Advisory: One of the common questions that investors often ask me is “should I form a LLC to take title?”. Since I am not an attorney, I am not allowed by law to give any legal advice. There is an article (attached) written by an attorney articulating a strong case for LLC formation. I hope it answers the question from a legal viewpoint. This article is also posted on Transmercial’s website under newsletters should you need it in the future. I am still looking for an article written by a CPA to give the answer for the question from a tax viewpoint.
- Retail Center in Rowlett, TX: 28,511 SF 7-unit retail center built in 2005 on 3 acres lot in high income Dallas suburbs. Next to Big Lots! 61% NNN leased by 5 tenants. Present NOI $233K/yr. $3.3M. 7.1% cap. Upside potential when 100% leased.
- Medical Office Building in Austin, TX: 16,282 SF 2-story class-B medical office building in high income area in Austin’s central medical district. A few blocks from Seton Medical Center and Univ of Texas. 100% leased by 8 medical tenants with below market rents, i.e. upside potential. NOI $218K/yr. $2.75M. 7.93% cap. Buyer with 25% equity to assume loan at 6.05% rate fixed till 2016.
- Bank-owned Apartments in Sacramento, CA: 29-unit apartments on .81 acres lot. Scheduled income of $223K/yr. NOI $109K/yr. $1M. 11.56% cap.
- Rite Aid in Douglasville, GA: 11,275 SF drug store in growing and high income Atlanta suburbs. Store with excellent visibilities and strong sales of over $10M/yr. New 20 yrs absolute NNN lease. NOI $255K/yr with rent bump every 10 yrs. $2.95M. 8.65% cap.
- Christian Brothers Auto in Friendswood, TX: 4921 SF growing franchised auto service center with 70 locations. Built in 2006 on .86 acres parcel in growing middle class Houston suburbs. 15 yrs absolute NNN lease. NOI $144K/yr with annual rent bump.$1.694M. 8.5% cap.
- Strip Center in Louisville, KY: 3652 SF 2-tenant strip center built in 2007 on .8 acres outparcel to a 164,000 SF Kroger anchored shopping center just off I-64 in wealthy area (AHI 95K/yr within 1 mile). 100% NNN leased to Starbucks and Jimmy John's, a regional tenant. NOI $198K/yr. $2.175M. 9.1% cap.
- Office Building in Redding, CA: 29,077 SF class-A office building with unparallel architecture constructed in 1997 on 1.5 acres parcel. 60% occupied. $3.995M Priced at about 73% of replacement cost. Upside potential.
- Medical/professional office building in Plantation, FL: 20,086 SF medical/professional office building on over 2 acres lot in high income Fort Lauderdale metro. 90% occupied. NOI $204K/yr. $2.85M. 9% cap.
- Tuffy Auto in Orlando, FL: 5600 SF Tuffy Auto, a regional service center across from Home Depot and Kohl’s. Long term NNN corp lease. NOI $160K/yr with 10% rent bump every 5 yrs. $1,787M. 9% cap
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