11-29: Shopping Centers, Pep Boys

Welcome new investors.  Each property has a brief description and a flyer (attached).  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 names if any indicate safe hyperlinks that you can click for more info.

For a full marketing brochure, please forward the email to maria@transmercial.com and specify the property number.  We may ask you for feedback later for the listing broker.  If so, please cooperate.

• 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 Champagne, IL: 21,152 SF class-A shopping center built in 2006 on 2.38 acres lot.  91% leased.  Current NOI $402K/yr. $4.45M. 9% cap. 
2. Pep Boys Auto in Clermont, FL:  New 14,360 SF Pep Boys Auto on 1.98 acres lot in fast growing Orlando suburbs.  New 15 yrs NNN- corp lease.  Surrounded by Walmart, TJ Max, Lowe’s, and Staples.  NOI $272K/yr. $3.59M. 7.6% cap. 
3. Shopping Center in Belton, MO: 68,844 SF shopping center built in 2007 on 7.97 acres lot in Kansas City metro.  Anchored by JoAnn Fabrics, Petsmart, Buffalo Wild Wings, and Sears.   100% NNN lease.  NOI $777K/yr. $9.9M. 7.84% cap. 
4. Strip Mall in Pueblo, CO: 6500 SF strip center on 1.44 acres lot close to Wal-mart, Home Depot, and Cinemark Theaters.  100% leased.  NOI $151K/yr. $1.85M. 8.16% cap. 
5. Retail Center in Thornton, CO: 16,187 SF attractive 2-builting retail center built in 2006 on 2.45 acres corner lot in Denver metro.  91% NNN leased to 4 tenants, 4 of which are medical.  NOI $328K/yr. $4.1M. 8% cap.

© Transmercial 2011

11-28: Sonic, Data Center, Subway, Strip Centers, Sherwin Williams, DaVita

1. Sonic Burger in Colonial Height, VA: 1680 SF Sonic restaurant built in 2006 on .91 ac lot in high income Richmond suburbs. Strong sales of $1.6M.  Long term NNN lease.  NOI $150K/yr. $1.985M. 8% cap. 
2. Shopping Center in Baltimore, MD: 14,353 SF 2-building retail (1 building is Popeye’s Chicken) center on 2.07 ac lot.  100% NNN leased to 8 tenants.  NOI $274K/yr. $3.35M. 8.18% cap. 
3. Data Center in Austin, TX: 62,237 SF data center on 18 ac lot with I-35 frontage.  100% NNN leased to SunGard, a Fortune 500 company with $5B in revenue.  NOI & price N/A. 8% cap. 
4. Subway in Cape Coral, FL: 2812 SF free-standing retail center on .36 ac lot on a major artery.  Long term NNN lease.  NOI $45K/yr. $750K. 6.08% cap. 
5. Medical Office Building in Las Vegas, NV: 9900 SF medical office building completed in 2008 in booming (474% since 2000) and high income area.  Across from Centennial Hills Hospital Medical Center.  100% NNN leased to DaVita Dialysis and Kidney Specialist of Southern Nevada.  NOI $326K/yr. $4.4M. 7.42% cap. 
6. Strip Mall in El Cajon, CA: 5000 SF strip center on .37 ac corner lot.  100% leased to 2 tenants: Antique & Café/Bar.  Tenants have been here for 10 yrs.  NOI $81K/yr. $900K.  9% cap. 
7. Sherwin Williams Paint in Concord, NC: 5000 SF single-tenant retail center on .54 ac lot in Charlotte suburbs.  Long term NNN lease to Sherwin Williams Paint (S&P A-).  NOI $72K/yr. $995K.  7.25% cap. 
8. Medical Office Building in Oxnard, CA: 4930 SF 2-story medical office building in stable upper middle class area with elevator and ADA-equipped restroom.  100% leased to 2 dental tenants who have been here for 15 yrs.  NOI $64K/yr. $850K. 7.61% cap. 
9. Retail Center in New Port Richey, FL: 7000 SF retail center built in 2006 on 1 ac outparcel to Lowe’s in Tampa metro.  100% NNN leased to 5 tenants: 4 national and 1 local.  NOI $127K/yr. $1.595M. 8% cap. 
10. Strip center in San Leandro, CA: 11,000 SF strip center on the busy Hesperian Blvd. and close to I-880 and I-238 in Northern CA.  100% leased to 7 tenants.  NOI $96K/yr. $1.2M. 8% cap.

