These are the 10 best commercial properties among 300-400 daily listings between $1M-$30M in all 50 US states listed by CBRE, Marcus Millichap, SVN, etc. The properties are selected based on various criteria: price, cap rate, and more (please read "How properties are selected" article.)
If you are an investor and would like to get the latest "Daily 10 Best Properties" by 5 PM PST. Please subscribe on www.transmercial.com.
Medical building in Gilbert, AZ: 29,827 SF medical office building constructed in 2001 on 3 acres lot. 100% leased by all medical tenants: Gilbert surgery center, Simon Med Imaging. NOI $697K/yr. $7.75M. 9% cap. Buyer to assume $4.485M loan at low 5.5% interest.
Apartments in Redwood City, CA: 6-unit immaculate multi-family complex in the middle of high income Silicon Valley. 100% occupied. Gross rent $75K/yr. $875K.
Shopping Center in Las Vegas, NV: 17,769 SF retail center built in 1998 on 1.35 acres lot in high income (AHI $89K/yr within 3 miles ring) area. 91% NNN leased with just 1 vacant unit. Actual NOI $283K/yr. $3.1M. 9.16% cap.
O’Reilly Auto Parts in Atlanta, GA: 6800 SF single-tenant retail center built in 2009 on 1.43 acres lot. 20 yrs NNN corp lease (NASDAG: ORLY). NOI $110K/yr. $1.375M. 8% cap.
Apartments in Anaheim, CA: 16-unit apartments in a middle-class city (AHI $72K/yr) with over 700K residents within 5 miles. 100% occupied. Gross income of $183K/yr. $1.825M.
Cost Plus World Market in Wichita, KS: 18,252 SF single-tenant retail center on 3.65 acres lot in an affluent suburban Wichita with AHI over $101K/yr. 100% NNN corp lease by Cost Plus (NASDAG: CPWM) with 270 retail stores. NOI $237K/yr. $2.433M. 9.75% cap.
Joe’s Crab Shack in Fairview Heights, IL: 7076 SF franchised seafood restaurant built in 1997 near I-64 exit in suburban Saint Louis. 20 yrs NNN lease with 17 yrs remaining. NOI $117K/yr with 10% rent bump every 5 yrs. $1.17M. 10% cap.
Automotive center in Las Vegas, NV: 14,948 SF multi-tenant auto retail center. NOI $172K/yr. $2.16M. 8% cap.
Strip Center in Harbor City, CA: 4100 SF strip mall built in 2002 on a highly visible corner lot just off I-110 exit. Surrounded by Kmart, Food 4 less, Big Lots. 100% NNN leased by 3 good tenants: Starbucks, AT&T Wireless, and Wescom Credit Union (ATM only). NOI $235K/yr. $3.195M. 7.36% cap.
NOI: Net Oper Income—income after tax, insurance and maintenance expenses paid.
AHI: Avg. Household Income
Apartments in Los Angeles, CA: 49-units multifamily apartment complex on 1 acre lot with many recent improvements and excellent unit mix. Close to Barnsdall Park, Kaiser Permanente, & Los Angeles City College. 100% leased. NOI $398K/yr. $4.975M. 8% Cap. Buyer to assume $3.346M at 6.35%
ICI Paints Retail Building in Goodyear, AZ:9500 SF end-cap retail building at signalized intersection in fast growing (11.67%) middle-class (AHI $65K/yr within 5-miles radius) West of Phoenix about ½ mile from I-10. 100% NNN leased by national tenant currently operating more than 660 stores. 3% annual rent increases. NOI $135K/yr. $1.350M. 10% Cap.
McAlister’s Deli in Peoria, IL: 3426 SF single-tenant retail building constructed in 2008 shadow-anchored by Schnuck’s Grocery Store / Bed Bad & Beyond surrounded by many national tenants. 100% NNN leased by high net worth multi-unit franchisee. NOI $153K/yr. $1.530M. 10% Cap.
Starbucks in Pensacola, FL: 1859 SF free-standing Starbucks Coffee retail building outparcel to Kohl’s along main corridor. 100% NNN leased. NOI $118K/yr. $1.583M. 7.5% Cap.
Shopping Center in Pensacola, FL:122,323 SF shopping center anchored by Big Lots & across from Wal-Mart Supercenter. 96% NNN leased. NOI $470K/yr. $5.175M. 9.10% Proforma Cap.
