06-06: Dreyer Medical Clinic, Fresenius Medical Building, Total Wine & More, Shopping Centers

1.     Dreyer Medical Clinic in Aurora, IL: 38,873 SF high quality two-story medical clinic built in 1994. Tenant is a subsidiary of Advocate Heath Care. Currently in their 2^nd 10-yr term which stated in Aug 2004. 81% NNN leased. NOI $481K/yr with 3% annual rent increases. $5.25M. 9.17% Cap. Upside Potential.

2.     Fresenius Medical Building in Peoria, IL: 8652 SF Dialysis Center on 1.72 ac lot close to Proctor Hospital near Hwy-6/17 and I-74. Absolute NNN lease till 2015. NOI $235K/yr with 3% annual rent increases. $2.775M. 8.48% Cap.

3.     Total Wine & More in Alpharetta, GA: 20,450 SF retail building constructed in 2009 on 2.19 ac lot adjacent to North Point Mall near Hwy-19 in growing & affluent Atlanta metro. NNN lease till 2019. NOI $552K/yr with 10% rent increases every 5-yrs. $7.125M. 7.75% Cap. Store with strong sales of over $1,000/SF.

4.     Retail Building in Sacramento, CA: 11,014 SF retail building anchored by 7-Eleven at a hard corner location along busy boulevard near Hwy-80. 90% leased. NOI $208K/yr. $2.957M. 7.07% Cap.

5.     Retail Center in Palm Coast, FL: 7500 SF retail center on 1.05 ac lot at busy corner location with excellent ingress/egress. 100% leased. NOI $83K/yr. $1,47M. 8% Cap.

6.     Shopping Center in Lathrop, CA: 16,404 SF recently constructed shopping center next to Save Mart center with excellent visibility/next to I-5. 91% NNN leased. NOI $294K/yr. $3.8M. 7.8% Cap.

7.     Jack in the Box in Oakhurst, CA: 2692 SF newly constructed fast-food restaurant at dominant retail location. Gateway to Yosemite National Park (over 3.7M visitors a year. Percentage rent over 9.5% of gross sales. Long NNN lease. NOI $90K/yr with fixed increases every 5-yrs. $1.327M. 6.85% Cap.

8.     Shopping Center in Richmond, VA: 72,250 SF shopping center built in 1994 on over 5 ac lot near Chippenham Hospital. 93% leased. NOI $393K/yr. $5.25M. 7.5% Cap.

9.     Strip Center in North Richland Hills, TX: 13,510 SF strip center on 1.13 ac lot remodeled in 2006 near Loop-820 in Dallas-Fort Worth suburbs. 100% leased to long term tenants. NOI $166K/yr. $1.845M. 9% Cap.

10.  Shopping Center in Overland Park, KS: 59,000 SF one-year old beautiful shopping center on 7 ac lot. Shadow-anchored by Costco just south of Kansas City. 98% NNN leased. NOI $1.125M. $15M. 7.50% Cap.     

© Transmercial 2011.

06-03: Travelodge-Ambassador Hotel, CVS Pharmacy, Shopping Centers

1.     Travelodge-Ambassador Inn in Las Vegas, NV: 106-room well-maintained motel on 1.57 ac lot only one block from Las Vegas Strip adjacent to airport. NOI $435K/yr. $4M. 10.88% Cap.

2.     Office Building in Bloomington, IL: 19,060 SF 6-years old multi-tenant office building near Osf St Joseph Medical Center & Eastland Mall. 100% leased. $2.1M. 9.5% Cap.

3.     CVS Pharmacy in Roseville, CA: 15,791 SF free-standing/drive-thru drugstore built in 2009 in fast growing (118.65%) & well-off (AHI $90K/yr within 2-miles) Sacramento metro. 18-yrs remaining or original NNN lease. NOI $663K/yr with rare 15% rent increase in 2019 and 10% in 2024. $8.29M. 8% Cap.  Note: this is a not-yet opened location.

4.     Retail Center in Jonesboro, GA: 16,339 SF attractive retail c enter outparcel to Kmart at highly visible location along major boulevard. 100% leased. NOI $199K/yr. $1.950M. 10% Cap.

