05-02: Starbucks, Burger King, apartments, Staples, shopping centers, Dunkin' Donut

1.       Starbucks in Indianapolis, IN: 1800 SF Starbucks built in 2004 on ½ acre outparcel to Wal-mart supercenter, Petco and Dollar Tree.  10 yrs NNN- till 2015.  NOI $85K/yr. $1.069M. 8% cap.

2.       Burger King in Avon Lake, OH: 3236 SF Burger King built in 1992 on .9 ac lot in a growing middle-class Cleveland suburbs.  10 yrs NNN lease till 2021 to an operator with 20+ locations.  NOI $97K/yr. $1.087M. 9% cap.

3.       Bank-owned Apartments in White Settlement, TX: 168-unit apartments on 6.68 acres lot in Fort Worth.  Each unit with private balcony or patio.  89% occupied.  NOI N/A.  $2.825M. just less than $18,815/unit.

4.       Staples in Golden, CO: 20,390 SF Staples office supplies built in 2007 on 1.6 acres lot as a part of a shopping center anchored by Home Depot and Kohls. 10 yrs NNN- leased till 2017.  NOI $387K/yr. with 12% rent bump in the each of 5 yrs options.  $4.842M. 8% cap.  Buyer to assume $4.125M loan at 6% interest fixed till 2017.

5.       Shopping Center in Lisle, IL: 40,650 SF shopping center on a corner lot in stable upper-middle class Chicago suburbs. 100% leased to 12 tenants.  DuPage county with low county taxes.  NOI $380K/yr. $3.975M. 9.58% cap.

6.       Professional Center in San Jose, CA: 57,500 SF multi-tenant 2-story office building on 3.3 acres lot in high income area with easy access to I-880, I-680 and Hwy 101.  90% leased to 9 tenants.  NOI N/A.  $8.6M. Just less than $150/SF.

7.       Dunkin’ Donuts in Mesa, AZ: 2550 SF free-standing Dunkin Donuts remodeled in 2010.  On a outparcel to  Safeway anchored shopping center and across from Frys supermarket in middle class Phoenix suburbs.  10 yrs absolute NNN lease by an operator with 15+ locations.  NOI $68K/yr with 12% rent bump every 5 yrs.  $915K.  7.45% cap.

8.       Shopping Plaza in Mesa, AZ: 80,883 SF shopping center on 6.95 acres lot at a major intersection in affluent (AHI $101K/yr in 1 mile) Phoenix metro.  Anchored by 53,372 SF Bashas’ grocery with 130 locations in AZ.  93% NNN lease to 9 tenants.  Current NOI $606K/yr.  $6.25M. 9.71% cap.  Upside potential when 100% leased.

© Transmercial 2011.

04-29: Wendy's Restaurant, Fresenius, Rite Aid, Apartments, Medical office building, Retail center for sale

The Offer Process of Commercial Properties

After you review the marketing brochure of the property and interested in making an offer, your broker will prepare a Letter of Intent/Interest (LOI) and have you sign it.  The LOI is an unbinding 1-2 page letter stating

·         Purchase price

·         Financing contingency period—normally 50 days, with rate and terms

·         Due diligence (DD) or inspection period, normally 21-30 days and what documents seller will provide

·         When to close escrow, normally 60 days

·         How the closing costs will be split between the parties.

Counter offers, if any will go on using the LOI.  Once the LOI is accepted by both sides, the contract will be drafted with all the details.  After the contract is executed by both buyer and seller, the clock starts ticking. The seller will provide the buyer will all due diligence documents.  The buyer will then visit the property and apply for financing.  If the buyer approves DD, the buyer will proceed to closing the transaction.

1.     Bank-owned Apartments in Las Vegas, NV: 156-units two-story multifamily buildings on 6.33 acres of land with swimming pool & Jacuzzi, courtyard with barbecue area and renovated two-story clubhouse across from Freedom Park. NOI $387K/yr. $4.68M. 8.27% Cap.