Apartments in Costa Mesa, CA:6-units well-maintained two-story apartments in a wealthy area (AHI $126K/yr) near prestigious Newport Beach with many amenities: Garages, Patios/Balconies and on-site laundry. NOI $71K/yr. $1.195M. 6.12% Cap.
Starbucks Coffee/T-mobile in Atlanta, GA: 4400 SF single-tenant retail building across from Camp Creek Marketplace a 1.2M SF retail center off of I-285. 100% NNN corp leased by national tenants. NOI $195K/yr. $2.441M. 8% Cap.
Walgreen’s in Raleigh, NC: 14,469 SF Walgreen’s conveniently located at busy signalized intersection in fast growing area. Long NNN lease. NOI $339K/yr. $4.850M. 7% Cap.
Multifamily Property in Madera, CA: 14-untis recently remodeled multifamily complex off of Hwy-99. 100% leased. NOI $103K/yr. $1.150M. 9% Cap.
Retail Building in San Jose, CA: 1885 SF single-tenant retail building at excellent location on Stevens Creek Auto Row just a few blocks from Westfield Shopping Center/Santana Row. 100% NNN leased till 2013. NOI $65K/yr. $1.395M. 4.73% Cap.
Checker Auto in Lake Havasu City, AZ:6863 SF well-constructed retail building constructed in 1994 on .83 acre lot outparcel to anchored shopping center at busy signalized intersection in growing middle-class area. 100% NNN leased. NOI $118K/yr. $1.582M. 7.5% Cap.
Walgreen’s in Surprise, AZ: 13,905 SF free-standing retail building on 2 acres of land at excellent hart corner with high visibility in fast growing (193% since 2000) Phoenix metro. 100% NNN corp lease with 9 yrs remaining. NOI $264K/yr. $3.206M. 8.25% Cap.
Retail Center in Gainesville, GA: 123,948 SF retail building constructed in 1994 anchored by a 121,148 SF Lowe’s. Adjacent to Wal-Mart Supercenter and across Lakeshore Mall just North of Atlanta metro. 99% NNN leased. NOI $663K/yr. $7.6M. 8.73% Cap.
Office Building in Fresno, CA: 6840 SF attractive office building close to Kaiser Permanente Medical Center/St Agnes Medical Center. 86% leased. NOI $103K/yr. $1.2M. 8.62% Cap.
Multifamily Building in Van Nuys, CA: 8-untis well-maintained multifamily complex in close proximity to Anthony C Beilenson Park/Woodley Ave Park near Fwy-405. 88% leased. NOI $60K/yr. $899K. 6.70% Cap.
Wendy’s Restaurant in Palm Bay, FL: 2810 SF stable restaurant on over 1 acre lot at main retail corridor just 60-miles from Orlando. 16-years remaining on original absolute NNN lease by strong franchisee. 4% rent increases every 2-years. NOI $97K/yr. $1.217M. 8% Cap.
Shopping Center in Miami, FL:20,420 SF mature shopping center with recent capital improvements with excellent tenant mix: Grocery Traders, Dry Cleaners, Point Du Jour Realty, Barber Shop, Star of North Miami, $9.99 Shoes, Beauty Salon and Krazy Chicken Restaurant. 100% leased. NOI $253K/yr. $2.677M. 9.46% Cap.
Burger King in Corpus Christi, TX:brand new 3000 SF Burger King free-standing retail building conveniently located at corner location of Hwy-358. Long NNN leased till 2028. 1% annual rent increases. NOI $110K/yr. $1.375M. 8% Cap.
Burger King in Rogers, AR: 3621 SF restaurant on .9 acres corner lot with 3 points of ingress/egress in a growing city. Store with strong 1.89M in annual sales revenue. New 20 yrs NNN lease. NOI $144K/yr. $1.6M. 9% cap.
Apartments in Redwood City, CA: 5-unit apartments in a affluent Silicon Valley town (AHI $148K/yr). 100% occupied. NOI $59K/yr. $1.095M. 5.45% cap.
Steak N Shake in Clearwater, FL: 3690 SF franchised restaurant across from Westfield Countryside Mall in Tampa metro. 18 yrs absolute corp (NYSE: SNS) NNN lease with 6 yrs remain. Store with strong & growing revenue of over $1.94M/yr., i.e. highly profitable location even during recession. NOI $118K/yr. $1.43M. 8.25% cap. 4 other locations in FL avail.