5.     Office Building in Baytown, TX: 18,193 SF recently renovated multi-tenant office building in close proximity to San Jacinto Methodist Hospital  in Houston suburbs. 96% leased. NOI $135K/yr. $1.5M. 9% Cap.

6.     Strip Center in Glen Cove, NY: 7200 strip center on .53 ac lot with excellent exposure in a prime North Shore location in New York metro. 90% leased. NOI $134K/yr. $1.625M. 8.25% Cap.

7.     Shopping Center in Summerfield, FL: 27,171 SF shopping center anchored by Office Depot across from Wal-Mart Supercenter with excellent access/visibility to US Hwy-441. 100% leased. NOI $549K/yr. $6.1M. 9% Cap. Buyer to assume $4.825M loan at 6% interest.

8.     Retail Center in Rancho Cucamonga, CA: 16,800 SF retail center close to a hard corner location in fast growing Los Angeles city. NOI $326K/yr. $4.5M. 7% Cap.

© Transmercial 2011

06-02: Office building, shopping centers, DaVita, CVS, surgical center, medical office building

1.     Office Building in High Point, NC: 50,000 SF three story office building constructed in 1990 in growing Greensboro suburbs. 100% NNN leased till 2016 to SunGard Public Sector, Inc. NOI $474K/yr. $5.45M. 8.7% Cap.  

2.     DaVita in Jacksonville, FL: 6141 SF medical building on .97 ac lot across from Regency Square Mall off of active passage. NNN- corp lease. NOI $124K/yr with annual rent increases. $1.46M. 8.5% Cap.

3.     CVS Pharmacy in Decatur, GA: 10,125 SF drug store built in 1999 on 1.5 ac lot near Decatur Hospital, DeKalb Medical Center and Georgia Regional Hospital.  Roughly 8½-years left on lease. NNN corp lease. NOI $212K/yr. $2.55M. 8.34% Cap.

4.     Strip Center in Las Vegas, NV: 13,727 SF well-maintained 10- units retail center built in 1996 off of US-95. 82.5% NNN leased. NOI $179K/yr. $2.190M. 8.2% Cap. Upside Potential.

5.     Shopping Center in Fairview Heights, IL: 59,398 SF 2-years old shopping center on 5.90 ac lot in Chicago metro.  Anchored by Jo-Ann Fabrics and next to Market Place, St Clair Square and Crossroads Center in St Louis suburbs. 100% NNNN leased by national tenants. NOI $625K/yr. $7.680M. 8.15% Cap.

6.     Ambulatory Surgical Center in Casa Grande, AZ: 6000 SF medical building adjacent to Casa Grande Regional Medical Center. NNN- leased till 2022. NOI $210K/yr. $2.4M. 8.75% Cap.

7.     Shopping Center in North Aurora, IL: 38,301 SF shopping center at a signalized corner location in Chicago suburbs. Strong local/regional/national tenant mix. NNN. NOI $297K/yr. $3.9M. 7.62% Cap.

8.     Strip Center in McKinney, TX: 18,960 SF strip center built in 1997 on 2.43 ac lot in fast growing (1,521.93%) and affluent (AHI $130K/yr) Dallas metro. 100% NNN leased. NOI $279K/yr. $3.291M. 8.5% Cap.

9.     Shopping Center in Memphis, TN: 23,000 SF shopping center at highly visible corner location. 84% leased by sixteen tenants. NOI $225K/yr. $2.149M. 10.50% Cap.

10.  Medical Office Building in Prescott, AZ: 9282 SF multi-tenant Class-A medical office building adjacent to Yavapai Regional Medical Center. 100% NNN leased. NOI $168K/yr. $1.875M. 8.5% Cap. 

© Transmercial 2011.

06-01: Office Building, Retail centers, Apartments, CVS, Dollar General

1.     Office Building in Las Vegas, NV: 42,765 SF trophy class-A two-story office building near  Summerlin Library and Performing Arts Center  in affluent (AHI $163K/yr  within 1-mile) area. 100% NNN leased with about 90% leased to national tenants with long-term leases. NOI $1.007M. $14M. 7.19% Cap.

2.     Strip Center in Scottsdale, AZ: 12,610 SF strip center built in 2004 on 2 ac lot at densely-populated retail corridor. 82% leased. Current NOI $163K/yr. $2.425M. 6.74% Cap. Upside Potential. 

