Wednesday, June 30, 2010

Top 10 Properties 06-16-10

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

  1. Retail Building in San Francisco, CA: 13,971 SF attractive retail/office building renovated in 2006 across from Japan Town. 93% leased. NOI $190K/yr. $3.475M. 5.48% Cap.
  2. Apartments in Sacramento, CA: 76-units multifamily building constructed in 1991 on 5.46 acres of land with good unit mix just minutes from Downtown near Fwy-80. NOI $448K/yr. $6M. 7.47% cap.
  3. Apartments in Mesa, AZ: 35-units well-kept apartment complex across from Royal Palms Golf Course conveniently located near public transportation, shopping and freeways. 95% leased. NOI $144K/yr. $1.550M. 9.34% Proforma Cap.
  4. Shopping Center in Reseda, CA: 19,822 SF mature shopping center on 1.41 acres of parcel anchored by Denny’s at signalized intersection along main thoroughfare. 100% NNN leased. NOI $433K/yr. $6M. 7.23% Cap.
  5. Retail Center in Fort Myers, FL: 18,066 SF well-maintained retail center anchored by Pier 1 Imports adjacent to Walgreen’s Pharmacy. 93% NNN leased. NOI $341K/yr. $3.793M. 9% Cap.
  6. Advance Auto Parts in Denham Springs, LA: 7000 SF 2-years old retail building on .74 acre lot along Hwy-16 surrounded by many national tenant: Walgreens, Dollar General, Popeye’s and more in fast growing Baton Rouge metro. Long NNN lease. NOI $99K/yr. $1.223M. 8.15% Cap.
  7. Shopping Center in Seagoville, TX: 78,685 SF recently updated shopping center anchored by Brookshire’s Grocery Store off of US-175. 97% leased by excellent tenant mix. NOI $219K/yr. $2.6M. 8.45% Cap.
  8. Borders in Tulsa, OK: 24,773 SF attractive free-standing retail building on over 3 acres of land in growing (6.54%) well-off (AHI $97K/yr within 1-mile radius) area. 100% absolute NNN leased by national tenant. NOI $432K/yr. $4.325M. 10% Cap.
  9. Retail Building in Spokane, WA: 38,016 SF retail building constructed in 1999 anchored by Dollar Tree conveniently located between The Home Depot and Costco near I-90. Long term NNN leases. NOI $527K/yr. $7.271M. 7.25% Cap.
  10. Apartments in Columbus, IN: 120-units well-maintained multifamily building built in 1994 with washer/dryer hook-ups in every unit, playground area located at quiet neighborhood. 97% leased. NOI $474K/yr. $5.650M. 8.4% Cap.   
© Transmercial 2010.  All rights reserved.

Tuesday, June 29, 2010

Top 9 Properties 06-15-10

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

  1. Retail Building in Moreno Valley, CA: 11,852 SF two-years old single-tenant retail building on over 1 acre lot at prime retail location with easy access to Fwy-60/215. 100% NNN leased by national credit tenant. NOI $362K/yr. $4.260M. 8.5% Cap.
  2. Shopping Center in Chattanooga, TN: 74,978 SF shopping center anchored by BI-LO grocery store with large monument sign in fast growing area. NOI $640K/yr. $6.4M. 10% Cap.
  3. Taco Bell in Las Vegas, NV: 2375 SF Taco Bell Restaurant constructed in 2000 on over 1 acre lot across from McCarran International Airport with excellent visibility. 100% NNN leased by strong franchisee currently operating 63 restaurants. NOI $170K/yr. $2.125M. 8% Cap.
  4. Hooters Restaurant in Council Bluffs, IA: 4880 SF single-tenant retail building constructed in 2008 on 1.5 acres of land on a pad site to Horseshoe Casino across from Mid-America Convention Center in growing Omaha suburbs. New 15-years absolute NNN lease. 10% rental increases every 5-years. NOI $216K/yr. $2.469M. 8.75% Cap.
  5. Pizza Hut & WingStreet Restaurant in Columbia, SC: 3114 SF attractive free-standing retail building at prime retail location with excellent visibility off of Hwy-1 in affluent (AHI $128K/yr within 1-mile radius) Columbia metro. New 20-years absolute NNN lease. Franchisee guarantee from 39-unit operator. 1.5% rent increases every 2-years. NOI $85K/yr. $1.068M. 8% Cap.
  6. Apartments in Hayward, CA: 61-units well-kept multifamily building on 3.45 acres of land with good unit mix close to Fwy-880. 92% leased. NOI $445K/yr. $5.7M. 7.8% Cap.
  7. Carl’s Jr. Restaurant in Las Vegas, NV: 4500 SF recently constructed retail building in booming (792.85%) middle-class (AHI $76K/yr) area along main thoroughfare. Long 20-years absolute NNN lease with 10% increases every 5-years. NOI $225K/yr. $3.214M. 7% Cap.
  8. DaVita Medical Office in Freeport, NY: 18,588 SF Class-B medical building renovated in 1995 on 5.7 acre lot. 100% NNN leased. NOI k$367K/yr. $4.325M. 8.5% Cap.
  9. Strip Center in Indianapolis, IN: 12,220 SF multi-tenant strip center built in 2002 shadow-anchored by CVS with excellent tenant mix: Quizno’s, State Farm Insurance and Taylor’s Pub. 85% NNN leased. NOI $196K/yr. $1.9M. 10.34% Cap.    
© Transmercial 2010.  All rights reserved.

