These are the 10 best commercial properties among 300-400 daily listings between $1M-$30M in all 50 US states listed by CBRE, Marcus Millichap, SVN, etc. The properties are selected based on various criteria: price, cap rate, and more (please read "How properties are selected" article.)
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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.
Single tenant Retail Center in Smyrna, GA: 9504 SF free-standing single-tenant retail center on over 1 acres corner lot. 100% NNN- leased by Eckerk/Rite Aid till 2016. Being subleased to Pet Supermarket, a chain with 109 locations. NOI $156K/yr with rent increased to $161K/yr in 2011. $1.57M. 10% cap.
Pep Boys in Santa Fe, NM: 17,937 SF Auto parts and service center on 1.8 acres at a hard corner. Surrounded by Santa Fe Mazda & Volvo, Performance Buick Pontiac GMC, Hobby Lobby, Ace Hardware, Smith's Food & Drug, Office Depot, Petco, Payless Shoes, Shell Gas, and Wendy's. 15 yrs absolute corp NNN leased by Pep Boys (NYSE: PBY w/ S&P rating of B+). NOI $322K/yr with 1.5% annual rent bump. $4.297M. 7.5% cap.
Walgreens in Oakdale, CA: 15,026 SF brand new drug store on 1.16 acres lot near Modesto. New 25 yrs NNN lease. NOI $467K/yr. 6.714M. 7% cap.
Burger King in Phoenix, AZ: 3370 SF restaurant on .62 ac outparcel at the signalized intersection of two 6-lane arteries with 86,000 cars-per-day traffic count and almost 500K people within 5 miles ring. Renovated in 2009. 100% absolute NNN leased till 2028 by an operator with over 20 locations. NOI $123K/yr with rent bump every 5 yrs. Price reduced to $1.645M. 7.5% cap.
Walgreen's in Loxahatchee, FL: New 14,469 SF trophy drugstore on 2.75 acres lot in wealthy Palm Beach metro. New 25 yrs absolute NNN lease. NOI $560K. $8M. 7% cap.
Burger King in Tacoma, WA: 3723 SF restaurant with indoor play area built in 2002 on .69 acre outparcel to Big Lots, Safeway and K-mart anchored shopping center. 15 yrs NNN lease. NOI $139K/yr. Store with strong sales of over $1.6M/yr. $1.945M. 7.15% cap.
Apartments in Houston, TX:820-unit bank-owned apartments on 36 acres lot. 70% occupied. Potential NOI $1.718M. $11.6M. 13.6% potential cap. Just over $14K/unit.
Retail center in San Jose, CA:26,000 SF former Mazda dealer and service center on 3.25 acres corner lot in high income area with AHI over $100K/yr. $5.75M.
1.Arbys in Mundelein, IL: 4097 SF fast food restaurant built in 1986 on .88 ac outparcel to a neighborhood center anchored by Jewel Oslo supermarket (chain with 185 stores) and Burlington Coat Factory in wealthy (AHI $121K/yr) Chicago suburbs. 20 yrs NNN lease with 10 yrs remaining by an operator with 58 units. NOI $84K/yr. $1.05M. 8% cap.
2.Walgreens in Bee Cave, TX: 14,689 SF drugstore built in 2008 on 2.13 acres lot near Austin in one of the wealthiest (AHI $180/yr within 1 mile) area in TX. 100% NNN lease with 23 yrs remaining. NOI $346K/yr. $3.015M. 6.9% cap.
3.Strip center in Kansas City, MO: 6375 SF strip center built in 2009 on 1.45 acres outparcel to 600,000-Square-Foot Power Center Anchored by Target, Lowe's, Kohl's, Best Buy, Bed Bath & Beyond. 100% NNN leased by 2 national tenants. NOI $201K/yr. $2.24M. 9% cap.
4.Sprouts Farmers Market in Culver City, CA: 32,873 SF single-tenant retail center on 2.63 acres lot in a densely populated (over 700K residents within 5 miles ring), high income (AHI $100K/yr) North of LAX. Easy access to I-405 and Hwy 90. New 15 yrs NNN leased by growing Sprouts Farmers Market, founded in 2002 with 51 store in 4 states. Directly across the street from 1,000,000+ square foot Westfield Culver City regional mall anchored by Target, Best Buy, JC Penney and Macy's. NOI $754K/yr with $2/SF rent bump every 5 yrs. $11.63M. 6.5% cap.