3.     Retail Center in Oxnard, CA: 15,750 SF retail center on 1.42 ac lot at a corner location next to major boulevard with excellent tenant mix. NOI $240K/yr. $2.7M. 8.9% Cap.

4.     Apartments in Austin, TX: 56-units well-maintained apartments close to major highways  in fast growing area. Recent interior upgrades. 92% occupied. NOI $131K/yr. $1.595M. 8.25% Proforma Cap.

5.     Dollar General in Fort Myers, FL: 9100 SF newly constructed retail building on .68 ac lot near Edison Mall. 15-years absolute NNN corp lease.  NOI $124K/yr. $1.712M. 7.30% Cap.

6.     Strip Center in Bountiful, UT: 15,197 SF strip center at busy corner location off of Hwy-15 in growing Salt Lake City suburbs. NOI $273K/yr. $3.250M. 8.40% Cap.

7.     CVS Pharmacy in Palm Bay, FL: 11,200 SF free-standing building near Hammock Landing a brand new 750,000 SF power center in close proximity to Hwy-95. 12-yrs remaining on lease. Absolute NNN corp lease. NOI $264K/yr. $3.647M. 7.26% Cap.

8.     Retail Center in Elk Grove Village, IL: 14,030 SF mature retail center on 1.49 ac lot with stable long term tenants. 93% leased. NOI $126K/yr. $1.425M. 8.90% Cap.    

© Transmercial 2011.

05-31: Shopping centers, Walgreens, Medical Office Building

1.     Shopping Center in Memphis, TN: 47,290 SF shopping center on 4.08 ac lot close to Eastgate Shopping Center anchored by Bed Bath & Beyond, TJ Max and Burlington. 89% leased. NOI $507K/yr. $5.7M. 8.9% Cap. Upside Potential.

2.     Walgreen’s Portfolio in Three States: $13.719M. NNN leases. 7.5% Cap. Buyer to assume non-recourse financing at 5.49%-5.68% interest.

·         Hilltop MN: 13,650 SF building constructed in 2002 on 1.36 ac lot along main retail corridor in Minneapolis metro. Leased till 2027.

·         Albuquerque, NM: 14,550 SF 6-years old building on 1.67 ac lot across from Wal-Mart at a corner location. Leased till 2030.

·         Kennesaw, GA: 13,600 SF drug-store built in 2004 on 1.5 ac lot close to Hwy-575 in fast growing Atlanta suburbs. Leased till 2029.

3.     Shopping Center in Oklahoma City, OK: 66,805 newly constructed shopping center on 9.48 ac lot anchored by Gold’s Gym at prime retail corridor. 100% NNN leased. NOI $791K/yr. $9.45M. 8.75% Cap.

4.     Shopping Center in Lisle, IL: 40,650 SF well-maintained shopping center near Metro Station/City Hall and Tollway-88 in Chicago metro. 100% leased by established tenants. NOI $379K/yr. $3.795M. 10.01% Cap.

5.     Medical/Professional Complex in Orlando, FL: 37,362 SF Class-B multi-tenant building along main Blvd. 96% leased. NOI $355K/yr. $3.7M. 9.6% Cap.

6.     Shopping Center in Country Club Hills, IL: 12,700 SF shopping center at a signalized corner location in Chicago suburbs. NNN leased by long time tenants. NOI $148K/yr. $1.750M. 8.50% Cap.

© Transmercial 2011.

05-27: Hampton Inn, Medical Office building, Walgreens, Apartments, Retail centers

1.     Hampton Inn & Suites in Salida, CA: 70-rooms motel built in 2002 on 1.45 acres lot next to Hwy 99 exit in middle-class center in Modesto suburbs.  Amenities include: outdoor pool, fitness center, and business center. Average Occupancy 63%. NOI $609K/yr. $7.7M. 7.92% Cap.

2.     Medical Office Building in Plantation, FL: 31,346 SF established two-story multi-tenant medical building on 2.97 ac lot.  Adjacent to Plantation General Hospital, a 264 beds facility West of Fort Lauderdale. NOI $291K/yr. $2.5M. 11.64% Cap.