© Transmercial 2011.

11-23: Burger King, Hooters, Retail Center, Medical Office Building

1.  Burger King in Oshkosh, WI: 3664 SF Burger King about 1 hour South of Green Bay.  20 yrs NNN lease to 2^nd largest Burger King franchisee.  $325K will be held in escrow for store remodeling after close of escrow.  NOI $115K/yr. with 7.5% rent bumps every 5 yrs. $1.564M. 7.35% cap. 
2. Hooters restaurant in Orange Park, FL: 3433 SF restaurant built in 1998 on .6 ac lot in Jacksonville metro.  20 yrs absolute NNN corp lease with 8.5 yrs left.  NOI $150K/yr with 10% rent bump in 2015.  $1.878M. 8% cap. 
3. Retail Center in Rosedale, NY: 17,250 SF multi-tenant retail center built in 2005 across from Lowe’s, Big K-mar, Michael’s and TJ-Max anchored center in affluent (AHI $153K/yr in 1 mile) New York suburbs. 100% NNN leased with 3-5% annual rent increases.  NOI $371K/yr.  $5.3M. 7% cap. 
4. Medical Office Building in Brandon, FL: 10,600 SF 2-story medical office building on 1.18 acres lot just 0.2 miles from Brandon Regional Hospital. 73% leased.  NOI $85K/yr. $1.05M. 8.1% cap.

© Transmercial 2011.

11-22: Retail centers, Office building, Burger King, Dennys, Tire Works

Certificate of Need for Medical Office Buildings

36 states and District of Columbia require a Certificate of Need (CON) before medical facility is allowed to open or expanded. The intent is to prevent excess capacity.  The supporters of CON claim excess capacity will increase the costs of medical services.  Medical facilities need to charge more to make a profit if the facilities are under-utilized. This is evidenced by a study conducted by “big-three” automakers which shows lower health care costs in CON states than non-CON states.  The Leapfrog Group for Patient Safety maintains that the push for more medical center may have negative impact of quality.  For many complex medical treatments, there is scientific evidence of superior results in hospital with higher volumes. For referrals, this group tends to favor hospitals with a certain volume threshold, e.g. at least 500 cases/year for Coronary artery bypass surgery.  The opponents of CON argue CON is against free market system and leads to higher healthcare costs due less competition. In 2004, the Federal Trade Commission and Department of Justice urged “States with Certificate of Need programs should reconsider whether these programs best serve their citizens' health care needs.”

The scope of Certificate of Need laws varies from state to state covering up to 30 major medical services from Air Ambulance to Ultra Sound services.  24 states and DC require CON for Open Heart Surgical Centers while only VT and DC require CON for general medical office buildings.  Over all, Connecticut has the highest and Louisiana has the lowest regulatory burdens in obtaining the CON among the 36 states.  Besides CON, state and local governments can use zoning and various restrictions to limit the number of medical facilities. For example, a 2-story professional office building won’t be able to lease to medical tenants on the 2^nd story if it does not have an elevator.

Conclusion: If you are the owner of a medical office building, CON limits the supplies and it’s a big plus for your investment.

