Top 10 Properties 02-08-10

AHI: Avg Household Income
NOI: Net Oper Income

1. Walgreens in Cape Coral, FL: 14,820 SF brand new drugstore on 1.54 acres parcel next to Publix Supermarket anchored shopping center in Fort Myers area. 25 yrs NNN lease. NOI $348K/yr. $4.8M. 7.25% cap.
2. Advance Auto Parts in Cheyenne, WY: 7000 SF auto parts store built in 2008 on ¾ acre lot. 15 yrs NNN lease. NOI $128K/yr. $1.602M. 8% cap.
3. Strip Center in Hayward, CA: 5096 SF strip mall built in 2004 on .43 acre lot on a major artery in high income San Fran Bay Area. 100% NNN leased by 5 tenants. NOI $157K/yr. $2.15M. 7.3% cap.
4. Starbucks Coffee in Little Rock, AR: 1750 SF Starbucks coffee built in 2006 on ½ acre lot. 100% NN lease till 2017 with no termination clause. NOI $83K/yr. with 10% rent bump in 2012. $956K. 8.75% cap.
5. Goodyear Just Tires Auto in Apex, NC: 7600 SF automotive center built in 2007 on .9 acre outparcel to a center anchored by Super Target and Lowes in a high-growth (74% growth) and high-income (AHI $92K/yr) Raleigh metro. 100% NNN lease with 12 yrs remaining. NOI $216K/yr. $2.7M. 8% cap.
6. Shopping center in Glendale, AZ: 22,280 SF neighborhood center shadow anchored by Albertsons Supermarket in a wealthy (AHI $118K/yr) city in Phoenix metro. Next to Loop 101 exit. 100% NNN lease. NOI $524K/yr. $5.995M. 8.75% cap.
7. Burger King in Corpus Christi, TX: 3000 SF restaurant on 1 acre lot. New 20 yrs absolute NNN lease by a franchisee with 37 locations. NOI $110K/yr. with 1% annual rent bump. $1.375M. 8% cap.
8. Shopping Plaza in Bakersfield, CA: 32,897 SF bank-owned shopping plaza built in 2006 on 3 acres lot. Anchored by a 15,555 grocery store. Once appraised over $6M. $1.995M.
9. Walgreens in Tucson, AZ: 13,905 SF drug store built in 1998 on 2.17 acres corner lot across from Northwest Medical Center in a fast growing area. 100% NNN lease with 8 yrs remaining. NOI $322K/yr. $3.8M. 8.48% cap.
10. Dollar General in Pueblo CO: 9100 SF brand new Dollar General store. 10 yrs modified NNN lease. NOI $106K/yr. $1.324M. 8% cap.
    
    Sales Activities:

1. Office building in Colleyville, TX: 4415 SF, 855K. In contract.
2. Walgreens in West Palm Beach, FL: $4.95M. In contract.
3. Staples in Reno, NV: 18,000 SF. 7.73% cap. Closed escrow.
4. Big Lots in Munhall, PA: $3.2N. In contract.
5. Dicks Sporting Goods in Irving, TX: 55,000 SF. 9% cap. Closed escrow.
6. Retail center in Fredericksburg, VA: 11,400 SF. 3.874M. In contract.

© Transmercial 2010. All rights reserved.

Top 7 Properties 02-05-10

Another sign of economy is in recovery: unemployment rate drops to 9.7%. click here to see why it’s a good time to invest.

1. 
   O’Reilly Auto in Decatur, GA: one-year old 6800 SF free-standing retail building on 1.43 acres of parcel at major retail artery in fast growing Atlanta metro. Long NNN corp lease with rent increases. NOI $ 110K/yr. $1.375M. 8% Cap.
2. Medical Office Building in Aurora, CO: 32,180 SF 3-stories recently renovated medical building on 1.63 acres of land just one block from Heath One Medical Center off of I-225 in Denver metro. Anchored by a VA clinic. 91% leased to a great mix of tenants. NOI $418K/yr. $4.7M. 8.91% Cap.
3. Apartments in San Diego, CA: 22-units apartment complex at a densely-populated area with new Spanish tile mansard roof. 100% leased. NOI $133K/yr. $1.858M. 7.20% Cap.
4. 3-Jiffy Lube’s in CA:
   ---Concord, CA: 4170 SF recently renovated retail building on .36 acre pad. New 10-years absolute NNN corp lease with 2½% annual rent increases. NOI $119K/yr. $1.998M. 6% Cap.
   ---San Mateo, CA: 4060 SF newly renovated retail building along main retail corridor near Bay Meadows Racecourse/Fwy-92. 10-years absolute NNN corp lease with 2½% annual rent increases. NOI $95K/yr. $1.590M. 6% Cap.
   ---Castro Valley, CA: 4170 SF newly-renovated retail building on .28 acre lot conveniently located at busy signalized intersection off of Fwy-580. 10-years absolute NNN corp lease with 2½% annual rent increases. NOI $64K/yr. $1.077M. 6% Cap.
5. Shopping Center in Athens, GA: 210,969 SF shopping center built in 1990 on 22 acres of land. Anchored by Goodwill & across from Georgia Square Mall at heavily traveled thoroughfares. NOI $1.115M. $6.5M. 8.49% Actual Cap. Upside Potential.
6. Indio Security Self Storage in Indio, CA: 92,300 SF storage facility on 5.71 acres of land with numerous amenities including perimeter beam alarm system, gated entry, video surveillance, RV parking, and perimeter fencing. NOI $370K/yr. $4.625M. 8% Cap.
7. Strip Center in Chicago, IL: 10,400 SF strip center built in 1993 on .59 acre lot with great tenant mix: Dollar Way Plus, Pizza, Los Picosas, Team Doctors, Insure One, Subway, Laundromat and Gintaras Cepanas JD. 100% leased. NOI $231K/yr. $2.685M. 8.60% Cap.
   
   © Transmercial 2010. All rights reserved.

Top 6 Properties 02-04-10

1. Apartments in North Hills, CA: 10-units well-maintained apartment complex with many recent upgrades. 100% leased. NOI $83K/yr. $1.150M. 7.26% Cap.
2. Walgreens Pharmacy in Corinth, TX: 13,650 SF pharmacy built in 2003 across from Wal-Mart Supercenter in affluent (AHI $104K/yr.) Dallas suburbs. Long absolute NNN leased. NOI $330K/yr. $4.409M. 7.5% Cap.
3. Office Building in Temecula, CA: 28,353 SF two-story single-tenant office buildings on 1.80 acres of land conveniently located near I-15. 100% leased to Mt. San Jacinto Community College with options to renew. NOI $548K/yr. $5.750M. 9.54% Cap.
4. Shopping Center in Houston, TX: 82,732 SF mature shopping center on over 7 acres of land at hard corner location along I-45. 84% leased. NOI $756K/yr. $7.4M. 10.22% Actual Cap. Upside Potential.
5. Strip Center in Long Beach, CA: 5823 SF strip center in well populated area at busy corner location. 100% NNN leased by strong tenants: Wells Fargo, Hawaiian BBQ, Jamba Juice and Red Brick Pizza. NOI $279K/yr. $3.6M. 7.77% Cap.
6. Shopping Center in Bakersfield, CA: 11,915 SF mature well located shopping center on over one acre lot near Fwy-210. NOI $79K/yr. $988K. 7% Cap.
   
   © Transmercial 2010. All rights reserved.

Top 8 Properties 02-03-10

1. Strip Center in Humble, TX: 10,510 SF newly-constructed attractive strip center on over one acre lot in fast growing middle-class Houston suburbs. Across from a Supermarket. 100% leased by 9 tenants: State Farm, Goodwill Industries, Jackson Hewitt, Verizon Wireless, dental office, Nail salon, hair salon, Optometry and Baskin Robbins. NOI $239K/yr. $2.815M. 8.5% Cap.
2. Surgical Center in Bedford, TX: one-year old 15,332 SF single-tenant best-in-class surgical center on 1.5 acres of land adjacent to a 30-acre healthcare facility in Dallas metro. 15-yrs absolute NNN corp lease by the Brown Hand Center, the industry leader in treating carpel tunnel syndrome. NOI $605K/yr with 1.5% annual rent increases. $6.923M. 8.75% cap.
3. Tuffy Auto in Omaha, NE: 3900 SF recently constructed retail building on .63 acre pad across from Wal-Mart Supercenter. 20-years corp lease with rent escalations. Tenant operates 235 locations. NOI $111K/yr. $1.369M. 8.15% Cap.
4. Office Building in Woodridge, IL: 51,579 SF Class-A office building constructed in 2000 on 3.76 acres of parcel in well off area in Chicago metro (AHI $93K/yr) with easy access to I-355. 91% leased with one vacant unit. NOI $589K/yr. $6.150M. 9.58% Cap.
5. Shopping Center in Houston, TX: 58,460 SF eye-catching shopping center built in 2002 with I-45 frontage in high-growth area. 74% leased with great tenant mix: Budget Rent-A-Car, Slick Willies Family Pool Hall, Wings N More and Tokyohana. NOI $824K/yr. $9.1M. 9.06% Cap.
6. Apartments in Garland, TX: 59-units fully renovated 5-buildings 2-story apartment complex on 2.30 acres of land across from new rec center in Dallas metro. 93% leased. NOI $193K/yr. $1.960M. 9.87% Cap.
7. Medical Office in Snellville, GA: 10,000 SF beautiful multi-tenant medical building on 1.44 acres of land adjacent to 188-bed acute care Emory Eastside Medical Center in an affluent Atlanta metro with AHI over $106K/yr. 100% NNN leased by 4 medical tenants. NOI $152K/yr. $1.790M. 8.5% Cap.
8. Apartments in Vacaville, CA: 6-units newly constructed apartment building on ¼ ac lot in high income area. 100% leased. NOI $61K/yr. $825K. 7.38% Cap.
   
