04:26: Walgreens, Advance Auto, Retail centers, Medical office building for sale

Advisory: Once the purchase contract is executed, the buyer typically has 21-30 days as stated in the contract to investigate every aspects of the property.  This duration is called due diligence (DD) period.  During this time, the buyer can cancel the transaction for any reasons.  While the buyer’s broker will assist the buyer with investigating during DD, you should also understand the process.  The attached revised article provides information about what you should do during DD.

1.       3-Walgreens Portfolio: 3 Walgreens drugstores in growing Minneapolis suburbs, Albuquerque, and Atlanta suburbs with 16-19 yrs left of the NNN leases.  Combined NOI of $1.029M.  $13.719M.  7.5% cap.  Buyer with $3+M equity to assume $10.65M non-recourse loans at low 5.49%-5.68%. Available as portfolio only.

2.     Advance Auto Parts in Cincinnati, OH: 10,000 SF single-tenant retail building on 1.13 ac lot at major retail corridor in densely populated area. This is a well performing store. $1.968M. 8.4% Cap.

3.     Retail Center in Indianapolis, IN: 4852 SF retail center shadow-anchored by a new LA Fitness with excellent visibility along busy corridor. 100% NNN leased to 2 brand-name tenants: Aspen Dental and Check into Cash. NOI $114K/yr. $1.343M. 8.5% Cap.

4.     Retail Center in Carmel, IN: 10,608 SF newly constructed retail center on 1.79 ac lot with excellent tenant mix in affluent North Indianapolis suburbs. 100% leased. NOI $292K/yr. $3.480M. 8.4% Cap.

5.     Shopping Center in Lakewood, CO: 53,262 SF well-maintained shopping center on 4.31 acres lot.  High traffic location. 87% leased. NOI $652K/yr. $7.5M. 8.7% Cap.

6.     Shopping Center in Austin, TX: 26,310 SF shopping center built in 2004. Shadow-anchored by Wal-Mart Supercenter and Lowe’s with good tenant mix: CATO, ColorTyme, First Cash Advance, Fantastic Sam’s and more. 100% leased. NOI $504K/yr. $5.775M. 8.74% Cap.

7.     Retail Center in Magnolia, TX: 22,260 SF retail center built in 2005 on 2.85 acres lot shadow-anchored by Home Depot in growing Houston metro. 88% NNN leased. NOI $363K/yr. $3.995M. 9.14% Cap. Upside potential.

8.     Shopping Center in Loganville, GA: 43,319 SF neighborhood center built in 2000 on 4.98 ac of land near Hwy-78 in Atlanta metro. 100% leased. NOI $320K/yr. $3.250M. 9.85% cap.

9.     Medical Office in Garden Grove, CA: 16,000 SF 2-story multi-tenant medical building on .91 ac lot close to Disneyland in densely Los Angeles area. 81% leased. NOI $129K/yr. $1.435M. 9.05% pro forma cap.  Less than $90/SF in CA!

10.  Shopping Center in Memphis, TN: 51,542 SF shopping center built in 1990 on 5.22 ac lot near Hwy-385. Shadow-anchored by Big Lots. 92% leased. NOI $267K/yr. $2.5M. 10.70% cap.      

04-25: Medical office building, Shopping centers, Pizza restaurant, CVS Pharmacy

Welcome new investors from the WSJ.

Each property has a brief description and a flyer (attached).  For a full marketing brochure, please email to maria@transmercial.com.  Previous lists are posted on Transmercial’s blog after 2 weeks delay. Please click here to see how Transmercial selects the following properties among 300-400 properties between $700K-$20M on the market today.  Underlined phrases if any indicate (safe) hyperlink that you can click for more info.           

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.       Medical building in Bradenton, FL: 6958 SF single-tenant medical office building on .64 ac lot on a major artery in middle-class Tampa metro. 15 yrs NNN lease to West Florida Physicians Network, LLC , a subsidiary of HCA Healthcare (NYSE: HCA), the nation’s leading healthcare provider.  NOI $79K/yr with 3% annual rent bump.  $1.059M. 7.5% cap.  Great property for 1^st time investors.

2.       Retail center in Calumet City, IL: 25,000 SF single-tenant retail center on 1.4 ac lot in growing Chicago suburbs.  Next door to Target and part of 1,379,000 SF River Oaks Shopping center. 100% leased to a local beauty supply tenant.  NOI $130K/yr.  $1.295M. 10% cap. Just $51/SF.