Monday, June 28, 2010

Top 8 Properties 06-14-10

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

  1. Advance Auto Parts in Houston, TX: 6000 SF single-tenant recently constructed retail building on .66 acre lot at signalized intersection. Long NNN corp lease. NOI $125K/yr. $1.518M. 8.25% Cap.
  2. Apartments in Portland, OR: 54-units two-story apartment complex built in 1969 with many recent extensive upgrades across from the TriMet Max Light Rail Station. 100% leased. NOI $270K/yr. $3.6M. 7.5% Cap.  
  3. Church’s Chicken in Midland, TX: 1350 SF free-standing Church’s Chicken Restaurant conveniently positioned at main artery in fast growing area. 15-years absolute NNN corp lease. 1.5% annual rent increases. NOI $72K/yr. $852K. 8.5% Cap.
  4. Shopping Center in Pasadena, TX: 163,992 SF well-kept shopping center on 13.23 acres of land across from Kroger anchored center with excellent tenant mix: Big Lots, Cato Fashion, Dollar Tree, Payless Shoe Source, Supercuts, Ace Cash Express and more. 96% leased. NOI $682K/yr. $7.450M. 9.16% Cap.
  5. Staples in Woodbury, MN: 20,053 SF recently constructed Staples on over 2 acres of parcel shadow-anchored by Sam’s Club and Target in growing (34.42%) well-off (AHI ($101K/yr within 1 mile radius) Minneapolis suburbs off of I-94. Long term NNN leased. NOI $320
    K/yr. $4M. 8% Cap.
  6. Office Building in Fullerton, CA: 13,950 SF Class-B office building at highly visible corner location in wealthy (AHI $105K/yr) neighborhood at densely populated Los Angeles area. 100% leased. NOI $237K/yr. $3.390M. 7% Cap.
  7. Shopping Center in Oak Ridge, TN: 41,778 SF recently renovated shopping center on 4.72 acres of land anchored by Food Lion at signalized corner location with great visibility West of Knoxville suburbs. 97% leased. NOI $251K/yr. $2.770M. 9.08% Cap.  
  8. Hardee’s in Independence, MO: 2863 SF attractive single-tenant retail building located at signalized intersection of Hwy-24. New 20-years absolute NNN lease. 10% increases every 5-years. NOI $77K/yr. $934K. 8.25% Cap.
© Transmercial 2010.  All rights reserved.