   © Transmercial 2010. All rights reserved.

Top 6 Properties 02-02-10

1. Walgreens in El Segundo, CA: 13,650 SF drug store completed in 2007 on 1.2 acres lot with rare 3 points of access from 3 different roads. Irreplaceable location in a wealthy coastal city in Southern CA just South of LAX with AHI over $105K/yr. 100% NNN lease with 22 yrs remaining. NOI $595K/yr. $9.915M. 6% cap.
2. Arby’s in Omaha, NE: 2879 SF 8-yr old franchised restaurant on 2/3 ac outparcel to Home Depot in a city with low 5% unemployment rate and home of Warren Buffett. New 20 yrs NNN lease by an operator with 19 stores. NOI $93K/yr. with 8% rent increase every 5 yrs. $1.094M. 8.5% cap.
3. Office Building in Sunnyvale, CA: 34,483 SF Office/industrial building on 2.41 acres lot in the heart of Silicon Valley. New 5 yrs NNN lease by Fujitsu Components America, a national credit tenant. Tenant has been at this location since 1996. NOI $303K/yr with annual rent bump. Rent below market at $0.77/SF means tenant has high incentive to stay. $3.789M. 8% cap.
4. Office Building in Neptune Beach, FL: 5600 SF class A office building on 1/3 ac lot with great ocean and city view in a wealthy Jacksonville metro with AHI over $96K/yr. 100% leased. NOI $150K/yr. $1.499M. 10% cap.
5. Shopping Center in los Angeles, CA: 34,179 SF 2-story retail center on 1.42 acres lot in a densely populated area with over 1.25 Million residents within 5 miles. 100% NNN leased by 2 national recession-resistant tenants: Ross and Dollar Tree. NOI $899K/yr. $11.575M. 7.77% cap.
6. Medical Office Building in Las Vegas, NV: 44,100 SF class-B medical office building on 2.35 acres lot next to Desert Springs Hospital, a 286-bed acute care facility. 98% leased with 86% space occupied by national tenants. NOI $750K/yr. $8.75M. 8.6% cap. Buyer to assume low-interest loan with 30% down.
   
   © Transmercial 2010. All rights reserved.

Top 8 Properties 02-01-10

1. Automotive center in Surprise, AZ: 25,800 SF center on 1.68 acres parcel in a fast growing (47%) Phoenix metro. Anchored by Firestone. 88% leased. NOI $142K/yr. $1.5M. 9.5% cap.
2. Buffalo Wild Wing in San Antonio, TX: 7211 SF brand new franchised restaurant on 2.09 acres outparcel to Lowes. Next to South Park Mall with visibility from I-35. 15 yrs absolute NNN lease. NOI $236K/yr with 10% rent bump every 5 yrs. $2.949M. 8% cap.
3. AppleBee’s in Mesa, AZ: 5934 SF franchised restaurant built in 1998 on a corner lot in Phoenix metro. New 15 yrs absolute NNN lease from an experienced operator with 90 locations. NOI $213K/yr. $2.509M. 8.5% cap.
4. Strip Center in Garden Grove, CA: 7052 SF multi-tenant strip center on a corner lot on the busy Garden Grove Blvd. in a strong income (AHI $77K/yr) Orange county. 100% leased with most tenants occupied for over 10 yrs. NOI $117K/yr. $1.95M. 6% cap.
5. MRI medical center in Montgomery, AL: 4293 SF single-tenant 10-yrs old medical building next to 150-bed acute care Baptist Medical Center East. Growing & high income area. 100% NNN corp lease with 7 yrs remaining from MQ Associates, Inc., who Operate 103 Diagnostic Imaging Centers. NOI $98K/yr with CPI-based rent increase. $1.161M. 8.44% cap.
6. Walgreens in North Fort Myers, FL: 15,930 SF drug store on 2.69 acres corner lot. 100% NNN lease with 7 yrs remaining. NOI $350K/yr. $4.268M. 8.2% cap.
7. Shopping Center in Morrow, GA: 117,081 SF multi-tenant shopping center on a major artery to Southlake Mall in Atlanta metro. Anchored by K&G Fashion Superstore, a regional tenant with multiple locations. 95% leased. NOI $649K/yr. $6.6M. 9.85% cap.
8. Arbys in Colorado Springs, CO: 3246 SF fast-food restaurant built in 2005 on .83 ac outparcel to King Soupers Grocery. Excellent demographics: fast growing (102%) and high income (AHI $77K/yr). 15 yrs absolute NNN lease by the largest Arby’s franchisee with 260 locations. NOI $129K/yr with 7.5% rent bump every 5 yrs. $1.7M. 7.59% cap.
   
   © Transmercial 2010. All rights reserved.

Top 8 Properties 01-29-10

Strong evidence of economy in recovery phase: economy grew 5.7% in last quarter. Click here to see why it’s a best time to buy/invest now.

AHI: Avg Household income
NOI: Net Oper Income

1. Shopping Center in Humble, TX: 91,078 SF nice-looking shopping center on 4.73 acres of land across from 1.1 mil SF Deerbrook Mall with exceptional visibility to Fwy-59 in Houston metro. 94% leased by well-established tenants. 8.75% Cap. Buyer to assume $7.250M at below market rate of 5.97% interest rate.
2. Multifamily Building in Orange, CA: well-kept 10-units apartment building with numerous recent upgrades. Conveniently located near schools/parks/restaurants and more in a middle-class area with AHI over 83K/yr. NOI $85K/yr. $1.195M. 7.12% Cap.
3. Apartments Complex in Houston, TX: 3-stories 117-units Class-B apartments constructed in 1984 on 4.5 acres of parcel near Hwy-59. No deferred maintenance. 90% leased. NOI $494K/yr. $4.8M. 10.30% Cap.
4. Mimi’s Café in Montgomery, AL: 7230 SF recently constructed single-tenant restaurant on 1.22 acres of land adjacent to 250,000 SF Shoppes at Eastchase in an affluent (AHI $105K/yr.) neighborhood. 20-years NNN copr ground lease (buyer owns the land). NOI $125K/yr. $1.612M. 7.75% Cap.
5. Public Storage in Seabrook, TX: 97,669 SF well-performing storage facility on 5.73 acres of land along Hwy-146 in fast growing and upper middle-class Houston suburbs (AHI $98K/yr). 91% leased. NOI $541K/yr. $5.950M. 9.06% Cap.
6. Walgreen’s Pharmacy in Coral Springs, FL: 16,161 SF Walgreen’s with drive-thru retail building on 1.92 acres of land at signalized main retail corridor off of Expy-869. Wealthy area with AHI of $114K/yr. 100% NNN leased with 7 yrs remaining. NOI $237K/yr. $3.131M. 7.6% Cap.
7. Medical Office in Columbia, SC: 4200 SF recently constructed medical office on 1.92 acres of land located off of I-20. 100% NNN leased till 2020 by strong operator with CPI rent increases every 5-yrars. NOI $90K/yr. $1.064M. 8.5% Cap.
8. Advance Auto Parts in Hoover, AL: 6000 SF single-tenant retail building at highly visible location in an affluent (AHI $126K/yr.) Birmingham suburbs. Long NNN corp lease. NOI $138K/yr. $1.791M. 7.75% cap.
   
   © Transmercial 2010. All rights reserved.

Top 5 Properties 01-28-10

1. Retail Center in Pearland, TX: 10,400 SF recently constructed shopping center on over one acre lot shadow-anchored by Wal-Mart with national credit tenants: Payless, Verizon, Sally Beauty and CATO fashion. Fast growing Houston metro. 92.43% NNN leased. NOI $174K/yr. $1.950M. 8.93% Cap.
2. Shopping Center in San Antonio, TX: 32,567 SF shopping center constructed in 2007 on 3.32 acres of land in growing (74.66%) well-off (AHI $101K/yr) neighborhood ideally located on US Hyw-281. 100% NNN leased by nine tenants. NOI $807K/yr. $8.5M. 9% Cap.
3. Multifamily Building in Spring Valley, CA: 15-units 2-stories apartment complex with spacious one/two bedroom units near I-125. NOI $92K/yr. $1.260M. 7.36% Cap.
4. Strip Center in Wilmington, CA: 6500 SF recently renovated strip center on .43 acre lot at major signalized intersection. 100% NNN leased. NOI $191K/yr. $2.285M. 8.32% Cap.
5. Apartments in Las Vegas, NV: well-kept 22-units apartments on .43 acre just steps away from the strip. 100% leased. NOI $129K/yr. $1.295M. 10% Cap.
   
   © Transmercial 2010. All rights reserved.

CPI & COLI -- Indexes Commercial Real Estate Investors Should Know

By David V. Tran & Fred Rivera.

Consumer Price Index (CPI): It is the measure of inflation as experienced by urban consumers. CPI is more well-known among senior citizens as their Social Security benefit checks are adjusted to the CPI in January to keep pace with inflation. While most commercial real estate leases have fixed annual rent increases, e.g. 2%, some have annual rent increases based on the CPI. Therefore, knowing what CPI is and how to calculate it is an important factor in making a sound investment decision.

The US Department of Labor, Bureau of Labor Statistics collects data about costs of various things from 87 urban areas in the US. The data is published each month and available from the website http://stats.bls.gov. The CPI varies for different regions: Northeast urban, Midwest urban, South urban, West urban, US city average, as well as 14 major metro areas. So, knowing which CPI stated in the lease will enable an investor to correctly calculate the rent increase. For example, the CPI for US city average was 190.9 in Oct 2004 and 199.2 in October 2005. This reflects a 4.3% increase for the above period or in another words, the inflation was 4.3% during that period. So if the rent from October 2004 to September 2005 was $1000/month and the lease has CPI-based rent increase, then the new rent from October 2005 to September 2006 would be $1043 a month or 4.3% higher. The CPI fluctuates from time to time. When there is no inflation, the CPI is zero and thus there is no rent increase. It could also be negative during a deflationary period which in turn will translate to rent reduction for the tenant.

