10-28: Coco's Bakery Restaurant, Family Dollar, Office Building, Retail Centers

Advisory: Maine's law now allows consumers to purchase mail-order drugs from foreign pharmacies which have lower prices.  The law is being challenged by pharmaceutical industry.  Drug makers argue that this law could expose US consumers to tainted and counterfeited medication and it also interferes with the FDA.   Should this legal challenge fail, Transmercial believes the law will have negative impact on the revenue and profits of Walgreens, CVS, Rite Aid and other pharmacies as other states will enact similar laws.  This in turn will most likely have negative effect to the real estate value of properties leased by these drug retailers.  Transmercial will follow and keep you informed about the outcome of this legal challenge.

1.  Coco’s Bakery Restaurant in San Bernardino, CA: 5626 SF well maintained family restaurant across from 463-bed St Bernardino Medical Center. Tenant has been at this location for 34 yrs. 100% NNN lease with 5 yrs left. NOI $49K/yr. $950K. 5.20% cap.  Price below replacement costs. 
2. Office Building in Tulsa, OK: 89,807 SF Class-A office building on nearly 4 ac lot close to Saint Francis Hospital and Woodland Hills Mall. 97% leased to multiple tenants. NOI $784K/yr. $9.8M. 8% cap. 
3. Strip Center in Palos Heights, IL: 6217 SF attractive strip center built in 2007 on .72 ac lot in high income (AHI $90K/yr) Chicago suburbs. Close to Palos Community Hospital. NNN corp leased to 3 good tenants: Starbucks, Zounds Hearing and Chiro-One Wellness Center. NOI $163K/yr. $2.25M. 7.25% cap.
4. Retail Center in Orlando, FL: 11,700 SF beautiful retail center completed in 2007 on 1.30 ac corner lot. All unit face Hwy-17/92. Across from Gatorland, a 110-acre theme park. 100% leased to 5 tenants with 2 tenants recently renew leases for 10 yrs. NOI $200K/yr. $2.5M. 8.50% cap.
5. Office Building in Santa Rosa, CA: 66,434 SF Class-A office building on 3.71 ac lot in growing city North of San Francisco. Pro forma NOI $706K/yr. $7.972M. 8.86% pro forma cap.
6. Retail Center in Spring, TX: 16,100 SF retail center on 1.52 ac lot in growing (58.53% pop growth since 2000) and high income (AHI $106K/yr in 1 mile) Houston suburbs. 100% leased. $289K/yr. $3.25M. 8.92% cap.
7. Office Building in Arlington, TX: 36,326 SF well kept office building renovated in 2001 on 2.62 ac lot.  Close to Medical Center of Arlington. 100% NNN leased with 7 yrs left to Texas Department of Aging & Disability Service. NOI $279K/yr. $3.1M. 9% cap.
8. Retail Center in Country Club Hills, IL: 12,700 SF well maintained retail center on 1.22 ac lot at a signalized corner location in high income Chicago suburbs. 90% leased. NOI $127K/yr. $1.499M. 8.50% cap.
9. Family Dollar in Warner Robins, GA: 9180 SF newly constructed retail building on .86 ac corner lot along major retail artery. Close to Houston Mall and Houston Medical Center. New 10 yrs NNN- lease. NOI $113K/yr. $1.593M. 7.15% cap.
10. Shopping Center in Montclair, CA: 18,162 SF attractive shopping center built in 2009 on 1.54 ac lot anchored by 7-Eleven at a busy intersection. In densely populated San Bernardino County with nearly 500,000 residents in 5 mile radius. 90% NNN leased. NOI $302K/yr. $5.48M. 5.50% cap.

            (c) Transmercial 2013