12-11: Dairy Queen, Walgreens, Popeyes, Backwoods, KFC, REO'ed Center

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. Dairy Queen in Pflugerville, TX: 2916 SF Dairy Queen restaurant built in 1993 on 1.46 ac lot in well-off (AHI $89K/yr) Austin metro.  New 20 yrs absolute NNN lease to the 2nd largest DQ operator with 74 locations.   NOI $150K/yr with annual 1.5% rent bumps.  Tenant has been at this location since 1993.  $2.25M. 6.65% cap.
2. Walgreens in Minneapolis, MN: 10,812 SF drug store built in 1986 on a major artery with easy access to I-55. 100% NNN- till 2017.  Store with strong sales revenue of over $7M in the last 5 yrs contributing $74K in percentage rent to the total NOI of $178K/yr.  $2.46M. 7.25% cap. Note: flyer not avail, full brochure upon request.
3. Popeyes Chicken & Biscuits in Decatur, IL: 3213 SF restaurant built in 2006 on .61 ac lot at main retail corridor. Close to Brettwood Village Shopping Center & Decatur Memorial Hospital.  New 20 yrs absolute NNN lease to an experienced franchisee. This is a sale & leaseback. NOI $96K/yr with 1% annual rent increases. $1.2M. 8% cap. Note: flyer not avail, full brochure upon request.
4. Backwoods in Bee Cave, TX: 10,000 SF retail building constructed in 2008 in affluent Austin metro with an AHI of $132K/yr within 1 mile. Part of Hill Country Galleria, a power center with Dillard’s, Dick’s, Cinemark 14 Theatre, Whole Foods, Barnes & Noble, Marshalls, Lowes and H-E-B. 15 yrs absolute NNN corp lease with 9+ yrs left. NOI $215K/yr with a rent bump in 2019. $2.69M. 8% cap.
5. Shopping Center in Auburn, WA: 53,479 SF shopping center completed in 1993 on 6.47 ac lot in fast growing Seattle suburbs. Shadow-anchored by Albertson’s, Bartell Drugs (regional tenant) and McDonalds. 90% leased. Pro forma NOI $978K/yr. $11.65M. 8.40% pro forma cap.
6. KFC in Pontiac, MI: 2609 SF well maintained KFC restaurant on .65 ac lot in upper middle-class (AHI $80K/yr in 3 mile radius) Detroit suburbs. Across from Ultimate Soccer Arenas and close to 443-bed St. Joseph Mercy Oakland Hospital. 100% NNN lease. This is a sale & leaseback investment. NOI $75K/yr. $1.034M. 7.25% cap.
7. Retail Center in Maywood, CA: 7669 SF well kept retail center built in 1990 at a signalized intersection and in densely populated Los Angeles County with over 900,000 residents in a 5-mi radius. 100% leased to Dentist, auto parts store, professional & travel services, and a recycling center. NOI $54K/yr. $1.695M. 9.70% cap.
8. REO’ed Shopping Center in Riverside, CA: 11,306 SF 10-units L-shaped lender owned retail center at a corner lot across from Kaiser Permanente Riverside Hospital. Near Galleria at Tyler Mall and Hwy-91. 79% leased. NOI $128K/yr. $1.895M. 6.80% cap.
9. Shopping Center in San Jose, CA: 24,065 SF eye-catching consisting of three retail buildings completed in 2007 on 2+ ac lot in affluent area with an AHI of $155K/yr in Silicon Valley. Easy access to Hwy-101. 92% NNN leased. NOI $649K/yr. $10.82M. 6% cap.

            (c) Transmercial 2013