Cost of Living Index (COLI): COLI is a number that indicates the relative cost of living in various cities in the US with 100 being the average. Employers often increase an employee’s salary when they relocate the employee to a city with higher COLI. The COLI is weighted according to percent of income spent on groceries (12.49%), housing (29.84%), utilities (9.94%), transportation (10.73%), healthcare (4.07%) and others (32.93%). You could obtain the indexes for various cities from http://www.infoplease.com/business/economy/cost-living-index-us-cities.html. The website www.bankrate.com has a COLI comparison calculator for over 300 US cities which provides the costs of 60 various items in each city. In 2007, the COLI for San Francisco was 169.5 while Dallas was only 91.5. This means you would have had to earn 85% (169.5 minus 91.5 then divide by 91.5) more in San Francisco to maintain the same lifestyle in Dallas. Most of the costs will be higher in San Francisco, e.g. housing is 285% higher (housing index is 278.3 in San Francisco and 72.3 in Dallas), some expenses may be lower, e.g. utilities are 11% cheaper in San Francisco compared to Dallas (utilities index is 88.1 in San Francisco and 98.9 in Dallas).

An investor often reviews demographic data of a city where the property is located and generally prefers to invest in areas that are more affluent. However, looking at data of the Average Household Income (AHI) alone does not give you the whole picture. Let’s assume you are an investor in the San Francisco Bay Area and you want to see how the AHI in Plano (Dallas metro) is compared with San Francisco income. You will have a better perspective if you adjust the AHI in Plano to the Cost of Living Index and then compare with the AHI in the San Francisco Bay Area. For example if the AHI is $100K a year in Plano, it would be equivalent to $185,000 in San Francisco. With this adjusted income, you know that Plano is an upper middle class area.

© Transmercial 2010. All rights reserved.

Top 9 Properties 01-27-10

1. Arbys in Flower Mound, TX: 2915 SF fast-food restaurant built in 1999 on .85 acre lot in a city voted as the “number one place to live in TX” in Dallas metro. 100% NNN corp lease till 2018. NOI 129K/yr with 2% annual rent bump. $1.537M. 8.4% cap. \
2. Family Dollar in Lakeland, FL: 9180 SF recently constructed retail building on 1.46 acres of land along busy thoroughfare. 100% absolute NNN corp lease. NOI $115K/yr. $1.283M. 9% Cap.
3. Shopping Center in Rowlett, TX: 49,273 SF well maintained shopping center built in 1994 on 5.52 acres of parcel anchored by Big Lots with excellent exposure to two main retail corridors. 100% NNN leased. NOI $456K/yr. $4.420M. 10.32% Cap.
4. Christian Brothers Automotive in Shawnee, KS: one-year old 4921 SF free-standing retail building on .98 acre lot in fast growing (129.09%) & well off (AHI $91K/yr within 3-miles radius) Olathe/Kansas city suburbs. 15-years absolute NNN corp lease with 1½% annual rent increases. NOI $173K/yr. Price reduced from $2.169 to $2.042M. 8.5% Cap.
5. Apartments in Los Angeles, CA: 2-story 18-units multifamily complex with nice landscape close recreation parks. Densely populated area with over 1.15M residents within 5 miles ring. 100% leased. NOI $139K/yr. $1.659M. 8.40% Cap.
6. Multifamily Building in San Antonio, TX: 150-units nice-looking apartment complex on 6.65 acres of land a nice quiet neighborhood near I-10. 94% Leased. NOI $423K/yr. $5.350M. 8.75% Cap.
7. Apartments in Los Angeles, CA: well-maintained 17-units apartments in populated area. 100% occupied. NOI $120K/yr. $1.190M. 10.12% Cap.
8. Medical Offices in Bloomington, IN: 10,000 SF beautiful medical building constructed in 2001 on over one acre lot in growing area. 100% leased by STAT Laboratory, American Cancer Society, Rose Internal Medicine and Chiropractic. NOI $122K/yr. $1.390M. 8.78% Cap.
9. Burger King in Indianapolis, IN: 2675 SF retail restaurant constructed in 1999 on over one acre lot. 100% absolute NNN unusual corp lease with rent increases. NOI $96K/yr. $1.097M. 8.75% Cap.
   
   © Transmercial 2010. All rights reserved.

Top 8 Properties 01-26-10

1. Davita Dialysis center in Huntington Park, CA: 7400 SF brand new single-tenant medical office building on ½ ac lot in a densely-populated city with over 1.16 million residents within 5 miles ring. 12 yrs NNN lease by DaVita (NYSE: DVA), largest provider of dialysis services in the US with $6.6 Billion market cap. Area with very high barrier to entry. NOI $280K/yr. with 10% rent bump every 5 yrs. $4M. 7% cap.
2. Apartments in Los Angeles, CA: 9-unit apartments near University of Southern CA campus. 100% occupied. Gross revenue over $100K/yr. Only $725K. 9% cap.
3. Wendys in Reading, PA: 2170 SF fast food restaurant with new 20 yrs NNN lease from an operator operating 114 locations. NOI $107K/yr with 10% rent bump every 5 yrs. $1.303M. 8.25% cap.
4. Office Building in Southlake, TX: 7056 SF class-A 3-yrs old office building on ½ ac lot as part of a 6-building office park in a very affluent city in Dallas metro (AHI of $193K/yr within 1 mile.) 100% NNN leased by 2 stable tenants: a dental office and Kumon learning center. NOI $121K/yr. $1.4M. 8.65% cap.
5. Walgreens in Austin, TX: 13,650 SF 6-yrs old pharmacy on over 2 acres corner parcel. 100% NNN lease with 19 yrs left. NOI 4404K/yr. $5.48M. 7.37% cap. Buyer to assume loan at below market rate of 5.56% interest. Taxes-free state!
6. Office/Retail Centers in Overland Park, CA: 136,318 SF 3-building retail/office centers in the Palm Beach metro with excellent visibility. NOI $1.189M. $11.89M. 10% cap. Bankruptcy sale.
7. Office Max in Leawood, KS: 14,000 SF retail center built in 2007 in a very affluent area in Kansas city metro with AHI over $136K/yr. Located at a major intersection facing Super Target, Wal-mart supercenter and Lowe’s. 10 yrs NNN corp lease. NOI $285K/yr. withrent bump every 5 yrs. $3.351M. 8.5% cap.
8. Retail center in Fort Collins, CO: 12,773 SF retail center built in 1999 as a part of a shopping center anchored by Rite Aid. 100% NNN leased by 5 tenants. NOI $232K/yr. $2.6M. 8.93% cap.
   
   © Transmercial 2010. All rights reserved.

Top 7 Properties 01-25-10

AHI: Avg Household Income
NOI: Net Oper Income

1. Walgreens in Schertz, TX: 14,820 SF 2-yrs old new drug store on 2 acres lot directly across from Target in San Antonio metro. Excellent demographics: fast growing area with AHI of $84K/yr. 20 yrs absolute NNN lease. NOI $327K/yr. $4.424M. 7.4% cap.
2. Shopping Center in North Myrtle Beach, SC: 90,722 SF 20-unit shopping center built in 2008 on 9.65 acres lot in coastal town. Anchored by Bi Lo Supermarkets, a regional supermarkets chain with over 200 locations. Property is in front of 2300-acres golf resort community. 80% NNN leased. Proforma NOI $1.176M. Price reduced from $13M to $11.95M. 9.85% cap.
3. Apartments in Berkeley, CA: 8-unit well-kept apartments in high income area (AHI $91K/yr). 100% occupied. NOI $89K/yr. $1.05M. 8.5% cap.
4. Walgreens in Anderson, SC: 14,820 SF drug store built in 2008 on 1.58 acres in a growing city. Surrounded by 10+ Medical Care offices and within ½ miles from 2 large regional hospitals. 25 yrs absolute NNN lease with no landlord responsibilities. NOI $285K/yr. $3.8M. 7.5% cap.
5. Shopping center in Katy, TX: 24,285 SF shopping center built in 2004 in a fast growing (85% growth from 2000-2008) Houston metro. 100% NNN leased by 11 tenants with low rents (which means upside potential.) NOI$378K/yr. $3.95M. 10.2% cap.
6. Rite Aid in Roseville, CA: 17,700 SF drug store developed in 2003 in a prime commercial area NE of Sacramento. Middle upper class area with AHI exceeding $81K/yr. 18 yrs absolute NNN lease with rent increase in 2018 and every 5 yrs thereafter. NOI $476K/yr. $5.96M. 8% cap.
7. Walgreens in Daytona Beach, FL: 13,905 SF drugstore on 1.56 acres parcel. 100% NNN lease with 8 yrs remaining. NOI $226K/yr. $2.5M. 9.04% cap.
   
   Activities:

1. Walgreens in Apple Valley, CA: $5.9M. 7.2% cap. In contract.
2. Shopping center in Miami, FL: 17,813 SF center. Price increased from $4.15M to $4.4M. 7.3% cap.
3. TX Land & Cattle Steakhouse in Plano, TX: $2.448M. in contract.
4. Apartments in Inglewood, CA: 32-unit, $2.25M. In contract.
5. Walgreens in Fort Pierce, FL: $5.99M. 7.6% cap. In contract.
6. Walgreens in Renton, WA: $7.38M. 7.45% cap. In contract.

© Transmercial 2009. All rights reserved.