Friday, June 25, 2010

Top 6 Properties 06-11-10

  1. Home Depot in Austell, GA: 134,518 SF Home Depot built in 2007 on 14.46 acres lot in a fast growing area in Atlanta metro.  Across from Walmart, Lowe, Target, and Office Max. 20 yrs ground lease with 18 yrs remaining.  NOI $623K/yr. $8.9M.  7% cap. 
  2. Taco Bell in Orlando, FL: 3023 SF restaurant on .87 acre outparcel to Sam Club.  100% NNN lease.  Tenant has been at this location since 1989.  NOI $105K/yr. $1.29M. 8.15% cap. 
  3. Shopping Center in Chicago, IL: 17,794 SF retail center on 1.47 acres lot with all units facing the road. 92% leased.  NOI $235K/yr. $2.14M. 11% cap. 
  4.  Shopping center in Omaha, NE: 23,954 SF class-A shopping center built in 2004 on over 2 acres corner lot in fast growing upper middle class (AHI $112K/yr).  96% NNN leased.  NOI $323K/yr. $3.8M. 8.5% cap.  Buyer to assume $3.344M non-recourse loan at low 5.75% interest.  Just 12% down payment needed! 
  5. Ulta Beauty Store in Jackson, TN: 10,000 SF brand new single-tenant retail center in a prime commercial area near I-40.  Surrounded by Best Buy, Hobby Lobby, Ashley Furniture, Home Depot, Lowe's, Wal-Mart Supercenter and Sam's Club. New 10 yrs NNN lease by Ultra Beauty (NASDAQ: ULTA), a national chain.  NOI $222K/yr. $2.87M. 7.75% cap.
  6. 24 Hr Fitness in Fort Worth, TX: 36,000 SF single-tenant fitness center built in 2007 on 4.75 acres of land near I-35W exit in a booming area.  100% NNN lease with 16 yrs remaining.  NOI $723K/yr. with 12% rent bump every 5 yrs.  $8.3M. 8.71% cap.  Buyer to assume $6.5M nonrecourse loan at 6.18% fixed till 2017. 
Client’s testimonial
A former employer of mine asked me to come out to San Jose from Ireland to work with him on finding some investment properties to buy.  I searched the internet for a broker that I could work with, and found Transmercial.  I liked what I read on the internet about David and decided that this would be a good place to start.  On meeting David, I immediately felt at ease.  And unlike many other brokers, I did not feel at all under any pressure. So I decided to go with my gut feeling and use him as our broker.  What a great decision it turned out to be! From the start he sourced great properties for us to look at.  At no stage did he encourage us to make any decision that we weren't fully happy with. Now a few months later we have bought two great properties, and are very happy with our investments. At all times I found David and his assistant Maria extremely pleasant and professional to deal with. I would encourage anyone who is thinking of getting into commercial real estate investment to make an appointment with David and decide for yourself if he is the broker for you, because he certainly was for me.
Mike Walsh, Ireland.  2010.

© Transmercial 2010.  All rights reserved.

Thursday, June 24, 2010

Top 10 Properties 06-10-10


  1. Office Building in Anaheim, CA: 7336 SF Class-B multiple-tenant two-stories office building on .33 acre lot leased by three tenants: Acupuncture, Chiropractor and church. 100% leased. NOI $62K/yr. $799K. 7.8% Cap.
  2. Aaron’s in Springfield, OR: 8500 SF single-tenant retail building on .69 acre lot across WinCo Foods anchored- shopping center off of Hwy-126. 100% NNN leased. NOI $119K/yr. $1.653M. 7.25% Cap.
  3. Strip Center in Corona, CA: 14,557 SF newly constructed strip center conveniently located at signalized intersection just off of I-15. NOI $329K/yr. $4.395M. 7.50% Cap.
  4. Retail Center in Corona, CA: 4325 SF retail center anchored by Marui Sushi Restaurant adjacent to I-15. NOI $94K/yr. $1.255M. 7.5% Cap.
  5. 24 Hour Fitness in Fort Worth, TX: 36,000 SF single-tenant retail building constructed in 2007 on 4.75 acres of land in fast growing area just off of Fwy-287. Long NNN corp lease. NOI $722K/yr. $8.3M. 8.71% Cap. Assumable non-recourse financing at 6.18% fixed rate till 2017.
  6. Strip Center in Granada Hills, CA: 8000 SF well-located strip center at signalized intersection with excellent tenant mix: Domino’s Pizza, Nail Salon, Martial Arts, Beauty Salon and Billboard. NOI $147K/yr. $1.875M. 7.9% Cap.
  7. Retail Center in Green Bay, WI: 9518 SF Class-A recently constructed retail center in fast growing area. 100% NNN leased by national tenants. NOI $174K/yr. $2.181M. 8% Cap.
  8. Retail Center in Green Bay, WI: 6703 SF attractive retail center anchored by Starbucks Coffee off of I-41. 100% NNN leased. NOI $160K/yr. $2.001M. 8% Cap.
  9. Strip Center in San Jose, CA: 7440 SF newly constructed strip center conveniently located near Santana Row/Westfield Valley Fair in well-off (AHI $100K/yr) neighborhood off of Fwy-280. 89% NNN leased. NOI $272K/yr. $4.807M. 6.25% Proforma Cap.
  10. Strip Center in Suwannee, GA: 12,150 SF nice-looking strip center built in 2004 on over 1.25 acre lot located across Home Depot with excellent visibility in fast growing Atlanta metro. 90% leased. NOI $221K/yr. $2.950M. 7.52% Cap.
© Transmercial 2010.  All rights reserved.