© Transmercial 2011

1. Retail Center in Salt lake City, UT: 6949 SF retail center built in 2003 on .57 ac lot with easy access to I-215. 100% NNN leased to 5 national tenants: Subway, Jack Hewitt Tax, Cricket Wireless, Papa John Pizza, and Check N Go.  NOI $130K/yr. $1.3M. 10% cap.  
2. Shopping Center in Glenville, IL: 36,597 SF 6-yrs old shopping center on 3.28 acres lot in affluent Chicago suburbs (AHI $136K/yr in 1 mile).  Anchored by 20,213 SF Staples. 87% NNN leased.  Pro forma NOI $739K/yr. $8M. 9.25% cap. 
3. Single-tenant Office Building in Springfield, IL: 20,706 SF class-A office building in affluent area (AHI $111K/yr in 1 mile).  100% NNN- lease till 2021 to Gtech Corp (S&P BBB-).  NOI $248K/yr. $2.68M. 8.5% cap. 
4. Shopping Center in San Jose, CA: 19,066 SF 3-building 14-unit shopping center built in 1990 on 1.63 ac corner lot in high income area (AHI $104K/yr in 1 mile). 96% NNN lease with 1 small vacant unit.  NOI $401K/yr. $6.5M. 6.16% cap. 
5. Shopping Center in Noblesville, IN: 74,414 SF shopping center on 13 ac lot in Indianapolis suburbs.  Anchored by 49,857 SF Kroger Food & Drugs. 98% leased.  NOI $446K/yr. $5.265M. 8.5% cap. 
6. Burger King in Bartow, CA: 3072 SF Burger King built in 2001 on 1.4 ac lot near I-10 exit.  20 yrs NNN lease with 12 yrs remaining to an operator with 20 locations.  NOI $116K/yr. with 10% rent bumps every 5 yrs.  Price reduced to $1.685M. 6.9% cap. 
7. Dennys in Melbourne, FL: 4675 SF Dennys on .9 ac lot close to I-95 exit.  100% absolute NNN lease till 2027 to an operator with 30 units.  NOI $99K/yr with 4% rent bump in 2013 and 10% every 5 yrs thereafter.  $1.327M. 7.5% cap. 
8. Tire Works in Las Vegas, NV: 7600 SF auto service center built in 2003 on .88 ac lot in high income area (AHI $86K/yr).  20 yrs absolute NNN corp lease.  NOI $108K/yr. with 10% rent bumps every 5 yrs. $1.5M. 7.2% cap.

© Transmercial 2011.

Recent Close

         San Jose, CA, December 6, 2011.  Transmercial today announced it recently closed 2 transactions in which it represented the buyers: 

• DaVita Dialysis center in Cape Coral, FL. 
• Burger King Restaurant in Lutz, FL.

While many Transmercial’s clients are out-of-state and even out-of-the-country, they normally come in its office in San Jose to meet the advisors before the transactions.  In the Burger King transaction, the investor in Florida and the advisor in California (David Tran) have actually never met. The investor summarized his experience with Transmercial as “You have been great!” This is a new milestone of trustworthiness for Transmercial. 

Transmercial understands trust is something it has to gain from the investors through its:

• Demonstration of competency & market knowledge.  Transmercial daily “10 Best Properties to Invest in the US” is a prime example. By reviewing 300 to 400 commercial properties on the market daily to come up with the list, Transmercial has a broad knowledge of whole market.  Transmercial’s clients save time and are more likely to be successful in their investments by focusing on the short list of best properties in the country. 
• Deeds: Transmercial always does what it says.  If it cannot deliver something, it will not promise. 
• Due diligence summary: this provides the investors with a list of documents Transmercial has reviewed and if there are any issues. 
• Communications: Transmercial keeps its clients and other brokers promptly informed to minimize any miscommunications.

Separately, Transmercial also announced that David V. Tran, its Chief Investment Advisor also received over 95,000 viewings for his 34 articles on ezinearticles.com.  These 34 articles are about commercial real estate investments.

About Transmercial:

Transmercial is a commercial real estate firm in San Jose, CA.  Transmercial specializes in sales and property management of retail centers and medical buildings.   The company does business in all 50 states. It can be contacted by phone at 408-288-5500, and by email at info@transmercial.com. Its website is www.transmercial.com.

11-21: Public Storage, Fresh & Easy, Applebees, Shopping Centers, Medical Office Building, Autozone, Walgreens

Welcome new investors.  Each property has a brief description and a flyer (attached).  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 names if any indicate safe hyperlinks that you can click for more info.