Lowe’s in Nashville, TN: 135,195 SF single-tenant home improvement center on over 18 acres lot just off I-40 exit in a stable & wealthy area with AHI over $98K/yr within 5 miles. 100% leased by Lowe’s with S&P rating of A+ till 2019. NOI $1.125M. $13.5M. 8.34% cap.
Advance Auto in West Monroe, LA: 7000 SF auto parts store built in 2008 on .8 ac lot next to a Walgreens. 15 yrs NNN lease. NOI $122K/yr. $1.523M. 8.05% cap.
Brand new Best Buy & Office Max in McAllen, TX: 63,703 SF retail center built in 2008 on 8.79 acres lot in a high income (AHI $83K/yr w/I 1 mile) and growing (55% since 2000) city. 100% NNN leased by 2 national tenants. Great location: across from 46-acre lifestyle center anchored by Conn's, Walgreens, Petco, Michael's. Shadow Anchored by Kohl's, Target, Ross, Marshalls, Hobby Lobby, Bealls & PetSmart. Adjacent to Home Depot & H-E-B Grocery. NOI $940K/yr with rent bump every 5 yrs. $11M. 8.5% cap.
Pep Boy Auto in Sacramento, CA: 22,341 SF auto parts and automotive center on 2.35 acres parcel near I-80 exit. 15 yrs absolute corp (NYSE: PBY) NNN lease. NOI $251K/yr with 1.5% annual rent bump. $3.354M. 7.5% cap. Seller financing at 6% interest avail.
Apartments in Auburn, WA: 27-unit well-kept apartments in stable Seattle metro. 99% occupied. NOI $133K/yr. $1.55M. 8.6% cap.
Apartments in Dallas, TX: 104-unit class-B 2-story apartments complex built in 1984 on over 3 acres lot in highly desirable upper middle class White Rock Lake with AHI over $89K/yr within 1 mile. Individual HVAC and hot water heater. Nicely manicured landscaping & well-maintained assets. 92% occupied. Proforma NOI $405K/yr. $4.5M. 9.02% cap.
Shopping center in Indian Head Park, IL: 17,805 SF retail center on 1.94 acres lot in wealthy Chicago metro with AHI of $120K/yr. 100% NNN leased. NOI 4304K/yr. $3.9M. 7.8% cap.
Medical Office Building in El Cajon, CA: 12,354 SF three-story medical building fully leased by national tenants: Sprint, Quest Diagnostics and Planned Parenthood with great freeway signage just off of I-8 in San Diego suburbs. 100% leased. NOI $185K/yr. $2.495M. 8% Cap.
Retail Building in Chandler, AZ:6429 SF Tire Pros free-standing retail building in growing (10.09%) middle-class (AHI $82K/yr within three-mile radius) area in Phoenix metro along a busy thoroughfare. 10-years absolute NNN lease with 12% increases every 5-years. NOI $97K/yr. $1.185M. 8.25% Cap.
Apartments in Stockton, CA: bank owed 43-units well-maintained multifamily 2-story apartment complex on 1.26 acres of land. 93% occupied. NOI $182K/yr. $2.250M. 8.10% Proforma Cap.
CVS Pharmacy in Homestead, FL:14,579 SF architecturally distinguished CVS Pharmacy on 1.59 acres of land located in densely populated booming (57% since 2000) area just South of Miami. 100% NNN corp lease till 2026. NOI $360K/yr. $4.675M. 7.75% Cap.
Condominiums in Marietta, GA: 21-extensively renovated townhouse-style condominiums renovated in 2008 at quiet Atlanta metro neighborhood. 95% leased. NOI $107K/yr. $1.260M. 8.5% Cap.
Office Building in Sacramento, CA: 14,580 SF beautiful reconstructed office building in the heart of Old Sacramento. 100% leased. NOI $136K/yr. $1.7M. 8% cap.
Office Building in Bradenton, FL: 33,003 SF newly constructed office buildings on 5.15 acres of parcel in the award winning master planned community of Lakewood Ranch in a middle class Tampa metro. 100% NNN leased till 2024 to a charter school. NOI $577K/yr. $7.214M. 8% Cap.
Office Building in Sacramento, CA: 11,614 SF two-story office building close to Fwy-5/50. $1.1M. Perfect for owner user!
Office Building in San Jose, CA: 10,800 SF recently renovated free-standing office building conveniently located at corner location along Winchester Blvd. in a high income Silicon Valley (AHI $110K/yr). $1.1M. Ideal for owner user!