Wednesday, June 23, 2010

Top 9 Properties 06-09-10


  1. Office Building in Concord, CA: 18,400 SF Class-B multi-tenant office building with ample parking conveniently located near Bart-Concord Station. NOI $235K/yr. $2.944M. 8% Cap.  
  2. Strip Center in Clearwater, FL: 9500 SF strip center renovated in 1997 on over 1 acre lot with excellent visibility along US-19. 88% NNN leased by three tenants. NOI $132K/yr. $1.2M. 9.70% Cap.
  3. Shopping Center in Missouri City, TX: 54,158 SF attractive shopping center built in 1996 on 5.50 acres of parcel in fast growing Houston suburbs. 100% leased. Proforma NOI $705K/yr. $6.999M. 10.10% Cap.
  4. Apartments in Pomona, CA: 17-units apartment complex on .46 acre lot close to parks and Fwy-10. 94% leased. NOI $153K/yr. $1.790M. 8.60% Cap.  
  5. Shopping Center in Katy, TX: 24,285 multi-tenant shopping center constructed in 2004 on 1.39 acres of land in fast growing Huston metro. 100% leased. NOI $404K/yr. $3.850M. 10.50% Cap.
  6. Shopping Center in Fisher, IN: 15,019 SF well located shopping center constructed in 2004 at hard signalized intersection with excellent tenant mix. 89% leased. NOI $277K/yr. $3.1M. 8.95% Cap. Upside potential when fully leased.
  7. Strip Center in Cicero, IL: 7,385 SF multi-tenant retail center located at primary retail corridor. 100% leased by six retail tenants. NOI $159K/yr. $1.850M. 8.61% Cap.
  8. Shopping Center in Sunrise, FL: 21,612 SF shopping center built in 1977 on 1.54 acres of parcel located along heavily traveled thoroughfare. NOI $251K/yr. $3.4M. 7.39% Cap. Buyer to assume $2.210M at 5.62% for the first five years.
  9. Hardee’s Restaurant in Kansas City, MO: 3125 SF single-tenant fast food restaurant constructed in 1980 on .77 acre lot. New 20-years absolute NNN leased by strong franchisee. 10% increases every 5-years. NOI $60K/yr. $727K. 8.25% Cap.   
© Transmercial 2010.  All rights reserved.

Tuesday, June 22, 2010

Top 10 Properties 06-08-10

  1. Taco Bell in West Columbia, SC: 2334 SF fast food restaurant on a corner outparcel to Food Lion Grocery anchored center.  Property just underwent a $400K renovation to new bold choice design.  Store with strong $1.2M in revenue.  10 yrs absolute NNN lease by a strong franchisee.  NOI $96K/yr with 2% annual rent bump. $1.24M. 7.75% cap. 
  2. Walgreens in Ocala, FL: 16,510 SF new drug store on 1.7 acres parcel.  25 yrs NNN lease.  NOI $494K/yr. $6.825M. 7.25% cap. 
  3. Shopping center in Edinburg, TX: 7600 SF 3-yrs old strip mall on ¾ ac lot across from Wal-mart Supercenter in a booming (71% since 2000) middle-class McAllen metro. 100% NNN leased by 5 good tenants.  NOI $140K/yr. $1.4M. 10% cap. 
  4. Lone Star Steakhouse in Chesapeake, VA: 5374 SF franchised steakhouse on 1.37 acres lot across from Greenbrier Mall just off I-64 in high income (AHI $89K/yr within 1 mile) Norfolk metro.  15 yrs absolute NNN lease.  NOI $220K/yr with 2% annual rent bump. $2.4M. 9.17% cap. 
  5. Medical Office Building in League City, TX: 13,000 SF medical office in high-growth, high income Houston metro. 100% leased by 3 good strong medical credit tenants.  NOI $202K/yr. $2.25M. 9% cap. 
  6. Valero Gas Station in Cupertino, CA: very rare Valero gas station with car wash and convenience store built in 2003 on .45 acre lot at the intersection of Stevens Creek and De Anza Blvd. in a wealthy Silicon Valley city (AHI $135K/yr).  NOI $416K/yr.  $3.2M for both real estate and business.  13% cap. 
  7. O’Reilly Auto in Brighton, CO: 6000 SF auto parts store in Denver metro.  100% corp NNN lease with 8 yrs remaining.  NOI $100K/yr with 4% rent bump every 2 yrs. $1.25M. 8% cap. 
  8. Burger King in Phoenix, AZ: 3370 SF restaurant on .62 acre lot at a high traffic corner. 20 yrs NNN lease with 18 yrs remaining. NOI $130K/yr. $1.696M. 7.69% cap. 
  9. Starbucks in McDonough, GA: 1750 SF Starbucks built in 2007 on .91 acre outparcel to a shopping center anchored by Dick’s Sporting Goods, Best Buy and Ashley Furniture.  Across from a 800,000 SF power center anchored by Home Depot, Belk, Super Target, Bed Bath and Beyond, Ross Dress for Less, Marshall’s, Michael’s, PetSmart and BJ’s Wholesale Club in Atlanta suburbs. 100% leased till 2017.  NOI $87K/yr with 10% rent bump in 2012. $1.031M. 8.5% cap. 
  10. Shopping Center in Sacramento, CA: 30,023 SF bank-owned shopping plaza on the busy Stockton blvd.  58% NNN leased by 9 tenants.  Actual NOI $176K/yr.  $2.95M. 6% cap.  Only $98/SF!  Strong upside potential when 100% leased.
© Transmercial 2010.  All rights reserved.

