01-17: Wienerschnitzel, Medical Office Buildings, Shopping Centers

1. Wienerschnitzel in Fontana, CA: 1770 SF drive-thru restaurant built in 2002 on .69 ac outparcel to a grocery-anchored shopping center in a growing city in Southern CA. Long absolute NNN ground lease occupied by national tenant. NOI $ 67K/yr. with 12% rent increases every 5-yrs. Next increase in 4/2012. $1.33M. 6.5% cap.  
2. Shopping Center in Jacksonville, FL: 18,767 SF well-maintained shopping center built in 2006 & anchored by Dollar General & Sherwin Williams. 100% NNN leased. NOI $230K/yr. $2.68M. 8.60% cap. Buyer to assume $1.8M loan at 6.125% rate. 
3. Retail Center in Glendale, AZ: 7281 SF recently remodeled retail center on .53 ac outparcel to Target in Phoenix metro. 100% NNN lease to 3 national/regional tenants: GameStop, Little Caesar Pizza, and NextCare Urgent Care. NOI $182K/yr. $2.225M. 8.20% cap.  
4. Medical Office Building in Norfolk, VA: 36,531 SF 3-sory multi-tenant medical office building on river bank near Sentara Norfolk General Hospital on a busy thoroughfare. Excellent demographics: AHI $100K/yr in 1 mile. 95% leased to long-term tenants. NOI $526K/yr. $6.8M. 7.74% cap.  
5. Office Building in Palatine, IL: 40,000 SF 4-story brick office/retail building next to Metra Station and in close proximity to Hwy-14 in high income Chicago metro. 88% leased. NOI $355K/yr. $3.999M. 8.90% cap.  Just $100/SF. 
6. Retail Center in Tracy, CA: 15,412 SF recently constructed retail center close to West Valley Mall and next to I-205.  In fast growing community 30 miles East of Silicon Valley.  89% NNN leased. NOI $375K/yr. $6.2M. 6.06% cap.  
7. Retail Center in Fremont, CA: 14,818 SF retail center built in 2001 shadow-anchored by The Home Depot and REI.  Between I-680 and I-880. In affluent (AHI $110K/yr in 1 mile) Silicon Valley suburbs. 100% NNN leased. NOI $451K/yr. $7.5M. 6.02% cap. 
8. REO Office Building in Folsom, CA: 22,108 SF well-kept office building on 2.63 acres parcel in growing upper middle class Sacramento suburbs (AHI $131K/yr within 1 mile). 83% leased. NOI $363K/yr. $3.95M. 9.20% cap.  Upside potential with NOI of $404K/yr.  when fully leased. 
9. Strip Center in Artesia, CA: 15,378 SF10-units strip center on 1.02 ac lot. Anchored by Lily Health Care & near Fwy-91 in densely populated Los Angeles area. 85% NNN leased. $4.6M. NOI/cap not avail.

 © 2012 Transmercial.

01-16: Golden Coral, Smart & Final, Lowes, Walgreens, Popeyes, Medical Office

1. Golden Coral restaurant in Indianapolis, IN: 10,205 SF Golden Coral buffet restaurant on 1.91 ac outparcel to Washington Square Mall.  New 15 yrs NNN lease to an operator with 36 units.  NOI $217K/yr with 8% rent bump every 5 yrs. $2.713M. 8% cap. 
2. Smart & Final in Bakersfield, CA: 20,815 SF grocery store built in 2001 on 2.2 ac lot.  15 yrs absolute NNN corp lease with 5 yrs left.  NOI $310K/yr with 10% rent bump every 5 yr options. $4.134M. 7.5% cap. 
3. Lowes in Grand Rapids, MI: 135,197 SF Lowe’s on 14 acres lot.  20 yrs NNN ground lease.  NOI $660K/yr with unusually high 20% & 10% rent increases in the initial term. $9.75M. 6.77% cap. 
4. Walgreens in Thornwood, CO: 14,820 SF Walgreens built in 2009 on 2.3 acres lot in the fast growing part of Denver metro.  20 yrs absolute NNN lease.  NOI $455K/yr. $7M. 6.5% cap. 
5. Goodwill Store in Santa Clarita, CA: 21,600 SF Goodwill store on 1.08 ac lot.  Renovated in 2011.  100% NNN leased till 2022.  NOI $316K/yr. $4.53M. 7% cap. 
6. Popeye’s Chicken & Biscuits in Baton Rouge, LA: 2681 SF Popeye’s on .6 ac lot stable and strong income area.  100% NNN lease to an operator with 17 units and backing of Capital Spring, a private equity firm. NOI $65K/yr with rent bump every 2 yrs.  Just $773K.  8.5% cap. 
7. Golden Coral in Bakersfield, CA: 14,155 SF new restaurant on 2.13 acres lot.  New 15 yrs absolute NNN to Golden Coral Corp with 480 restaurants in 41 state and 1.5B in sales.  NOI $331K/yr.  $4.417M. 7.5% cap. 
8. Medical Office Condos in Riverside, CA: 13,341 SF 6-unit medical office condos in a growing area.  100% leased to 3 medical tenants.  NOI $276K/yr. $3.626M. 7.61% cap.

