03-23: Retail centers, Valvoline, Multifamily, Rite Aid, CVS, Kmart

1.      Strip center in Turnersville, NJ: 11,740 SF strip center on a high-traffic major artery in upper middle class Philadelphia suburbs. NOI $148K/yr. $1.85M. 8% cap.

2.      Valvoline Oil Change in Vista, CA: 2857 SF auto service center on ¾ ac lot near Hwy 78 in middle class San Diego suburbs.  Surrounded by National retailers Wal-Mart, Target, Walgreens, Office Depot, Petsmart, Michael's, and more. 15 yrs absolute NNN lease with 13+ yrs remaining to an operator with 40+ locations in CA & AZ.  NOI $66K/yr with CPI-based annual rent bump. $1.056M. 6.25% cap.

3.      Multifamily in Webster, TX: 90 2-3 BR condo townhomes with attached carports/garages on 6.39 acres of lush grounds and mature landscaping in high income Houston suburbs.  Amenities include fitness center, swimming pool, controlled gate access.  75% occupied.  Pro forma NOI $407K/yr. $4.25M. 9.59% cap.

4.      Rite Aid in Liverpool, NY: 10,908 SF drug store built in 1999 on 1.84 acres lot in high income Syracuse.  20 yrs NNN- lease with 8 yrs remaining.  NOI $206K/yr.  $1.95M. 10.6% cap.

5.      CVS Drugstore in Tulare, CA: 15,789 SF drug store (former Longs Drug) on 1.69 acres outparcel to Lowe’s in fast growing town in San Joaquin Valley.  100% NNN lease till 2032.  NOI $288K/yr. $4.12M. 7% cap.

6.      Big Kmart in Harlingen, TX: 91,631 SF big box on 6.73 acres lot next to HEB supermarket.  100% leased to K-mart.  Tenant has been here for 35 yrs and just exercised 5 yr option.  NOI $170K/yr. $1.67M. 10.2% cap.

7.      Checker in Conyers, GA: 936 SF double drive thru fast food restaurant on .38 acre lot right off I-20 exit in Atlanta metro.  20 yrs absolute ground lease with 19 yrs remaining to an operator with 55 locations.  NOI $66K/yr with 20% rent bump in 2020.  $910K. 7.25% cap.

8.      Commercial lot in Sunnyvale, CA: 3 acres corner lot consists of 3 parcels on El Camino Real in the high income Silicon Valley.  The property has 24,820 SF 100% leased mixed use building, a Jack In the Box restaurant with NOI of over $600K/yr.  The 2 buildings will revert to land owner in 2015 (who will then collect over 600K of NOI from the tenants).  Unpriced but is probably somewhere between $7-8M.

9.      Shopping Center in Mokena, IL: 44,800 SF shopping center built in 2005 on 4.4 acres lot high income (AHI $90K/yr in 1 mile)) Chicago suburbs.  88% leased to 8 tenants.  Current NOI $647K/yr. $7.9M. 8.16% cap.

© Transmercial 2011.