Monday, June 21, 2010

Top 8 Properties 06-07-10

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

  1. Pep Boys in Indio, CA: 19,338 SF single-tenant retail building on 1.58 acres of land conveniently located along Hwy-111 in the growing (38.98%) Palm Springs. Long absolute NNN corp lease with 1.5% annual rent increases. NOI $257K/yr. $3.222M. 8% Cap.
  2. Arby’s Restaurant in Mishawaka, IN: 3592 SF Arby’s Restaurant at busy corner location along main retail corridor just East of South Bend. 15 years left on 20-years absolute NNN corp lease. 8% increases every 5-years. NOI $110K/yr. $1.421M. 7.75% Cap.
  3. The Goddard School in Chantilly, VA: 10,000 SF single tenant day care facility built in 2003 on 1.29 acres of parcel in wealthy ($122K/yr within 5-miles radius) Washing DC suburbs. 100% NNN lease by a national childcare provider. NOI $240K/yr. with 2% annual rent increases $3.2M. 7.5% Cap.
  4. Shopping Center in West Covina, CA: 11,400 SF shopping center shadow-anchored by Seafood City Supermarket with excellent tenant mix: Liquor Plus, Hair Salon, Dress Shop, Dental Office, Mananda Gifts, Restaurant, Nail Salon, Owtel Beyond, Inc, Check Cashing, and phone card stand. 100% NN leased. NOI $356K/yr. $5M. 7.13% Cap.
  5. Retail Building in San Jose, CA: 7800 SF multiple tenant retail building on .46 acre lot along S 1st Street. Leased by 3-tenants. NOI $68K/yr. $880K. 7.84% Cap.
  6. Apartments in Los Angeles, CA: 8-units two-stories multifamily building with excellent unit mix just minutes from Santa Monica beach. NOI $55K/yr. $775K. 8.19% Cap.
  7. Apartments in Hemet, CA: 140-units attractive apartments on over 6 acres of land with several amenities: swimming pool, whirlpool spa, electric central heating/air, ceiling fans, walk-in closets, dishwashers, electric stoves, oven, refrigerators, custom carpeting/blinds and balcony/patio. NOI $543K/yr. $7.4M. 7.34% Cap.
  8. Medical Office in Desoto, TX: 5000 SF Class-B medical office next to Methodist Charlton Hospital & easy access to I-20 & Fwy 67 in Dallas metro. 100% NNN leased. NOI $104K/yr. $1.1M. 9.5% cap.
© Transmercial 2010.  All rights reserved.

Friday, June 18, 2010

Top 9 Properties 06-04-10

  1. Burger King in Theodore, AL: 2800 SF new restaurant just off I-10 in Mobile metro.  New long term absolute NNN lease by a franchisee with 205 locations in 5 states.  NOI $102K/yr with 2% annual rent bump from year 6.  $1.3M. 7.85% cap. 
  2. Family Dollar in Tucson, AZ: new 9180 SF Family Dollar store on 1.89 acres corner lot in a growing and strong income area.  10 yrs corp NN lease.  NOI $129K/yr. with 10% rent bump in each 5 yrs options. $1.48M. 8.75% cap. 
  3. Shopping Center in Dallas, TX: 12,722 SF strip center built in 2002 in high income area (AHI $98K/yr within 3 miles ring).  92% leased by Family Dollar and a local dental office.  NOI $142K/yr.  $1.625M. 8.75% cap. 
  4. Burger King in Fountain Hill, AZ: 2654 SF restaurant on .58 acre outparcel to Safeway anchored shopping center in wealthy (AHI $121K/yr) suburban Phoenix.  20 yrs NNN lease.  NOI $90K/yr. $1.24M. 7.26% cap. 
  5. Arbys in Fishers, IN: 3276 SF restaurant on a major artery in fast growing (55% since 2000) affluent Indianapolis suburbs (AHI $96K/yr).  Long term NNN lease. NOI $145K/yr. $1.942M. 7.5% cap. 
  6. Apartments in Hemet, CA: 48-unit apartments on 2.68 acres lot.  NOI $194K/yr. $2.09M. 9.3% cap (note: this is probably proforma) 
  7. Surgery Center in Tampa, FL: 8036 SF surgery center built in 1999 on .8 acre parcel a few minutes from Saint Joseph’s Hospital.  100% NNN lease with 9 yrs remaining.  NOI $267K/yr. $3.342M. 8% cap. 
  8. Dollar General in Jacksonville, FL: 9014 SF new dollar store on 2.82 acres lot.  15 yrs absolute NNN lease.  NOI $117K/yr. with 10% rent bump each 5 yrs options. $1.421M. 8.25% cap. 
  9. Apartments in Dallas, TX: 119-unit bank-owned apartments built in 1972 on over 3 acres lot in upper middle class area (AHI $98K/yr).  74% occupied.  NOI $240K/yr. $2.825M. 8.5% cap.
© Transmercial 2010.  All rights reserved.