Top 10 Properties 01-22-10

1. Retail center in Fort Worth, TX: 9244 SF inline retail center built in 2004 on 1.38 acres lot in growing and high income area. Shadow anchored by Albertsons supermarkets. 100% NNN leased by 6 tenants and BofA ATM. NOI $170K/yr. $1.763M. 9.66% cap.
2. Oil Changers in San Jose, CA: 3100 SF franchised Oil Changers with car wash built in 1989 on .45 ac corner slot on busy Monterey road. Tenant has been here for 20 yrs. 100% NNN lease expires on July 2010 (will let you know on Monday if tenant renews lease.) NOI $131K/yr. $1.19M. 11% cap.
3. Shopping Center in Katy, TX: 24,285 SF eye-catching shopping center constructed in 2004 on 1.39 acres of land in growing Houston suburbs with excellent tenant mix: Pizza, Insurance, Curves, Hair Salon, Plaster Funhouse, Dentist, Cleaners, Casual Patio, Katy Tile, Medusa Lounge and Nails Salon. 100% NNN leased. NOI $378K/yr. $3.950M. 9.59% Cap.
4. Retail Center in Austin, TX: 15,438 SF recently constructed retail center on over 2 acres of land with excellent visibility off of Hwy-290. 100% NNN leased. NOI $304K/yr. $3.5M. 8.6% Cap.
5. Dollar General in Jacksonville, FL: brand-new 8998 SF single-tenant retail building on 1.20 acres of land at signalized intersection in close proximity to I-23. Unusual 15-years absolute NNN corp lease. NOI $118K/yr. $1.390M. 8.5% Cap.
6. Strip Center in San Ysidro, CA: 30,625 SF strip center anchored by Factory 2-U with excellent exposure to I-5. 100% NNN leased in the last 10+ yrs. NOI $448K/yr. $4.850M. 9.25% Cap.
7. Jiffy Lube in Gilbert, AZ: 1504 SF free-standing retail building across from Albertsons at high traffic location in growing & well-off (AHI $94K/yr) Phoenix outskirts. 100% absolute NNN leased by strong operator. 3% annual rent increases. NOI $107K/yr. $1.130M. 9.50% Cap.
8. Medical Office in Huntington Beach, CA: 58,518 SF 40-unit well-kept four-story medical office building on 2.60 acres of parcel on Beach Blvd. Ideally located next to Huntington Beach Hospital. Excellent demographics with AHI over $110K/yr. 95% leased. NOI $864K/yr. $10.875M. 7.95% Cap.
9. Family Dollar in Colorado Springs, CO: 10,000 SF all brick retail building on 2.45 acres of land along Bus-24. 100% NNN leased by recession-resistant credit tenant. NOI $86K/yr. $1.020M. 8.5% Cap.
10. Apartments in Houston, TX: two-story 212-apartment complex on 7.50 acres of land with recent upgrades: new roofs, exterior pain and landscape. 94% occupied. Proforma NOI $448K/yr. $4.250M. 9.59% Cap.
    
    Sales Activities:

1. Apartments in Dallas, TX: 63-unit, $2.35M. In contract.
2. Rite Aid in Concord, NC: $2.119M. 10.75% cap. In contract.
3. Rite Aid in Raleigh, NC: $2.647M. 10.75% cap. In contract.
4. Family Dollar in Deltona, FL: $1.466M. 8.75% cap. In contract.
5. Family Dollar in Arlington, TX: $820K. 9.26% cap. In contract.

© Transmercial 2009. All rights reserved.

Top 9 Properties 01-21-10

1. Apartments in Highlands, CA: 106-unit apartments complex on 3.56 acres lot in Sacramento metro. 80% occupied. Gross revenue of $948K/yr. $5.3M. short-sale.
2. Walgreens in Phoenix, AZ: brand new 14,832 SF drug store on 1.38 acres corner lot in well-off area (AHI 106K/yr within 1 mile radius) in Phoenix. New 25 yrs absolute NNN lease. NOI $560K/yr. $7.725M. 7.25% cap.
3. Apartments in Sacramento, CA: 26-unit apartments in strong income area within walking distance to hundreds of restaurants, shops and nightlife. 100% occupied. NOI $146K/yr. $1.95M. 7.5% cap.
4. Office building in Washington, DC: rare 6525 SF 4-story office building completely renovated in 2005. Conveniently located just 2 blocks from metro station and 1 mile from the National Mall/Capitol Hill. Amenities include kitchenettes, elevator service, a roof deck, and security cameras. 100% leased by a non-profit organization. NOI $193K/yr. $2.4M. 8.07% cap.
5. Apartments in San Diego, CA: 27-unit 3-story apartments built in 1987 in great central location with strong rental submarket & gated parking. Scheduled market rent of $249K/yr. $1.9M.
6. Office building in Visalia, CA: 9766 SF office building on ¾ ac lot. 100% occupied by County of Tulare Health & Human Services Agency since 1990. NOI $126K/yr. $1.4M. 9% cap.
7. Ryan’s Grill Buffet in Indianapolis, IN: 9601 SF restaurant on an outparcel to a shopping center anchored by Michaels, Hobby Lobby. New 20 yrs absolute NNN lease with guaranty by Buffet, Inc. NOI $188K/yr with 2% annual rent bump. $1.71M. 11% cap.
8. Carl Jr in Anaheim, CA: 2127 SF franchised restaurant with drive thru on .64 ac lot on a major artery near I-5. Area with high barrier for entry. Densely populated area with over 650K residents within 5 miles. 100% NNN ground lease with 2 yrs left and no options (Note: Investor buys the land and Improvements revert to landlord at end of lease if tenant does not sign a new lease.) Tenant has been at this location for nearly 40 yrs. NOI $80K/yr. $1.23M. 6.5% cap.
9. Davita Dialysis Center in Lakewood, CO: 14,055 SF single-tenant medical building in Denver metro. 100% NNN lease by a national tenant with 6 yrs remaining. NOI $275K/yr with 2% annual rent bump. $3.675M. 7.5% cap. Recession insensitive tenant.
   
   Sales Activities:

1. KFC in Monroe, LA: $922K, 8.25% cap. In contract.
2. Macaroni Grill restaurant in Burlington, MA: $3.35M 8% cap. In contract.
3. CVS in Kennesaw, GA: closed escrow.

© Transmercial 2010. All rights reserved.

Top 8 Properties 01-20-10

AHI: Avg Household Income
NOI: Net Oper Income

1. Shopping Center in Austin, TX: 17,811 SF unique multi-tenant center built in 1995 on over 3 acres of land at signalized intersection with excellent mix of medical/retail/office tenants. 100% leased. NOI $552K/yr. $6.9M. 8% Cap.
2. Apartments in Macon, GA: 108 two-story well-kept multi-family complex with numerous amenities: swimming pool, fitness center, laundry facility in a growing well-off (AHI $92K/yr) city South of Atlanta. 93% leased. Proforma NOI $441K/yr. $5.5M. 8.04% Cap.
3. Michaels Retail Building in Beaumont, TX: 25,725 SF retail building constructed in 1999 on 1.70 acres of parcel across from Wal-Mart at busy retail corridor. 100% NNN leased by national credit tenant. NOI $288K/yr. $2.4M. 9.52% Cap.
4. Rite Aid Pharmacy in Apple Valley, CA: 3-years old 17,340 SF high quality construction retail building on 1.62 acres of land across from Best Buy/Bed Bath & Beyond at signalized intersection. 20-years absolute NNN corp lease. NOI $483K/yr. $5.690M. 8.5% Cap.
5. Jiffy Lube in Omaha, NE: 3113 SF two-years old single-tenant retail building on .32 acre pad with excellent visibility. New 20-years absolute NNN lease with 10% rental increases every 5-years. NOI $74K/yr. $926K. 8% Cap. Excellent for 1st time investor.
6. Tuffy Auto Care Center in Omaha, NE: 3900 SF retail building constructed In 2007 on .63 acre pad across from Wal-Mart near newly constructed Super Target, Office Max, Hobby Lobby and Sports Authority. New 20-years NNN corp lease. NOI $111K/yr. $1.369M. 8.15% Cap.
7. Walgreens Pharmacy in Boise, ID: 13-905 free-standing retail building with excellent visibility at active signalized intersection. Long NNN lease. NOI $406K/yr. $5K. 8.13% Cap.
8. Motel in Wichita, KS: 85-rooms two-story attractive motel conveniently located along main retail corridor across from Towne East Square Mall. $1.990M.
   
   Sales activities:

1. Medical building in mesa, AZ: 5200 SF. 10 yrs NNN lease. Price increased from $1.85M to $1.982M. 7% cap.
2. Portfolio of 3 retail centers in Seattle, WA: 42,052 SF, 7.02% cap. Closed escrow.

© Transmercial 2010. All rights reserved.

Top 8 Properties 01-18-10

NOI: Net Oper Income
AHI: Avg Household Income

1. Borders Books in Plantation, FL: 24,822 SF sing-tenant retail building constructed in 1999 on 2.37 acres lot adjacent to 2.383 Million SF 300-store Sawgrass Mills Mall (6-th largest mall in US). City West of Fort Lauderdale with excellent demographics: AHI over $107K/yr. 100% NNN absolute corp lease with 9 yrs left. NOI $383K/yr. $3.82M. 10% cap.
2. Apartments in Los Angeles, CA: 28-unit 3-story apartments complex in a densely-populated city with over 1M residents within 5 miles radius. NOI $224K/yr. $2.7M. 8.3% cap.
3. Arby’s in Colorado Springs, CO: 3246 SF 5-yrs old franchised fast-foods restaurant on ¾ acre out parcel to a Kings Sooper Grocery and Pharmacy at an intersection of 2 major arteries. Excellent demographics with AHI over $77K/yr and 95% pop growth from 2000-2008. 100% NNN leased by the largest Arby’s franchisee. 14 yrs left on the lease. NOI $129K/yr. with 7.5% rent bump every 5 yrs. $1.7M. 7.59% cap.
4. Retail center in Elk Grove, CA: 7200 SF strip mall as part of a large shopping center in fast growing and upper income Sacramento metro (AHI $86K/yr). Proforma NOI $127K/yr. $1.45M. 8.96% cap.
5. Apartments in Austell, GA: 267-unit 15-building bank-owned apartments complex on 22 acres of land in Atlanta suburbs. Large units with avg size of 1083 SF. Amenities include clubhouse, swimming pool, tennis courts, a fitness center, and on-site laundry facilities. Area with excellent schools. Proforma NOI $850K/yr. $8.5M. 10% cap.
6. Apartments in Anaheim, CA: 8-unit 9022 SF apartments near Disneyland and Anaheim Stadium. 2 4-BR units, 2 -3- BR units, 2 2-BR units and 2 1-BR units. Gross revenue $138K/yr. $1.425M. 8.24% cap.
7. Rite Aid in Raleigh, NC: 10,908 SF drug store built in 2001 on a hard corner with convenient 2 points of access. Fast growing (97%) and upper income area. NNN leased till 2022. NOI $284K/yr. $2.647M. 10.75% cap.
8. Davita Dialysis Center in Marriott Slaterville, UT: 5000 SF 2-yrs old medical office building in Salt Lake City metro. 10 yrs NNN lease by a financially strong national tenant. NOI $88K/yr. $1.054M. 8% cap. Recession insensitive tenant.
   