For a full marketing brochure, please forward the email to maria@transmercial.com and specify the property number.  We may ask you for feedback later for the listing broker.  If so, please cooperate.

• 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.  Public Storage in Los Gatos, CA: rate 191-unit 2-story public storage facility on .54 ac lot in very affluent Silicon Valley suburbs (AHI $180K/yr in 1 mile).  86% leased.  NOI $193K/yr. $2.75M. 7.04% cap. 
2. Fresh & Easy in Calimesa, CA: 14,973 SF Fresh & Easy Neighborhood Market built in 2009 on 1.29 ac lot with I-10 visibility.  20 yrs NNN ground lease till 2029 (land is for sale, tenant owns the building) with no landlord responsibilities.  NOI $165K/yr with 10% rent bump in year 11.  $2.75M. 6% cap. 
3. AppleBee’s in Marietta, GA: 5668 SF AppleBee’s on 1.28 acres lot next to I-75 exit in Atlanta metro.  Completely remodeled in 2011.  New 20 yrs absolute NNN lease. NOI $156K/yr with 1% annual rent bump. $2.184M. 7.15% cap. 
4. Shopping Center in Fort Walton Beach, FL: 93,300 SF shopping center on over 8 acres lot.  Renovated in 2008 with new roof and facade.  Anchored by Big Lots!, Dollar General.  91% leased.  NOI $923K/yr. $9.24M. 10% cap. 
5. Medical Office Building in University Heights, OH: 41,019 SF 3-story medical office building on 2.18 acres lot in high income (AHI $86K/yr) Cleveland suburbs.  80% NNN leased to 20 mostly medical tenants.  Current NOI $325K/yr. $3.6M. 9.04% cap.  Upside potential when fully leased. 
6. Retail Center in San Jose, CA: rare 16,310 SF on 1.5 acres lot close to hwy 101.  100% NNN leased to 7 tenants.  NOI $494K/yr. $6.35M. 7.82% cap.
7.  AutoZone in Indio, CA: 5000 SF AutoZone built in 1995 on .54 ac lot in a growing area in Southern CA.  100% leased with 4 yrs left.  NOI $121K/yr.  $1.616M. 7.5% cap. 
8. Walgreens in Easley, SC: 14,550 SF Walgreens built in 2007 on 1.9 acres lot in high income (AHI $86K/yr) Greenville metro.  25 yrs NNN- lease with 21 yrs remaining.  NOI $360K/yr. $5.413M. 6.65% cap.

© Transmercial 2011.

11-18: KFC, Ashley Furniture, Strip Center, Arbys, May's Drug, Tires Plus, White Castle

1. KFC & Long John Silver’s in Holland, OH: 3400 SF dual-branded KFC and Long John Silver’s restaurant on .86 ac outparcel to Menards in Toledo metro.  20 yrs NNN lease.  NOI $110K/yr with 7.5% rent bumps every 5 yrs. $1.3M. 8.5% cap. 
2. Ashley Furniture in Midland, TX: 62,133 SF single-tenant retail center built in 2006 on 4 acres lot as part of Kohl’s anchored shopping center in high income (AHI $88K/yr) oil & gas town.  100% NNN leased till 2022.  NOI $691K/yr with rent bumps every 5 yrs.  $8.135M. 8.5% cap. 
3. Strip Mall in Port Saint Lucie, FL: 8140 SF strip center built in 2007 on .92 ac lot in a fast growing city.  100% NNN leased to 6 tenants.  NOI $152K/yr. $1.52M. 10% cap. 
4. Mini Storage in Odessa, FL: 32,220 SF 296-unit mini storage facility built in 2001 on 2.33 acres lot in high income (AHI $88K/yr) Tampa suburbs.  94% occupied.  NOI $138K/yr. $1.725M. 8% cap. 
5. Arby’s in Glendale, AZ: 2889 SF restaurant built in 1992 on .59 ac outparcel to a grocery-anchored center in high income Phoenix metro.  100% NNN corp lease till 2019.  NOI $88K/yr with 6% rent bumps every 3 yrs. $1.18M. 7.5% cap.
6. May’s USA Drug in Tulsa, OK: 15,000 SF May’s USA Drug (regional chain with 150 stores in 5 states) built in 2004 on 1.35 acres corner lot. 20 yrs NNN corp lease till 2024.  NOI $187K/yr. with $7500 rent bumps every 5 yrs. $2.55M. 7.35% cap. 
7. Tires Plus in Coralville, IA: 5046 SF Tires Plus auto service center on .58 ac lot in a fast growing Iowa city metro.  10 yrs NNN lease guaranteed by Bridgestone Retail Operations. NOI $100K/yr with 2.5% annual rent bumps.$1.35M. 7.48% cap. 
8. White Castle in Maywood, IL: 1400 SF White Castle fast food restaurant (regional chain with 420 stores) built in 1992 on .48 ac lot across from Layola University Medical Center campus in Chicago metro. New 10 yrs NNN lease.  NOI $65K/yr with 10% rent bumps every 5 yrs.  $838K.  7.75% cap.