Thursday, June 17, 2010

Top 8 Properties 06-03-10

  1. Shopping Center in Brownsville, TX: 17,900 SF 5-yrs old 8-unit shopping center on 2.3 acres lot.  Shadow anchored by Walmart Supercenter.  84% leased by 7 tenants, mostly national/brand name.  Actual NOI $261K/yr. $3M. 8.7% cap.  Upside potential when the last unit is leased. 
  2. Office Building in San Jose, CA: 32,337 SF office building on the heavily-travelled Blossom Hill road.  95% leased by 20 established tenants – 50% of them medical professionals.  NOI $608K/yr. $7.25M. 8.39% cap. 
  3. Office Building in Haysville, KS: 9600 SF office building on .93 acres lot south of Wichita.  95% leased by Meritrust Credit Union, Dr Freeman Eye Care, and Haysville Family Medical Center. NOI $161K/yr. $1.295M.  12.5% cap. 
  4. Pizza Hut in Los Banos, CA: 2352 SF restaurant on ¼ ac signalized corner lot in a growing town on hwy 152.  10 yrs NNN lease with 4 yrs remaining by an operator with 150 locations.  NOI $46K/yr. with 10% rent bump every 5 yrs.  Just $750K. 6.16% cap. 
  5. Surgery Center in Wesley Chapel, FL: 10,676 SF class-A surgery center built in 2006on 1.63 acres lot close to I-75 in a booming (223% since 2000) middle class (AHI $81K/yr) Tampa metro.  100% NNN lease with 9 yrs remaining.  NOI $383K/yr. $4.781M. 8% cap. 
  6. Peter Piper Pizza in Burleson, TX: 12,650 SF pizza restaurant built in 2008 on an outparcel to 70,000-Square Foot Retail Center Anchored by 14-Screen Stadium Style Theater South of Fort Worth.  Surrounded by National Retailers Including The Home Depot, Target, Walmart, Office Depot.  10 yrs NNN lease by Peter Piper Pizza with about 145 locations.  NOI $241K/yr. $2.76M. 8.75% cap. 
  7. Auto Zone in De Pere, WI: 7370 SF auto parts store on .7 ac lot in Green Bay metro. 20 yrs NNN lease with 17.5 yrs remaining.  NOI $102K/yr. $1.36M. 7.5% cap. 
  8. CVS Pharmacy in Smyrna, GA: 11,027 SF drug store built in 1997 on 2 acres corner lot in a fast growing (37% since 2000) upper middle class (AHI $91K/yr) Atlanta metro.  100% NNN leased till 2013.  NOI $213K/yr with rent bumped to $230K/yr in 2013.  $2.5M. 8.55% cap.  Store with increasing revenue even during the recession. 
© Transmercial 2010.  All rights reserved.

