08-30: Goodwill, Church's Chicken, Wendy's, Best Buy, Arby's, Carl's Jr.

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. Goodwill in Phoenix, AZ: 28,000 SF retail building completed in 2012 on 2.57 ac lot in fast growing (235.80% pop growth) area. Adjacent to Lowe’s. 10 Yr NNN corp lease with 9 yrs left. NOI $340K/yr. $4.86M. 7% cap.
2. Apartments in Fort Myers, FL: 54-units well maintained multifamily complex on 2.42 ac lot close to I-75. 94% occupied. NOI $197K/yr. $2.595M. 7.63% cap.
3. Church’s Chicken in Chicago, IL: 1845 SF fast food fried chicken restaurant on .34 ac lot in densely populated area with nearly 900,000 residents within 5 mile radius. Excellent visibility. High barrier to entry area.  17 yrs absolute NNN lease with 9 yrs left. NOI $66K/yr with annual rent increases. $832K. 8% cap.  
4. Shopping Center in Mesquite, TX: 58,093 SF well kept shopping center on 5.61 ac lot in fast growing Dallas/Ft. Worth suburbs. On an off/on ramp of Hwy-80. Close to Town East Mall and close to I-635. Shadow anchored by Hobby Lobby. 84% leased. Actual NOI $417K/yr. $4.89M. 8.53% actual cap. Upside potential.
5. Wendy’s in Brownsville, TX: 3471 SF franchised Wendy’s restaurant built in 2004 on .86 ac lot in a high growth border city. Close to Sunrise Mall and Hwy-83/77. Newly executed 10 yrs absolute NNN ground lease (land is for sale) to an experienced franchisee with over 25 units. NOI $66K/yr with 2% rent increases starting in 2019. $1.058M. 6.25% cap.
6. Best Buy in Yorba Linda, CA: 46.449 SF small-footprint (i.e. more likely to meet tenant’s current & future need) Best Buy built in 1999 on 4 ac lot in affluent city in Orange county with an AHI of $142K/yr in 3 mile. Within Savi Ranch Center, anchored by Kohl' s, Dick' s Sporting Goods, Bed Bath & Beyond and Michael. Visible from Hwy-91. 20 yrs NNN lease with 4 yrs left. NOI $590K/yr. $6.3M. 9.37% cap.
7. Arby’s in Macedonia, OH: 3161 SF Arby’s restaurant in fast growing (19.35% pop growth) and high income (AHI $92K/yr) Cleveland suburbs. On an off ramp of I-271. 10 yrs absolute NNN lease with 9 yrs left. NOI $104K/yr with a 9.5% rent bump in 2017. $1.6M. 6.56% cap.
8. Carl’s Jr. in Rio Rancho, NM: 2458 SF fast food restaurant built in 2007 on .80 ac outparcel to Walmart Supercenter in Albuquerque suburbs. Offering includes an adjacent developable pad.  20 yrs absolute NNN ground lease (land for sale) with 14 yrs left to a franchisee with 25+ units. NOI $77K/yr. $1.283M. 6% cap.

© Transmercial 2013