3.     Office/Retail Building in Aliso Viejo, CA: 15,195 SF office/retail building constructed in 1999 at a signalized intersection  in densely & affluent town (AHI $113K/yr) in Orange county. NOI $304K/yr. $3.8M. 8% Cap.  Buyer to assume $2.47M non-recourse loan at 6.6% interest.

4.     Walgreens in Tucson, AZ: 15,525 SF drug store built in 1996 on 1.96 acres corner lot.  100% NNN- till 2016.  Store with over $6M in sales.  NOI $249K/yr. $3.115M. 8% cap.

5.     Apartments in Zion, IL: 56-unit apartments on 2 acres lot in North Chicago suburbs.  90% occupied.  NOI $180K/yr. $2M. 9% cap.

6.     Apartments in Richardson, TX: 81-unit apartments on 4.88 acres lot in high income Dallas metro.  96% occupied.  NOI $243K/yr. $2.45M. 9.95% cap.

7.     Strip Mall in Santa Ana, CA: 6500 SF strip mall built in 1993 on .59 ac corner lot in densely populated city (over 700K residents in 3 miles radius).  95% NNN lease.  NOI $137K/yr with 3% annual rent bump on all leases.  $2.291M. 6% cap.

8.       Retail Center in Rialto, CA: 6120 SF single-tenant retail center built in 2004 on ½ ac corner lot. 100% NNN corp leased to WSS, a shoes retailer with 50 locations in Southern CA.  NOI $166K/yr. $2.37M. 7% cap.

© Transmercial 2011

5-26: Taco Cabana, Gold's Gym, Advance Auto Parts, DaVita, Family Dollar

1.     Taco Cabana in Houston, TX: 3500 SF attractive restaurant built in 2008 on 1.16 ac lot with excellent visibility from a dominant retail corridor in densely & affluent (AHI $101K/yr) area. 100% absolute NNN corporate ground lease till 2028 (land is for sale). NOI $69K/yr with 10% increases every 5-years.  Only $925K.  7.5% cap.

2.     Shopping Center in Salt Lake City, UT: 69,339 SF retail/office center on 2.89 acres lot at a  busy signalized intersection close to I-80. 95% leased by office/retail tenants. NOI $1,087K/yr. $13.38M. 8.13% Cap.

3.     Gold’s Gym in Clifton, CO: 41,908 SF fitness center constructed in 2008 on 3.84 ac lot  in Grand Junction metro. New 15-year absolute NNN lease. NOI $655K/yr. with 10% rent increases every 5-years $7.716M. 8.5% Cap. Buyer to assume $4.547M loan at 7.5% interest, fixed for 10 yrs.

4.     Retail Center in Milpitas, CA: 9884 SF mature retail center across from Fitness USA near I-680. 85% NNN leased. NOI $181K/yr. $2.250M. 6.21% Cap. Upside potential when 100% leased.

5.     Advance Auto Parts in Louisville, KY: 5386 SF newly renovated auto parts store on .74 ac lot surrounded by national tenants. New 10-years NNN- corp lease. NOI $52K/yr. $724K. 7.25% Cap.

6.     Aspen Optical in Mesa, AZ: 11,700 SF Class-B office building at hard corner along main corridor. NNN leased till 2017. Tennant has been at this location since 2000 and in the business for 30 yrs.  NOI $91K/yr. $912K. 10% Cap.

7.     DaVita in Casselberry, FL: 6232 SF medical office built in 2007 on over 1 ac lot in Orlando suburbs. 11 yrs NNN corp lease with CPI rent increases. NOI $188K/yr. $2.606M. 7.21% Cap.

8.     Retail Office Centers in Elizabeth, NJ: A portfolio of 3 retail office centers totaling 97,000 SF near City Hall and  Newark Airport. 100% NNN leased. Pro forma NOI $1.038M. $9.990M. 10.40% Cap.

9.     Office Building in Highland Ranch, CO: 35,000 SF multi-tenant office building in affluent (AHI $103K/yr within 1 mile radius) Denver metro. 90% leased. NOI $344K/yr. $4.3M. 8% Cap.