   Activities:

1. Family Dollar store in Dover, FL: 1.87M. 8.75% cap. In contract.
2. Office Building in Campbell, CA: 40,000 SF. Closed escrow.
3. Retail center in Laredo, TX: price increased from $1.175M to $1.395M.
4. Jack In the Box in Dallas, TX: price increased from $1.031M to $1.095M
5. Jack In The Box in Perris, CA: $2.262M. 6.25% cap. Pretty low cap and yet it’s in contract!
6. CVS Pharmacy in Las Vegas, NV: $2.563M. Zero cash flow. In contract.
7. Jiffy Lube in Surprise, AZ: $1.635M. In contract.
8. Walgreens in Montgomery, IL: $5.915M. 7.1% cap. In contract.
9. Apartments in Watsonville, CA: 11 units, $2M. In contract.

(c) Transmercial 2010. All rights reserved.

When the economy is in recovery phase, it’s time to buy. Below are some evidence from the Wall Street Journal that things are getting better. Prices are likely to go up.
US central bank posts record profit of US$52.1 billion Posted: 13 January 2010 0132 hrs
WASHINGTON: The US Federal Reserve said Tuesday it earned a record profit in 2009 of US$52.1 billion, led by gains on its unorthodox investments and bailouts during the height of the financial crisis. The profit will provide US Treasury with US$46.1 billion from the operations of the central bank.
Banks Set for Record Pay - Top Firms on Pace to Award $145 Billion for 2009, Up 18%, WSJ Study Finds
JANUARY 14, 2010. BY STEPHEN GROCER

Major U.S. banks and securities firms are on pace to pay their people about $145 billion for 2009, a record sum that indicates how compensation is climbing despite fury over Wall Street's pay culture.

An analysis by The Wall Street Journal shows that executives, traders, investment bankers, money managers and others at 38 top financial companies can expect to earn nearly 18% more than they did in 2008—and slightly more than in the record year of 2007. The conclusions are based on an examination of securities filings for the first nine months of 2009 and revenue estimates through year-end.

Top 6 properties 01-15-10

1. Shopping Center in Greenwood, IN: 41,901 SF shopping center renovated in 2006 on over 4 acres of land along dense commercial corridor. NOI $282K/yr. $3.5M. 8.07% Cap.
2. Apartments in Houston, TX: attractive Class-B 117-units apartment complex on 4.42 acres of parcel near Beltway-8/Hwy-59. NOI $494K/yr. $4.8M. 10.31% Cap.
3. Advance Auto Parts in Jacksonville, FL: 7000 SF single-tenant retail building constructed in 2007 on 1.44 acres of land about one mile from I-295. 11-years remaining on NNN lease with public company. NOI $123K/yr. $1.550M. 7.94% Cap.
4. Burger King in San Fernando, CA: 2792 SF Burger King along busy thoroughfare just minutes from Freeway-210. New 20-years NNN leased by experienced franchisee currently operating 33 restaurants. NOI $144K/yr. $2.057M. 7% Cap.
5. Jack in the Box in Chandler, AZ: 3200 SF free-standing recently remodeled restaurant on .61 acre lot outparcel to East Valley Mall at high traffic location. Rare long absolute NNN corp ground-lease with CPI rent increases every 5-years. Buyer owns the land. NOI $70K/yr. $1M. 7.05% Cap.
6. Community Center in Daytona Beach, FL: 158,667 SF shopping center on 14.59 acres of land with huge monument sign close to Halifax Medical Center. 91% leased. NOI $811K/yr. $8.9M. 9.12% Cap.
   --Upside potential as current rents are below market rent.
   
   Sales activities:

1. MRI medical building in Conyers, GA: $972K. 8.25% cap. In contract.
2. Jack In the Box in Perris, CA: $2.262M. 6.25% cap. In contract.
3. CVS Pharmacy (building only, no land) in Las Vegas, NV: $2.56M. 8.25% cap. In contract.
4. Jack In the Box, Dallas TX: closed escrow.
5. Earl Scheib Auto Paint & body in Long Beach, CA: closed escrow.
6. Public storage in Denton, TX: 1.9M. 9.77% cap. In contract.
7. Walgreens in Louisville, KY: closed escrow.
8. Retail center in Colleyville, TX: closed escrow
9. Retail center in Chicago, IL: closed escrow.
10. McDonald in Fort Worth, TX: $1.5M ground lease (land sale), 6% cap. Closed escrow.

© Transmercial 2010. All rights reserved.

Top 7 Properties 01-14-10

NOI: Net Oper Income
AHI: Avg Household Income

1. Corporate Dollar Tree Retail Building in Philadelphia, PA: 14,867 SF recently renovated free-standing retail building on .60 acre lot close to I-1. 100% absolute NNN corp lease till 2019. NOI $139K/yr. $1.595M. 8.97% Cap.
   Recession-resistant tenant
2. Retail Building in Des Plaines, IL: 5985 SF auto-care retail building across from McDonald’s at prime signalized location close to I-294. 100% leased. NOI $101K/yr. $975K. 10.42% Cap.
3. Shopping Center in Chicago, IL: 17,974 SF well-located shopping center on 1.47 acres of parcel across from Walgreen’s along busy retail corridor with excellent tenant mix: Spring, City of Chicago, Rent-A-Center and Little Caesar’s. 92% NNN leased. NOI $235K/yr. $4.405M. 11% Cap.
4. Strip Center in Houston, TX: 7630 SF attractive strip center constructed in 2004 on .69 acre pad in fast growing area. 100% NNN leased. NOI $152K/yr. $1.8M. 8.5% Cap.
5. CVS Pharmacy in Baytown, TX: 10,906 SF CVS Pharmacy on 1.29 acres of land about .25 miles South of the Medical Complex which includes the Gulf Coast Hospital and Primary Medical Towers off of Loop-201/146. 100% NNN corp lease. NOI $220K/yr. $2.450M. 9% Cap.
6. Retail Center in Oxnard, CA: 10,800 SF attractive shopping center built in 1998 on over 1.1 acre corner lot in a stable coastal city. Shadow-anchored by El Pollo Loco and Jack in the Box. High income area with AHI over $87K/yr within 1 mile radius. 100% leased by 6 tenants. NOI $224K/yr. $2.8M. 8.02% Cap.
7. Medical Office in Las Vegas, NV: 4470 SF L-shaped medical building on 1.34 acres of land with excellent visibility. 100% NNN leased. NOI $107K/yr. $1.016M. 10.62% Cap.
   
   © Transmercial 2010. All rights reserved.

Top 8 Properties 01-13-10

1. Pep Boy Auto center in Austin, TX: 22,279 SF automotive center in a prime commercial retail area with easy access to freeways. 15 yrs absolute NNN corp lease. NOI $230K/yr with 1.5% annual rent increase. $3.032M. 7.61% cap. Favorable seller financing at 6.25% interest.
2. Mini-skool Childcare center in Surprise, AZ: 10,000 SF brand new child care center in an explosive growth Phoenix area (230% since 2000). New 10 yrs NNN lease by a strong national childcare provider. NOI $213K/yr. $2.59M. 8.25% cap.
3. Papa Johns Pizza in Greenwood, CO: 2400 SF free-standing restaurant on ¼ acre lot at signalized corner just off I-25 exit in wealthy Denver suburbs (AHI $122K/yr). 100% NNN lease. NOI $68K/yr with annual rent bump. $940K/yr. 7.28% cap. Great property for first time investors!
4. Strip Center in Saratoga, CA: 6168 SF 4-unit strip center on over ½ acre lot in an affluent town with high barrier for entry. 90% leased with small 620 SF unit vacant. Rent below market. NOI $136K/yr. $2M. 6.8% cap.
5. Shopping Center in Houston, TX: 21,012 SF shopping center built in 1998 on 3.56 acres lot with I-35 frontage. Shadow anchored by Conn’s Appliance. 100% NNN leased by 6 regional tenants. NOI $333K/yr. $3.225M. 10.46% cap!
6. El Pollo Loco Restaurant in Garden Grove, CA: 2264 SF free-standing restaurant on 1/3 ac outparcel to a shopping center anchored by Rite Aid, Big Lots, and Value Plus Food Warehouse. Densely populated city in Orange county with over 825K residents within 5 miles ring. Close to Garden Grove Hospital and Fwy 22. 100% NNN lease with 5 yrs remaining with below market rent. NOI $84K/yr. $1.525M. 5.51% cap.
7. Shopping Center in Manchester, NH: 36,252 SF shopping center on 3.29 acres lot. 95% leased. NOI $268K/yr. $268K/yr. .5M. 7.7% cap.
8. Shopping Center in Plainfield, IN: 50,400 SF shopping center built in 2003 on 5.78 acres lot as part of a 580,000 SF power center home to Kohl's, Pier 1, Old Navy, Bath and Body Works, Dress Barn, and Shoe Carnival. Adjacent to 550,000 SF Metropolis Lifestyle Center anchored by JC Penney, Dick's Sporting Goods, Rave Theatres, and Barnes & Noble in a fast growing Indianapolis suburban. 100% NNN leased. NOI $560K/yr. $5.75M. 9.75% cap.
   
