Top 8 Properties 02-17-10

Simon Property offered to buy General Growth Properties for $10B: Simon Property, a major malls owner offered to buy General Growth Properties (GGP), another major malls owner who is bankruptcy, for $10 billion (or $9/share) on Tuesday. Per the Wall Street Journal, this offer represents 7.9% cap for all the properties owned by GGP. However, GGP investors want more so its stocks leapt from $9.40/share on Friday to $12.02 after the bid from Simon Group. This means GGP investors wanted to sell GGP at 7.1% cap.

Note from Transmercial: Simon Property probably has to offer at least $12.02/share for GGP. This acquisition may reduce cap rate in commercial properties in the near future.

1. Medical Office in Tempe, AZ: 24,195 SF medical building on 2.59 acres of land at a hard corner location near Fwy-101/60/202 and I-10. 100% leased by two tenants. NOI $313K/yr. $3.915M. 8% Cap.
2. Shopping Center in San Diego, CA: 32,494 SF beautiful neighborhood center on 3.8 acres of land consisting of three separate buildings. Anchored by McDonald’s/KFC at densely populated area off of Fwy-805. 97% NNN leased to a diverse mix of tenants. NOI $800K/yr. $9.9M. 8.09% Cap. Buyer to assume $6.423M loan at low 5.98% rate fixed till 2017.
3. Shopping Center in San Bernardino, CA: 93,129 SF well located shopping center built in 1995 anchored Fiesta Foods Warehouse (with strong sales volumes in excess of $900/SF), a regional grocery chain with 10 locations in Southern CA. 95% NNN leased by national/regional tenants: Fiesta Foods Warehouse, CVS Pharmacy, Burger King, US Postal Service, Little Caesars and Subway. NOI $980K/yr. $11.995M. 8.20% Cap. Just $129/SF! Upside potential.
4. CVS Pharmacy in Homestead, FL: 14,579 SF free-standing retail building constructed in 2006 on 1.59 acres of parcel in fast growing Miami metro. Long NNN corp lease till 2026. NOI $360K/yr. $4.675M. 7.72% Cap.
5. On The Border Restaurant in Mira Loma, CA: 7586 SF Mexican Grill restaurant on 1 acre outparcel to Eastvale Gateway Center home to over 55 popular retailers: Target, Best busy, Kohl’s, Sport Chalet, Edwards Theatres, Home Depot and Vons next to I-15. 100% NNN leased. NOI $228K/yr. $3.144M. 7.25% Cap.
6. Apartments in Dallas, TX: 339-units beautiful well-kept apartment complex with clubhouse facility, pool and exercise room near schools close to I-635/75. NOI $1,109M. $11M. 10.09% Cap.
7. Strip Center in Cathedral City, CA: 11,550 SF strip center on .76 acre lot anchored by super market with excellent visibility. 100% NNN leased by 11-tenants. NOI $245K/yr. $2.999M. 8.20% Cap.
8. Shopping Center in Lake in the Hills, IL: 24,593 SF attractive shopping center adjacent to La Petite Academy with excellent tenant mix: Alfredo’s Pizza, Cleaners, H&R Block, Bistro Wasabi, Eye-Care, Spa, Insurance and more in fast growing (75.92%) wealthy (AHI $93K/yr.) Chicago suburbs. 90% leased. NOI $377K/yr. $5M. 7.55% Cap.

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