Advisory: for most investors of commercial properties, a purchase requires the review of the lease(s). Attached is the check list written by an attorney.
1. IHOP in Lewisville, TX: 5715 SF franchised restaurant built in 1990 on 1.3 acres lot near Vista Ridge Mall in high growth middle class Dallas metroplex. 100% absolute NNN lease with 13.5 yrs remaining to a franchisee with 60 locations. NOI $157K/yr.
2. Arbys in Allen, TX: 2915 SF restaurant built in 1999 on .83 acre lot in booming & wealthy (AHI $115K/yr within 1 mile) Northern Dallas suburbs. #1 performing store in the region. 100% NNN corp lease within 8 yrs remaining. NOI $142K/yr with 2% annual rent bump. $1.782M. 8% cap.
3. Apartments in Glendale, AZ: 72-unit apartments built in 1985 on 4.2 acres lot. Large 2-3 BR units (avg 970 SF) with individual meters. Modern Interiors, Dishwasher, Walk-in Closets, Washer/Dryer Hookups, covered parking. Swimming pool and leasing office. Pro forma NOI $187K/yr. $1.435M. Less than $20K/unit.
4. Taco Bell in Surprise, AZ: 2338 SF restaurant built in 2001 on .6 ac outparcel to a 500,000 SF power center anchored by Wal-mart, Home Depot, OfficeMax, Michaels, Target, Lowes, Best Buy, and Ross. Store with strong sales of $1.434M. NOI $118K/yr. with 10% rent bump every 5 yrs. $1.577M. 7.5% cap.
5. Safeway Supermarket in San Ramon, CA: 54,000 SF supermarket on 5.4 aces lot in a very wealthy San Fran Bay Area (AHI $129K/yr) with easy access to I-680. 100% NNN lease. NOI $100K/yr. $1.434M. 7% cap. Note: this is a sale of building only with option to purchase land. The property is on a ground lease till 2088.
6. Retail Center in Lakewood, CO: 10,200 SF retail center built in 2006 on 1.93 acres corner lot in Denver metro. 100% NNN leased by 4 good tenants: FedEx Office, Pizza Hut, Quizno's and Brothers BBQ. NOI $224K/yr. $2.75M. 8.25% cap. Buyer to assume $2M loan at 6.18% interest, fixed till 2016.
7. Apartments in Seattle, WA: 28-unit well-located 28,490 SF apartments. NOI $179K/yr. $2.31M. 7.75% cap.
8. Shopping Center in North Highland, CA: 121,618 SF 21-unit shopping center built in 1991 on 10 acres corner lot in Sacramento metro. Anchored by Raley’s supermarket, a regional chain & Hometown Buffet. 78% leased. In place NOI $1.228M. Price reduced to $13.8M. 8.91% cap. Upside potential when 100% leased.
9. Medical Office Buildings in Palmdale, CA: 38,135 SF 5-building medical office building/retail complex (4 medical and 1 retail) completed in 2009 on 5.5 acres lot just 3 blocks from the newly constructed $200M Palmdale Regional Medical Center. 100% NNN leased to 15 tenants. NOI $1.246M. $16.267M. 7.5% cap.
10. Medical Office Building in Friendswood, TX: 8050 SF medical office building on .82 ac lot in wealthy Houston suburbs (AHI $105K/yr within 1 mile). 100% leased. NOI $100K/yr. $1.115M. 9% cap.
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