© Transmercial 2011.

11-17: Rite Aid. Starbucks, Office Depot, hhGregg, Cash America, shopping centers

1. Rite Aid in Reading, MA: 13,611 SF drug store built in 1997 on 1.51 acres corner lot in affluent (AHI $122K/yr in 1 mile) Boston suburbs.  20 yrs absolute NNN lease with 17 yrs left.  Store with strong sales revenue.  NOI $301K/yr.  with 10% rent bump every 10 yrs. $3.469M. 8.7% cap. 
2. Starbucks in Sacramento, CA: 2658 SF retail center on ¾ ac outparcel to Save Mart supermarket and Rite Aid anchored 136,000 SF shopping center.  100% NNN corp lease till 2020.  NOI $92K/yr. with 10% rent bump every 5 yrs.  Price reduced from $1.321M to $11.25M.  7.4% cap.  Note:  While Starbucks [smartly] subleases 1280 SF to Mr Pickles Sandwich shop but remains responsible for the entire building. 
3. Office Depot in Kennesaw, GA: 32,052 SF on a major artery with easy access to I-75 and I-575 in fast growing city in Atlanta suburbs.  10 yrs absolute NNN corp lease with 7 yrs left. NOI $505K/yr. $6.525M. 7.75% cap. 
4. hhGregg Appliances in Orlando, FL: 33,154 SF hhGregg appliances and electronics store (NYSE: HGG with 174 stores) on 2.37 acres lot near 250-store Florida Mall.  Tenant spent $1.2M renovating the building in 2007.  15 yrs NNN lease.  NOI $522K/yr. with 10% rent bump in 4/2012.  $6.143M. 8.5% cap. 
5. Bank-owned Shopping Center in Englewood, OH: 132,276 SF 19-unit shopping center on a corner lot in Dayton metro.  Anchored by 5 national tenants: Big Lots!, Family Dollar, Aldi Food Market, Goodwill, and Sherwin William.  83% leased.  NOI $423K/yr. $4.7M. 9% cap.  Upside potential.  Just $35/SF! 
6. Shopping Center in Killeen, TX: 17,125 SF 2-building retail center at a signalized intersection close to Wal-mart, HEB, Walgreens.  100% NNN leased to 10 tenants, 7 of them national/regional: Starbucks, Radio Shack, Advance America, Game stop, Sport Clip, Cricket Communication, and Firehouse Subs. NOI $377K/yr. $4.604M. 8.2% cap. 
7. Cash America in Charlotte, NC: 7343 SF single-tenant retail center on 1.2 ac lot at a major intersection.  New 10 yrs absolute NNN corp lease (NYSE: CSH).  NOI $99K/yr.  $1.287M. 7.75% cap. 
8. Rite Aid in Greece, NY: 13,604 drug store built in 2008 on 1.8 acres lot in Rochester metro.  20 yrs NNN lease with 17 yrs left.  NOI $552K/yr. with 10% rent bump in 2018. $6.308M. 8.75% cap.

© Transmercial 2011.