobile, Game Stop, Check N Go.  NOI $943K/yr. $13M. 7.25% cap.

6.      Bank-owned Apartments in Sacramento, CA: 156-unit 89,000 SF apartments on 4.44 acres.  Proforma NOI $512K/yr. $4.5M.  Less than $29K/unit.  Pro forma 10.10% cap.

7.      Alehouse Restaurant in Jacksonville, FL: 8245 SF regional franchised restaurant built in 2004 on 2 acres lot adjacent to 100-store Regency Square Mall and Home Depot. 100% NNN leased to 2024.  NOI $220K/yr. $2.7M. 8% cap.

8.      Hardee’s restaurant in Independence, MO: 2675 SF fast food franchised restaurant on a corner lot in Kansas city metro.  New 20 yrs absolute NNN lease to an operator with 105 units.  NOI $77K/yr with 10% rent bump every 5 yrs.  $934K.  8.25% cap.

© Transmercial.  All rights reserved.

Best Properties To Invest In The US: How They Are Selected

Every day there are about 300-350 new retail and office properties between $700K to $15M on the market in all 50 states listed by various companies.  Out of these hundreds of listings, only the top 5-10 properties make it to the list that you see on this blog.  By focusing on the short list of best properties, you will save time and are more likely to be successful with your investments.

Below are some of the selection criteria:

1.       Price range:  most investors look for properties between $700K and $15M.

2.       Property types: most if not all investors of Trasnmercial want to invest in retail properties and office buildings where tenants sign long term low-risk NNN leases, i.e. tenants pay for property taxes, insurance and maintenance expenses, in favor of landlords.  They prefer not to invest in apartments where leases are mostly riskier gross, i.e. landlords pay for taxes, insurance and unpredictable maintenance expenses.  Besides, apartment tenants normally don’t have much money which may affect their ability to pay the rent on time.

3.       Cap rate: the return of investment must be “reasonable”, e.g. generally higher than the interest rate.  The cap rate is typically lower in CA and higher in other states.  However cap rate is not everything.

4.       Property condition: investors prefer properties with little deferred maintenance.

5.       Demographics: the selected properties tend to be in growing, high income and bigger cities/metros as they have better chance to appreciate and easier to find tenants.  Besides they are easier to sell if needed. 

·         You won’t see properties in an area where people are moving out, e.g. Detroit downtown.  These properties are easy to buy but hard to sell.  In addition, it’s hard to get attractive financing, if at all, for these properties.

·         Properties in a middle of nowhere won’t make it to the lists.  These are also easy to buy but hard to sell.

·         Properties in cities where the average household income is way below the national average, e.g. $28,000/year, also won’t make it to the list as these are most likely high-crime areas. 

6.       Occupancy: close to 100%.

7.       Good Visibility: properties tend to have most if not all units facing the road to show case the tenant businesses.  Tenants love visibility.  What’s good for tenants is also good for investors.

8.       Great locations: properties on a major artery with heavy traffic, near the freeway exit, on corner lot, near a mall, on an outparcel to a shopping center.

9.       Land: if land is not included then it does matter how beautiful the property is, it will not be selected. This is the type of property that is easy to buy but hard to sell.

10.   Lease Type: most likely NNN leases.

11.   Parking spaces: at least 4 spaces per 1000 SF of leasable space..  It’s hard to lease a retail property unless it has sufficient parking spaces.

12.   Age: not over 20 yrs old unless the property is well-maintained or recently renovated.

13.   Price per square foot:             sometimes a property is selected because the price per SF is low, e.g. less than $200/SF for a retail property in California.  The main reason for the selection is appreciation potential.

14.   Low rent: there is upside potential if the rent is below market.  When the leases expire, the rent is adjusted to market rent which increases the value of the property. 

15.   Financing: sometimes a property may be selected because it offers attractive financing.  For example, the seller is willing to carry 80% LTV at low interest rate or buyer can assume a loan at 5.5% interest, fixed for 10 years.  This in turn may increase the overall return or cash on cash.   On the other hand, a property may be screened out because it is difficult to get reasonable financing.  For example, in this tight credit market it is extremely difficult to get financing for a single-tenant mom-and-pop restaurant.

16.   Misc: A property could be selected or screened out for other reasons

·         If a property has a dry cleaner with onsite cleaning, it will not be selected due to potential soil contamination by a chemical called Perc used in the cleaning process.

·         A property in an affluent Santa Monica, CA could be selected simply because it’s rarely available.

·         A vacant restaurant in front of a mall in San Francisco Bay Area could make the list because it may have lots of interests from investors in CA.