   © Transmercial 2010. All rights reserved.

How Properties Are Selected

Every day there are about 300-350 new retail and office properties between $700K to $15M on the market in all 50 states listed by various companies. Out of these hundreds of listings, only the top 5-10 properties make it to the list that you see on this blog. By focusing on the short list of best properties, you will save time and are more likely to be successful with your investments.
Below are some of the selection criteria:

1. Price range: most investors look for properties between $700K and $15M.
2. Property types: most if not all investors of eFunding want to invest in retail properties and office buildings where tenants sign long term low-risk NNN leases, i.e. tenants pay for property taxes, insurance and maintenance expenses, in favor of landlords. They prefer not to invest in apartments where leases are mostly riskier gross, i.e. landlords pay for taxes, insurance and unpredictable maintenance expenses. Besides, apartment tenants normally don’t have much money which may affect their ability to pay the rent on time.
3. Cap rate: the return of investment must be “reasonable”, e.g. generally higher than the interest rate. The cap rate is typically lower in CA and higher in other states. However cap rate is not everything.
4. Property condition: investors prefer properties with little deferred maintenance.
5. Demographics: the selected properties tend to be in growing, high income and bigger cities/metros as they have better chance to appreciate and easier to find tenants. Besides they are easier to sell if needed.
   -You won’t see properties in an area where people are moving out, e.g. Detroit downtown. These properties are easy to buy but hard to sell. In addition, it’s hard to get attractive financing, if at all, for these properties.
   -Properties in a middle of nowhere won’t make it to the lists. These are also easy to buy but hard to sell.
   -Properties in cities where the average household income is way below the national average, e.g. $28,000/year, also won’t make it to the list as these are most likely high-crime areas.
6. Occupancy: close to 100%.
7. Good Visibility: properties tend to have most if not all units facing the road to show case the tenant businesses. Tenants love visibility. What’s good for tenants is also good for investors.
8. Great locations: properties on a major artery with heavy traffic, near the freeway exit, on corner lot, near a mall, on an outparcel to a shopping center.
9. Land: if land is not included then it does matter how beautiful the property is, it will not be selected. This is the type of property that is easy to buy but hard to sell.
10. Lease Type: most likely NNN leases.
11. Parking spaces: at least 4 spaces per 1000 SF of leasable space.. It’s hard to lease a retail property unless it has sufficient parking spaces.
12. Age: not over 20 yrs old unless the property is well-maintained or recently renovated.
13. Price per square foot: sometimes a property is selected because the price per SF is low, e.g. less than $200/SF for a retail property in California. The main reason for the selection is appreciation potential.
14. Low rent: there is upside potential if the rent is below market. When the leases expire, the rent is adjusted to market rent which increases the value of the property.
15. Financing: sometimes a property may be selected because it offers attractive financing. For example, the seller is willing to carry 80% LTV at low interest rate or buyer can assume a loan at 5.5% interest, fixed for 10 years. This in turn may increase the overall return or cash on cash. On the other hand, a property may be screened out because it is difficult to get reasonable financing. For example, in this tight credit market it is extremely difficult to get financing for a single-tenant mom-and-pop restaurant.
16. Misc: A property could be selected or screened out for other reasons
    -If a property has a dry cleaner with onsite cleaning, it will not be selected due to potential soil contamination by a chemical called Perc used in the cleaning process.
    -A property in an affluent Santa Monica, CA could be selected simply because it’s rarely available.
    -A vacant restaurant in front of a mall in San Francisco Bay Area could make the list because it may have lots of interests from investors in CA.

If you are interested on a particular property and would like additional information, i.e. a brochure, please email to maria@transmercial.com. It’s good idea to provide Maria with:

-The date the property was selected (not posted date.) This is on the subject of the post.
-Name of the property, e.g. Walgreens in Dallas, TX.

You will notice that the properties are posted 2 weeks after the date they are selected. The reason for this 2-week delay is we don’t want other companies to take advantage of our research work. If you are an investor and would like to receive the list daily without two weeks delay, we invite you to join Transmercial investors club. The daily list of best properties is emailed to members by 6PM PST, Monday-Friday. The email also contains a 1-page flyer for each selected properties with picture, address, and a brief description about the properties.

Membership to Transmercial investors club is FREE. Click here for details. Don’t worry; there are absolutely no obligations of anything from you to us for being a member. Of course, we hope that you like our work and will eventually ask us to represent you. However, it’s all up to you as you have no contractual obligations to us for anything.

Top 8 Properties 01-12-10

1. Condos/apartments in Oakland, CA: 25-unit condos being rented as apartments with each building on a separate parcel. Near Oracle Arena and McAfee Coliseum. 87% occupied. Gross income of $258K/yr. NOI $139K/yr. $1.395M. 9.97% cap. Just over $55K/unit. Great buy.
2. Single-tenant Liquor Store in Fort Worth, TX: 10,320 SF single-tenant retail center on 1 ac lot in Dallas metro. New 20 yrs absolute NNN lease by Majestic Fine Wines and Spirits, a fast growing retail company with 49 locations in TX and $148M in sales. NOI $257K/yr. $2.855M. 9% cap.
3. Long John Silver’s Restaurant in Grand Prairie, TX: 2440 SF franchised restaurant on 2/3 ac parcel in Northern Dallas metro. 20 yrs NNN lease by an operator with 199 locations. NOI $76K/yr with 10% rent bump every 5 yrs. $950K. 8% cap.
4. Single tenant retail center in Sacramento, CA: 7515 SF single-tenant retail center built in 2007 on 2/3 acre lot. 100% NNN lease by Aaron Rent. NOI $108K/yr. with rent bump every 5 yrs. $1.4M. 7.71% cap.
5. Short-sale Apartments in Phoenix, AZ: 288-unit 24-building apartments complex on 9.4 acres near Metro Center Mall. 90% occupied. NOI $460K/yr. $6.5M. Just $22.5K/unit.
6. Arbys in Titusville, FL: 2960 SF franchised restaurant on ¾ acre lot next to Sears Town Mall. 10 yrs corp lease. NOI $108K/yr. with 8% rent bump every 5 yrs. Store with strong sales of over $1.25M/yr. $1.27M. 8.5% cap.
7. Goodwill store in Lancaster, CA: 11,311 SF Goodwill store on over 1 acre of land next to Hwy 14 in a growing city in Los Angeles county. 10 yrs NNN lease. NOI $196K/yr. $2.715M. 7.25% cap. Recession insensitive tenant.
8. Family Dollar in Arlington, TX: 9180 SF Family Dollar store built in 2005 on 1 acre lot in a stable Dallas metro. 100% NNN lease with 6 yrs remaining. NOI $76K/yr. $820K. 9.26% cap. Recession insensitive tenant.
   
   © Transmercial 2010. All rights reserved.

Top 7 Properties 01-11-10

1. Office Building in Richmond, VA: 22,722 SF office building complex on 1.89 acres lot in a high income part of Richmond (AHI $86K/yr). 90% leased by 17 tenants with high avg tenancy of over 10 yrs. NOI $176K/yr. $1.9M. 9.28% cap.
2. Shopping center in Los Angeles, CA: 20,072 SF shopping center built in 2004 on 1.94 acres lot in high income Pasadena/Glendale area. 100% leased by all national tenants: Walgreens, Starbucks Quizno's, Jamba Juice and Coldstone Creamery. NOI $670K/yr. $9.25M. 7.25% cap.
3. Kindercare Childcare center in Laveen, AZ: 10,145 SF childcare center built in 2007 on 1.15 acres outparcel to a shopping center anchored by Safeway in Phoenix metro. 15 yrs absolute NNN corp lease with 13 yrs remaining. NOI $233K/yr. with 7% rent bump every 5 yrs. $2.912M. 8% cap.
4. Apartments in Los Angeles, CA: 22-unit 3-story apartments in a densely-populated city with over 1M residents within 5 miles ring. High income area with AHI over $97K/yr. NOI $178K/yr. $2.5M. 7.13% cap.
5. Strip mall in Rockford, IL: 9000 SF strip center on over acre pad site in front of Wal-mart. 100% NNN leased by 2 tenants: BD Mongolian Grill and Aspen Dental. NOI $250K/yr. $2.75M. 9.1% cap.
6. Medical Office Building in Plano, TX: 34,764 SF 2-story medical office building constructed in 2002 on Campus of Plano Medical Center in an affluent Plano with AHI over $117K/yr in Dallas metro. NOI $603K/yr. $7.725M. 7.81% cap.
7. Medical Office Building in Orange Park, FL: 26,842 SF medical office building on over 2 acres lot on campus of Orange Park medical center in a fast growing Jacksonville metro. NOI $309K/yr. $3.65M. 8.45% cap.
   