3.       Shopping Center in Glendale, AZ: 91,563 SF 21-unit mature shopping center on 7.18 acres lot at busy intersection in high income (AHI $88K/yr in 1 mile) Phoenix suburbs.  Anchored by 37,546 SF Big Lots! and Anytime Fitness. 93% NNN leased with 1 vacant unit.  NOI $769K/yr.  $9.5M.  8.1% cap. Upside potential when fully leased.

4.       Shopping Center in Atlanta, GA: 76,312 SF shopping center on 10 acres lot.  Anchored by Family Dollar, and  Wayfield Foods with 7 stores in Atlanta.  Wayfield Foods has been in the center for 20 yrs.  100% NNN lease.  NOI $443K/yr.  $4.436M. 10% cap.

5.       Firestone Auto Care in Milwaukee, WI: 7609 SF new Firestone auto care center on .95 ac lot.  15 yrs corp NN lease.  NOI $213K/yr with 6.5% rent bump every 5 yrs.  $2.662M. 8% cap.

6.       Oregano’s Pizza in Mesa, AZ: 4510 SF pizza restaurant on ½ acre outparcel across from 571-bed Banner Desert medical center and Mesa Community College. 20 yrs NNN lease at close of escrow to Oregano's Pizza Bistro, Inc. with 9 stores and $24M in sales.    NOI $123K/yr. with 1.5% annual rent bump.  Store with strong $2.5M in sales (very low 4.9% rent to income ratio, and thus is very profitable).  $1.491M. 8.25% cap.  2 other locations for sale for $1.782M and $2.231M with same cap and performance.

7.       CVS pharmacy in Dallas, TX: 12,973 SF drug store built in 2001 on 1.71 acres lot at a busy intersection with unique ingress and egress from 3 different roads. 100% NNN lease till 2021.  NOI $467K/yr.  Store with strong sales of $15M!  $6.15M. 7.6% cap.  Buyer to assume $4.4M loan at low 5.43% interest.

8.       Shopping Center in Brownsville, TX: 174,400 SF neighborhood center on 23.6 acres corner lot next to hwy 83 in a high growth border city.  Anchored by Big Lots!, Family Dollar, Goodwill, Factory2U.  98% leased.  NOI $1.186M. $12.487M. 9.5% cap.

9.       Shopping Center in Palos Heights, IL: 135,030 SF 24-unit community center on 12.34 acres corner lot in middle-class Chicago suburbs.  Anchored by 66,464 SF Dominick’s Supermarket, (owned & lease-guaranteed by Safeway) and 20,709 SF Ace Hardware.  96% NNN leased with 3 vacant units.  NOI $1.096M. $14.5M. 7.6% cap.  

© Transmercial 2011.

04-22: Walgreen's, China Star, Shopping Centers, Medical Buildings for sale

1.     Walgreen’s in Indianapolis, IN: 15,120 SF drugstore constructed in 2002 across from Home Depot anchored shopping center near I-465. 100% NNN leased with 9 yrs remaining. NOI $305K/yr. $4.066M. 7.5% Cap.

2.     Shopping Center in Chicago, IL: 36,172 SF well-maintained mature shopping center at a signalized intersection in densely populated area with 500K residents in 3 miles ring.  Good tenant mix: Spring, Little Caesar’s, Rent-A-Center and City of Chicago. NNN leased. NOI $430K/yr. $3.9M. 11% Cap.

3.     Retail Center in South Gate, CA: 8710 SF retail center on .43 ac corner lot  in densely populated Los Angeles area. 100% leased. NOI $120K/yr. $1.5M. 8.03% Cap.

4.     Shopping Center in Louisville, KY: 26,441 SF high quality built shopping center at a corner location along main corridor in well-off (AHI $83K/yr. within 3-mi) neighborhood. 91% NNN leased. NOI $389K/yr. $4.750M. 8.2% Cap. Buyer to assume $3,100,365M at 6.49% fixed rate due in 2017.

5.     China Star Restaurant in Las Vegas, NV: 6300 SF restaurant shadow-anchored by Home Depot shopping center in fast growing (79%) area. Tenant has been here for 10 yrs.  Long term NNN lease. NOI $151K/yr. $1.7M. 8.89% Cap.

