08-08: Macayo's, DaVita, Apartments, Neighborhood Centers, MOB

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 Memphis, TN: 14,980 SF well-maintained medical office building along main retail corridor. Close to 617-bed Methodist University Hospital. 100% leased to DaVita Dialysis and Memphis Massage Institute. NOI $209K/yr. $2.55M. 8.20% cap.
2. Macayo’s Mexican Kitchen in Tucson, AZ: 8,065 SF well maintained restaurant in high income area (AHI of $92K/yr in 1 mile) along major retail corridor. 100% NNN lease with 7 yrs left to a regional chain with 17 locations. NOI $184K/yr. $2.195M. 8.42% cap.
3. Walgreen’s in Corpuz Christi, TX: 13,956 SF drive-thru drug store built in 1998 on over 1 ac lot at a hard corner location. With easy access to Hwy-286. 16 yrs NNN- lease with 5 yrs left. NOI $260K/yr. $3.354M. 7.75% cap.
4. DaVita (S&P BB-) in Dallas, TX: 7954 SF built-to-suit high quality construction dialysis center built in 2007 at a corner location. 100% NNN recently extended lease with 13 yrs left.  NOI $152K/yr with 2% annual rent increases. $2.29M. 6.64% cap.
5. Retail Center in El Paso, TX: 6800 SF attractive six-unit retail center built in 2006 on nearly 2 ac corner lot in a growing area. NOI $99K/yr. $1.134M. 8.75% cap.
6. Office Building in Olathe, KS: 31,966 SF Class-B office building in high income Kansas City suburbs. Recent upgrades include: parking lot, sidewalks, exterior, landscape and roof repairs. Close to I-35. 90% leased. NOI $303K/yr. $3.575M. 8.50% cap.
7. Office Building in Colleyville, TX: 5975 SF eye-catching office building constructed in 2003 at main retail corridor in Fort Worth/Dallas suburbs. Excellent demographics: AHI of $159K/yr within 1 mile. 100% leased to multiple tenants. $925K. NOI/Cap not provided.
8. Shopping Center in Phoenix, AZ: 18,115 SF attractive shopping center built in 2008 on 2+ ac lot in fast growing area. Across from Desert Sky Mall. Close to Banner Estrella Medical Center and I-10. 92% NNN leased. NOI $254K/yr. $3.185M. 8% cap.
9. Neighborhood Center in Fairview Heights, IL: 59,386 SF shopping center built in 2010 on 5.90 acres of land in growing St Louis metro. Anchored by Jo-Ann Fabric and Craft & Party City. Adjacent to St. Clair Square Mall and near I-64. 100% leased. NOI $623K/yr. Price/Cap not disclosed.
10. Apartments in Tucson, AZ: 167-unit well maintained gated apartment complex on 3.83 ac lot close to shopping centers, parks and transportation. NOI $460K/yr. $5.9M. 7.80% cap.

© Transmercial 2013