   © Transmercial 2010. All rights reserved.

top 8 Properties 01-08-10

1. Buffalo Wild Wing in Austin, TX: 6188 SF brand new franchised restaurant on 1.3 acres with I-35 frontage in a fast growing (36% since 2000) and middle upper class part of Austin (AHI $89K/yr). In front of Wal-mart and across Target. 15 yrs NNN from the largest Buffalo Wild Wing franchisee. NOI $$252K/yr with 10% rent increase every 5 yrs. $3.155M. 8% cap.
2. Office/Retail Complex in Surprise, AZ: 30,000 SF well-maintained 2-story 2-unit retail/office building on 2.84 acres lot anchored by Fresenius Dialysis in Phoenix metro. 90% leased. 8% cap. Gross revenue of $445K/yr.
3. Shopping Center in Tulsa, OK: 69,742 SF retail office complex on 4.14 acres of land. 86% leased. NOI (proforma?) $429K/yr. $3.9M. 11% cap.
4. Office Building in Eagan, MN: 5945 SF class-A office building in high income Saint Paul metro. 100% leased to 3 tenants. NOI $90K/yr. $920K. 9.8% cap
5. Pep Boy Automotive Center in Albuquerque, NM: 17,925 SF automotive center on 1.32 acres lot. 15 yrs absolute NNN corp lease. NOI $198K/yr. with 1.5% annual rent bump. $2.698M. 7.36% cap.
6. Retail Center in San Jose, CA: 32,253 SF retail/medical 3-building center on 3 acres corner lot in a high income area with AHI over $115K/yr. 100% NNN leased by 16 tenants. NOI $547K/yr. $7.99M. 6.85% cap.
7. Medical Building in Santa Ana, CA: 6800 SF single-tenant medical office building on 1.1 acre lot in a densely populated city in Orange county. 100% NNN leased. NOI $105K/yr. $1.75M. 6% cap. Upside potential.
8. Shopping Center in Weston, FL: 20,950 SF upscale shopping center on 2.7 acres parcel in an affluent North Miami metro (AHI $129K/yr). 100% NNN by 11 tenants. NOI $672K/yr. $8.3M. 8% cap.

Prices increased:

1. Taco Bell in Glendale, AZ: from $1.195M to $1.278M. from 7.7% to 7.2% cap.
2. Verizon Wireless in Wake Forest, NC: from $2.147M to $2.21M. From 8.75% to 8.5% cap.
3. Shopping center in Temecula, CA: from $4.8M to $4.9M.

Sales activities:

1. Advance Auto in Minneola, FL: closed escrow.
2. Advance Auto in Leesburg, FL: closed escrow.
3. Retail property in Milpitas, CA: closed escrow.
4. Apartments in Stone Mountain, GA: $5M. In contract.
5. Apartments in Burlingame, CA: closed escrow.

© Copyright Transmercial 2010. All rights reserved.

Top 8 Properties 01-07-10

1. Montessori Childcare Center in Chino, CA: 4732 SF single-tenant franchised childcare center on ½ acre corner lot in a densely populated middle class city. New 10 yrs NNN lease. NOI $75K/yr. with 3% annual rent increase from 2012. $1M. 7.57% cap. Great for 1st time investors.
2. Mini Storage in Denton, TX: 63,240 SF 164-unit mini storage facility on 4.5 acres lot in Dallas metro. 93% leased. NOI $185K/yr. $1.85M. 9.77% cap.
3. Apartments in Van Nuys, CA: 28 townhome-unit apartments on 1 acre lot in a densely-populated city with over 700K residents within 5 miles ring. Swimming pool and gated parking/entry. Gross income of $411K/yr. $3.225M.
4. Shopping Center in Richardson, TX: 7302 SF retail center in a wealthy Dallas suburban with AHI over $102K/yr. near Hwy 75. 100% NNN leased by 4 good tenants. NOI $193K/yr. $2.42M. 8% cap.
5. Romano’s Macaroni Grill in Colorado Springs, CO: 7814 SF franchised restaurant built in 1999 on 2 acres corner lot. 20 yrs absolute NNN corp lease. NOI $218K/yr with 2% annual rent bump. $2.575M. 8.5% cap.
6. Strip Center in Norwalk, CA: 9946 SF strip mall built in 1985 just 4 short blocks for I-5. 100% leased. NOI $166K/yr. $2.59M. 6.4% cap. Only $260/SF.
7. Office Building In Auburn, CA: 12,779 SF 2-story 10-unit office building on 1 acre lot near I-80, North East of Sacramento. 95% leased. NOI $161K/yr. Price reduced from $1.65M to $1.55M. 10.4% cap with current income.
8. Apartments in San Francisco, CA: 27-unit studio apartments adjacent to San Fran Hilton and a few short blocks from Moscone center. Excellent demographics with AHI over $135K/yr. NOI $188K/yr. $2.85M. 6.62% cap.
   
   © 2010 Transmercial. All rights reserved.

Top 10 Properties 01-06-10

1. Apartments in Greenwood, IN: 438-unit apartments complex near Greenwood Park Mall in Indianapolis metro. 75% occupied. NOI $907K/yr. (proforma?). $8.25M. 11% cap. Less than $19K/unit!
2. Retail condo in Hayward, CA: 3000 SF retail condo in a 16,077 SF retail complex in front of 133,800 SF Target just off I-880. 100% NNN leased by T-Mobile. NOI $108K/yr. $1.542M. 7.5% cap.
3. Walgreens in Palmdale, CA: 13,650 SF brand new drug store on 1 acre lot at a signalized corner. High income Los Angeles city with AHI over $105K/yr. 100% NNN leased. $5.960M. 7.2% cap.
4. Restaurant in San Diego, CA: 2750 SF Mexican restaurant in a densely populated city. New long term NNN lease. Tenant has been at this location for 7 yrs. NOI $60K/yr. $750K. 8% cap.
5. Shopping Center in Charlotte, NC: 47,000 SF shopping center on 5 acres parcel. Anchored by Food Lion supermarkets, CVS Pharmacy, and US Postal Services. 100% NNN leased by 8 tenants. Both Food Lion and CVs have strong sales. NOI $351K/yr. $4.39M. 8% cap.
6. Office Building in Port Saint Lucie, FL: 6324 SF office building constructed in 2004 on 1 ac lot in a fast growing town. 100% leased by 6 tenants. NOI $89K/yr. $995K. 9% cap.
7. Long John Silver’s restaurant in Euless, TX: 2305 SF franchised restaurant on .4 acre parcel in Dallas metro. 20 yrs NNN lease by an operator with 119 restaurants. NOI $69K/yr. with 10% rent bump every 5 yrs. $870K. 8% cap. Great for 1st time investors.
8. Shopping Center in Yorba Linda, CA: 8000 SF inline strip mall in a center anchored by Stater Bros grocery, a regional supermarkets chain in Southern CA. Excellent demographics: growing & affluent city in Orange county with AHI over $115K/yr. 100% NNN leased by 6 stable tenants. NOI $209K/yr. $2.872M. 7.28% cap.
9. Apartments in Jersey City, NJ: 8 3-br brick apartments in a densely populated city with over 850K residents within 5 miles ring near NY City. 100% occupied. Gross revenue of $112K/yr. $800K.
10. Apartments in Hollywood, FL: 84-unit 28-building apartments on 2 acres lot. 85% occupied. NOI $219K/yr. $2.5M. 8.76% cap.
    
    Sales Activities:

1. Rite Aid in new London, CT: 9% cap. Closed escrow.
2. Shopping Plaza in Pasadena, TX: $3.275M. 76% leased. In contract.
3. Shopping center in Salina, KS: closed escrow.
4. Walgreens in Newport News, VA: $5.984M. 7.5% cap. in contract.
5. Del Taco restaurant in Layton, UT: 8% cap. Closed escrow.

© copyright Transmercial 2010. All rights reserved.

Top 9 Properties 01-05-10

1. Office Depot in Charlotte, NC: 17,500 SF single-tenant retail building constructed in 2005 with excellent visibility near Fwy-485. 100% absolute NNN corp lease. NOI $241K/yr. $2.686M. 9% Cap.
2. Shopping Center in Munhall, PA: 37,720 SF recently constructed shopping center on 3.70 acres of land anchored by Big Lots in growing area. 100% NNN leased. NOI $280K/yr. $3.210M. 8.74% Cap.
3. Strip Center in Munhall, PA: 13,799 SF strip center built in 2004 on 1.34 acres of parcel along retail corridor in fast growing Pittsburgh suburbs. 100% NNN leased. NOI $123K/yr. $1.320M. 9.35% Cap.
4. Shopping Center in Erie, PA: 20,139 attractive shopping center on .89 acre pad located at major retail artery with over 15,000 VOD with excellent tenant mix. 88% NNN leased. NOI $106K/yr. $1.118M. 9.5% Cap.
   Upside potential when fully leased
5. Childcare center in McKinney, TX: 8068 SF brand new childcare center on 1.44 acres lot in a wealthy Dallas metro with AHI over $119K/yr. Adjacent to a Wal-mart anchored shopping center. New 15 yrs NN leased by the Goddard School. NOI $220K/yr. with 10% rent bump each 5 yrs. $2.445M. 9% cap.
6. Jiffy Lube in Omaha, NE: 3113 SF Jiffy Lube built in 2008 on 1/3 acres lot in a stable city. New 20 yrs NNN lease by an operator with over 400 locations. NOI $74K/yr. $926K. 8% cap.
7. Walgreens in Tucson, AZ: 13,905 SF drug store built in 1998 on 21.7 acres corner lot across from Northwest medical center. Growing area. 100% NNN lease. NOI $325K/yr. $3.95M. 8.23% cap.
8. Buffalo Wild Wing in Albuquerque, NM: 8018 SF franchised restaurant built in 2008 on 1.6 acres lot across from Super Target, and Michaels. New 15 yrs absolute NNN lease with no landlord responsibilities. NOI $226K/yr. $2.668M. 8.5% cap.
9. Apartments in Dallas, TX: 150-unit apartments complex on 5.68 acres of land. 93% occupied with gross income over $1M. $2.95M. 8.75% cap.
   
   Sales activities:

1. Fresh and Easy market in Henderson, NV: 7.14% cap. Closed escrow.
2. AppleBees in Goodyear, AZ: 8.25% cap. Closed escrow.
3. AppleBees in Peoria, AZ: 8.25% cap. Closed escrow.
4. Apartments in Spokane Valley, WA: 427 units, 6.63% cap. Closed escrow.
5. Apartments in Orlando, FL: 23 units. Closed escrow.

© copyright Transmercial 2010. All rights reserved.