NOI: Net Oper Income—income after tax, insurance and maintenance expenses paid.
AHI: Avg. Household Income
Retail Center in Chicago, IL: 8261 SF nice-looking retail center constructed in 1997 with two entrance points and big monument sign at signalized corner location. 100% NNN leased. NOI $122K/yr. $1.440M. 8.47% Cap.
Apartments in Rancho Cordova, CA: 74-units well-maintained multifamily buildings in Sacramento metro close to parks with good unit mix. 80% leased. NOI $214K/yr. $2.960M. 7.23% Cap.
Office Building in Arden Hills, MN: 73,442 SF high quality constructed Class-A office building in Minneapolis metro with numerous recent improvements. Highly visible from I-694. 93% leased. NOI $960K/yr. $10M. 9.60% cap.
Multifamily Building in Long Beach, CA: 18-unit beautiful well-maintained apartment complex with video surveillance system & close to shopping centers, parks and Long Beach Memorial Medical Center. 100% leased. NOI $189K/yr. $2.549M. 7.44% Cap.
Super 8 Motel in Goodyear, AZ: 90-rooms two-story motel on 3.46 acres of land just off Fwy-10 in fast growing Phoenix metro. $4M. 9.75% Cap.
Office Depot in Tallahassee, FL: 30,450 SF Office Deport retail building constructed in 1999 on 5.38 acres of parcel across from Home Depot, Petsmart and Bealls Shopping Center. High income area. 100% absolute NNN lease. NOI $380K/yr. $4.250M. 8.96% Cap.
Apartments in McAllen, TX: 48-units apartment complex conveniently located across from McAuliffe Elementary School. 97% leased. NOI $184K/yr. $2.050M. 9% Cap.
Office Building in Layton, UT: 5000 SF newly remodeled office building constructed in 1992 close to Davis Hospital and Medical Center in Northern Salt Lake City metro. 100% leased by two tenants. NOI $66K/yr. $826K. 8% Cap.
Strip Center in Bountiful, UT: 7219 SF strip center in fast growing Salt Lake City suburbs near I-15. NOI $86K/yr. $986K. 8.75% Cap.
Bally’s Total Fitness in Huntington Park, CA:32,000 SF fitness center built in 2005 on 1.31 acres of land with 88,000 SF ground and 2nd level parking spaces. High traffic location. 100% NNN leased by national tenant. NOI $626K/yr. $8.350M. 7.5% Cap.
Retail Center in Folsom, CA: 5900 SF attractive retail center constructed in 2000 across from Target Shopping Center in Sacramento metro. Excellent tenant mix: Beach Hut Deli, American General Finance, Top Cuts and Cal X Fun Spas. NOI $148K/yr. $1.899M. 7.83% Cap. Buyer to assume $943K loan at 6.15% interest rate.
Childtime Learning Center in Chula Vista, CA: 8280 SF single-tenant day care facility built in 2000 on .92 acre lot in prosperous (AHI $116K/yr within one mile radius) South of San Diego suburbs. 100% NNN corp lease. NOI $224K/yr. $2.420M. 9.26% Cap.
Shopping Center in Mesquite, TX:51,390 SF mature shopping center on 4.88 acres of land in densely populated area near I-635/Hwy-80 in middle-class Dallas metro. 83% leased. NOI $350K/yr. $3.980M. 8.81% Cap.
Upside potential when fully leased.
Multifamily Building in Arvada, CO: 32-units two-stories brick apartment complex with new windows close to parks/shopping centers near I-70 in Denver metro. NOI $141K/yr. $1.995M. 7.11% Cap.
Retail Center in Van Nuys, CA:13,493 SF two-stories strip center with excellent visibility in densely infill location with over 700K residents within 5 miles ring. NOI $157K/yr. $2.190M. 7.20% Cap.
Shopping Center in New Caney, TX:55,944 SF grocery-anchored shopping center on 6.88 acres of land with outstanding highway exposure in fast growing North Houston suburbs. 100% leased. NOI $350K/yr. $3.800M. 9.20% Cap.
Jack In the Box in Fremont, CA: 2670 SF fast food restaurant built in 1999 on ¾ acres lot just off I-680 exit. In front of 141,000 SF Walmart Supercenter, 100,000 SF Frys Electronics, and Home Depot. Affluent Silicon Valley bedroom community with AHI over $133K/yr. 24-hr location. 18 yrs absolute NNN lease with 7 yrs remaining. NOI $150K/yr. with CPI-based rent bump every 5 yrs. $2.265M. 6.65% cap.