6.     Shopping Center in Moreno Valley, CA: 32,224 SF upscale shopping center built in 2006 on 6.50 ac lot at the entrance to Moreno Valley Mall. 97% leased to strong credit tenants: Panera Bread, Qdoba Mexican Grill, Starbucks, Mimi's Cafe, Applebee’s, T-Mobile and Jamba Juice. NOI $902K/yr. $11.960M. 7.55% Cap.

7.     Medical/Office Building in Mission Viejo, CA: 8195 SF 2-story multi-tenant medical/office building constructed in 1990 near Mission Hospital. NOI not avail.  $2.461M.

8.     Retail Building in Bountiful, UT: 7219 SF retail center built in 1976 close to Kmart along busy retail road in North Salt Lake City. 100% NNN leased. NOI $86K/yr. $986K. 8.75% Cap.

9.     Strip Center in Pinellas Park, FL: 7749 SF well-maintained strip center just one block from St. Petersburg Col-Health Edu Ctr.  100% leased to long term tenants. NOI $78K/yr. $875K. 8.95% Cap.

10.  Strip Center in Oak Creek, WI: 8840 SF recently constructed retail center along main road with national credit tenants. 100% NNN leased. NOI $209K/yr. $2.5M. 8% Cap.

© Transmercial 2011.

04-21: Best Buy, Carl's Jr. Sport Authority, Buffalo Wild Wings for sale

Advisory: in the title commitment of commercial properties, there may be a memorandum of lease as a title exception in Schedule B – part II.  The attached article explains why it’s there.

1.     Carl’s Jr. in Dallas, TX: 2911 SF recently remodeled single tenant retail building on .77 ac lot. Brand-new 20-years lease to a successful franchisee. Absolute NNN lease with rent increases every 5 years. NOI $144K/yr. $1.812M. 8%  Cap.

2.     Carl’s Jr. in Beaumont, TX: 2390 SF brand-new retail building shadow-anchored by Home Depot along Fwy-69 in fast growing Houston suburbs. 20 year absolute NNN lease with 10% rent bumps every 5-years. NOI $120K/yr. $1.555M. 7.75% Cap.

3.     Carl’s Jr. in Balch Springs, TX: 2390 SF newly constructed retail building near Wal-Mart at busy corner location off of Fwy-635 in Dallas metro. 20 years lease to an experienced operator. Absolute NNN lease with 10% rent escalations every 5-year. NOI $116K/yr. $1.503M. 7.75% Cap.

4.     Office Park Complex in Fort Myers, FL: 82,106 SF beautiful office complex consisting of five building with easy access to I-75. 90% NNN leased. NOI $660K/yr. $8.8M. 7.5% Cap.

5.     Sports Authority & Buffalo Wild Wings in Moreno Valley, CA: 47,326 SF retail buildings built in 2008 on 4.48 ac lot adjacent to Moreno Valley Mall at the intersection of I-60 and I-215 in densely populated Los Angeles suburbs. Long NNN leases. NOI $803K/yr. $9.885M. 8.13% Cap.

6.     Walgreen’s in Bay Point, CA: 14,070 SF newly-constructed retail building on 1.43 ac lot just blocks from BART Station between Pittsburg and Concord. 100% leased till 2036. Absolute NNN lease. NOI $558K/yr. $8.936M. 6.25% Cap.

7.     Best Buy in Hiram, GA: 30,000 SF retail building at a signalized intersection across from Target anchored-center in fast growing Atlanta metro. 100% absolute NNN lease. NOI $495K/yr. $5.825M. 8.50% Cap.    

8.     Children’s Learning Adventure in Las Vegas, NV: 13,439 SF recently constructed retail building on 1.12 ac lot at a signalized corner location in booming (1,467.70%) area. Long term 15-year lease. Absolute NNN corp/personal guarantee with 12% increases every 5-years. NOI $268K/yr. $3.072M. 8.75% Cap.

9.     Retail Center in Marietta, GA: 6000 SF retail center built in 2002 on 1.18 ac lot in fast growing Atlanta metro. 100% leased. NOI $65K/yr. $729K. 9% Cap.

10.  Shopping Center in Lawrenceville, GA: 30,987 SF attractive shopping center built in 2005 shadow-anchored by Wal-Mart Supercenter. 90% leased. NOI $366K/yr. $3.7M. 9.9% Cap.         

© Transmercial 2011.  All rights reserved.

