03-28: McDonalds, Goodwill, Pep Boys, Shopping Centers

What investors should know about commercial RE loans. Click here for the article.

1.  McDonalds in Houston, TX: 2884 SF restaurant built in 1996 on .68 ac outparcel to Sam’s Club right next to I-45 off ramp (A+ fast food location).  100% absolute NNN corp ground lease till 2015 (land is for sale, tenant owns the building).  NOI $72K/yr with rare 10% rent bumps every 5 yrs. $1.21M.  6% cap. Note: the property was originally a Boston Chicken restaurant.  McDonalds took over 10 yrs the ground lease from Boston Chicken.  If it does not renew the lease which is highly unlikely, the building is reverted to landowner. 
2. Retail Center in Garland, TX: 17,378 SF 3 yrs old retail center anchored by a 5824 SF Buffalo Wild Wings restaurant. Excellent visibility with all units facing busy throughway (45,133 Vehicle per day). Surrounded by Wal-Mart Supercenter, Super Target, Michael’s, Petsmart and Sam’s Club. In growing and well-off (AHI $105K/yr) Dallas suburbs. 84% NNN leased.  NOI $313K/yr. $3.92M. 8% cap.  
3. Shopping Center in Geneva, IL: 86,641 SF well-maintained shopping center anchored by 71,729 SF Dominick’s grocery store. Shadow anchored by Gander Mountain and Best Buy.  In thriving retail corridor & wealthy (AHI $145K/yr) area West of Chicago. NOI $1.101M/yr. $13.8M. 7.98% cap. Buyer to assume $10.6M non-recourse loan.  
4. Goodwill in Midwest City, OK: 25,133 SF Goodwill center on 2.69 acres lot at a hard corner location. Across from Heritage Park Mall and near Midwest Regional Medical Center. 100% NNN corp lease to Goodwill Industries till 2020. NOI $188K/yr with a rent increase in 2015. $1.98M. 9.5% cap.  
5. Shopping Center in Scottsdale, AZ: 41,530 SF shopping center built in 2000 on a 5.78 acres lot at a signalized corner location in fast growing (18.25% since 2000) and well-off (AHI $149K/yr) Phoenix suburbs. 76% NNN leased. $6.5M. NOI/Cap not provided.  
6. Pep Boys is Tuscaloosa, AL: 5271 SF Pep Boys near McFarland Mall and I-59/20 exits. In growing (17.12%) city. 100% NNN lease. NOI $114K/yr with 10% rent increases every 5 yrs. $1.472M. 7.75% cap. 
7. Retail Building Huntington Park, CA: 2966 SF retail building constructed in 2006 on .56 ac outparcel to The Home Depot in densely populated Los Angeles area with over 500K residents within 5 miles. 100% NNN corp leased to Starbucks and Subway. NOI $118K/yr. $2.05M. 5.77% cap.

© Transmercial 2012.