© Transmercial 2012

01-13: Shopping centers, Medical office building, Shaw's supermarket

Advisory:  The 10 years US Treasury is below 2% this week (1.93% on Thursday). And so the interest rate for a 5-yrs fixed loan should be about 4.5%.  This means for a property offering 7% cap, you will also earn 2.5% for the money you borrow.

1.  Shopping center in Parker, CO: 21,440 SF shopping center built in 2008 on 2.37 ac corner lot in affluent (AHI $105K/yr) Denver suburbs.  100% NNN leased to 9 tenants.  NOI $496K/yr. $5.98M. 8.3% cap. 
2. Medical Office building in Southlake, TX: 7651 SF medical office building completed in 2007 on 1.11 ac lot in affluent Dallas suburbs.  100% leased.  $2.1M. 
3. Shopping center in Greenwood Village, CO: 12,482 SF strip mall built in 1988 on 1 ac lot in affluent Denver suburbs.  Near i-25 exit and the entrance to Target.  100% leased to 4 tenants.  NOI $262K/yr.  3.325M. 7.9% cap. 
4. Retail center in Costa Mesa, CA: 23,095 SF retail center built in 1989 on a lot at signalized corner in high income coastal city in Southern CA.  Just one block from Orange Coast College with 25,000 students.  NOI $420K/yr. $6M. 7% cap. 
5. Strip Mall in Houston, TX: 15,605 SF strip mall in fast growing upper middle class area.  100% NNN leased to 6 tenants.  NOI $221K/yr. $2.4M. 9.23% cap. 
6. Shopping Plaza in Downers Grove, IL: 31,196 SF mature recently renovated 15-unit shopping plaza on 4.5 ac corner lot in high income (AHI 90K/yr) Chicago suburbs.   Easy access to I-355.  91% leased.  NOI $402K/yr. $4.6M. 8.75% cap. 
7. Shopping Center in Anderson, SC: 82,367 SF shopping center on 9.6 ac lot in high growth, high income city.  91% leased.  NOI $395K/yr. $4.3M.   9.18% cap. 
8. Medical/retail center in Carrollton, TX: 14,454 SF retail center built in 2006 on 1.46 acres lot in Dallas suburbs.  Excellent demographics: AHI of $114K/yr in 1 mile. 100% NNN leased to 4 medical tenants and a local credit union.  NOI $347K/yr. $4.337M. 8% cap. 
9. Shaw’s supermarket in Plymouth, MA: 59,766 SF supermarket built in 1994 on 6.7 ac lot high income area.  100% leased till 2021 to Shaw’s supermarket, New England’s number 2 grocery chain with lease guaranteed by Albertson’s.  Price not avail

© Transmercial 2012

01-12: El Chico, Rite Aid, Oreganos Pizza, Credit Union, Office Building

1. El Chico Cafe in Arlington, TX: 5657 SF restaurant on .9 ac lot in Dallas metro.  15 yrs absolute NNN corp lease with 10 yr left to El Chico Café, a public company with 63 locations.  NOI $213K/yr.  $2.51M. 8.5% cap. 
2. Rite Aid in East Haven, CT: 14,673 SF drug store built in 2008 on 1.54 ac hard corner in high income New Haven suburbs.  20 yrs absolute NNN lease with 17 yrs left.  NOI $586K/yr. with 10% rent bump every 10 yrs.  $6.4M. 9.15% cap.  Buyer to assume $3.846M non-recourse loan at low 4.5% interest due in 2019. 
3. Medical-related facility Gilbert, AZ: 10,089 SF center in affluent (AHI $109K/yr in 1 mile) Phoenix metro.  100% NNN lease with 5 yrs left to Cenpatico Schools, a subsidiary of Centene Corp (NYSE: CNC).  NOI $107K/yr. with $10K annual rent bump (about 10%/yr!)  $1.15M. 9.36% cap. 
4. Oregano’s Pizza in Tucson, AZ: 4725 SF pizza restaurant on .72 ac corner lot.  New 20 yrs absolute NNN lease to Oregano's Pizza Bistro, Inc.  with nine full service Pizza Bistros in Arizona and sales of over $24 million.  NOI $127K/yr.  $1.75M. 7.25% cap. 
5. Long John Silver’s in Sacramento, CA: 2689 SF seafood restaurant on 1.28 acres lot on a major commercial artery.  100% absolute NNN lease with 17 yrs left to an entity with 23 restaurants.  NOI $100K/yr with 2.25% annual rent bump. $1.43M. 7% cap. 
6. Shopping Plaza in Cape Coral, FL: 20,000 SF multi-tenant shopping center built in 2010 on a major artery in Fort Meyers metro.  90% NNN leased to national/local tenants.  Current NOI $248K/yr. $3.75M. 6.58% cap.  Upside potential when fully leased. Just $187/SF. 
7. InTouch Credit Union in Frisco, TX: 4415 SF credit union in fast growing (175% since 2000) and affluent (AHI $101K/yr in 1 mile) Dallas suburbs.  100% absolute NNN lease with 5 yrs left to InTouch credit union with 76,398 members.  NOI $192K/yr. $2.4M. 8% cap. 
8. Office Building in Springfield, IL: 20,706 SF office building completed in 1994 on 2 ac lot.  100% NNN lease till 2021 to Gtech, a gaming company handling state lottery.  NOI $227K/yr. $2.68m. 8.5% CAP