10.  Family Dollar in Eagle Lake, FL: 9180 SF retail building on 1.07 ac lot. 100 NNN- lease to national tenant with 8 yrs remaining. NOI $127K/yr. $1.422M. 9% Cap.     


© Transmercial 2011.

05-25: Carl's Jr, KFC, O'Reilly, Burger King, Shopping Centers

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 between $700K-$20M on the market today (please advise if you are interested in properties above $20M).  Underlined phrases if any indicate safe hyperlinks 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.       Carl’s Jr in Del City, OK: 2844 SF brand new restaurant on .88 ac lot right next to I-40 exit in Oklahoma City.  New 20 yrs absolute NNN lease from an operator with 30+ units.  NOI $120K/yr. with 10% rent bump every 5 yrs.  $1.72M. 7% cap.

2.       Strip Center in Baldwin Park, CA: 7000 SF strip center built in 2004 on an outparcel to a Wal-mart next to I-10 in densely populated with over 550K residents in 3 miles ring.  100% NNN leased to Wells Fargo and Sprint.  NOI $281K/yr.  $3.877M. 7.25% cap.

3.       KFC in Omaha, NE: 2784 SF newly-remodeled KFC on .8 acre lot in front of a grocery anchored shopping center in well-off area (AHI $93K/yr).  New 20 yrs absolute NNN lease to an operator with 64 units.  NOI $90K/yr. $1.161M. 7.75% cap.

4.       O’Reilly Auto Parts in Cedar Rapids, IA: 7000 SF O’Reilly built in 2001 on 1.03 ac corner lot.  Long term NNN corp lease.  NOI $75K/yr. $975K. 7.75% cap.

5.       Burger King in Knoxville, TN: 3495 SF Burger King on 1.06 acres lot.  20 yrs NNN lease to an operator with 12 units.  NOI $80K/yr with 8% rent bump every 5 yrs.  $1.029M. 7.75% cap.

6.       Short-sale Shopping Center in San Dimas, CA: 148,958 SF shopping center built in 1986 on 16 acres lot near Fwy 57 exit in middle-class Los Angeles area.  60% occupied.  NOI N/A.  $17.5M.  Priced below loan balance of $20M.  Just $117/SF!

© Transmercial 20111.

05-24: Shopping centers, DaVita, Office Depot

1.     Shopping Center in North Aurora, IL: 39,863 SF  shopping center built in 1998 on 5.59 ac corner lot at a signalized intersection near I-88 in Chicago metro. 100% leased to national/regional/local tenants. NOI $297K/yr. $3.9M. 7.62% Cap. Upside potential.

2.     Shopping Center in Florissant, MO: 101,323 SF shopping center anchored by Shop ‘n Save grocery along main blvd in St. Louis suburbs. 98% NNN leased. NOI $875K/yr. $11.293M. 7.75% Cap.

3.     Retail Center in Mankato, MN: 16,734 SF retail center adjacent to River Hills Regional Mall occupied by solid national tenants. 100% NNN leased to national tenants. NOI $225K/yr. $2.775M. 8.13% Cap.

4.     Shopping Center in Omaha, NE: 40,419 SF multi-tenant center constructed in 1997 on 5.19 ac lot in affluent (AHI $111K/yr within 2-miles) neighborhood. 100% NNN leased. NOI $507K/yr. $6.15M. 8.25% Cap. Buyer to assume non-recourse loan at 6.19% interest.

5.     Regional Center in Rochester, MN: 75,294 SF regional center anchored by Gender Mountain and next to Wal-Mart & Sam’s Club near I-52. NNN leased. NOI $779K/yr. $9.74M. 8% Cap.

6.     Retail Center in Oklahoma City, OK: 25,630 SF well-maintained retail center on 2.17 ac lot at busy corner location. 75% leased. NOI $127K/yr. $1.5M. 8.48% cap.  Upside potential.

7.     DaVita in Austin, TX: 13,821 SF Class-B under construction medical building on 1.43 ac lot at a hard corner location. 15-years NNN lease. NOI $262K/yr. with 2% annual rent increases. $3.501M. 7.5% Cap.

8.     Office Depot in Madera, CA: 20,521 SF retail building on 1.64 ac lot near Hwy-99. NNN leased till 2016. NOI $279K/yr. $3.6M. 7.75% Cap.