4-20: Romano's Macaroni Grill, Spectrum Health, Wendy's, Medical Building for sale

Welcome new investors.  Each property has a brief description and a flyer (attached).  For a full marketing brochure, please email to maria@transmercial.com.  Previous lists are posted on Transmercial’s blog after 2 weeks delay. Please click here to see how Transmercial selects the following properties among 300-400 properties on the market today.  Underlined phrases if any indicate (safe) hyperlink that you can click for more info.   

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. Shopping Center in Doral, FL: 57,556 SF shopping center built in 2002 on 5.31 ac lot in fast growing Miami suburbs. 94% NNN leased to long term tenants. NOI $1.3M. $15.5M. 8.39% Cap.

2. Shopping Center in Kentwood, MI: 31,002 SF shopping center on 3.97 ac lot shadow-anchored by Horrocks Farm Market in stable Grand Rapids metro. 76% leased to great tenant mix: Family Dollar, Asian Market, Laundromat and more. NOI $162K/yr. $1.551M. 10.50% Current Cap. Upside Potential.

3. Romano’s Macaroni Grill in Hoffman Estates, IL: 8458 SF restaurant constructed in 1996 close to Alexian Brothers Medical Center in affluent (AHI $97K/yr.) Chicago suburbs off of I-72. Store with strong $2.3M in annual sales. 17½-yrs remaining on original absolute NNN corp. lease.  NOI $170K/yr. with 2% annual rent bump.  $2.345M. 7.25% Cap.  

4. Spectrum Health in Grand Rapids, MI: 15,360 SF medical office bldg constructed in 1999 on 3.56 ac lot along main corridor. 100% leased to Spectrum Health, a top 10 health system tenant with Aaa Moody credit rating. Absolute NNN lease till 2019 with annual CPI rent bumps. NOI $317K/yr. $3.904M. 8.12% Cap.

5. Neighborhood Center in Redding, CA: 102,375 SF shopping center anchored by Rite Aid and Sav-More Foods at highly visible location off of I-273 about 90 minutes  North of Sacramento. 87% leased. NOI $1.024M. $13.25M. 7.7% actual cap. Upside potential when fully leased.

6. Retail Center in Leander, TX: 9600 SF retail center built in 2006 on 1.5 ac lot in fast growing (390.55%) Austin suburbs. 100% NNN leased. NOI $158K/yr. $1.750M. 9.05% Cap.

7. Wendy’s in Clermont, FL: 3048 SF fast food restaurant built in 1985 at the intersection of hwy 50 & Hwy 27 West of Orlando. New 20-yrs NNN lease with 8% rent increases every 5 yrs. NOI $107K/yr. $1.307M. 8.19% Cap.

8. Medical Building in Houston, TX: 33,000 SF multi-tenant medical bldg built in 2005 on 3 ac lot near Houston Northwest Medical Center. 90% leased to 2 tenants. NOI not avail.  $4.9M.

© Transmercial 2011.  All rights reserved.

04-19: Shopping centers, office tower, Auto center, Fletcher's, Gold Gym

1.       Shopping center in Fox River Grove, IL: 14,035 SF shopping center built in 2007 in affluent Chicago suburbs (AHI $120K/yr).  95% NNN leased to 3 tenants: Car X, Brunch Café, and Armeneti Wine & Liquor with 1 small 677 SF unit vacant.  NOI $257K/yr. $2.94M. 8.75% cap.

2.       Office Tower in Houston, TX: 121,997 SF 6-story office tower on 3 acres lot with easy access to Hwy 59. 90% occupied.  NOI $762K/yr. $7.85M. 9.7% cap.

3.       Shopping Center in Centennial, CO: 30,024 SF 17-unit shopping center on 3.56 acres lot near I-25 in affluent Denver suburbs (AHI $119K/yr).   89% NNN leased.  NOI $498K/yr. $6.9M. 7.22% cap.

4.       Retail Center in Las Vegas, NV: 13,727 SF 10-unit retail center built in 1992 on .96 acre lot in high income area.  82% NNN leased.  NOI $179K/yr. $2.395M. 7.5% cap.

5.       Auto Center in Las Vegas, NV: 32,491 SF multi-tenant auto center on 2.86 acres lot on a busy artery with easy access to I-515. 90% leased to 7 tenants.  NOI $322K/yr. $3.578M. 9% cap.

6.       Office building in McKinney, TX: 50,571 SF class-A 3 yrs old office building on 2.67 acres lot in Dallas metro.  100% leased.  NOI $708K/yr. $7.870M. 9% cap.