5.Retail center in Houston, TX: 9463 SF 4-yr old retail center in a wealthy area with AHI $102K/yr. 100% NNN leased by 5 tenants: Snap Fitness, Triple Toys, Fioza Gourmet Coffee and Tea, UPS and Afton Oaks Cleaners. NOI $173K/yr. $2.035M. 8.5% cap.
6.Apartments in Irving, TX: 134-unit apartments on 5.2 acres lot in strong rental Dallas metro. Large floor plan units with avg SF of 900 SF. Profroma NOI $482K/yr. $3.45M. 14% potential cap.
7.Retail office Plaza in Castaic, CA: 22,400 SF 3-building retail office complex with I-5 visibility in fast growing (37%) and high income (AHI $94K/yr) LA county. 90% leased. NOI $293K/yr. $3.995M. 6.9% cap.
Fox & Hound Restaurant in Lone Tree, CO: 11,612 SF free-standing Fox & Hound restaurant on 2 acres of land located close to Park Meadows Mall/Hwy-470 in wealthy (AHI $117K/yr) Denver Southern suburbs. Surrounded by many national tenants. 20 yrs absolute NNN corp lease with 13 yrs remaining by an company that operates 130 restaurants in 30 states. NOI $194K/yr. with CPI-based rent increases every 5 yrs. $2.430M. 8% Cap.
Rite Aid Pharmacy in Burlington, NC: 14,470 SF newly constructed Rite Aid Pharmacy along main corridor in fast growing (39.24%) and high income (AHI $81K/yr) area. 20-years absolute NNN corp lease with 10% rent increases every 10-years. NOI $311K/yr. $3.686M. 8.45% Cap.
Travelodge in Tacoma, WA: 79-unit hotel built in 1987 on 1.41 acres lot with excellent I-5 visibility & access. Refurbished in 2008. NOI $394K/yr. $3.8M. 1038% cap.
Shopping Center in North Highlands, CA: 121,619 SF shopping center anchored by 60,849 SF Raley’s supermarket (have the same owner as Nob Hill), Hometown Buffet and Bank of America in Sacramento metro. 84% NNN leased. NOI $1.224M. $14.67M. 8.35% cap. Substantial upside when 100% leased.
Hooters Restaurant in Council Bluffs, IA: 4880 SF franchised restaurant built in 2008 on 1.5 acres parcel across from Mid-America Convention Center in Omaha metro. 15 yrs absolute NNN lease with 13 yrs remaining by experienced operators. Location with strong sales revenue. NOI $216K/yr. Price reduced to $2.335M. 9.25% cap.
Chase Banking Center in Tampa, FL: 7252 SF freestanding Chase banking center on 1 ac lot directly across from Lowes in middle class area. 100% NNN lease. NOI $196K/yr. $2.45M. 8% cap.
Bankruptcy sale of Retail/Office Center in Oakland Park, FL: 48,100 SF 2-story retail/office complex on 2.6 acres lot in Fort Lauderdale metro. 90% occupied. NOI $444K/yr. $4.695M. 9.46% cap.
Apartments in Orlando, FL: 19-unit upscale apartments as part of 236-unit garden style multifamily complex just North of 170 acres lake Orlando. Large 2-3 bedroom 1390-1570 SF units. Surrounded by high-end single-family homes in the $650,000 price range for lakeside homes and $370,000 for non-lakeside homes Convenient to championship golf courses, universities, employment centers, theme parks and shopping establishments. 100% occupied. NOI $129K/yr. $1.371M. 9.4% cap.
1.Apartments in Sacramento, CA: 64-unit newly-renovated apartments on 1.9 acres lot across from 40,000-student American River College (biggest college in CA). 92% occupied. NOI $278K/yr. $3.2M. 8.7% cap.
2.Strip mall in Stanton, CA: 6716 SF strip center in a densely-populated strong income area with over 650K residents within 5 miles ring. 100% leased by 6 tenants plus cell antenna with below market rents. NOI $86K/yr. $1.2M. 7.18% cap. Upside potential.