If you are interested on a particular property and would like additional information, i.e. a brochure, please email to maria@transmercial.com. It’s good idea to provide Maria with:

• The date the property was selected (not posted date.) This is on the subject of the post.
• Name of the property, e.g. Walgreens in Dallas, TX.

You will notice that the properties are posted 2 weeks after the date they are selected. The reason for this 2-week delay is we don’t want other companies to take advantage of our research work. If you are an investor and would like to receive the list daily without two weeks delay, we invite you to join Transmercial investors club.  Just send a “subscribe” email to iclub@transmercial.com. The daily list of best properties is emailed to members by 6PM PST, Monday-Friday. The email also contains a 1-page flyer for each selected properties with picture, address, and a brief description about the properties.

Membership to Transmercial investors club is FREE. More membership details are posted on www.transmercial.com/club.htm. Don’t worry; there are absolutely no obligations of anything from you to us for being a member. Of course, we hope that you like our work and will eventually ask us to represent you. However, it’s all up to you as you have no contractual obligations to us for anything.

10-01: Red Robin Restaurant, Shopping Centers, Office Building For Sale

FREE “How to invest in commercial real estate” seminar/webinar. 

Date: Sat Nov 13, 2009

Time: 8:55AM to noon PST

Place: Transmercial at 1340 Tully Rd.  suite 307.  San Jose CA. You can also attend the seminar remotely if you have a PC with Internet access (to see the presentation) and phone (to listen in and ask questions).

Presenter: David Tran

This seminar is intended for investors who would like to understand the fundamentals of commercial real estate investment:

• Compare commercial vs. residential investment properties.
• Commercial real estate terminology: cap rate, NOI, etc.
• Which property type should you invest? Shopping strip, Office building, Apartment, or Gas station? Single tenant or multi-tenant properties?
• How to choose a good investment property.
• Investment returns
• When is a best time to invest in commercial real estate?
• National demographic trends that may influence on where to invest
• Where should you invest?  
• Leases: gross lease, net lease, & percentage lease. Which one investors prefer?
• Property Management issues.
• What you should know about financing for commercial properties.
• The offer process, due diligence.

Please contact Maria J. Martinez at 408-288-5500 for reservation form for both seminar and webinar.

As usual, the seminar is absolute free with no obligations whatsoever.  If you feel you learn something very valuable and wish to do something to Transmercial in return, Transmercial encourages you to make a tax-deductible donation to Franciscan Charity.  This organization helps the disabled, orphans, and poor in Vietnam, and Cambodia. With $500 donation you can save a live by paying for a heart surgery!

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.

NNN-: Triple net lease with landlord responsible for roof and structure.  Used by Transmercial only.

1. Strip Center in Chicago, IL: 5788 SF newly renovated strip center with strong mix or regional/national tenants at corner location with excellent tenant visibility. 100% NNN leased. NOI $145K/yr. $1.725M. 8.45% Cap.
2. Office Building in American Fork, UT: 11,736 SF recently constructed beautiful Class-B office building in fast growing (34.81%) middle-class neighborhood just 32-miles south of Salt Lake City. 100% NNN leased by three tenants. NOI $105K/yr. $1.4M. 8% Cap.
3. Retail Center in Dublin, CA: 8420 SF retail center built in 2006 anchored by Starbucks in affluent (AHI $123K/yr within 5-mile ring) Alameda County east of San Francisco along main road close to I-680. 100% leased. NOI $280K/yr. $4M. 7% Cap.
4. Shopping Center in Spring, TX: 11,520 SF good-looking shopping center built in 2007 in close proximity to I-45. 100% NNN leased. NOI $194K/yr. $1.975M. 9.8% Cap.
5. Red Robin in Surprise, AZ: 6345 SF beautiful single-tenant restaurant on 1.52 acres of land at high traffic intersection along major retail corridor. Long absolute NNN corp lease till 2020. 10% increases every 5-years. NOI $121K/yr. $1.728M. 7% Cap. Buyer owns the land.

© Transmercial 2010.  All rights reserved.

09-30: Red Robin, Stater Bros, Shopping Centers For Sale

Welcome new investors.  Each property has a brief description and an one-page flyer (attached).  For a full marketing brochure, please email to maria@transmercial.com.  Previous lists are posted on Transmercial’s blog after 2 weeks delay. Please click here to see how Transmercial selects the following properties among 300-400 properties on the market today.

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.

NNN-: Triple net lease with landlord responsible for roof and structure.  Used by Transmercial only.

