01-03: Arbys, DaVita Dialysis, Medical Building, Apartments, Retail center for sale

AHI: Avg. Household Income.  National average is about $50+K/yr.

NOI: Net Operating Income.  It’s the income after all expenses (prop taxes, ins., maintenance) paid.

NNN: Triple net lease in which tenants pay taxes, insurance and maintenance expenses.

NNN-: Triple net lease with landlord responsible for roof and structure.  Used by Transmercial only.

2011 Market Outlook: Transmercial expects the commercial real estate market to be stronger in 2011 than 2010.  This is a result of various factors: improved economy, lower employment, recent renewal of low capital gain taxes, more positive consumer confidence, stronger retail sales, and improving credit market.  This means the cap rate will go down further, e.g. cap rate will be in the 6%-6.5% for new Walgreens.  There will be more multiple offers for properties at good locations.

1.      Arby’s in Indianapolis, IN: 3382 SF fast food restaurant in fast growing middle-class area in South Indianapolis near I-65.  Close to Target, Kohl’s, Meijer supermarket. 20 yrs absolute NNN lease with 9 yrs remaining.  NOI $135K/yr. $1.693M. 8% cap.

2.      Carbone’s Pizzaria in Rosemount, WI: 5461 SF pizza restaurant on .73 acre lot in high growth, high income Saint Paul suburbs.  10 yrs NNN lease to Carbone’s with 37 locations.  NOI $98K/yr with 2% annual rent bump. $970K. 10% cap.

3.      Davita Dialysis Center in Lake Wales, FL: 4152 SF dialysis center built in 1996 on .4 acre lot close to Lake Wales Medical Center.  100% NNN corp lease with 9 yrs remaining.  NOI $68K/yr. Just $800K. 8.49% cap.

4.      Medical building in Watsonville, CA: 4332 SF class-A 5 yrs old medical office building on 1/3 ac corner lot in middle-class town.  100% leased to 2 medical tenants.  NOI $113K/yr.  $1.465M. 7.75% cap.

5.      Apartments in Warner Robins, GA: 32-unit 2&3 BR apartments on 3.5 acres lot renovated in 2008.  NOI $96K/yr.  $1.065M. 9% cap.

6.      Retail center in Knoxville, TX: 9800 SF retail center on a corner lot in middle-class area.  100% NNN leased to 7 good national & local tenants.  NOI $150K/yr. $1.668M. 9% cap.

© Transmercial 2011.