Dollar General in Tucson, AZ: 9014 SF single-tenant retail building under construction on 1.5 acres corner lot in a fast growing city (30% since 2000). 15 yrs corp NNN lease. NOI $111K/yr. $1.391M. 8% cap. Recession insensitive tenant.
Apartments in Inglewood, CA: 28-unit apartments in a densely-populated are in Los Angeles with over 800K residents within 5 miles ring. 100% occupied. No rents control. NOI $250K/yr. $3.1M. 8.07% cap.
Apartments in Rancho Cordova, CA: 44-unit apartments on 1.33 acres lot in Sacramento metro. 90% occupied. NOI $157K/yr. $1.95M. 8.04% cap. Less than $45K/unit.
Office building in Saint Louis, MO: 27,435 SF single-tenant office building on over 2 acres lot in a middle class area. 100% absolute NNN corp lease with 6 yrs remaining from Celsis Lab, a leading provider of innovative life science products and laboratory services to the pharmaceutical and consumer products industries. NOI $375K/yr. $3.5M. 10.7% cap.
Apartments in Bakersfield, CA: 25-unit bank-owned apartment in a better part of the city. 67% occupied. Potential gross income of $193K/yr. $1.05M.
Shopping Center in Jonesboro, GA: 10,000 SF retail center built in 2005 in growing suburban Atlanta. 89% NNN leased. NOI $99K/yr. $900K. 11% cap.
Dollar General in Jacksonville, FL: 8998 SF newly constructed Dollar General retail building on 1.20 acres of land at densely populated area. New 15-years absolute NNN corp lease. NOI $121K/yr. $1.425M. 8.5% Cap.
Recession proof tenant
Office Building in Lancaster, CA: 12,520 SF well-kept office building on 1.4 acres lot with excellent visibility & across Lancaster Community Hospital. 100% leased by five tenants. NOI $114K/yr. $1.550M. 7.40% Cap.
Shopping Center in Collinsville, IL: 127,700 SF shopping center shadow-anchored by new Kohl’s Department Store near I-70/55 in fast growing St. Louis metro. 98.7% NNN leased by national tenants: Schnucks Grocery(the largest supermarket retailer in the St. Louis area), Sears, Hallmark, GNC, Quiznos, Great Clips, Edward Jones and Famous Footwear. NOI $1,026M. $12,445M. 8.25% Cap. Buyer to assume existing loan at very attractive 5.54% interest rate amortized over 30 yrs.
Apartments in Huntington Park, CA: 13-units mature apartment complex with nice landscape courtyards close to park/shopping centers in densely populated area with 1.1M residents within 5 miles ring. NOI $87K/yr. $1.250M. 7% Cap.
Office Building in Fresno, CA: 18,442 SF office buildings on 1.34 acres of land with great visibility in close proximity to Hwy-99. 90% leased. NOI $147K/yr. $2.1M. 7% Cap.
Office Building in South Jordan, UT: 8940 SF single-tenant office building next to Mullgan’s Golf and Game along main retail corridor in growing (20.79%) affluent (MHI $110K/yr) Salt Lake City suburbs. 100% NNN leased. NOI $117K/yr. $1.472M. 8% Cap.
Retail Center in Wilmington, CA: 6500 SF recently renovated strip center on .43 acre lot at major signalized intersection on Pacific Coast Hwy. 100% NNN leased. NOI $191K/yr. $2.195M. 8.9% Cap.
Shopping Center in Houston, TX: 16,864 SF shopping center built in 2001 on 1.56 acres of land near Hwy-6. 100% NNN leased. NOI $171K/yr. $2.4M. 8.50% Cap.
Apartments in Dallas, TX: 172-unit two-stories multi-family building on over 6 acres of land at infill location close to Fwy 35E/635. 95% leased. NOI $431K/yr. $4.4M. 9.8% Cap.
Taco Bell in Las Vegas, NV: 2367 SF restaurant built in 2000 on 1.25 acres lot in a middle class area. 10 yrs NNN lease by an operator with 58 locations. NOI $170K/yr with 9% rent bump every 5 yrs. $2.125M. 8% cap.