3.Shopping center in Federal Way, WA: 18,190 SF multi-tenant retail center on 1.49 acres lot on a major artery in middle-class Seattle metro. Excellent visibility. 100% leased. NOI $297K/yr. $4.25M. 7% cap.
4.Medical office building in Lawrenceville, GA: 5900 SF single-tenant medical office building in fast growing and high income Atlanta metro. 100% leased with 8 yrs remaining. NOI $124K/yr. $1.165M. 10.7% cap.
5.Rite Aid in Concord, GA: 10,908 SF drugstore built in 2002 on an outparcel to Food Lion supermarket anchored shopping center in affluent (AHI $96K/yr within 1 mile ring) Charlotte suburbs. 100% NNN leased till 2022. NOI $227K/yr. $2.119M. 10.75% cap.
6.Shopping Center in Renton, WA: 29,016 SF 12-unit shopping center on 2.2 acres lot in stable Seattle metro. 85% NNN leased. NOI $575K/yr. $6.75M. 8.52% cap.
1.Boston Market in North Richland Hills, TX: 3263 SF fast casual restaurant built in 1994 on .85 ac lot in growing Dallas metro. 20 yrs NNN lease with 17 yrs remaining from a corp with 525 locations in 28 states. NOI $72K/yr with up to 2% annual rent bump. $963K. 7.5% cap.
2.Shopping Plaza in Coconut Creek, FL: 19,194 SF upscale retail center built in 2004 on 3 acres lake-front lot in a fast growing area (55% growth since 2000) North of Fort Lauderdale. Part of a larger shopping center with CVS, 7-11 and Fidelity Federal Bank. 100% NNN leased by 10 tenants. NOI $385K/yr. $5.2M. 7.5% cap.
3.Apartments in Plano, TX: 12-unit well-maintained apartments on ¾ ac lot near Collin Creek Mall in high income (AHI $91K/yr) Dallas metro. 100% occupied. Gross income $104K/yr. NOI $65K/yr. Only $725K. 9% cap.
4.Burger King in Tacoma, WA: 3723 SF fast food restaurant with indoor play area built in 2002 on .69 acre outparcel to K-mart, Big Lots and Safeway. Store with strong sales of over $1.6M/yr—300K above national avg. NOI $139K/yr. $1.986M. 7% cap.
5.Shopping Center in Irving, TX: 124,173 SF 33-unit trophy neighborhood center on 11.7 acres corner lot in growing Dallas metro. Anchored by Tom Thumb supermarket (owned by Safeway), Rent-A-Center, and Chase. 94% NNN leased. NOI $1.182M. $15.76M. 7.5% cap.
6.Shopping Center in Brea, CA: 56,945 SF 19-unit shopping center on 4.69 acres corner lot in upper middle class (AHI $94K/yr) Orange county. Anchored by Vons Grocery (owned by Safeway). 88% NNN lease. NOI $1.238M. $15.5M. 8% cap.
7.Dollar General in Houston, TX: 9100 SF Dollar store in a fast growing and stronger income part of Houston. 100% NN leased till 2019. NOI $106K/yr. $1.217M. 8.75% cap. Recession resistant tenant.
8.Pep Boys Auto Service center in Riverside, CA: 4500 SF auto service center with 6 bays built in 1984 on .42 ac lot. Recently renovated. 100% NNN leased. NOI $42K/yr. Only $750K. 5.6% cap.
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.
1.Starbucks in Arlington, TX: 1750 SF Starbucks built in 2006 on .52 ac lot at a hard corner in middle-class (AHI $70K/yr) Dallas metro. Outparcel to Tom Thumb Grocery (Safeway) anchored shopping center. 100% NNN- lease with 6.5 yrs remaining and no early termination. NOI $73K/yr with 10% rent bump in Nov 2011. $943K. 7.75% cap now and 8.5% cap in 2011.
2.Apartments in San Jose, CA: 9-unit well-maintained apartments within walking distance to San Jose State University. High income area. 100% occupied. Gross income $75K/yr. $825K.
3.Bank-owned Apartments in Oakland, CA: 96-unit apartments on 2.95 acres lot near Oakland zoo. 85% occupied. Proforma NOI $476K/yr. $3.9M. 12.22% Proforma cap. Just over $40K/unit.
