08-11: Davita, Carls Jr, Walgreens, Shopping Centers, Wendys, KFC, Medical Office building - resent

AHI: Avg. Household Income.  National average is about $50+K/yr.

NOI: Net Operating Income.  It’s the income after all expenses (prop taxes, ins., maintenance) paid.

NNN: Triple net lease in which tenants pay taxes, insurance and maintenance expenses.

NNN-: Triple net lease with landlord responsible for roof and structure.  Used by Transmercial only.

1.  Davita Dialysis Center in San Antonio, TX: 11,022 SF dialysis center on 1.76 acres lot completely remodeled in 2007.  Across from 327-bed Southwest General Hospital.  New 15 yrs NNN lease, guaranteed by Davita, Inc. (S&P BB-).  NOI 205K/yr with 2% annual rent bump.  $3.047M. 6.73% cap. 
2. Carls Jr in Beaumont, TX: 2390 SF new Carls Jr on an outparcel to Home Depot on busy hwy 69.  20 yrs absolute NNN lease.  NOI $120K/yr with 10% rent bump every 5 yrs.  $1.555M. 7.75% cap. 
3. Walgreens in Aurora, IL: 13,905 SF Walgreens built in 1997 on 1.6 acres lot at a busy signalized intersection in Chicago suburbs.  20 yrs NNN- lease with 5 yrs remaining.  NOI $235K/yr. $2.937M. 8% cap.  Store with strong sales of $8+M, i.e. profitable.  Recession resistant tenant. 
4. Neighborhood Center in Mesa, AZ: 70,699 SF neighborhood center built in 2005 on 12.24 acres lot next to Superstition Hwy. in fast growing and high income Phoenix metro.  Shadowed anchored by Walmart supercenter.  84% NNN leased, with many national tenants.  Current NOI $672K/yr. $8M. 8.4% cap.  Priced well below replacement cost. 
5. Wendys in Marietta, GA: 2355 SF restaurant on .78 ac corner lot in high income (AHI $86K/yr) Atlanta suburbs.  16 yrs absolute NNN lease to a franchisee with 86 unit and public company (OTC under MHGU).  NOI $63K/yr. with rent 1.5% annual rent bump from 6-th yr.  Just $903K. 7% cap. 
6. Shopping Center in Union city, GA: 101,021 SF shopping center on 10.45 acres lot next to I-85 exit in Atlanta suburbs.  Anchored by 57,036 SF  Kroger supermarket, with 2010 store’s sales of $22+M, Advance Auto, and Chase.  100% NNN leased to 22 tenants.  NOI $1.227M.  Unpriced but expected to trade at 8.5% cap or $14.4M. 
7. Shopping Center in Douglasville, GA: 67,470 SF shopping center built in 2000 on 15.25 acres parcel in middle class Atlanta suburbs.  Anchored by 44,270 SF Publix supermarket with consistent sales revenue of $16+M/yr. in the last 5 yrs.  92% NNN leased to 12 tenants with 4 small avail units.  Current NOI $663K/yr.  Unpriced but expect to trade at 7.5% cap or $8.84M. 
8. Shopping Center in Sacramento, CA: 64,171 SF shopping center on 4.64 acres lot as part of 250,000 SF plaza.  Anchored by 54,128 SF Food Source grocery (owned by Raley’s). 100% NNN leased to 9 tenants.  NOI $540K/yr. $6.59M. 8.2% cap.  Buyer to assume $5.16M non-recourse loan. Strong cash on cash of 10.6%. 
9. Medical Office Building in Holladay, UT: 33,253 SF medical office building on 2.3 acres lot in high income (AHI $88K/yr in 1 mile radius) Salt Lake City metro.  100% leased.  NOI $412K/yr. $4.3M. 9.6% cap.  Just $129/SF. 
10. KFC in Paradise, CA: 2109 SF KFC on 1.24 acres corner lot in Northern CA.  10 yrs NNN lease with 8.5 yrs remaining.  NOI $99K/yr. $1.237M. 8% cap.

© Transmercial 2011.