1. Strip Center in Rancho Cucamonga, CA: 7200 SF recently constructed multi-tenant strip center across from renowned Ontario Mills Mall at major intersection. 100% NNN leased by nationally recognized tenants. NOI $279K/yr. $3.991M. 7% Cap. 
2. Shopping Center in Lisle, IL: 39,800 SF well-maintained shopping center with excellent tenant mix: Angle Nails, Puppy Palace, Johnies Red Hots, Weldon Home Center, Lisle Liquors, Cleaners, Hong Kong Chef, Dance Studio, Resale Shop and Pizza and hard corner location in fast growing Chicago suburbs. 97% leased. NOI $337K/yr. $3.750M. 9%Cap.    
3. Red Robin Restaurant in Algonquin, IL: 6429 SF single-tenant Red Robin Restaurant on 1.44 acres of land in growing (25.64%) wealthy (AHI $100K/yr within 1 mile radius) Chicago metro. Long absolute NNN lease with 7% rent increases every 5-years. NOI $242K/yr. $2.950M. 8.22% Cap.
4.  Restaurant in Jacksonville, FL: 8245 SF single-tenant retail restaurant constructed in 2004 across from Regency Square Mall close to I-113/10. 100% NNN leased. NOI $220K/yr. $2.7M. 8% Cap. 
5. Stater Bros in Colton, CA: 26,455 SF single-tenant retail building on 2.39 acres of land with excellent freeway visibility in densely populated city. 100% NNN leased grocery chain with over 165 stores. NOI $154K/yr. $2.135M. 7.25% Cap. 
6. Retail Center in Charlotte, NC: 12,000 SF retail center built in 2000 at high traffic location fully occupied with long term NNN leases. NOI $193K/yr. $1.990M. 9.7% Cap.  
7. Retail Building in Tucson, AZ: 10,838 SF multi-tenant retail building close to El Con Regional Shopping Center at corner location. 100% NNN leased by three tenants. NOI $121K/yr. $1.346M. 9% Cap.
8.  Strip Center in Anaheim, CA: 8100 SF strip center outparcel to Target in stable middle- class city with over 650K residents within 5 miles ring.  Easy access to I-5.  Completely remodeled in 2009.  100% NNN leased with stable tenants.  NOI $160K/yr. $2.295M. 7% cap. 

© Transmercial 2010.  All rights reserved.

Confidentiality Note: The information contained in this email and document(s) attached are copyrighted & for the exclusive use of the addressee.  It may contain confidential, privileged and non-disclosable information. If the recipient of this email is not the addressee, such recipient is strictly prohibited from reading, photocopying, distributing or otherwise using this email or its contents in any way and must immediately delete this e-mail.

09-29: Storage Facility, Office Builings, Shopping Center For Sale

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.

NNN-: Triple net lease with landlord responsible for roof and structure.  Used by Transmercial only.

1. Storage Facility in Victorville, CA: 59,630 SF storage facility on 2.7 acres of land with numerous amenities: electronic gates, security cameras throughout the facility located along busy thoroughfare with high visibility from Fwy-15. NOI $195K/yr. $2.175M. 8.97% Cap.
2. Office Buildings in Stockbridge, GA: 28,849 SF two-story office buildings consisting of three buildings with professional/medical tenants just minutes from Henry Medical Center in fast growing Atlanta metro. 90% leased. NOI $363K/yr. $3.815M. 9.54% Cap.
3. Strip Center in Fort Collins, CO: 3601 SF recently renovated two-tenants strip center outparcel to Whole Foods anchored center at hard-signalized intersection. 100% leased by national tenants: Radio Shack & Floyds Barber Shop. 100% leased. NOI $105K/yr. $1.4M. 7.53% Cap.
4. Shopping Center in West Chicago, IL: 9482 SF shopping center along main retail corridor with good tenant mix in densely populated area. NNN leases. NOI $106K/yr. $1.075M. 10% Cap. Upside potential as there are two vacant units.
5. Strip Center in Conway, AR: 12,000 SF multi-tenant strip center built in 2001 on 1.25 acres of land with excellent tenant mix: Moe’s Southwest Grill, Nail Salon, Californian Yogurt, Papa Murphy’s, Chicken City, Jackson Hewitt and the hair company in fast growing North of Little Rock, AR. 100% leased. NOI $168K/yr. $2.250M. 7.5% Cap.      

© Transmercial 2010.  All rights reserved.

09-28: Hooters, Wendy's, IHOP, Davita Dialysis, Strip Centers For Sale

Welcome new investors.  Each property has a brief description and an one-page flyer (attached).  For a full marketing brochure, please email to maria@transmercial.com.  Previous lists are posted on Transmercial’s blog after 2 weeks delay. Please click here to see how Transmercial selects the following properties among 300-400 properties on the market today.