4.Pep Boys Auto in Austin, TX: 22,279 SF auto parts and service center on 2 acres lot with easy access to Loop 360 and Hwy 71. 15 yrs absolute NNN lease by Pep Boys (NYSE: PBY with S&P B+ rating). NOI $230K/yr with 1.5% annual rent bump. $2.978M. 7.5% cap.
5.Starbucks in McDonough, GA: 1750 SF Starbucks coffee built in 2007 on an outparcel across from 700,000 SF power center anchored by Home Depot, Belk, Super Target, Bed Bath and Beyond, Ross Dress for Less in a upper middle class Atlanta metro. 10 yrs NNN- with 7 yrs remaining and no early termination. NOI $87K/yr. $1.031M. 8.5% cap.
6.Olive Garden in McDonough, GA: 7399 SF Italian restaurant built in 2007 on 1.82 acres outparcel across in a fast growing (64% since 2000) upper middle-class (AHI $84K/yr) Atlanta metro. 10 yrs NNN corp. ground lease with 6.5 yrs remaining from Daren Corp (NYSE : DRI with BBB S&P rating). Note: you are buying land as tenant owns the building. NOI $120K/yr with 10% rent bump every 5 yrs. $1.65M. 7.25% cap.
7.La Quinta Inn in Livermore, CA: lender-owned 58-room hotel built in 2005 on 2.73 acres parcel just off I-580 in wealthy area with AHI over $127K/yr. Amenities include with 2200 SF conference room and in-door swimming pool. $3.8M.
As an investor, you prefer investment properties with predictable cash flow. This often means properties with triple-net or NNN lease. Triple-net lease is a lease in which you get net taxes, net insurance and net maintenance expenses from the tenants. Double-net (NN) leases are less desirable as they are leases with net taxes and net insurance (or net taxes and net maintenance expenses). A lot of leases are falling between NN and NNN. For example:
·Some Walgreens leases are NNN leases with the exception that landlords are responsible for roof and structure. These leases are closer to NNN leases. Transmercial will use the notation NNN- to designate these leases.
·Most Family Dollar stores leases are NNN with landlords responsible for more maintenance expenses: roof, structure, parking lot expenses. These leases are not NN leases but closer to NN leases. Transmercial will use the notation NN+ to designate these leases.
1.Burger King in Tracy, CA: 3221 SF restaurant on an outparcel to a new Walmart-anchored shopping center with Michaels, Petco, Bed Bath & Beyond, and Staples. Adjacent to Costco. Fast growing (51% since 2000) and high income (AHI over $102K/yr) city in Northern CA. New 15 yrs absolute NNN lease. NOI $104K/yr with 7.5% rent bump every 5 yrs. $1.6M. 6.5% cap.
2.Shopping Center in Austin, TX: 41,240 SF shopping center anchored by PetSmart and adjacent to Target in a stable city. NOI $284K/yr. $3.6M. 7.91% cap.
3.Apartments in Austin, TX: 178-unit apartments in a stable market. 96% occupied. NOI $424K/yr. $5M. 8.48% cap. Just over $28K/unit.
4.Applebee’s Bar & Grill in Brooklyn Park, MN: 6000 SF restaurant on 1.02 acres lot in a prime commercial corridor in Minneapolis metro. 100% NN corp lease with 9 yrs remaining. Tenant has been at this location since 1990. NOI $70K/yr. with strong rent increases of $5-10K every 2-3 yrs. Only $795K. 8.83% cap. Store with phenomenal annual sales revenue of $1.7M in 2009.
5.IHOP in Chandler, AZ: 5687 SF24-hr restaurant on 2/3 ac outparcel to a Fry’s Supermarket anchored shopping center in a high income densely-populated Phoenix metro. New 20 yrs absolute NNN lease from a 31-unit operator. Tenant has been operating at this location for 20 yrs. NOI $157K/yr with 10% rent bump every 5 yrs. $2.1M. 7.5% cap.
6.Apartments in Phoenix, AZ: 72-unit 3-story apartments with swimming pool built in 1984 on 1.5 acres lot with 54 2-BR units. Proforma NOI $115K/yr. $1.35M. Just less than $19K/unit.