Wednesday, June 16, 2010

Top 7 Properties 06-02-10

  1.  Shopping center in The Colony, TX: 32,617 SF 21-unit shopping center shadow anchored by Kroger Supermarket at the intersection of 8-lane roads in affluent Dallas suburbs with AHI over $130K/yr within 5 miles ring.  Renovated in 2009.  89% NNN leased.  Actual NOI $375K/yr. $4.047M. 9.28% cap. 
  2. Pier 1 Imports in Birmingham, AL: 8991 SF single-tenant retail center built in 1996 on .9 acres outparcel to a large shopping center anchored by Kohl’s just off US-280 in a affluent area (AHI over $107K/yr).  100% NNN corp leased till 2016.  NOI $143K/yr. $1.597M. 9% cap. 
  3. Arby’s in  Peoria, AZ: 3100 SF fast food restaurant built in 2001 on .7 ac pad site to Home Depot and Sears with easy access to Fwy 101.  100% absolute NNN corp lease with 12 yrs remaining. NOI $132K/yr with annual rent bump. $1.7M. 7.8% cap. 
  4. Walgreens in Green Bay, WI: 14,820 SF 2-yrs old drug store on 1.8 acres corner lot with 3 access points in a fast growing middle class area.  Across from Target.  25 yrs NNN lease.  NOI $365K/yr. $4.935M. 7.4% cap. 
  5. Strip Mall in De Pere, WI: 5862 SF strip mall near hwy 41 in middle-class Green Bay metro.  100% NNN leased by 2 national credit tenants: Starbucks, FedEx Kinko, US Cellular, and EZ Payday Loans.  NOI $166K/yr. $2.084M. 8% cap. 
  6. Walgreens in Northglenn, CO: 14,490 SF drug store built in 2001 on 1.29 acres corner lot across from Target Supercenter & Albertsons Supermarket near I-25 exit in Denver metro. 100% NNN lease.  Store with strong sales.  NOI $391K/yr.  $5.2M.  7.5% cap.  Buyer to assume $4.04M loan at low 6.03% fixed rate till 2017. 
  7. Apartments in Glendale, AZ: 144-unit apartments complex constructed in 1984 on over 6 acres lot in Phoenix metro.  Amenities include swimming pool, heated spa, covered parking, BBQ, central courtyard and access gate. Profoma NOI $322K/yr.  $4M.  8% cap.  Just less than $28K/unit.
© Transmercial 2010.  All rights reserved.

Tuesday, June 15, 2010

Top 9 Properties 06-01-10

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
  1. Medical Office Building in Corinth, TX: 14,595 SF 7-yrs old multi-tenant medical office building on 1.26 acres lot in fast growing upper middle-class Dallas suburbs (AHI 95K/yr within 1 mile).  86% leased with 2 vacant units.  NOI $103K/yr. $1.295M. 8% cap. 
  2. KFC with A&W in Moses Lake, WA: 3900 SF restaurant on ¾ ac lot (serving both chicken and hamburgers) renovated in 2000.  New 20 yrs absolute NNN lease from an experience operator. NOI $72K/yr with 2% annual rent bump.  $850K.  8.5% cap. 
  3. Shopping center in Southlake, TX: 41,914 SF 3-yrs old upscale  shopping center on 9.7 acres parcel in an affluent city North of Dallas (AHI $159K/yr).  Anchored by 27,572 SF upscale Sprouts Farmers Market.  100% NNN leased by 7 tenants. NOI $979K/yr. $11.6M. 8.44% cap. 
  4. Dennys in Anaheim, CA: 12,175 SF restaurant on 1.3 acres lot on a heavily-travelled road in a tourist area (Disneyland and Knotts Berry Farm)  in Orange county.  100% NNN leased with 1 yrs remaining.  NOI $100K/yr with below market rent of just $0.69/SF.  $2.2M. 4.56% cap (note: this property is not priced by cap rate). 
  5. Medical Office building in Pinellas Park, FL: 7088 SF single-tenant medical clinic built in 2003 in Tampa metro.  100% NNN leased.  NOI $118K/yr. $1.25M. 9.5% cap. 
  6. Pier 1 Imports in Slidell, LA: 10,000 SF single-tenant class-A retail center built in 1990 on 1.11 acres across the street from 80-store North Shore Square Mall in New Orleans suburbs.  100% NNN lease with 6 yrs remaining.  NOI $156K/yr. $1.786M. 8.75% cap. 
  7. Strip Mall in Stockbridge, GA: 10,000 SF strip center on a major road in Atlanta suburbs.  100% leased by 5 tenants.  NOI $138K/yr. $1.6M. 8.68% cap. 
  8. Retail Center in Alameda, CA: 6132 SF 3-tenant retail center on .63 acres outparcel to a shopping center anchored by Lucky Supermarket and Long Drugs (now becomes CVS).  100% leased by 3 brand name tenants: Chase Bank, Quizno Subs, and Regis Hairmasters. NOI $200K/yr.  Price reduced from $2.785M. to $2.5M. 8% cap.  Buyer to assume $1.1M loan at low 5.5% interest. 
  9. Shopping Center in New Lenox, IL: 32,133 SF shopping center on 4.6 acres in a rapidly growing town in Chicago metro.  Adjacent to CVS and excellent visibility.  87% leased.  NOI $566K/yr. $7.084M. 8% cap.
© Transmercial 2010.  All rights reserved.