2.     Medical Office Building in San Bernardino, CA: 20,608 SF Class- B multi-tenant office building on 1.23 ac corner lot across from Inland Center Mall with easy access to newly expanded I-215. 92% leased. NOI $152K/yr. $2.160M. 7.05% Cap. Upside potential when 100% leased. Just over $100/SF!

3.     Advance Auto Parts in Cincinnati, OH: 10,000 SF retail building constructed in 2003 on 1.13 ac lot in densely populated area. 100% NNN corp leased with 7 yrs remaining. Store with 100% higher than average sales. NOI $165K/yr. $1.968M. 8.4% Cap.

4.     Rite Aid in Gastonia, NC: 10,908 SF Rite Aid Pharmacy on 1.40 acres of land in upper middle-class Charlotte suburbs. 100% absolute NNN corp lease till 2019 with 2% increases every 5 years. NOI $272K/yr. $2.658M. 10.25% Cap.

5.     Fresenius Dialysis Center in Greensboro, NC: 15,529 SF build-to-suit dialysis center near Kindred Hospital Greensboro in growing middle-class area. 100%NNN corp lease till 2021 with annual CPI rent increases. Property in state with legal limitations in competition. NOI $282K/yr. $3.529M. 8% Cap.

6.     Office Building in San Francisco, CA:  rare 26,160 SF Class-B brick/timber office building in financial district and across from Pier 9.  Affluent area with AHI $154K/yr in 1 mile  . 100% leased by Williams-Sonoma, Inc. with soon lease expiration. Full seismic upgrade and new roof.  Excellent opportunity for owner/user. 7.5% Cap. Price Not Disclosed.

7.     Lender-owned Shopping Center in Las Vegas, NV: 32,224 SF recently constructed 19-unit shopping center on 3.9 ac lot in fast growing (914% since 2000) & affluent (AHI $100K/yr) neighborhood. 47.1% NNN leased. NOI $298K/yr. Price “Best Offer”.

8.     Wendy’s in Palm Bay, FL: 2810 SF retail building on 1.03 ac lot across from Big K-mart in Melbourne metro. 15-yrs remaining on 20-yrs absolute NNN corp lease with 4% rent increases every 2-yrs and additional 4% increases in years 15, 25 and 30. Store with $1.1M in sales.  NOI $97K/yr. $1.235M. 7.88% Cap.

9.     Strip Center in Greenville, SC: 9385 SF newly constructed strip center close to Fwy-385. Fast growing middle-class area. 100% NNN leased. NOI $88K/yr. $1.037M. 8.5% Cap.

© Transmercial 2011.

04-28: Twin Peaks, KFC, Marie Callender's Restaurants, CVS Pharmacy, Advance Auto Parts for sale

1.     Twin Peaks Restaurant in Round Rock, TX: 5638 SF franchised restaurant (with 10 locations in TX) on 1.63 ac lot at the intersection of I-35 and I-45.   Shadow-anchored by Wal-Mart Supercenter and Home Depot in Austin metro.  15 yrs NNN lease with 13 yrs remaining.  NOI $172K/yr.  $2.158M. 8% cap.

2.     Shopping Center in Houston, TX: 30,190 SF shopping center on over 2 ac res lot along main corridor with excellent visibility. 73% leased. NOI $144K/yr. $1.850M. 7.83% actual Cap.  Upside potential when 100% leased.

3.     Advance Auto Parts in Spring, TX: 6777 SF retail building on 1.37 ac lot in fast growing Houston metro. 100% NNN leased to national tenant with 11 yrs remaining. NOI $135K/yr. $1.689M. 8% Cap.

4.     Shopping Center in Sacramento, CA: 40,676 SF shopping center on 4.71 ac lot as part of 90,435 SF neighborhood center. Shadow-anchored by Fresh & Easy Grocery.  70+% NNN leased.  Current NOI $466K/yr.  $6.5M.  7.18% cap.  Upside potential when fully leased.