9.     Office Building in Knoxville, TN: 10,400 SF Class-A multi-tenant office building on 1.5 ac of land. 100% leased. NOI $138K/yr. $1.5M. 9.20% Cap.

10.  Shopping Center in Morrisville, NC: 17,828 SF shopping center surrounded by professional buildings at corner lot location in fast growing & affluent Raleigh metro. 100% leased.  NOI $353K/yr. $4.7M. 7.5% Cap.

© Transmercial 2011.

05-23: Shopping center, Outback, Rite Aid, Best Buy, Pizza Hut, Office buildings

1.       Shopping Center in North Miami Beach, FL: 44,990 SF established shopping center on 3.76 acres lot with exposure to 50,000 cars per day and easy access to I-95.  91% occupied.  NOI $607K/yr. $6.75M. 9% cap.

2.       Outback Steakhouse in Wichita, KS: 6736 SF franchised Outback Steakhouse built in 1995 on 1 ac outparcel to #1 fashion shopping center in Wichita.  Excellent demographics with AHI of $95K/yr in 1 mile. 100% NNN lease with 6 yrs remaining.  NOI $105K/yr. $1.177M. 9% cap.

3.       Rite Aid in Chattanooga, TN: 14,564 SF drug store near Parkridge Medical Center and Temple University.  100% absolute NNN lease with 18 yrs remaining.  NOI $343K/yr. $3.901M. 9.3% cap.

4.       Medical & Professional Office Building in Pompano Beach, FL:  45,952 SF 4-story medical and professional office building on 2.1 acres lot near I-95.  63% leased.  NOI N/A.  $5.1M.  just $111/SF.

5.       Best Buy in Alpharetta, GA: 45,231 SF Best Buy built 1999 as part of a power center co-anchored by Bassett Furniture, Staples, Atlantic States Bank, Joanne Fabrics, Georgia Backyard and Chuckee Cheese Pizza. Directly across the entrance to the Northpoint Mall in affluent Atlanta suburbs (AHI $118K/yr in 3 miles). 100% absolute NNN lease with 98 yrs remaining.  NOI $732K/yr. price reduced $700K to $9.308M. 7.86% cap.

6.       Pizza Hut in Auburn, ME: 3705 SF pizza restaurant on 1.17 acres lot.  100% NNN leased to a large regional franchisee with 11 yrs remaining.  NOI $151K/yr with 12% rent bump every 5 yrs.  Price reduced to $1.4M. 10.8% cap.

7.       Office Building in Santa Ana, CA: 13,404 SF office building on .69 ac lot in densely (over 600K residents in 3 miles ring) middle class Orange county.  100% occupied.  NOI $176K/yr. $1.995M. 10% cap.

8.       Best Buy in Roanoke, VA: 45,000 SF Best Buy next to Valley View Mall.  100% NNN lease with 10 yrs left.  NOI $519K/yr with 3% rent bump every 5 yrs.  $6.178M. 8.4% cap.

© Transmercial 2011.

05-20: Walgreens, Dillons, Medical buildings, Arbys, shopping Centers

1.       Walgreens in Hometown, IL: 14,855 SF drug store built in 2002 on 1.12 acres lot at an intersection of two 6-lane roads in Chicago metro.  100% NNN- lease till 2022.  Store with strong sales revenue of $9M. NOI $482K/yr.  $6.342M. 7.6% cap.

2.       Strip Mall in Port Saint Lucie, FL: 8140 SF strip center built in 2007 in a high growth area.  100% NNN leased to 6 tenants.  NOI $157K/yr. $1.57M. 10% cap.

3.       Dillons Grocery in Wichita, KS: 48,933 SF Dillons Grocery store (owns by Kroger) on 3.79 acres lot near I-135 and Hwy 400.  Renovated in 2010.   100% NNN lease with 8 yrs remaining.  NOI $268K/yr. $3.35M. 8% cap.

4.       Strip Center in Scottsdale, AZ: 11,099 SF strip center built in 2004 on a outparcel to a Wal-mart in affluent Phoenix suburbs (AHI $132K/yr in 2 miles).  100% NNN lease.  Tenants include Starbucks, Gamestop, Capriottis, T-Mobile, and Amadom Jewelers. NOI $266K/yr. $3.65M. 7.3% cap.

