09-27: Taco Bell, Shopping centers, Golden Coral, Goodwill, Davita, CVS, Arbys

1. Taco Bell in East Meadow, NY: 1400 SF Taco Bell on 1/3 ac lot in densely-populated (500K residents in 5 miles) & upper middle class New York suburbs (AHI $100K/yr in 1mile). Limited competition & high barrier to entry area.  100% absolute NNN corp lease (YUM Brands) with 2+ yrs remaining.  Tenant has been here since 1977.  NOI $70K/yr. Just $950K.  7.39% cap. 
2. Shopping Center in Oswego, IL: 18,651 SF shopping center built in 2007 on 2.33 acres lot in high income Chicago suburbs.  Shadow Anchored by a Power Center (with Old Navy, Bed, Bath & Beyond, and Michaels) and Meijer Supercenter; Directly Across the Street from Dominick's Grocery Store & Target.  100% NNN leased to 5 tenants: 4 of which are corp.  NOI $432K/yr. $4.55M. 9.51% cap. 
3. Golden Coral in Houston, TX: brand new 14,155 SF growing American buffet restaurant on 3.2 acres lot with I-10 frontage. 15 yrs NNN corp lease.  NOI $296K/yr with 5% rent bump every 5 yrs.  $3.957M. 7.5% cap. 
4. Single tenant Retail Center in Hartford, CA: 19,300 SF single-tenant retail center built in 1994 on 2 acres lot in a growing town in San Joaquin Valley.  Factory 2-U, a discount store chain has been here for several yrs and just signed 10 yrs NNN- corp lease.  NOI $135K/yr with 12% rent bump every 5 yrs.  $1.93M. 7% cap. 
5. Goodwill in Midwest City, OK: 25,133 SF Goodwill store on 2.69 acres lot in Oklahoma City metro.  10 yrs NNN lease to Goodwill Industries with 2600 locations.  NOI $189K/yr. with rent bump every 5 yrs. $2.1M. 9% cap. 
6. Davita in Murrieta, CA: 8500 SF Davita Dialysis under construction on .83 ac parcel with easy access to I-215 in high income and fast growing area (160% since 2000).  New 15 yrs corp NNN- lease.  NOI $229K/yr. with 10% rent bump every 5 yrs.  $3.4M. 6.75% cap. 
7. CVS Pharmacy in Dallas, TX: 12,973 SF drug store built in 2001 on 1.71 acres corner lot with 3 points of access from 3 frontages.  100% NNN lease with 10 yrs left.  NOI $469K/yr.  Store with strong sales of over $15M (very low rent to income ratio of 3.1% which means very profitable location).  $6M. 7.8% cap.  Buyer to assume $4.4M loan at 5.43% interest.
8. Retail Center in Mansfield, TX: 10,151 SF 4-unit retail center in Dallas suburbs.  Anchored by 5620 SF Davita Dialysis and shadow anchored by Big! Lots.  80% NNN leased.  NOI $170K/yr. $1.43M. 8% cap. 
9. Arbys in Layton, UT: 2100 SF restaurant at an intersection of 2 major arteries in Salt Lake city suburbs.  100% absolute NNN lease with 5 yrs left.  NOI $73K/yr. $838K.  8.75% cap.

© Transmercial 2011.

09-26: Walgreens, Shopping Centers, O'Reillys, Apartments, Tuffy Auto

1. Walgreen's in Santee, CA: 14,820 SF drugstore built in 2008 in San Diego suburbs.  75 yrs NNN lease with 72 yrs left (and normally options to terminate).  NOI $546K/yr. $9.1M. 6% cap. 
2. Shopping Center in Phoenix, AZ: 66,414 SF 14-unit shopping center built in 1999 on 7.6 acres lot next to I-17.  Anchored by Big! Lots.  90% leased.  NOI $435K/yr. $4.75M. 9.16% cap. 
3. Strip Mall in Newport News, VA: 10,500 SF multi-tenant strip mall on 1.15 acres corner lot across from Walgreens. 100% leased.  NOI $88K/yr. $925K.  9.5% cap. 
4. Retail Center in Orlando, FL: 6400 SF retail center built in 2006 on .84 ac corner outparcel to Sam’s Club. 100% leased to 3 regional and national tenants: Amscot Financial, Quizno’s Sub, and Papa John Pizza.  NOI $240K/yr. $2.915M. 8.25% cap. 
5. O’Reilly Auto Parts in Riverside, CA: 6000 SF auto parts store built in 2008 on .4 ac corner lot outparcel to a shopping center in fast growing & upper middle class area (AHI $96K/yr in 1 mile).  100% absolute NNN lease with 7 yrs left.  NOI $139K/yr with 10% rent bump every 5 yrs.  $2.18M. 6.4% cap. 
6. Apartments in Orlando, FL: 188 unit apartments rehabbed in 2006 with new roofs, painting, parking lot reseal, shutters, and fencing  at the cost of $1.2M.  Clubhouse and resort-style swimming pool.  96% occupied.  NOI and N/A not avail.  7.5% cap. Estimated price $7.4M. 
7. Tuffy Auto in Orlando, FL: 5600 SF auto repair center built in 2010 in a fast growing part of the city (68% growth since 2000).  20 yrs NNN corp lease to Tuffy Auto, a regional tenant with 220 locations.  NOI $$139K/yr with 8.5% rent bump every 5 yrs.  $1.739M. 8% cap.

© Transmercial 2011.

