04-29: Wendy's Restaurant, Fresenius, Rite Aid, Apartments, Medical office building, Retail center for sale

The Offer Process of Commercial Properties

After you review the marketing brochure of the property and interested in making an offer, your broker will prepare a Letter of Intent/Interest (LOI) and have you sign it.  The LOI is an unbinding 1-2 page letter stating

·         Purchase price

·         Financing contingency period—normally 50 days, with rate and terms

·         Due diligence (DD) or inspection period, normally 21-30 days and what documents seller will provide

·         When to close escrow, normally 60 days

·         How the closing costs will be split between the parties.

Counter offers, if any will go on using the LOI.  Once the LOI is accepted by both sides, the contract will be drafted with all the details.  After the contract is executed by both buyer and seller, the clock starts ticking. The seller will provide the buyer will all due diligence documents.  The buyer will then visit the property and apply for financing.  If the buyer approves DD, the buyer will proceed to closing the transaction.

1.     Bank-owned Apartments in Las Vegas, NV: 156-units two-story multifamily buildings on 6.33 acres of land with swimming pool & Jacuzzi, courtyard with barbecue area and renovated two-story clubhouse across from Freedom Park. NOI $387K/yr. $4.68M. 8.27% Cap.

2.     Medical Office Building in San Bernardino, CA: 20,608 SF Class- B multi-tenant office building on 1.23 ac corner lot across from Inland Center Mall with easy access to newly expanded I-215. 92% leased. NOI $152K/yr. $2.160M. 7.05% Cap. Upside potential when 100% leased. Just over $100/SF!

3.     Advance Auto Parts in Cincinnati, OH: 10,000 SF retail building constructed in 2003 on 1.13 ac lot in densely populated area. 100% NNN corp leased with 7 yrs remaining. Store with 100% higher than average sales. NOI $165K/yr. $1.968M. 8.4% Cap.

4.     Rite Aid in Gastonia, NC: 10,908 SF Rite Aid Pharmacy on 1.40 acres of land in upper middle-class Charlotte suburbs. 100% absolute NNN corp lease till 2019 with 2% increases every 5 years. NOI $272K/yr. $2.658M. 10.25% Cap.

5.     Fresenius Dialysis Center in Greensboro, NC: 15,529 SF build-to-suit dialysis center near Kindred Hospital Greensboro in growing middle-class area. 100%NNN corp lease till 2021 with annual CPI rent increases. Property in state with legal limitations in competition. NOI $282K/yr. $3.529M. 8% Cap.

6.     Office Building in San Francisco, CA:  rare 26,160 SF Class-B brick/timber office building in financial district and across from Pier 9.  Affluent area with AHI $154K/yr in 1 mile  . 100% leased by Williams-Sonoma, Inc. with soon lease expiration. Full seismic upgrade and new roof.  Excellent opportunity for owner/user. 7.5% Cap. Price Not Disclosed.

7.     Lender-owned Shopping Center in Las Vegas, NV: 32,224 SF recently constructed 19-unit shopping center on 3.9 ac lot in fast growing (914% since 2000) & affluent (AHI $100K/yr) neighborhood. 47.1% NNN leased. NOI $298K/yr. Price “Best Offer”.

8.     Wendy’s in Palm Bay, FL: 2810 SF retail building on 1.03 ac lot across from Big K-mart in Melbourne metro. 15-yrs remaining on 20-yrs absolute NNN corp lease with 4% rent increases every 2-yrs and additional 4% increases in years 15, 25 and 30. Store with $1.1M in sales.  NOI $97K/yr. $1.235M. 7.88% Cap.

9.     Strip Center in Greenville, SC: 9385 SF newly constructed strip center close to Fwy-385. Fast growing middle-class area. 100% NNN leased. NOI $88K/yr. $1.037M. 8.5% Cap.

© Transmercial 2011.