7.Taco Bueno in Amarillo, TX: 2714 SF fast food restaurant built in 2004 on ¾ acre lot on a major artery near I-40. 20 yrs NNN lease with 14 yrs remaining by a franchisee with 180 locations in TX. NOI $74K/yr. $956K. 7.75% cap.
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. Note this is a convention created & only used by Transmercial.
Retail/Office Building in Tucson, AZ: 18,000 SF newly constructed mix-used retail building on 1.50 acre lot in fast growing area. 100% NNN leased. NOI $387K/yr. $4.843M. 8% Cap.
Shopping Center in Odessa, TX: 66,797 SF shopping center on over 6 acres of land next to University of Texas in growing West of Dallas. 94% NNN leased with excellent tenant mix. NOI $544K/yr. $6.8M. 8% Cap.
Starbucks Coffee in Hickory, NC:1870 SF free-standing retail building constructed in 2008 just ½ mile from Valley Hills Mall at primary retail corridor. 100% NNN- corp lease with no kickout clause. NOI $89K/yr. $1.080M. 8.31% Cap.
Apartments in Los Angeles, CA:43-units recently renovated two-story apartment complex with new internal camera surveillance system close to Fwy-10 in densely populated area. 94% leased. NOI $134K/yr. $1.819M. 7.40% Cap.
Retail Center in Paramount, CA:3337 SF well-maintained retail center anchored by Market Store conveniently located at signalized intersection. 100% leased by 4 tenants. NOI $44K/yr. $1M. 6.66% Cap.
Strip Center in Rancho Cucamonga, CA: 11,670 SF recently constructed strip center anchored by Starbucks surrounded by many national tenants at hard corner location off of Fwy-210. 100% NNN leased. NOI $393K/yr. $5.830M. 6.75% Cap.
1.Subway Sandwich in Portland, OR: 1850 SF freestanding restaurant with drive thru on 1/3 acre lot completed renovated in 2006. New 10 yrs NNN lease by a successful franchisee. NOI $55K/yr with 15% rent increase in yr 5. $820K. 6.75% cap.
2.Jack In The Box in Garland, TX: fat food restaurant on a hard corner lot in upper middle class Dallas metro. 15 yrs absolute NNN corp lease with 13 yrs remaining. NOI $60K/yr. with 8% rent bump every 5 yrs. $930K. 6.5% cap.
3.Urgent Care Center in Oklahoma, OK: 3248 SF class-A medical office building constructed in 2005 on .90 ac parcel in high income area. 10 yrs NNN lease till 2016 by Access Medical Urgent Care with 9 clinics. NOI 81K/yr. (in Mar 2011) $885K. 9.25% cap.
4.Walgreens in Northglenn, CO: 14,490 SF drugstore built in 2001 on 1.29 acres corner lot in Denver metro. 100% NNN (minus roof & structure) till 2022. NOI $391K/yr. $5.2M. 7.5% cap. Buyer to assume $4M loan at 6.03% interest due 2017. 13% leveraged 1st yr return!
5.Jiffy Lube in Independence, MO: 2816 SF Jiffy Lube built in 2002 on 1.07 acres lot. 100% NNN leased till 2023 by Heartland Automotive Holdings – Jiffy Lubes Largest Franchisee. NOI $92K/yr with 10% rent bump every 5 yrs. ($101K/yr in 2013). $950K. 9.75% cap.
6.Apartments in Renton, WA: 124 unit apartments on 4.42 acres lot in Seattle metro with $1.25M in upgrades. 98% occupied. NOI $549K/yr. $7.75M. 7.09% cap.
7.Shopping Center in Stockbridge, GA: 22,325 SF retail center built in 2005 in Atlanta metro. NOI $191K/yr. Price reduced from $2.8M to $2.4M. 9% cap.
1.Pep Boys Auto in Sacramento, CA: 22,341 SF auto parts and service center in a growing city. 15 yrs absolute NNN corp lease with 13 yrs remaining. NOI $251K/yr with 1.5% annual rent bump. $3.354M. 7.5% cap.
·Great location with easy access to I-80.
·Strong guaranty from a corp with over 560 stores
·Below market rent of less than $1/SF means tenant will most likely to exercise options later.
2.Walgreens in New Rochelle, NY: 9584 SF drugstore in a high income (AHI $99K/yr within 1 mile), densely-populate city just outside of Manhattan. New 25 yrs absolute NNN corp lease. NOI $342K/yr. $4.56M,. 7.5% cap.
