10-30: IHOP, Hilton hotel, Forever 21, Tuffy/Car-X, McDonalds, shopping centers

Below are the most commonly used acronyms:

• AHI: Avg. Household Income.  National average is about $55+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. IHOP in Shreveport, LA: 5026 IHOP restaurant built in 1999 on .97 ac lot right off I-20 exit and surrounded by Walmart Supercenter, Home Depot, CVS, RiteAid, Walgreens, McDonald' s and Family Dollar. 20 yrs absolute NNN corp lease with 7 yrs left.  NOI $168K/yr with 10% rent bumps every 5 yrs (next one in Oct 2015). $2.316M. 7.25% cap. 
2. Hilton in Milwaukee, WI:  162-room Hilton Milwaukee River 5-story hotel on 5.7 ac lot along the river.  Amenities include 4500 sf of Meeting Space + The Anchorage Restaurant & Bar. Avg daily rate $96.  NOI $592K/yr. $7.95m. 7.5% CAP.
3. Walgreens in Plano, TX: 14,550 SF Walgreens under construction on 1.38 ac lot in well-off (AHI $99K/yr) Dallas suburbs.  New 20 yrs absolute  NNN corp lease.  NOI $446K/yr. $8.92M. 5% cap.
4. Shopping Center in Hesperia, CA: 36,201 SF shopping center completed in 2007 on 4.6 ac lot at a signalized intersection in high growth middle class area. national tenants such as 99 Cents Only Stores, US Bank, Taco Bell, and AT&T.  97% leased.  NOI $845K/yr.  $11.858M. 7.13% cap.
5. Forever 21 in El Paso, TX: 83,868 SF single-tenant retail center located in 922,000 SF Sunland Park Mall (Operated by Simon).  100% NNN leased to Forever 21 with 8 yrs left with below market rent.  NOI $293K/yr. $4.197M. 7% cap.  Note: priced way below replacement cost.
6. Tuffy/Car-X Tire & Auto in Knoxville, TN: 5100 SF auto service center built in 2008 on .87 ac lot in high income area.  20 yrs NNN corp lease with 15 yrs left.  NOI $133K/yr with 10% rent bumps every 5 yrs.  $1.89M. 7.04% cap.
7. McDonalds in Sunrise, FL: 3925 SF McDonalds restaurant built in 1984 on 1/2 ac outparcel to a shopping center  in Fort Lauderdale metro.  100% NNN corp ground lease (land is for sale) till 2018.  NOI $55K/yr with 15% rent bump in 2018.  Price reduced to $1.1M. 5.04% cap.
8. Office Building in Norcross GA: 3-building class-A office complex totaling 19,306 SF in affluent Atlanta suburbs with AHI $100K/yr in 1 mile.  100% leased.  NOI $166K/yr. $1.895M. 8.9% cap.  Less than $100/SF.
9. Walgreens in Orange Park, FL: 13,905 SF Walgreens built in 1996 on 2.3 ac corner lot in high income Jacksonville suburbs.  100% NNN lease with 3 yrs left.  NOI $248K/yr.  $3.306M. 7.50% cap. 
10. Strip Mall in Smyrna, GA: 15,000 SF 5-yrs old strip mall on 1.68 ac lot in affluent Atlanta suburbs (AHI $118K/yr in 1 mile).  100% NNN leased.  NOI $263K/yr.  $3.1M. 8.5% cap.

(c) Transmercial 2013