01-27: Chipotle, Office Building, Shopping Centers, Retail Centers

Recent Close:

·         $2.45M 16,490 SF shopping center in Arlington, TX.

·         $2.445M 10,000 SF strip center in Carrollton, TX and $1.837M loan.

Structural Problems: in most of commercial real estate leases, landlord is responsible for the roof & structure since they are often big-ticket items.  Normally, when a property has structural problem, the property may be seriously damaged by tornadoes, hurricanes or earth quakes.  These damages are normally covered by property insurance.  In the Dallas-Fort Worth metro, the weather often goes from one extreme to another, e.g. from drought to lots of rain.  The soil is contracted during the drought and expanded when over-saturated.  This causes soil movement and affects the structure integrity of the property over a long period of time, e.g. 20 years.  This kind of structure problems is fairly common in this area (50% of homes 20 years or older affected per a property inspector) and does not cost a fortune to fix.  Contractors would jack up the foundation and put concrete piers underneath to restore the foundation to the original position.  The cost is about $2000/pier.

1. Shopping Center in Murrieta, CA: 36,900 SF attractive shopping center built in 2000 on 7+ ac outparcel to Murrieta Town Center, a Power Center in growing & high-income city in Riverside County. Near Rancho Springs Medical Center and I-215. 100% leased. NOI $545K/yr. $8.937M. 6.10% cap.
2. Neighborhood Center in Palmdale, CA: 104,811 SF shopping center on nearly 10 ac lot at a hard corner location in Southern California. National/regional credit tenants include: Ashley Furniture, Michaels, BevMo!, Jared The Galleria of Jewelry, Pacific Dental, Pick Up Stix, The Coffee Bean Tea & Leaf and Jersey Mike' s Subs. Between Antelope Valley Mall and Fwy-14/138. 90% NNN leased. NOI $1.44M/yr. $19.2M. 7.50% cap.
3. Retail Center in Carmel, IN: 11,127 SF retail center built in 2001 on 1.50 ac lot in high income Indianapolis suburbs. Across from Merchants Square Mall. 100% NNN leased. NOI $197K/yr. $2.551M. 7.75% cap.
4. Shopping Center in South Plainfield, NJ: 27,225 SF well maintained shopping center on nearly 2 ac lot in high income (AHI $90K/yr) New York metro. Anchored by Fresenius Dialysis Center. 82% leased. NOI $252K/yr. $3.5M. 7.22% cap.
5. Office Building in Boca Raton, FL: 13,698 SF Class-A office single-tenant building on .96 ac lot in affluent Fort Lauderdale suburbs. 100% NNN lease with 2 yrs left to Coastal Planning Engineering, an energy infrastructure company with 50,000 employees. NOI $287K/yr. $3.195M. 9.05% cap.
6. Shopping Center in Pearland, TX: 37,709 SF consisting of three retail buildings constructed in 2007 on 4½ ac lot in growing and high income Houston suburbs. 96% NNN leased with mix of medical, financial and retail tenants. Pro forma NOI $686K/yr. $7.95M. 8.63% pro forma cap.
7. Office Building in Las Vegas, NV: 7268 SF attractive office building part of 200,000 SF building office park in growing and high income area. Close to I-215. 100% NNN leased. 8.10% cap. NOI/Price N/A.
8. Chipotle in Cincinnati, OH: 3194 SF recently renovated Chipotle restaurant on .75 ac outparcel to Family Dollar center and Walgreen’s in upper middle-class area. Along main retail corridor. 10 yrs NNN lease with 8 yrs left. NOI $64K/yr. $1.014M. 6.40% cap.
9. Office Building in Murrieta, CA: 32,572 SF Class-A office building on 2.43 ac lot in growing & high-income city in Riverside County with an AHI of $92K/yr in 3 miles. Across from Lowe’s & Kohl's. Close to I-15. NOI $420K/yr. $5.6M. 7.50% cap.

            (c) Transmercial 2014