Tuesday, November 23, 2010

11-09: IHOP, Arbys, Taco Bell, Shopping Center, Medical Office Buildings For Sale

Advisory: for most investors of commercial properties, a purchase requires the review of the lease(s).  Attached is the check list written by an attorney.

1.      IHOP in Lewisville, TX: 5715 SF franchised restaurant built in 1990 on 1.3 acres lot near Vista Ridge Mall in high growth middle class Dallas metroplex.  100% absolute NNN lease with 13.5 yrs remaining to a franchisee with 60 locations. NOI $157K/yr.
2.      Arbys in Allen, TX: 2915 SF restaurant built in 1999 on .83 acre lot in booming & wealthy (AHI $115K/yr within 1 mile) Northern Dallas suburbs.  #1 performing store in the region. 100% NNN corp lease within 8 yrs remaining.  NOI $142K/yr with 2% annual rent bump. $1.782M. 8% cap.
3.      Apartments in Glendale, AZ: 72-unit apartments built in 1985 on 4.2 acres lot.  Large 2-3 BR units (avg 970 SF) with individual meters. Modern Interiors, Dishwasher, Walk-in Closets, Washer/Dryer Hookups, covered parking.  Swimming pool and leasing office.  Pro forma NOI $187K/yr. $1.435M. Less than $20K/unit.
4.      Taco Bell in Surprise, AZ: 2338 SF restaurant built in 2001 on .6 ac outparcel to a 500,000 SF power center anchored by Wal-mart, Home Depot, OfficeMax, Michaels, Target, Lowes, Best Buy, and Ross. Store with strong sales of  $1.434M.  NOI $118K/yr. with 10% rent bump every 5 yrs.  $1.577M. 7.5% cap.
5.      Safeway Supermarket in San Ramon, CA: 54,000 SF supermarket on 5.4 aces lot in a very wealthy San Fran Bay Area (AHI $129K/yr) with easy access to I-680.  100% NNN lease.  NOI $100K/yr.  $1.434M. 7% cap.  Note: this is a sale of building only with option to purchase land.  The property is on a ground lease till 2088.
6.      Retail Center in Lakewood, CO: 10,200 SF retail center built in 2006 on 1.93 acres corner lot in Denver metro. 100% NNN leased by 4 good tenants: FedEx Office, Pizza Hut, Quizno's and Brothers BBQ.  NOI $224K/yr. $2.75M. 8.25% cap.  Buyer to assume $2M loan at 6.18% interest, fixed till 2016.
7.      Apartments in Seattle, WA: 28-unit well-located 28,490 SF apartments.  NOI $179K/yr. $2.31M. 7.75% cap.
8.      Shopping Center in North Highland, CA: 121,618 SF 21-unit shopping center built in 1991 on 10 acres corner lot in Sacramento metro.  Anchored by Raley’s supermarket, a regional chain & Hometown Buffet.  78% leased.  In place NOI $1.228M. Price reduced to $13.8M.  8.91% cap.  Upside potential when 100% leased.
9.      Medical Office Buildings in Palmdale, CA: 38,135 SF 5-building medical office building/retail complex (4 medical and 1 retail) completed in 2009 on 5.5 acres lot just 3 blocks from the newly constructed $200M Palmdale Regional Medical Center.  100% NNN leased to 15 tenants.  NOI $1.246M. $16.267M. 7.5% cap.
10.   Medical Office Building in Friendswood, TX: 8050 SF medical office building on .82 ac lot in wealthy Houston suburbs (AHI $105K/yr within 1 mile).  100% leased.  NOI $100K/yr. $1.115M. 9% cap.

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