Monday, June 14, 2010

How Properties 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 eFunding 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. 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. Click
here for details. 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.

Friday, June 11, 2010

Top 7 Properties 05-28-10

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.

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
  1. Shopping center in Castaic, CA: 22,400 SF 22-unit retail center in  fast growing (51% since 2000) high income (AHI $102K/yr) LA suburbs.  Just off I-5 exit. 90% leased.  NOI $293K/yr. $3.995M. 7% cap. 
  2. Walgreens in Holy Hill, FL: 13,662 SF drug store built in 1998 on 1.6 acres corner lot in Daytona Beach.  100% NN lease with 8 yrs remaining.  NOI $267K/yr. 8.36% cap. 
  3. Starbucks in Texas City, TX: 1733 SF coffee shop built in 2008 on .46 ac parcel in front of Kroger supermarkets just off Hwy exit south of Houston.  100% NNN lease with 9 yrs remaining.  NOI $93K/yr. $1.17M. 8% cap. 
  4. Advance Auto in Houston, TX: new 6127 SF auto parts store just across the street from a supermarket.  15 yrs NNN lease.  NOI $125K/yr. $1.518M. 8.25% cap. 
  5. Advance Auto in Jacksonville, FL: 7000 SF auto parts store built in 2007 on 1.44 acres lot in a growing area.  Near Publix, Food Lion, IHOP, Walmart, and McDonald's.  100% NNN corp lease with 13 yrs remaining.  NOI $123K/yr. with 10% rent bump in 11-th yr. $1.55M. 7.94% cap. 
  6. Cost Plus World Market in Wichita, KS: 18,252 single-tenant retail center in a growing and affluent (AHI $101K/yr) area.  100% NNN corp lease by Cost Plus World market (Nasdaq: CPWM) with 7 yrs remaining.  NOI $237K/yr. $2.259M. 11.3% cap. 
  7. Arbys in Colorado Springs, CO: 3246 SF 5-yrs-old fast food restaurant on .83 acre outparcel to King Soopers Grocery in a high growth (134% since 2000) middle class area.  100% absolute NNN lease till Dec 2024 by the largest Arbys franchisee with over 260 locations.  NOI $129K/yr with 7.5% rent bump each 5 yrs.  $1.7M.  7.59% cap.
© Transmercial 2010.  All rights reserved.

Thursday, June 10, 2010

Top 7 Properties 05-27-10

  1. Strip center in Grayslake, IL: 5500 SF strip mall at a signalized corner in a high income area (AHI over $100K/yr) 45 miles North of downtown Chicago.  100% NNN leased by 3 tenants: 7-11, Papa John pizza and a dry cleaner store.  NOI $104K/yr. $1.27M. 8.21% cap.  Great for first time investors. 
  2. Apartments in Long Beach, CA: 8-unit apartments built in 1987 in high income area.  95% occupied.  NOI $83K/yr. $1.19M. 7% cap. 
  3. Apartments in Phoenix, AZ: 44 all 2-br-unit apartments built in 2004 on 2.2 acres lot in strong income area.  850 square feet units with full-size washers and dryers, all-electric fully-equipped kitchens, ceiling fans, and walk-in closets. 68% occupied.  Proforma NOI $108K/yr. $1.35M. 8.07% cap. 
  4. Mr. Transmission in Parker, CO: 4230 SF franchised transmission service center built in 2002 on an outparcel to a new Super Target Center and across from Wal-mart supercenter.  Located in affluent Denver suburb (AHI over 104K/yr).  100% NNN leased till 2016 by Mr. Transmission franchise  (Mr. Transmission is a national chain with 200 service centers in 21 states). NOI $80K/yr with generous 4% annual rent bump.  $888K.  9% cap. 
  5. Retail Center in Glendale, AZ: 15,438 SF 3-unit retail center on 1.63 acres lots.  Anchored by 9043 SF Talecris Plasma Resources, a plasma collection center.  87%  lease with 1 vacant unit.  NOI $157K/yr. $1.41M. 11.19% cap.
  6.  Office Building in Dana Point, CA: 6206 SF office building built in 1999 in a wealthy coastal town in Orange county with AHI $144K/yr.  100% leased.  NOI $226K/yr. $2.9M. 7.8% cap. 
  7. Medical Office Building in San Jose, CA: 1230 SF free-standing medical office just behind the upscale Santana Row shopping center.  4 exam rooms and ADA compliant.  Ideal for owner/user.  $799K.
© Transmercial 2010.  All rights reserved.