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.

NNN-: Triple net lease with landlord responsible for roof and structure.  Used by Transmercial only.

1.      Shopping Center in Rowlett, TX: 49,273 SF shopping center built in 1994 on 5.5 acres lot in middle-class Dallas suburbs.  Anchored by 27,000 SF Big Lots.  100% leased to 4 tenants.  NOI $427K/yr. $4.449M. 9.62% cap.

2.      Shopping Center in San Jose, CA: 36,895 SF shopping/medical office center renovated in 2006.  On 3 acres corner lot in a wealthy San Jose bedroom community (AHI $115K/yr).  100% leased to 15 retail & medical tenants.  NOI $561K/yr. Price reduced to $7.6M.  7.4% cap.

3.      Hooters Restaurant in Tampa, FL: 6700 SF restaurant on .89 acres outparcel to a shopping center just off I-75 exit in middle class area & tourists destination.  Store with strong $4.6M in revenue.  New 20 yrs absolute NNN lease.  NOI $275K/yr. $3.2M. Low 6% rent to income ratio.  8.6% cap.

4.      Wendy’s Restaurant in Missouri City, TX: 2963 SF restaurant on .92 acres outparcel to a Wal-mart supercenter in affluent (AHI $105K/yr w/I 1 mile) Houston suburbs.  Across from Kohl’s and Target.  New 18 yrs absolute NNN lease by a franchisee with 76 locations. Store with strong $1.388M in sales.  NOI $111K/yr. $1.442M. 7.75% cap.

5.      IHOP in Cordova, TN: 4797 SF restaurant built in 2009 on 1 ac lot on a retail corridor in high income Memphis suburbs.  20 yrs absolute NNN lease with 19 yrs remaining to an operator with 30 locations and $50M annual sales.  NOI $202K/yr. $2.703M. 7.5% cap.

6.      Vacant restaurant in Pittsburg, CA: 6752 SF former restaurant on 1.12 acres lot with easy access to hwy 4 East of San Fran.  Price reduced from $1.199M to $899K.

7.      Strip Mall in Sacramento, CA: 14,947 SF 6-unit strip center built in 1980 on .79 acres corner lot.  80% leased with 1 vacant unit.  NOI $115K/yr.  $1.349M. 8.56% cap.  Just $90/SF!

8.      Davita Dialysis center in Marriott-Slaterville, UT: 5000 SF 2-yrs old single-tenant dialysis center in fast growing (44% since 2000) Salt Lake City suburbs.  10 yrs NNN leased to Davita (NYSE: DVA, ranked 355 among Fortune 500 companies in 2010).  NOI $88K/yr. Price just reduced to $934K. 9.5% cap.  Note: a dialysis center often requires several million dollars of equipment investments and thus tenant often occupies the property for a long time.

© Transmercial 2010.  All rights reserved.

09-27: Popeyes, Autozone, Burger King, Dollar Tree For Sale

1.      Popeyes in San Antonio, TX: 2940 SF restaurant built in 1996 on .9 acres lot on a major retail corridor with easy access to I-410.  15 yrs NNN lease till 2021 to the 2^nd largest Popeyes franchisee with 50 locations and $42M in annual revenue. NOI $93K/yr with 10% rent bump every 5 yrs ($103K/yr in Sept 2011).  $1.206M. 7.75% cap (8.56% in 2011).

2.      Autozone in Madera, CA: 6786 SF single-tenant 1 yr old retail on ¾ acres corner lot right by Hwy 99 off ramp in a growing city. 15 yrs NNN lease with no landlord responsibilities.  NOI $148K/yr with rare 10% rent bump every 5 yrs.  $2.21M. 6.7% cap.

3.      Burger King in Tacoma, WA: 3723 SF fast food restaurant with indoor play area built in 2002 on .69 acres outparcel to K-mart, Big Lots & Safeway anchored shopping center. Long term NNN lease.  Store with strong sales of $1.5M.  NOI $139K/yr. $1.945M. 7.15% cap.

4.      Dollar Tree in Barstow, CA: 9900 SF Dollar Tree store on .95 acres lot as part of Vons Supermarket (owned by Safeway) anchored shopping center.  100% NNN- corp lease till 2015.  NOI $84K/yr with rent increase every 5 yrs.  $1.15M. 7.31% cap.

5.      Strip Center in San Bernardino, CA: 11,221 SF multi-tenant strip center.  88% NNN leased.  NOI $127K/yr. $1.41M. 9% cap.

© Transmercial 2010.  All rights reserved.