3.Short-sale Apartments in Lake Worth, FL: 71-unit apartments in excellent Palm Bach area. Amenities include central air, ceiling fans, swimming pool, individual hot-water heaters. Profoma NOI $267K/yr. $3.5M. 7.65% cap.
4.Medical Building in Brooksville, FL: 6071 SF single-tenant class-A medical building with specialized cardiology buildout constructed in 2004 in a fast growing Tampa metro. 10 yrs NNN lease by Brooksville Cardiology that has been in the business for 10 yrs. NOI $180K/yr with CPI-based annual rent bump. $2M. 9% cap.
5.Walgreens in Roseville, CA: 15,120 SF drugstore built in 2000 on 1.6 acres corner lot in a growing upper middle class Sacramento metro (AHI $84K/yr). 20 yrs NNN lease with 10 yrs remaining on primary term. NOI $374K/yr. $4.675M. 8%cap. Great location!
6.Apartments in Santa Cruz, CA: 54-unit trophy apartments on 1.26 acres lot in a wealthy coastal town (AHI $107K/yr) just 30 minutes from Silicon Valley. Walking distance to the beaches. 100% leased. Approval for additional 15-20 units. NOI $469K/yr. $7.7M. 6.07% cap.
7.Apartments in La Mesa, CA: 10-unit apartments in good income San Diego metro. NOI $72K/yr. $1.095M. 6.61% cap.
8.Apartments in Stuart, FL: 104-unit apartments with swimming pool in high income Port Saint Lucie. NOI $282K/yr. $3.25M. 8.7% cap. Just over $33K/unit.
9.Bankruptcy sale- Shopping center in Oakland Park, FL: 48,100 SF retail office complex on 2.6 acres lot in Fort Lauderdale metro. 90% leased. NOI $444K/yr. $5.5M. 8.6% cap. Listing broker suggested 10% cap possible.
1.Pep Boys Auto in Greece, NY: 22,277 SF auto parts and service center across from Elm Ridge Shopping center in a high income part of Rochester with AHI of $84K/yr. 15 yrs absolute NNN corp lease from Pep Boys (NYSE: PBY with S&P rating of B+) with 13 yrs remaining. NOI $209K/yr. with 1.5% annual rent bump. $2.623M. 8% cap. Why this is a good investment:
·Good cap w/ decent annual rent bumps. If this were an Advance Auto Parts with BBB rating, the cap would be 7.5% and no rent increases for 10 yrs.
·Recession insensitive tenant
·National tenant which may enable you to obtain low interest rates which should achieve double-digit total return.
2.Firestone Auto service center in Northfield, NJ: 7575 SF auto service center under construction on 1.2 ac lot in middle-class Atlantic City metro. New 15 yrs NN lease. NOI $261K/yr. with rent bump every 5 yrs. $3.482M. 7.5% cap.
3.Apartments in Tucson, AZ: 48-unit apartments in good area of Tucson. NOI $163K/yr. $1.88M. 8.68% cap
4.Walgreens in Hometown, IL: 14,855 SF drugstore built in 2002 on 1.12 acres hard corner lot in Chicago metro. 100% NNN leased till 2022. NOI $482K/yr. $6.342M. 7.6% cap.
5.Strip Center in Yorba Linda, CA: 5789 SF strip mall on ½ acres outparcel to Stater Bros grocery anchored center. High traffic intersection of Imperial hwy and Yorba Linda blvd. High income area with AHI over $115K/yr. 100% NNN leased by 4 regional and credit tenants: Coffee Bean & Tea Leaf, GameStop, Panda Express, and AT&T. NOI $290K/yr. $4.31M. 6.75% cap.
6.Shopping Center in Las Vegas, NV: 29,974 SF 14-tenant shopping center built in 1987 on over 3 acres corner lot in upper middle class area with AHI over $82K/yr. 100% mostly NNN leased. NOI $601K/yr. $5.6M. 10.7% cap.
7.Single tenant Office Building in Springfield, MO: 49,908 SF office building on 4.68 acres parcel in a growing and high income area. 100% leased till 2019 by McKesson Corp (, NYSE: MCK, S&P rating A-), a Fortune 20 company and also the largest healthcare company with revenue of over $106B in 2009. NOI $682K/yr. $7.575M. 9% cap.