Pep Boys Auto in Indio, CA: 19,338 SF auto service center on 1.58 acres lot in a booming and high income Palm Springs metro. 15 yrs absolute NNN lease with 13 yrs remaining with Pep Boys Corp guaranty (NYSE: PBY). NOI $257K/yr. $3.326M. 7.75% cap.
Walgreens in Hometown, IL: 14,855 SF drug store built in 2002 on 1.12 acres corner lot in densely-populated suburban Chicago. 20 yrs NNN lease with 12 yrs remaining. NOI $482K/yr. $6.585M. 7.32% cap.
Del Taco restaurant in Parker, CO: new 2166 SF fast food restaurant 2/3 acre lot in affluent Denver suburbs. Surrounded by Wal-mart, Home Depot, Staples, Best Buy, Petsmart, Safeway, Kohl’s, and Michaels. 20 yrs NNN lease by an operator with 5 locations. NOI $176K/yr. with 12% rent bump every 5 yrs. $2.078M. 8.5% cap.
Medical office building in San Jose, CA: 3210 SF medical office building on ¼ ac lot on Winchester Blvd. Vacant and ideal for user. $1.1M.
NOI: Net Oper Income—income after tax, insurance and maintenance expenses paid.
AHI: Avg. Household Income
Office Max in Raymore, KS: 18,098 SF single-tenant retail center built in 2007 on over 2 acres lot next to Wal-mart supercenter and in front of Lowe in middle-class suburban Kansas City. 100% NN corp lease till 2018. NOI $202K/yr with rent bump every 5 yrs. $2.314M. 8.75% cap.
Apartments in North Richland Hills, TX: 138 unit apartments complex in excellent condition with 135,772 rentable SF on 6.5 acres lot in higher income Dallas-Fort Worth area. Amenities include swimming pool, tennis courts, club house, picnic area, and play ground. 91% occupied. Actual 2009 gross income of $1.174M and NOI $791K/yr. $6.4M. 10.3% cap.
La Petite Academy in Lancaster, CA: 6700 SF childcare center on 1.1 acres in Los Angeles area. 100% NNN leased by La Petite Academy, a national childcare provider. NOI $81K/yr. with 4.5% rent increase every 3 yrs. $1.15M. 7.12% cap.
Arby’s in Oak Park Heights, MN: 4337 SF fast food restaurant built in 1998 on 1.38 acres parcel in a affluent suburban Saint Paul. Surrounded by Kowalski's Market, Menard's, Michael's, Kohl's, TJ Maxx, Pier 1 Imports, Wal-Mart, Lowe's, Target, Cub Foods, Office Max. 100% NNN leased by 2021. NOI $97K/yr. $1.197M. 8.1% cap.
Apartments in Charlotte, NC: 51-unit apartments on 2.8 acres in a quiet cul-de-sac in a stable city. NOI $225K/yr. $2.35M. 9.6% cap.
CVS pharmacy in Jonesboro, GA: 10,722 SF drug store built in 1997 on 1 acre lot on a major artery in Southern Atlanta. 20 yrs NNN lease with 7 yrs remaining. NOI $213K/yr with rent increase in each 5 yrs option. $2.373M. 9% cap.
NOI: Net Oper Income—income after tax, insurance and maintenance expenses paid.
AHI: Avg. Household Income
Arby’s Restaurant in Peoria, AZ: 3100 SF recently constructed retail building on pad site to Home Depot near Freeway in fast growing area. Long NNN absolute corp lease. 1% annual rent increases. NOI $132K/yr. $1.7M. 7.8% Cap.
Executive Office Building in Snellville, GA: 21,600 SF two-stories office building on over 1 acre lot consisting of 58 individual office suites. 100% leased. NOI $117K/yr. $1.2M. 9.75% Cap.
Shopping Center in Houston, TX: 36,905 SF well-maintained shopping center recently redeveloped surrounded by residential homes with very little competition. 89% leased. NOI $425K/yr. $3.690M. 8% Cap.
Apartments in Petersburg, VA: 89-units multi-family two-stories building on 3.88 acres of land in close proximity to I-95/85. 96% leased. NOI $386K/yr. $3.9M. 9.32% Cap. Buyer to assume non-recourse loan at 5.94% interest rate.
Strip Center in Wichita, KS: 9400 SF nice-looking strip center built in 2007 with good tenant mix: Fitness, Great Wall, and Tuscan Salon. 100% NNN leased. $1.2M. 9.8% Cap.
