11-07: Wienerschnizel, MOB, Office Buildings, Shopping Centers

Advisory on property visit: Once you review all the leases, financial documents and other documents of the property and are satisfied with them, the next step is to visit the property.  The purpose of the visit is to

1. Make sure there is nothing wrong with the property physically with your own eyes.  While Google Streetview is a powerful tool to "visit" the property, it does not show you clearly the building condition or if the building has structural problems like cracks on the wall.  So walk around the property and also drive around the neighborhood.
2. Ensure all the tenants are doing well in the property.  Bring along the rent roll to verify the tenants are still there and talk to the tenants to see how they are doing or ask any relevant questions you may have, e.g. does the dry cleaner use PERC (a cleaning solvent that may cause soil contamination if spilled)?
3. Meet the property managers. You should meet the current manager and at least another property manager.  If the property is well kept, the tenants are happy and nothing broke that needs fixing then you may want  to retain the current manager.

1. Strip Center in South Elgin, IL: 13,436 SF attractive strip center built in 2007 on 2 ac outparcel to Super Target, LA Fitness, Toys ‘R Us and Ross Dress For Less in growing Chicago suburbs. 100% NNN leased to national tenants including Sherwin Williams, Sports Clips, and Game Stop. NOI $292K/yr. $3.965M. 7.37% cap.
2. Retail Center in Victorville, CA: 21,208 SF recently renovated retail center on over 2 ac lot close to Victor Valley Global Medical Center and I-15. 100% leased. NOI $189K/yr. $2.688M. 7.04% cap.
3. Strip Center in Orlando, FL: 10,250 SF well maintained strip center constructed in 2000 on over 1 ac outparcel to Wal-Mart at a main corridor. Close to Waterford Lakes Town Center, with over 100 stores. 100% NNN leased to Sherwin Williams, MetroPCS, Little Caesars and Ace of Spades. NOI $240K/yr. $3.43M. 7% cap.
4. Retail Center in Las Vegas, NV: 21,015 SF well kept retail center on 1.65 ac lot along main thoroughfare. 97% leased to national & local tenants. NOI $266K/yr. $3.85M. 6.92% cap.
5. MOB in Phoenix, AZ: 10,378 SF well maintained medical office building on .52 ac lot in close proximity to four major hospitals: John C. Lincoln North Mountain, Thunderbird Samaritan Hospital, Phoenix Baptist Hospital, and John C. Lincoln Deer Valley.  Near Metro center Mall and I-17. 61% leased. $934K. NOI N/A.
6. MOB in Prescott, AZ: 7800 SF Class-B multitenant medical office l building on ½ ac lot. 100% leased to multiple tenants with 77% space leased to 2 medical/dental tenants. NOI $82K/yr. $995M. 8.25% cap.
7. MOB in Gurnee, IL: 22,416 SF Class-B medical office building constructed in 1998 on nearly 2 ac lot in growing and high income Chicago suburbs. 100% NNN leased to medical practices. NOI $379K/yr. $5.3M. 7.17% cap.
8. Strip Center in Santa Ana, CA: 8006 SF well maintained strip center along major corridor in densely Los Angeles area with over 700,000 residents in a 5 mile ring. 60% leased to Pizza Hut, Coin Laundry, Video and Tax Service among others. Actual NOI $118K/yr. $1.97M. 6% cap. Upside potential when fully leased.
9. Shopping Center in Carrolton, TX: 57,760 SF attractive shopping center on 4 ac lot in a fast growing and upper middle-class Dallas suburbs with an AHI of $78K/yr in 3 miles. 100% leased. NOI $348K/yr. $4.65M. 7.50% cap.
10. Wienerschnitzel in Henderson, NV: 2017 SF fast food restaurant constructed in 1992 on .49 ac lot in high income Las Vegas suburbs. 100% NNN lease with 3-yrs left. NOI $71K/yr. $825K. 8.72% cap.