Advisory: attached is an interesting article written by a law firm regarding due diligence in purchase contract. Transmercial has noticed the practice in most contracts in Texas for several years but did not quite understand its significance till now. Based on the article, Transmercial will make appropriate adjustment in its business practice.
1. Office Building in Tampa, FL: 32,000 SF recently remodeled class-A office building on 2.3 acres lot at a major intersection in a high income (AHI $84K/yr within 1mile) area. Near Walmart Supercenter and Target. 85% occupied by 15 tenants. NOI $297K/yr. $3.3M. 9% cap.
2. Walgreens Shopping Center in Rialto, CA: 34,383 SF shopping center built in 2006 on 5.32 acres corner lot. Anchored by free-standing Walgreens. 96% NNN leased by mostly brand name tenants: Walgreens, Wendy's (Corp.), El Pollo Loco (Corp.), Sprint PCS, Little Caesars, and Ace Cash Express. Adjacent to a Food 4 Less anchored center and across from a Home Depot & 99 Cent Only anchored center. NOI $807K/yr. $11.54M. 7% cap. Buyer needs only 24% equity and assume non-recourse loan at 5.65% fixed rate till 2016. 11.16% total return.
3. Hooters Restaurant in Councils Bluffs, IA: 4880 SF restaurant built in 2008 on 1.5 acres outparcel to Horseshoe Casino, Mid America Convention Center & Bass Pro Shops in Omaha metro. New 15 yrs absolute NNN lease. NOI $216K/yr with 10% rent bump every 5 yrs. $2.335M. 9.25% cap.
4. Shopping Center in Fullerton, CA: rare 81,989 SF neighborhood center on 4 acres lot in densely-populated (520K residents within 5 miles) middle class (AHI $80K/yr) city in Orange county. Anchored by Albertsons Supermarket. Easy access to hwy 91, hwy 57, and I-5. Close to Fullerton College and State University of Fullerton. 93% NNN leased. NOI $767K/yr. $14M. 7.13% cap.
5. Arsenio’s Mexican Restaurant in Chico, CA: 1643 SF restaurant with drive thru built in 2007 on .43 acres lot near North Valley Plaza Mall in a growing city in Northern CA. 100% absolute NNN lease with 7 yrs remaining to an operator with 8 locations. NOI $101K/yr with 3% annual rent bump. $1.065M. 9.5% cap.
6. Shopping Center in Scottsdale, AZ: 16,022 SF shopping center on 1.47 acres corner lot in affluent (AHI $140K/yr within 1 mile) Phoenix metro. 100% NNN leased by 9 tenants. NOI $285K/yr. $3.2M. 8.9% cap.
7. Medical Office Building in Waco, TX: 4943 SF 2-yrs old single-tenant medical office building on 1/3 acres outparcel to a Waco Cardiology Associates complex adjacent to 214-bed Providence Health Center. 10 yrs NNN- with 8 yrs remaining to Sleep Disorder Center with 25+ locations, and a subsidiary of Graymark Healthcare. NOI $101K/yr with 10% rent bump every 5 yrs. $1.126M. 9% cap.
8. Arby’s in Stillwater, MN: 4337 SF restaurant built in 1998 on 1.39 acres lot in affluent Minneapolis suburbs (AHI $98K/yr). 100% NNN leased till 2021 by the largest Arbys operator with 800 locations. NOI $97K/yr with 1% annual rent bump. $$1.251M, 7.75% cap.
9. Bank-owned Shopping Center in Lawrenceville, GA: 20,650 SF new shopping center high income (AHI $88K/yr within 1 mile) Atlanta suburbs. Appraised $3.42M in Jan 2010. 55% occupied. $1.82M.
10. Medical Office building in Jacksonville Beach, FL: 13,400 SF medical office building on 1.5 acres lot in wealthy city (AHI $114K/yr). 10 short blocks to Baptist Medical Center. 100% NNN leased. NOI $263K/yr. $3.29M. 8% cap.
© Transmercial 2010. All rights reserved.
No comments:
Post a Comment