07-29: MOB, Fazoli's, Apartments, Auto Center, Wendy's

Below are the most commonly used acronyms:

• AHI: Avg. Household Income.  National average is about $55+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. MOB in Munster, IN: 16,790 SF Class-B medical office building completed in 1999 on 1.45 ac lot in high income (AHI $87K/yr in 1 mile) Chicago suburbs. 90% leased to multiple tenants. NOI $230K/yr. $3.3M. 6.98% cap. Upside potential.
2. Dialysis Center in Westwood, NJ: 8450 SF Class-A medical office building on .45 ac lot in growing and affluent New York Metro with an AHI of $126K/yr within 3 mile radius. Close to newly reopened Hackensack UMC at Pascack Valley Hospital. 100% NNN lease with 10+ yrs left to Renal Center of Westwood. The tenant's parent is the 10th largest dialysis company in the country with 36 locations and 12 in NJ. NOI $148K/yr. $2.475M. 6% cap.
3. Neighborhood Center in Gurnee, IL: 102,902 SF well maintained mix-used center on 6+ ac lot at a hard corner location in Chicago suburbs. Anchored by Salvation Army, Habitat For Humanity Restore. Close to Six Flags Great America, Gurnee Mills Mall and I-94. 90% leased. NOI $534K/yr. $6M. 8.90% cap.
4. Fazoli’s in Champaign, IL: 3000 SF Italian restaurant on .47 ac lot at a major retail corridor. Across from Lowe’s and Target center. Close to Market Place Shopping Mall and I-74. 100% NNN corp lease with 7 yrs left. NOI $78K/yr with 10% rent bumps every 5-years. $1.115M. 7% Cap.
5. Apartments in Denton, TX: 64-unit well kept multifamily complex on 2 ac lot in fast growing Dallas/Fort Worth suburbs. 98% occupied. NOI $185K/yr. $2.5M. 5.21% cap.
6. Strip Center in Glendale, AZ: 8200 SF strip center on .81 ac lot at a signalized intersection in densely populated Phoenix suburbs. 100% leased to 3 tenants. NOI $93K/yr. $1.3M. 7.20% cap.
7. Retail Center in Colorado Springs, CO: 6656 SF retail center along major retail corridor. 81% leased to Sprint Wireless, Tan Your Hide and Nail Salon. NOI $134K/yr. $1.625M. 8.30% cap.
8. Auto Center in Villa Park, IL: 8712 SF well maintained auto center on .86 ac lot in high income (AHI $85K/yr) Chicago suburbs. 100% NNN leased to Areawide Auto Repair, Pro Stop and Pep Boys. NOI $127K/yr. $1.422M. 9% cap.
9. Retail Center in Fort Worth, TX: 14,700 SF attractive retail center built in 2008 on 1.38 ac lot in fast growing area. Close & visible from I-820. 79% NNN leased. NOI $168K/yr. $2.2M. 7.68% cap. Upside potential.
10. Wendy’s in San Bruno, CA: 2,699 SF Wendy’s restaurant at a corner location on El Camino Real, a prime commercial corridor in Silicon Valley (AHI $97K/yr within 3-miles. 20 yrs NNN ground lease (land is for sale) with 15 yrs left. NOI $107K/yr with annual rent bumps and additional rent increases every 5 yrs. $1.7M. 6.35% cap.

© Transmercial 2013