8.Retail Center in Sacramento, CA: 14,147 SF retail center on .79 ac lot in high income area. 90% leased by 5 tenants. NOI $109K/yr. $1.499M. 7.29% cap.
9.VA Outpatient Clinic in New Port Richey, FL: 38,219 SF VA Clinic on 9.2 acres lot. 20 yrs lease till 2020 guaranteed by US government. NOI $738K/r. $8.69M. 8.5% cap.
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.Dairy Queen in Sequim, WA: 3120 SF fast food restaurant on .7 ac corner lot NW of Seattle metro. 20 yrs NNN lease with 8 yrs remaining. NOI $66K/yr. $776K. 8.5% cap.
2.Medical Office building in Dickinson, TX: 13,620 SF 4-yrs old class-A medical office building on 2 acres lot near I-45 in fast growing Houston metro with $700K in tenant’s improvements . 100% leased with 8 yrs remaining. NOI $365K/yr. $3.85M. 9.5% cap.
3.Retail Strip in De Pere, WI: 5862 SF strip center on an outparcel in a high income Green Bay metro. 100% NNN leased by 4 national tenants: Starbucks, Fed Ex and US Cellular. NOI $168K/yr. $1.75M. 9.6% cap.
4.Multifamily in Athens, GA: 38-unit condominium complex built in 2007 in fast growing and middle class area (AHI $78K/yr). 73% occupied. NOI $178K/yr. $2.15M. 8.29% cap.
5.Apartments in Fairfield, CA: 16-unit apartments half way between San Fran and Sacramento. NOI $94K/yr. $1.025M. 9.2% cap.
6.La Petite Childcare Center in Albuquerque, NM: 8838 SF childcare center built in 1993 on 1 ac lot. 100% NNN leased by La Petite Academy, a national childcare provider with 7 yrs remaining. NOI $136K/yr. $1.65M. 8.25% cap.
7.Gas Station in San Jose, CA: 1224 SF gas station and convenience store on .4 ac corner lot in high income area (AHI $114K/yr). Revenue over $2.5M/yr. NOI $168K/yr. $1.975M. 8.5% cap.
8.Office building in Modesto, CA: 5532 SF class-A office building constructed in 2006. 100% occupied. NOI $111K/yr. $1.395M. 8% cap.
9.Strip Center in Corals Springs, FL: 13,025 SF strip center on a major artery NW of Fort Lauderdale. Excellent visibility. 100% leased. NOI $160K/yr. $1.999M. 8% cap.
10.Office Building in Santa Rosa, CA: 21,808 SF 2-story office complex on 1 ac lot in high income city just North of San Francisco. 100% leased. NOI $236K/yr. $3.095M. 7.65% cap. Just $142/SF.
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
Strip Center in Phoenix, AZ: 4760 SF attractive strip center constructed in 2005 at hard corner location. 100% NN leased. NOI $97K/yr. $1.010M. 9.64% Cap.
Family Dollar Store in Rosenberg, TX:9340 SF recently constructed single-tenant retail building with excellent store sales along main corridor in fast growing Houston suburbs. Long NNN leased. NOI $87K/yr. $975K. 9% Cap.
Shopping Center in Spring, TX: 21,000 SF eye-catching shopping center on 2.50acres of land with easy access to Hwy-249. 100% leased. NOI $226K/yr. $3.1M. 7.3% Cap.
Shopping Center in San Jose, CA:39,649 SF neighborhood center on over 4 acres of land shadow-anchored by Save Mart Supermarkets in affluent (AHI $123K/yr) neighborhood. NOI $983K/yr. $14.400M. 6.83% Cap.
Strip Center in Mesa, AZ:14,875 SF well-maintained strip center across from Banner Desert Hospital with excellent tenant mix. 92% NNN leased. NOI $159K/yr. $1.590M. 10% Cap. Upside potential when fully leased.
Retail Buildings in San Bernardino, CA:20,200 SF retail building consisting of popular & trendy Elephant Bar Restaurant and retail center conveniently located between Costco and Sam’s Club near I-10. NOI $583K/yr. $8.350M. 7% Cap. Buyer to assume loan at 5.36% fixed non-recourse loan due in Aug 2015.