Strip Center in Park City, KS: 8840 SF attractive strip center constructed in 2007 on .96 acre lot North of Wichita. Excellent tenant mix: Chopstix, Dental Office, Chiropractic and Fitness. 100% NNN leased. $950K/yr. 10.30% cap.
NOI: Net Oper Income—income after tax, insurance and maintenance expenses paid.
AHI: Avg. Household Income
Shopping Center in Waukesha, WI: 15,525 SF well built/maintained shopping center on 2.29 acres of land with good exposure in a well off (AHI $101K/yr) Milwaukee metro suburb near I-94. 80% Leased. NOI $216K/yr. $2.4M. 9% Cap.
Sullivan’s Steakhouse in Lincolnshire, IL:9800 SF single-tenant retail building recently gone through a major/expensive renovated with good access to Route-45 in growing (45.67% growth increase) & affluent (AHI $153K/yr. within 1 mile radius) Chicago suburbs. 100% NNN corp lease. NOI $274K/yr. $3.220M. 8.54% Cap.
$2M renovation in 2008
Storage in Urbana, IL: 21,921 SF storage facility on 1.45 acres of land recently renovated with video system, security gates, alarm system and climate controlled. 93% Leased. $1.2M. 93% Proforma Cap.
Office Building in Neptune, NJ:15,000 SF three-stories Class-B office building constructed in 2009 near Jersey Shore Medical Center. 90% Leased. High income area South of Newark. NOI $160K/yr. $1.8M. 9% Proforma Cap.
Apartments in Spring Valley, CA:60-unit two-stories multifamily building on 2.59 acres of parcel with on-site laundry facilities, pool three barbecue areas and Basketball recreational area just minutes from San Diego downtown. 96% occupied. NOI $461K/yr. $6.595. 7% Cap.
Dennys in Gurnee, IL:5542 SF family restaurant on 1.08 acres lot at the entrance of the 1,800,000 SF Gurnee Mills Mall in Chicago metro. New 20 yrs absolute NNN leased by the largest Dennys franchisee in the Midwest with 27 locations. Store with strong sales. NOI $150K/yr. $1.875M. 8% cap.
Shopping Center in Houston, TX: 16,864 SF attractive well-located shopping center built in 2001 on 1.56 acres of land near Hwy-6. 100% NNN leased. NOI $171K/yr. $2.4M. 8.50% Cap.
Apartments in Addison, IL:23-units well-situated apartment complex close to shopping centers/transportation in Chicago metro. 100% Leased. NOI $207K/yr. $2.180M. 9.5% Cap.
Office Building in Las Vegas, NV:15,000 SF mature office building on .69 acre pad just minutes from strip. This is a sale/lease back. $2M. 10% Cap.
Historically, commercial real estate values have been cyclical and will continue to be so in the future. The availability and cost of financing is a key component of these cycles. Available capital is affected by the economy, interest rates, supply and demand, and the perception of the market. Real estate prices fluctuate as these factors exert their influence.
To determine the best time to buy, consider where we are in the cycle. Then, see how your particular business or personal financial goals can be strengthened by considering the effects of the cycles.
There are four distinct phases to the commercial real estate cycle: Recession, Recovery, Expansion and Contraction.
Recession: The Recession Phase follows a market contraction, when the availability of financing become scarce or expensive and property prices have fallen. Properties experience higher vacancies and owners have difficulty refinancing, selling or leasing. Foreclosures increase and property sellers become motivated. Prices can fall below replacement costs, resulting in many opportunities for those with the liquidity and fortitude to take advantage of the market weakness. This is the absolute best time to buy.
Recovery: In The Recovery Phase, the market is improving and prices begin to recover, although some buyers are still hesitant to proceed. More tenants enter the market and property owners refinance as affordable financing becomes available. Owners tend to improve their property and work to maximize rental rates. Prices are increasing. This is a very good time to buy.
Expansion: During the Expansion Phase, the real estate market is progressing and expanding and equity investors are plentiful. Financing is readily available and the price of real estate may increase more than seen in previous history. Vacancies are at their lowest point and there is a general sense of well-being, prosperity and abundance. Everyone is talking about buying real estate. This is the time to sell.