© Transmercial 2012.

01-11: Apartments, US Bank, Burger King, Del Taco, Five Guys, Shopping Centers, Emerus hospital

1. Apartments in Tampa, FL: 100-unit renovated apartments consisting of 14 2-story buildings on 5.23 acres lot in stable community.  89% occupied.  NOI $428K/yr. $4.15M. 9.34% cap. 
2. US Bank Building in Hinsdale, IL: 12,927 SF 3-story office building completed in 2003 in VERY affluent Chicago suburbs (AHI $280K/yr in 1 mile!) 100% NNN leased to 2 tenants: US Bank (2 floors, S&P AA- rating) with 11+ yrs left and Krist Kolder Associate.  NOI $417K/yr with 3% rent bump for US Bank.  $5.5M. 7.59% cap. 
3. Burger King in Bartow, CA: 3072 SF Burger King built in 2001 on 1.4 ac lot near I-15 exit.  20 yrs NNN lease with 11 yrs left to an operator with 20 locations.  NOI $116K/yr with 10% rent bump every 5 yrs.  Price reduced to $1.59M. 7.3% cap. 
4. Del Taco in Aurora, CO: 2491 SF Del Taco restaurant built in 2005 on .95 ac outparcel to a center anchored by Walmart, Home Depot, Best Buy and Office Depot in affluent (AHI $108K/yr in 1 mile) Denver suburbs.  20 yrs absolute NNN lease till 2025 to an operator with 22 restaurants.  NOI $146K/yr. with 5% rent bump every 5 yrs.  $1.717M. 8.5% cap. 
5. Five Guys Burgers in Cary, NC: 2475 SF Five Guys Burgers restaurant (900 restaurant private chain) renovated in 2006 on .97 ac outparcel near Cary Towne Center mall in upper middle class Raleigh-Durham metro. 10 yrs absolute NNN corp lease till 2017.  NOI $82K/yr with 2% annual rent bump. $1.12M. 7.39% cap. 
6. Shopping Center in Sugarland, TX: 11,645 SF strip mall built in 2005 on 1.15 acres outparcel to Sam’s Club and Walmart.  Near Hwy 6 exit in fast growing upper middle class Houston suburbs. 100% NNN leased to 8 tenants, 5 of them national.  NOI $339K/yr. $4.22M. 8.03% cap. 
7. Neighborhood Market in Temple Hills, MD: 119,010 SF grocery-anchored neighborhood market on 9.3 ac with easy access to I-95/495 in high income Washington DC suburbs.  92% leased.  NOI $862K/yr. $9.35M. 9.22% cap.  Less than $80/SF! 
8. Charlotte Metro Credit Union in Huntersville, NC: 3643 SF single-tenant modern bank building completed in 1997 on 1.59 ac lot near I-77 exit in affluent Charlotte suburbs. 15 yrs absolute NNN lease till 2018 to Charlotte Metro Credit Union with 8 locations.  NOI $158K/yr with 2% annual rent bump. $2.05M. 7.72% cap. 
9. Strip Mall in Lodi, CA: 5935 SF strip center at a hard corner across from Lakewood Mall in a stable city in San Joaquin Valley.  100% NNN leased to 5 tenants.  NOI $98K/yr. $1.42M. 6.92% cap. 
10. Emerus Emergency Hospital in Aubrey, TX: 20,616 SF class-A build to suit acute care hospital with 3 emergency treatment rooms, 5 observation/staging rooms, an imaging center, laboratory and helipad built in 2008 on 2.78 ac lot in fast growing Dallas suburbs.  100% NNN lease with 7 yrs left to Emerus, a 24-hr emergency room operator headquartered in The Woodlands, TX.  NOI $650K/yr with annual CPI-based rent bump.  $7.84M. 8.3% cap.

© Transmercial 2012.