7.       Shopping Center in Reno, NV: 73,644 SF shopping center built in 2008 on over 5 acres parcel as a part of a center anchored by Lowe’s, CVS and Auto Zone.  100% NNN leased to 2 recession insensitive tenants: Goodwill and Dollar Tree.  NOI $504K/yr. $5.765M. 8.75% cap.

8.       Shopping Center in Gilbert, AZ: 55,076 SF shopping center built in 1998 in Phoenix metro.  100% leased to 2 recession insensitive tenants: Goodwill and 99 Cents Only.  NOI $461K/yr. $5.43M. 8.5% cap.

9.       Fletcher’s Tire and Auto Service in Maricopa, AZ: 5378 SF single-tenant Fletcher’s Tire and Auto Service, a regional auto center with 35 locations in AZ.  15 yrs NNN absolute NNN lease.  NOI $142K/yr. $1.952M. 7.3% cap.

10.   Gold’s Gym in Salinas, CA: 19,200 SF fitness center built in 2006 in a middle class town 30 minutes from Silicon Valley.  Part of a shopping center anchored by Safeway and close to Natavidad Medical Center.  100% leased.  NOI $350K/yr. with 3% annual rent bump.  $3.858M. 9.07% cap.

© Transmercial 2011.

04-18: Walgreen's, Carl's Jr. Office Depot, Shopping Centers for sale

Advisory: If you acquire a property in which the tenant has a good credit rating, the interest rate on the loan will be lower.  Attached please find credit ratings for various tenants. 

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.     Walgreen’s in Indianapolis, IN: 15,120 SF single tenant retail building on 2.88 ac lot at a busy signalized intersection. 100% NNN- corp lease with 9 yrs remaining. NOI $305K/yr. $4.066M. 7.5% Cap.

2.     Galaxie Corporate Center in Apple Valley, MN: 52,242 SF 3-story multi-tenant office building constructed in 1999 across from City Hall and minutes from MSP Airport in well off (AHI $94K/yr in 2-mi radius) St. Paul suburbs. 87% leased. NOI $525K/yr. $6M. 8.75% pro forma Cap.

3.     Shopping Center in Lewisville, TX: 32,180 SF well-maintained shopping center at hard corner location along Hwy-121 in growing Dallas metro.  Anchored by Denton County Services and Adecco, a leading provider of HR solutions. 89% leased. NOI $290K/yr. $3.232M. 9% Actual Cap. Upside Potential.

4.     Strip Center in Plano, TX: 21000 SF newly constructed strip center along main retail corridor in affluent Dallas suburbs (AHI $129K/yr in 1 mile).  82% NNN leased with great tenants mix. NOI $357K/yr. $4.472M. 8% Actual Cap.  Upside potential to 10.32% cap when fully leased.

5.     Retail Center in Orlando, FL: 6400 SF retail building on .84 ac lot in front of Sam’s Club. 100% NNN leased to Amscot, Quizno’s and Papa John’s Pizza. NOI $240K/yr. $2.915M. 8.25% Cap.

6.     Strip Center in Deer Park, NY: 8000 SF well-maintained strip center near Tanger Outlet  in high income NY metro. NOI k$208K/yr. $2.980M. 7% Cap.

7.     Carl’s Jr. in Anaheim, CA: 3516 SF fast-food restaurant built in 1991 on ¼ ac lot close to brand-new Kaiser Hospital at busy corner location. Easy access to hwy 91. 100% NNN corp lease till 2016 with CPI annual rent increases. NOI $197K/yr. $2.625M. 7.5% Cap.

8.     Retail Center in Houston, TX: 10,306 SF well-maintained retail center built in 2000 on .75 ac corner pad near Memorial Hemann Southwest Hospital at intersection of Hwy-59. 100% lease to 4 tenants. NOI $165K/yr. $1.940M. 8.5% Cap.

9.     Strip Center in Stockton, CA: 7293 SF strip center built in 2008 on 1.32 ac at a signalized hard corner in front of Costco and Walgreen’s  .100% NNN leased to 4 strong tenants: Krispy Crème, AT&T, Mr Pickel Sandwiches, and Western Dental. NOI $221K/yr. $2.850M. 7.75% Cap.

10.  Office Depot in Charlotte, NC: 17,500 SF single-tenant retail building constructed in 2005 with excellent visibility near Fwy-485. 100% NNN corp lease. NOI $241K/yr. $2.670M. 9.75% Cap.

© Transmercial 2011.  All rights reserved.