5.       Medical Office Building in Yuba, CA: 13,488 SF class-A MOB built in 2005 on .96 ac lot across from Fremont Medical Center in Northern CA.  100% leased to Sutter North medical group.  NOI $231K/yr. $2.85M. 8.13% cap.

6.       Shopping Center in Baldwin Park, CA: 24,605 SF shopping center on 1.12 acres lot in front of Home Depot and next to I-10 exit.  100% NNN leased to GameStop, Verizon, Jackson Hewitt, AT&T, Adriana' s Insurance, and Tortas Sinaloa Restaurant.  NOI $821K/yr. $9.95M. 8.25% cap.

7.       Office Building in Spokane, WA: 10,906 SF office building in a stable city with no state income taxes.  Long term NNN leased to 2 tenants: well-capitalized AmericanWest Bank (18 yrs) and Accure Dental (9 yrs).  NOI $190K/yr. $2.385M. 8% cap.

8.       Arby’s in Chandler, AZ: 3300 SF restaurant on .83 ac lot in front of East Valley Mall in Phoenix metro.  100% NNN lease with 11 yrs remaining to an operator with 56 locations.  NOI $100K/yr. $1.35M. 7.41% cap.

9.       Medical Office Building in Kennesaw, GA: 26,060 SF class-A 5-yrs old medical office building on 2.5 acres lot in middle-class Atlanta suburbs.  Strategic location with easy access to I-75 and I-575.  100% NNN leased to 3 medical tenants.  NOI $520K/yr. $6.72M. 7.75% cap.

© Transmercial 2011.

05-19: CVS, Shopping centers, Rite Aid, Black Bear Diner

1.     CVS in Chattanooga, TN: 10,650 SF well performing drug store built in 1996 on 1.11 ac lot next to Food Lion Grocery. NOI $149K/yr. $1.8M. 8.31% Cap.

2.     Shopping Center in Jonesboro, GA: 66,690 SF shopping center on major passage in fast growing Atlanta suburbs. Anchored by Family Dollar. NOI $288K/yr. $2.750M. 10.50% Cap. Upside potential when 9,450 SF unit is leased.

3.     Rite Aid in San Diego, CA: 17,500 SF retail building in densely populated area near I-5/94/805. Absolute NNN corp lease till 2015. NOI $99K/yr. $1.327M. 7.51% Cap.

4.     Medical Office Building in Meridian, ID: 5970 Class-A newly constructed medical office building in Boise suburbs.  100% occupied by Howmedica Osteonics Corp, a national orthopaedic company. NOI $65K/yr. $800K. 8.16% Cap.

5.     Strip Center in Phoenix, AZ: 10,080 SF multi-tenant strip center built in 1999 on 1.35 ac lot. 100% NNN leased to 3-tenants. NOI $202K/yr. $2.70M. 9.8% Cap.

6.     Black Bear Diner in Gilbert, AZ: 5100 SF restaurant on an outparcel to Fry’s Food & Drug center at hard corner lot location close to Fwy-60. NNN corp lease to Black Bear Diner, a restaurant chain with locations in 8 states. NOI $140K/yr. $1.810M. 7.75% Cap.

7.     Shopping Center in Hayward, CA: 52,917 newly constructed shopping center anchored by 12-screen Century Theatres close to Bart-Hayward Station. 81% leased. NOI $700K/yr. $7.5M. 9.34% pro forma cap.

8.     Retail Center in Prospect, CT: 12,300 SF retail/office center on .90 ac lot along busy road in upper middle-class Hartford suburbs. 90% leased. NOI $66K/yr. $799K. 8.3% Cap.

9.     Retail Center in Everett, WA: 5472 SF attractive retail center across from Fred Meyer in close proximity to Fwy-526. 100% leased. NOI $194K/yr. $2.425M. 8% Cap.

10.  Strip Center in Naples, FL: 9205 SF strip center built in 2006 on .80 ac lot across from The Mercato. 84% leased. NOI $156K/yr. $1.950M. 8% Cap.

© Transmercial 2011.

05-18: Office building, Retail centers, apartments, Sonic, Rite Aid, KFC

Advisory: Investment Risk on single-tenant properties with long term lease.

