07-23: Church's Chicken, REO'ed Center, MOB, Shopping Centers

• 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. Church’s Chicken in Stockton, CA: 1100 SF drive-thru restaurant renovated in 2005 on .41 ac lot at a busy signalized corner location. 100% absolute NNN corp lease with 12+ yrs left. NOI $73K/yr with 1.5% annual rent increases. $1.1M. 6.66% cap.
2. REO’ed Retail Center in North Riverside, IL: 9922 SF  bank-owned retail center built in 2004 on .68 ac lot anchored by Dunking Donuts and Sprint. Near Loyola University Medical Center and North Riverside Park Mall in Chicago suburbs. NNN leases. Current NOI $67K/yr. $900K. 7.5% cap. Upside potential.
3. Walgreen’s in Jacksonville, FL: 15,070 SF pharmacy built in 1999 on 1.72 ac lot at a signalized intersection close to Jacksonville University. 100% NNN- leased with 7 yrs left. NOI $302K/yr. Price reduced to $3.552M. 8.5% cap.
4. Strip Center in Houston, TX: 8400 SF strip center built in 20085 on .88 ac lot in high income area. Across from Kroger center. Tenants include: Mexican Restaurant, Liquor Store, Doctor Office and Tattoo shop. 100% leased. NOI $147K/yr. $1.75M. 8.40% cap.
5. MOB in Miami, FL: 35,496 SF two story medical office building constructed in 2004 on 2.71 ac lot. Near Kendall Regional Medical Center and Baptist Medical Plaza. 86% leased. NOI $417K/yr. $5.967M. 7% cap.
6. Retail Center in Albuquerque, NM: 14,724 SF L-shaped retail center along main thoroughfare in growing and affluent (AHI $147K/yr) area. 87% NNN leased to 7 tenants. NOI $136K/yr. $1.6M. 8.50% cap.
7. Retail Center in Richland, WA: 12,000 SF retail center built in 2008 on 1.17 ac lot at a hard corner location in high income area. Across from Target, Walmart Supercenter and The Home Depot. 100% NNN leased. NOI $234K/yr. $2.84M. 8.25% cap.
8. Shopping Center in Medina, MN: 33,254 SF shopping center built in 2006 in wealthy Minneapolis suburbs with AHI of $161K/yr within 3 miles. Shadow-anchored by a 134,000 SF Target and anchored by OfficeMax. 85% leased with excellent tenant mix. NOI $460K/yr. $5.25M. 8.78% proforma cap.
9. Retail Center in Bonita Springs, FL: 15,618 SF retail center built in 2003 on a major artery in a wealthy Fort Myers metro with AHI $98K/yr.  89% leased. NOI $114K/yr. $1.35M. 8.50% cap.

© Transmercial 2012