Retail Building in Schaumburg, IL:7000 SF multi-tenant retail building close to K-Mart, Home Depot and Target in growing Chicago metro. 100% NNN leased by two national tenants: Starbucks and Verizon. NOI $207K/yr. $2.2M. 9% Cap.
Shopping Center in Coral Springs, FL: 13,025 SF recently painted shopping center along main corridor with good tenant mix. 100% leased. NOI $159K/yr. $1.999M. 8% Cap.
Steak ‘N’ Shake in Gainesville, FL: 3602 SF free-standing restaurant across from publics shadow-anchored by Target off of I-75. 100% NNN leased. NOI $110K/yr. $1.320M. 8.35% Cap.
Shopping Center in Houston, TX: 17,300 SF shopping center on 1.48 acre lot at main corridor with high traffic count. 100% NNN leased. NOI $176K/yr. $2.350M. 7.5% Cap.
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
Another reason to invest: Transmercial can assist with obtaining up to 70% LTV financing, 5 yrs fixed rate, 25 yrs amortization at as low as 4.56%.
1.Burger King in Corpus Christi, TX: 3105 SF restaurant built in 2008 on 1 ac lot. 20 yrs absolute NNN lease with 18 yrs remaining from a franchisee with 40+ locations in TX. NOI $110K/yr with annual rent bump. $1.375M. 8% cap.
2.Arbys in Greensboro, NC: 3289 SF fast food restaurant built in 1999 on over 1 acres lot just off I-85/40 exit. 100% NNN corp lease with 9 yrs remaining. NOI $101K/yr with 4% rent bump every 2 yrs. $1.224M. 8.3% cap.
3.Hooters Restaurant in Phoenix, AZ: 6207 SF newly remodeled restaurant on 1.2 acres outparcel to Desert Sky Mall. 20 yrs NNN lease. NOI $150K/yr. with 10% rent bump every 5 yrs. $2M. 7.5% cap.
4.Shopping Center in Arvada, CO: 49,912 SF shopping center 4.7 acres parcel in prime retail intersection in Denver metro. Remodeled in 2009and surrounded by Home Depot, TJ Maxx, Bally' s, Bed Bath & Beyond, Petco and Chili's Grill & Bar. 90% leased. NOI $630K/yr. $7.75M. 8.13% cap.
5.Single-tenant Retail in Vancouver, WA: 11,000 SF retail building on .93 acre lot in fast growing and high income area. 100% NNN lease with 9 yrs remaining by Big 5 Sporting Goods. NOI $149K/yr. $2.074M. 7.2% cap.
6.Rite Aid in Graham, NC: 13,824 SF drug store built in 2004 on 1.2 acres in a stable city. 100% absolute NNN lease with 14 yrs remaining. NOI $396K/yr. $3.969M. 10% cap. Court-ordered sale.
7.Shopping Center in Omaha, NE: 29,675 SF retail center built in 1999 on a high-traffic hard corner (66K cars/day) across from Oak View Mall in an affluent area (AHI $96K/yr). 85% NNN leased. NOI $189K/yr. $4M. 9% cap.
8.Shopping Center in Granada Hills, CA: 39,720 SF retail center in densely-populated (over 500K residents within 5 miles ring), upper-middle class (AHI $99K/yr). 100% NNN leased by 3 national tenants: Walgreens, Staples, and E Pollo Loco. NOI $877K/yr. $12.3M. 7.14% cap.
9.Tire Pros in Chandler, AZ: 6429 SF auto service center in growing and strong income Phoenix metro. 10 yrs absolute NNN lease by franchised Tire Pros. NOI 98K/yr with strong 12% rent bump every 5 yrs. Store with strong and increasing $1.4M in annual revenue. $1.15M. 8.5% cap.
10.Family Dollar Store in Tucson, AZ: new 9180 SF dollar store on 1.89 acres lot in strong income area. 10 yrs NN corp lease. NOI $129K/yr. $1.48M. 8.75% cap. Recession insensitive tenant.
I am the Chief Investment Advisor at Transmercial, formerly
eFunding, Inc., a Commercial Real Estate Investments company in San Jose, CA. I am in the top 5 commercial real estate expert author among over 500 on ezinearticles.com.