09-23: Shopping Centers, Office Building

Advisory: the stock market has been turbulent this week.  As a result, the 10 yrs Treasury is down to 1.717% today.  One of Transmercial’s clients gets a loan quote of 4.29% for 10 yrs fixed rate, 20 yrs amortization 70% LTV loan for a single-tenant property. The lower interest means your investment return is higher while the risk is lower.

1. Strip Center in Mokena, IL: 7100 SF strip center on a major artery with easy access to I-80 in high income Chicago suburbs.  100% NNN leased to 6 tenants.   NOI $153K/yr.  $1.7M. 9% cap. 
2. Office Building in Palo Alto, CA: 16,032 SF 2-story office building on 1 ac lot in affluent Silicon Valley city (AHI $151K/yr in 1 mile).  Easy access to Hwy 101.  100% leased.  NOI $284K/yr. $4.125M. 6.75% cap. 
3. Shopping Center in Atlanta, GA: 110,065 SF shopping center anchored by 76,500 SF Kroger Citi Center, Marshalls, and Athlete’s Foot.  100% leased.  NOI and Price not avail. 7% cap. 
4. Retail Center in Falmouth, ME:14,909 SF inline multi-tenant retail center shadow anchored by 55,438 SF Hannaford supermarket, a regional chain with 171 stores.  Affluent coastal town with AHI $112K/yr in 1 mile.  Easy access to I-95.  100% NNN lease.  NOI $234K/yr. $2.995M. 7.81% cap. 
5. Family Dollar in Aurora, CO: 8000 SF brand new Family Dollar store on 1.28 acres corner lot on a major artery in middle class Denver metro.  New NNN- corp lease till 2023.  NOI $114K/yr. $1.47M.  7.75% cap.  Recession insensitive tenant.

© Transmercial 2011

09-22: Burger King, Strip center, O'Reilly, Lone Star steakhouse, Title Max

1. Burger King in Bartow, CA: 3072 SF fast food restaurant built in 2001 on 1.4 ac.  20 yrs NNN lease with 12 yrs left to a franchisee with 21 locations.  NOI $116K/yr. with 10% rent bump every 5 yrs.  $1.83M. 6.35% cap. 
2. Strip Mall in Fullerton, CA: 2897 SF 2-unit strip center on 1.15 acres outparcel to a 200,000 SF neighborhood center in high income city (AHI $88K/yr in 1 mile).  100% leased to Supercuts and a Doughnut shop. NOI $71K/yr. $1.098M. 6.5% cap. 
3. Apartments in Jonesboro, GA: 160 unit 3-BR townhome apartments.  Built in 1997 on 20 acres lot in middle class Atlanta suburbs.  Swimming pool, clubhouse, leasing office, playgrounds, picnic areas, laundry center.  96% occupied. Pro forma NOI $542K/yr. $6M. 9% cap. 
4. O’Reilly Auto Parts in Lacey, WA: 10,496 SF auto parts center on .77 ac lot in growing & middle class Olympia metro.  100% corp lease with 8 yrs left. NOI $97K/yr.  $1.396M. 7% cap. 
5. Single-tenant Retail Center in Myrtle Beach, SC: 6418 SF retail center built in 1990 on .9 ac lot in a high income coastal city. 30 yrs absolute NNN lease to Titlemax (regional tenant with 500 locations in 6 states) from 2007 with options to terminate after 10 yrs.   NOI $81K/yr. $992K.  8.25% cap. 
6. Lone Star Steakhouse in Centerville, UT: 5480 SF steakhouse on 1.6 acres lot with I-15 visibility in high income North Salt Lake metro.  Next to Target and Home Depot.  20 yrs absolute NNN lease with 11 yrs left.  NOI $172K/yr with 2% annual rent bump. $1.72M. 10% cap.

© Transmercial 2011.

09-21: Mixed-Use Centers, Shopping Centers, Family Dollar Store

1. Shopping Center in Hattiesburg, MS: 45,927 SF shopping center built in 1992. Anchored by TJ Maxx and shadow-anchored by Hobby Lobby & across from Turtle Creek Mall. 97% NNN leased. NOI $416K/yr. $5.5M. 8.24% cap.  
2. Mixed-Use Center in Oakbrook Terrace, IL: 15,366 SF recently upgraded retail/office building close to Oakbrook Center Mall and I-88. Excellent demographics: AHI $102K/yr. in Chicago suburbs. NOI $266K/yr. $2.495M. 10.7% cap.  
3. Retail Building in Morrow, GA: 15,000 SF two-tenant retail building on an outparcel to  Southlake Pavilion power center with The Home Depot, Target Staples, Old Navy and Hhgregg. Excellent access to I-75 in Atlanta metro. 100% NNN leased to Dollar Tree (new 10 yrs lease) and Men’s Wearhouse. NOI $154K/yr. $1.812M. 8.5% cap. 
4. Medical Office in Tempe, AZ: 12,510 SF multi-tenant medical office on 1.32 ac lot close to Tempe St. Luke’s Hospital and Banner Desert Medical Center. 77% leased to established tenants. NOI $128K/yr. $1.6M. 8% cap.  
5. Family Dollar in Katy, TX: brand-new 8000 SF single-tenant retail building near I-10 in fast growing and high income Houston MSA. NNN- corporate lease till 2022. NOI $107K/yr. $1.34. 8% cap.  
6. Shopping Center in Shenandoah, TX: 37,444 SF high-quality shopping center on 2.87 ac lot adjacent to power center anchored by Sports Authority, Old Navy, Sam’s Club, Michael’s and Stein Mart & near The Woodlands Mall in upscale Houston suburbs. 100% NNN leased. NOI $714K/yr. $8.4M. 8.5% cap. 

© Transmercial 2011.