10-25: Jiffy Lube, Strip Centers, LA Fitness, Rite Aid, KFC

• 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.

1.  Jiffy Lube in Mesa, AZ: 3192 SF Jiffy Lube on .27 ac lot on a major artery in high income Phoenix metro.  100% NNN lease with 8 yrs left to an operator with 60 locations.  NOI $76K/yr. with 2% annual rent bumps.  Only $958K/yr. 8% cap. 
2. Strip Mall in Lombard, IL: 16,830 SF retail center completed in 2006 on a major artery in upper middle-class Chicago suburbs.  Shadow anchored by CVS.  88% NNN leased to Starbucks, Advance America, State Farm Insurance, T-Mobile, Heavenly Massage and Apollo Grill.  NOI $367K/yr. $4.325M. 8.49% cap. 
3. Shopping Center in Oak Park, IL:  36,170 SF shopping center built in 1992 on 1.89 ac lot about 10 minutes from down town Chicago.  Excellent demographics with AHI $101K/yr in 1 mile and over 350K people within 3 miles. 95% leased.  NOI $528K/yr. $6.4M. 8.25% cap. 
4. Retail center in Plainfield, NJ: 11,175 SF retail center built in 2005-2006 on 2.94 ac lot close to I-287 on ramp in affluent New York suburbs.  Surrounded by Walmart, Lowes, Burlington, Staples, LA Fitness, Walgreens, and more.  Consists of 2 buildings: one on long term ground lease to Red Robin (tenant owns the building), and one leased to Baja Fresh Mexican Grill and Quizno Subs.  NOI $318K/yr with 10% rent bumps every 5 yrs.  $4.24M. 7.5% cap. 
5. LA Fitness in Plainfield, NJ: 45,000 SF fitness center built in 2006 on 5 acres lot in prime commercial retail area in affluent NY suburbs.  15 yrs absolute NNN lease with 10 yrs left.  NOI 836K/yr. with 10% rent bump every 5 yrs.  $10.782M. 7.7% cap. 
6. Havertys Furniture in Charlotte, NC: 48,235 SF furniture show room built in 2000 next to I-77 on ramp and close to 100-store North Lake Mall. 10 yrs absolute NNN corp lease to Harvertys Furniture (NYSE: HVT, 118 stores in 17 states) with 8 yrs left.  NOI $602K/yr. $6.6M. 9.14% cap.  Submit ALL offers. 
7. Rite Aid in Ann Arbor, MI: 14,564 SF Rite Aid built in 2008 with double drive thru on 1.77 acres lot in a stable city.  20 yrs NNN lease with 17 yrs left.  Store with strong sales of $7.5M.  NOI $407K/yr. $4.656M. 8.75% cap. 
8. KFC in Silverdale, WA: 2242 SF KFC built in 1990 & recently remodeled on .68 ac outparcel to 100+ stores Kitsap Mall in Seattle metro. 100% NNN lease with 21 yrs left to an operator with 6 locations.  NOI $108K/yr.  $1.46M. 7.41% cap. 
9. Strip Center in San Jose, CA: 5857 SF strip center built in 1990 on ½ ac lot on highly-travelled Almaden road. 100% NNN leased to 4 local tenants with low avg rents.  NOI $117K/yr. $1.8M. 6.5% cap.

© Transmercial 2011.