Investors normally prefer long-term leases on single-tenant properties, e.g. Walgreens.  They are concerned that the tenants may not renew the leases when the leases expire if the leases have just a few years left.  And so, these properties tend to have lower cap rate, e.g. 6% when the leases are relative new, i.e. have 20-25 years left.  The cap rate tend to be higher, e.g. 7% when the leases have 5-10 years left.  This simply means properties with new leases have a potential risk of depreciation.  They may be bought at 6% cap and sold at 7% or 16% reduction in value!

If the business is profitable, the tenant is not going to simply shut down the location just because the lease expires.  You can tell if the business is profitable by reviewing the P&L’s statements (Profit and Loss) of the tenant.  However, the P&Ls are not always available and so rent to sales revenue ratio is an indicator of profitability –-            admittedly not a very precise indicator.

Conclusion: by choosing a property with 5-10 yrs left on a lease to a credit tenant with a profitable location, you will be able to avoid the potential risk of depreciation.  In addition, you will get better returns and the security of a credit tenant.

1.       Office Building in Cedar Hill, TX: 76,905 SF 3-story class-A 3-yrs old modern office building on 3.54 acres lot in high-growth, high income Dallas suburbs.  Easy access to hwy 67.  Surrounded by Wal-Mart, JCPenney, and 725,000 SF Uptown Village at Cedar Hill.  61% occupied.  NOI not avail.  $7.95M.  Just over $100/SF.

2.       Retail center in Pelham, AL: 74,008 SF neighborhood center built in 2008 on 9.35 acres lot near I-65 in fast growing middle-class Birmingham suburbs.  Anchored by 45,600 SF Publix Supermarkets with over 1000 stores in the US. 93% NNN leased.  In place NOI $970K/yr.  $12.76M. 7.6% cap.

3.       Strip Mall in Austin, TX: 5010 SF strip center built in 2008 on .64 ac lot.  100% NNN leased to 4 good tenants.  NOI $115K/yr. $1.439M. 8% cap.

4.       Apartments in Lake Worth, FL: 51-unit apartments on 1.24 acres lot just a short block from the beaches. 90% occupied.  NOI $231K/yr. $2.4M. 9.6% cap.

5.       Shopping Center in Sacramento, CA: 64,171 SF shopping center on 4.62 acres corner lot near Kaiser Permanente - Sacramento and Hwy 99.  Anchored by 54,128 SF Food Source grocery (owned by Raley’s, a regional chain).  100% NNN leased to 9 tenants.  NOI $540K/yr. $6.59M. 8.2% cap.

6.       Shopping center in Pasco, WA: 117,030 SF shopping center on 10.4 acres corner parcel.  Anchored by 3 national tenants: Albertsons Supermarkets, Rite Aid and Dollar Tree. 96% leased.  NOI $780K/yr. $10M. 7.8% cap.  WA is a state with o state income taxes.

7.       Sonic Restaurant in Bonney Lake, WA: 2961 SF restaurant built in 2009 on .68 ac outparcel to Lowe’s in growing middle-class Seattle suburbs.  20 yrs absolute NNN ground lease (land is for sale) to an operator with 38 locations.  NOI $90K/yr with 10% rent bump every 5 yrs.  $1.335M. 6.75% cap.

8.       Rite Aid in Reading, MA: 13,611 SF drug store on a  corner lot in affluent Boston suburbs (AHI $99K/yr in 1 mile).  20 yrs NNN lease.  NOI $303K/yr with 10% rent bump every 10 yrs.  $3.469M. 8.75% cap.

9.       KFC in Kingman, AZ: 2866 SF KFC in front of Wal-Mart and across from Kingman medical center.  Strong sales of over $1.4M/yr. New 15 yrs absolute NNN lease. NOI $112K/yr with 6% rent bump every 5 yrs.  $1.445M. 7.75% cap.

10.   Strip Center in Meridian, IL: 4500 SF strip center on .8 ac outparcel to Lowe’s in growing and high income (AHI $87K/yr in 1 mile) Chicago suburbs. 100% NNN leased to 3 tenant.  NOI $74K/yr.  $923K. 8% cap.

© Transmercial 2011.