Top 10 Properties 01-04-10

NOI: Net Oper Income
AHI: Avg Household Income

1. Shopping Center in Cumberland, RI: 34,529 SF community center consisting of three retail buildings constructed in 1999, and anchored by Rite Aid. In growing middle-class (AHI $78K/yr) city about 40-mile from Boston. 100% NNN leased by Rite Aid, Urgent Care tenants and retail shops. NOI $493K/yr. $5.947M. 8.30% Cap.
   Upside potential as tenants currently paying low rent
2. Rite Aid Pharmacy in Hemet, CA: 17,272 SF recently constructed retail building on 1.53 acres of land at a signalized intersection. Long term NNN corp lease. NOI $521K/yr. $6.135M. 8.5% Cap.
3. Tuffy/CarX Auto in Bettendorf, IA: 5100 SF 3-years old automotive center on 1.46 acres of parcel adjacent to Walgreens Pharmacy at hard corner location. New 20-years NNN corp lease with rental increases every 5-years. NOI $123K/yr. $1.517M. 8.15% Cap.
   Tuffy Associates Corp. operates over 400 stores between Car-X & Tuffy.
4. Medical Building in Yuba City, CA: well-located 8420 SF medical building completed in 2008 on .91 acre lot. 100% NNN leased. NOI $136K/yr. $1.956M. 7% Cap.
5. Retail Condo in Lynnwood, WA: 6428 SF Susumu Japanese Steakhouse Restaurant at busy retail location near Highway-99 in an economically stable Seattle metro. 100% NNN lease. NOI $76K/yr. $925K. 8.30% Cap.
6. Jack in the Box in Dallas, TX: 2481 SF single-tenant Jack in the Box retail building on .49 acre lot off of I-35E. 100% NNN leased. NOI $87K/yr. $1.062M. 8.25% Cap.
7. Del Taco Retail Building in Parker, CO: brand new 2166 SF retail building on .64 acre lot in high income Denver suburbs. Shadow-anchored by Best Buy and Staples at highly visible location. Long NNN leased by strong franchisee. NOI $175K/yr. $2.2M. 8% Cap.
8. Big O Tires in Gilbert, AZ: 5075 SF attractive single-tenant retail building constructed in 2002 on .87 acre pad with excellent frontage along busy retail corridor in fast growing Phoenix area. 100% NNN lease with 2% annual rent increases. NOI $128K/yr. $1.690M. 7.6% Cap.
9. KFC Retail Building in Indianapolis, IN: 2607 SF free-standing retail building with drive-thru on .63 acre lot with excellent ingress/egress near I-74. Brand new 15-years absolute NNN lease by experienced franchisee with 43 KFC’s restaurants. NOI $97K/yr. $1.143M. 8.5% Cap.
10. Medical Building in Las Vegas, NV: 17,410 SF attractive medical building along busy retail corridor conveniently located at corner location. 88% leased by good tenant mix. NOI $216K/yr. $2.375M. 9.11% Cap.
    
    Sales Activities:

1. Romano’s Grill restaurant in fort Worth, TX: 2.389M. 8.5% cap. Sale pending.
2. Church’s Chicken in Pinellas Park, FL: $700K. 8% cap. In contract.
3. Apartments in Edmonds, WA: closed escrow.
4. Shopping Plaza in Winthrop Harbor, IL: $4.07M. in contract.
5. Church’s chicken in Nashville, TX: closed escrow.
6. Strip center in Rialto, CA: closed escrow.
7. Apartments in Dallas, TX: $2.35M. In contract.
8. Office building in Keller, TX: closed escrow.

© Transmercial 2009. All rights reserved.

Top 4 Properties 12-24-09

1. Jiffy Lube & Carwash in Stevenson Ranch, CA: 4382 SF Jiffy Lube and Carwash built in 1996 in a prime commercial corridor just off I-5 in a wealthy Santa Clarita area (AHI over $101K/yr). New 20 yrs NNN lease. NOI $169K/yr with 10% rent bump every 5 yrs. $2.303M. 7.35% cap.
2. Luxury Apartments in West Seneca, NY: 42-unit apartments built in 2004 on 4.5 acres lot in high income Buffalo suburbs. Large units of over 1000 SF. 80% occupied. Proforma NOI $376K/yr. $4.4M. 8.5% cap proforma.
3. Shopping center in Santee, CA: 22,057 SF 12-unit shopping center on a corner lot in San Diego metro. Occupancy & NOI not avail. $3.3M. Less than $150/SF!
4. Apartments in Seattle, WA: 12-unit 3-story apartments complex just a few blocks from Lake Washington. NOI $94K/yr. $1.449M. 6.5% cap.
   
   © copyright Transmercial 2009. All rights reserved.

Top 6 Properties 12-23-09

1. Sprouts Supermarkets in Glendale, AZ: 30,600 SF growing regional grocery store in high income Phoenix metro with 38 locations in 4 states. 100% corp NNN leased till Dec 2019. NOI $510K/yr with rent increased to $531K/yr in 2011. $5.66M. 9% cap.
2. Pizza Hut in Gainesville, FL: 4250 SF restaurant on 1.2 acres lot. 15 yrs NNN lease from an operator with 30 restaurants. NOI $113K/yr with 10% rent bump every 5 yrs. $1.421M. 8% cap.
3. Strip center in Largo, FL: 7480 SF modern looking retail center constructed in 2003 on .73 ac outparcel to Publix Supermarkets in Tampa metro. 100% NNN leased by 4 good tenants: Chase Bank, Sally Beauty supplies, Tropical smoothie, and Michael’s Pharmacy. NOI $197K/yr. $2.323M. 8.5% cap.
4. Jack In the Box in Beaverton, OR: 2864 SF restaurant in a prime commercial corridor just off Sunset Hwy in a stable and high income area. 100% NNN lease with 8 yrs left. NOI $164K/yr. with 10% rent bump every 5 yrs. $2.27M. 7.25% cap.
5. Rite Aid in Methuen, MA: 13,227 SF drug store built in 2005 on 2.7 acres lot just off Hwy 213 exit 30 miles North of Boston. 20 yrs absolute NNN lease. NOI 324K/yr with 10% rent bump every 10 yrs. $3.984M. 8.15% cap.
6. Michael’s Arts and Crafts in Mountain View, CA: 21,579 SF single –tenant retail center on 1.41 acres parcel in a heart of Silicon Valley with high barrier for entry. Near Hwy 101 & across from a new 100,000 SF community center. Completely renovated in 2007. Excellent demographics with AHI $138K/yr. 100% NNN leased till 2018 by a national tenant with over 1000 locations in 49 states & Canada. NOI $513K/yr with 10% rent bump in 2012. $6.95M. 7.38% cap. Buyer to assume $5.3M non-recourse loan at 6.5% interest.
   
   Sales Activities:

1. Arby’s in Omaha, NE: $1.094M. In contract.
2. Starbucks in Columbus, GA: $1.5M. 8% cap. In contract.
3. Starbucks in Panama City, FL: $1.54M. 8.25% cap. In contract.

© Transmercial 2009. All rights reserved.

Top 10 Proeprties of 12-22-09

AHI: Avg Household Income.

1. Townhomes portfolio in Antelope, CA: 23 upgraded 2&3 BR/2.5-3 BA 1,219-1,687 SF townhomes, with select units offering premium features, such as gourmet kitchen, granite counter tops, tile flooring in high-income Sacramento metro. 100% occupied. NOI $249K/yr. $2.967M. 8.4% cap.
2. La Quinta Inn & Suites in Houston, TX: 85-room Hotel built in 2001 on 1.65 acres lot with visibility from I-45 with 2 yrs left on franchise agreement. $4.3M.
3. Family Dollar in Deltona, FL: 9180 SF single-tenant retail building on .89 acre lot. 10 yrs NN lease. NOI $128K/yr. $1.466M. 8.75% cap. Recession insensitive tenant.
4. Apartments in Palm Springs, CA: 11-unit apartments in a wealthy town (AHI $128K/yr within 1 mile ring). 97% occupied. $1.3M.
5. Apartments in Fresno, CA: 61-unit apartments on 1.43 acres lot with covered carports. 99% occupied. $3.9M.
6. Childcare center in West Windsor, NJ: 6500 SF childcare center in an affluent town East of Princeton University (AHI of $172K/yr). New 15 yrs absolute NNN lease from a high quality tenant. NOI $139K/yr with annual rent bump. $1.8M. $7.85% cap.
7. KFC in Indianapolis, IN: 2610 SF franchised restaurant on .9 acre parcel near University of Indianapolis . New 15 yrs absolute NNN lease from a veteran operator with 43 units. NOI $90K/yr. with 10% rent bump every 5 yrs. $1.058M. 8.5% cap.
8. Shopping center in Jonesboro, GA: 16.544 SF retail centers on 2.89 acres outparcels in front of Kroger Supermarkets in Atlanta suburbs. 100% NNN leased by 11 good tenants. NOI $198K/yr. $2.15M. $9.62% cap.
9. Office building in San Jose, CA: 6520 SF 2-story vacant office building constructed in 1987 on .36 acre lot on the busy Saratoga Ave. with excellent demographics (AHI $119K/yr). Ideal for dental and legal services. Price reduced from $1.95M. to $1.65M.
10. Retail Building in Pacific Grove, CA: rare 4119 SF retail center in a wealthy coastal town (AHI $139K/yr within 1 mile ring) just 2 short blocks from the beach in Monterey metro. $995K.
    
    Sales Activities:
    
    1. Medical office building in Lake Mary, FL: 10,744 SF; 8% cap: closed escrow.
    2. Apartments in Clear Lake (Houston), TX: 232-unit on 7.66 acres: closed escrow.
    3. Retail center in Phoenix, AZ: closed escrow.
    4. Family Dollar store in Orlando, FL: $1.738M; 8.75% cap: in contract.
    5. Burger King in Lewisville, TX: LOI accepted.

© Transmercial 2009. All rights reserved.