Top 6 Properties 09-11-09

Advisory:
In the last 12 months, you often see “price reduction” on the listings. Today, Transmercial notices price increases in 2 properties on Transmercial’s “Top 10 properties” list:
• A 146,948 SF shopping center in Las Vegas, the price has increased from $7.9M to $8.5M.
• A Walgreens in Renton, WA, the price has gone up from $7.24M to $7.382M.
Transmercial sees more evidence of a momentum shift from seller market to a normal market. There are also a lot more multiple offers now compared with 6 months ago. As we approach the end of the year, there will be more buyers who have sit on the sidelines and you probably won’t see better prices.

1. Burger King in Houston, TX: 2626 SF fast-food restaurant on a corner lot. 20 yrs absolute NNN lease by a franchisee with 50 locations. NOI $103K/yr. $1.34M. 7.75% cap.
2. Michaels Store in Mt. View, CA: 21,579 SF single-tenant retail store completely renovated in 2007 on 1.25 acres lot. In the heart of affluent Silicon Valley and just off Hwy 101. 100% NNN lease with over 8 yrs left. NOI $513K/yr. Price reduced to $6.95M. 7.38% cap. Buyer to assume $5.3M loan at 6.5% interest.
3. Apartments in Inglewood, CA: 25-unit apartments complex across from Centinela Medical Center. New windows and electrical systems. NOI $218K/yr. $2.75M. 8.5 GRM at current rent. Buyer to assume $2.088M loan at low 5.71% interest rate.
4. Shopping Plaza in Westminster, CO: 56,846 SF grocery anchored neighborhood center on a corner lot in Denver metro. Beautifully redeveloped in 2008. 96% NNN leased. NOI $800K. $10M. 8% cap.
5. Strip Mall in Romeoville, IL: 11,167 SF strip center built in 2004 on 1.44 acres lot in a pro-growth & high-income Chicago suburb. 100% leased by 6 tenants. NOI $167K/yr. $1.9M. 8.78% cap.
6. Joe’s Crab Shack in Houston, TX: 8366 SF franchised seafood restaurant built in 1999 on 3.14 acres lot. 20 yrs absolute corp NNN lease with 18 yrs remaining. NOI $253K/yr with 10% rent increase every 5 yrs. Price reduced to $2.535M. 10% cap.
   
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