Contraction: The Contraction Phase is when vacancies are increasing and prices begin to fall from the peaks of the Expansion Phase. The market has become oversaturated and financing is becoming more difficult or expensive. Investors begin to withdraw from the market as vacancy and delinquency rates rise and prices decline. Buying and selling decisions should be based on need, prime property availability and specific sub-market and individual opportunities.
The phases of the real estate cycle are always in the same order; the only variables are the depth and duration of each phase. By determining the timing of phases along with your own personal and business capability and goals, you can make the best decisions.
As a real estate investor, the most important question is, "When is the best time to buy?" This is when we realize we are either savvy decision makers or merely “one of the herd”. If the market is in the Recession Phase, the stage is set to reap the absolute highest profits by buying at a time when prices are at their lowest. When the market is in the Recovery Phase, it’s still a good time to expand holdings and find deals while building long term wealth.
We have all heard the phrase, “Buy low and sell high.” The best time to buy low is when the cycle is in the Recession Phase, when the lowest prices are available. In this phase, prices can be negotiated and many prime locations are available. The time to sell is during the Expansion Phase, when buyers can easily obtain financing and the market continues to expand. One way to think about this is when everyone is talking about buying, you should be selling. When everyone is talking about the doom and gloom in the Recession Phase, you should be buying.
The challenge with this strategy is that it goes against our basic instincts, even though logic and history dictate otherwise. Our “herd instinct” is affected by the people around us, the media and our resulting emotions. Although we understand that we should not follow the herd mentality, logic and emotion are in conflict. Unfortunately for most, emotion will usually rule over logic. This human tendency creates opportunities for the more logical and less emotional investors.
In this time of uncertainty, one thing that we can be certain of is that that cycles will continue to repeat. History has proven that those with the emotional fortitude and the financial ability to take advantage of the cycles will reap tremendous rewards. Michael Bull, CCIM
President of Bull Realty
Jiffy Lube in Hurst, TX: 2170 SF Jiffy lube on .45 acres corner lot at a busy intersection in a Dallas metro. 20 yrs absolute NNN lease with 15 yrs remaining. NOI $80K/yr with 7.7%m rent bump in 6 months. $975K. 8.25% cap.
Medical Office Building in Gilbert, AZ: 29,827 SF attractive 9-yrs old medical building on 3 acres of land with great tenant mix: Gilbert Surgery Center, SimonMed Imaging and Apothecary Shop of Gilbert. 100% leased. NOI $697K/yr. $7.750M. 9% Cap. Buyer to assume $4.465M at 5.5% interest rate.
Strip Center in Phoenix, AZ: 4760 SF multi-tenant strip center built in 2005 on .71 acre pad at hard corner location in growing densely populated area. 100% leased. NOI $97.395K/yr. $1.010M. 9.64% Cap.
Apartments in Tucson, AZ: 61-unit well-kept apartments complex consisting of four building on 1.67 acres of land with good unit mix: one studio, 33-one BR, 18-two BR and 6-three BR. NOI $140K/yr. $1.8M. 7.78% Cap.
Strip Center in Aurora, CO:4900 SF recently constructed strip center shadow-anchored by Lowe’s with excellent visibility in Denver metro. 100% NNN leased by national credit tenants: FedEx/Kinkos and T-Mobile. NOI $132K/yr. $1.625M. 8.16% Cap.
Shopping Center in West Palm Beach, FL:62,850 SF well-located shopping center on 6.89 acres of land located along active retail corridor. NOI $676K/yr. $8.2M. 8.25% Cap.
Strip Center in Streamwood, IL:17,562 SF 2-years old attractive strip center shadow-anchored by Target and Marshalls in fast growing Chicago suburbs. 92.4% leased. NOI $404K/yr. $4.150M. 9.75% Cap.
Retail Center in Snellville, GA:7689 SF well-located retail center anchored by Porter Paints at high visible location. 86% NNN leased. NOI $81K/yr. $925K. 8.78% Cap.
Retail Center in Chico, CA:6972 SF recently constructed retail building on .96 acre pad at signalized intersection. NOI $117K/yr. $1.356M. 8.65% Proforma Cap.
Shopping Center in Joliet, IL:12,000 SF well-maintained shopping center on 2.57 acres of land at signalized intersection near I-55. NOI $161K/yr. $2.3M. 7% Cap.
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.
I am the Chief Investment Advisor at Transmercial, formerly
eFunding, Inc., a Commercial Real Estate Investments company in San Jose, CA. I am in the top 5 commercial real estate expert author among over 500 on ezinearticles.com.