5.     KFC in Wichita Falls, TX: 3200 SF newly-constructed restaurant on .94 ac lot on a pad site to Wal-Mart Supercenter near Hwy-281. New 15-years absolute NNN lease. NOI $84K/yr. $1.265M. 7.5% Cap.

6.     Strip Center in Dallas, TX: 17,882 SF shopping center built in 2002 on 1.76 acres lot.  Shadow-anchored by Super Target with excellent regional/local tenants: T-Mobile, Little Caesars, Payless Shoesource, Game Stop, City Nails and several others. 94% NNN leased. NOI $337K/yr. $3.6M. 9.47% Cap. 

7.     CVS Pharmacy in Daytona Beach, FL: 10,908 SF drugstore with double drive-through across from Publix Supermarket anchored center. 15-yrs remaining on original NNN lease. NOI $290K/yr. $3.895M. 7.45% Cap.

8.     Marie Callender’s Restaurant in Simi Valley, CA: 8400 SF franchised restaurant in high-income area. Surrounded by national tenants such as Costco, Wal-Mart and Home Depot. 100% NNN leased. NOI $192K/yr. $2.5M. 7.7% Cap.

9.     Strip Center in Linden, NJ: 20,000 SF two-tenant strip center on 1 ac lot. 100% NNN leased to Dunkin Donuts and successful night-club. NOI $220K/yr. $1.999M. 10.50% Cap.

© Transmercial 2011.

04-27: Save Mart, Shopping Centers, Marsh, Medical Office building

1.       Save Mart Supermarket in Chowchilla, CA: 46,500 SF supermarket built in 2008 on 4.75 acres lot as the anchored tenant in a larger shopping center in San Joaquin Valley.  20 yrs NNN leased till 2028 to Save Mart, a regional tenant with 241 stores.  NOI $286K/yr with 14.28% rent bump in 2018. $4.1M. 7% cap.

2.       Shopping Center in Sacramento, CA: 40,676 SF 22-unit shopping center on 4.71 acres lot as part of 90,435 SF neighborhood center.  Anchored by AutoZone (included), Fresh & Easy Grocery (not included), O’Reilly auto parts (not included).  70+% NNN leased.  Current NOI $466K/yr.  $6.5M.  7.18% cap.  Strong upside potential when 100% leased.

3.       Shopping Center in Plantation, FL: 57,003 SF shopping center on 7.7 acres corner lot in affluent Fort Lauderdale metro (AHI $108K/yr in 1 mile). Across from 2.38 million SF Seagrass Mills Mall.  100% NNN leased to 4 strong national/regional tenants: Hhgregg Appliances, Mattress X-press, Quarterdeck Restaurant, and Jared Jewelry.  NOI $1.073M. $13.845M. 7.75% cap.

4.       Supermarket in Cincinnati, OH: 32,117 SF retail center on 8.85 acres corner lot in middle-class area.  100% NNN leased till 2026 to Marsh Supermarket, a regional food chain with 98 stores. NOI $380K/yr with 7% rent bump every 5 yrs.  $4.232M. 9% cap.

5.       Shopping Center in Columbus, OH: 21,609 SF shopping center built in 2007 on a prime commercial corridor with easy access to I-270.  Nearly 100% leased.  NOI $233K/yr. $2.995M. 7.8% cap.

6.       Retail Center in Adelanto, CA: 26,857 SF retail center built in2008 on 2.5 acres corner lot in fast growing (120% since 2000) Victorville area. 100% leased to 11 tenants.  NOI $250K/yr. $2.899M. 8.64% cap.  Just $107/SF!

7.       Medical Office Building in Kingwood, TX: 29,162 SF 5-yrs old medical office building on 2.72 acres lot across from 267-bed Kingwood Medical Center in growing & high income Houston Northern suburbs.  100% leased.  NOI $425K/yr. $4.85M. 8.78% cap.

8.       Shopping center in Lake Worth, FL: 27,936 SF upscale shopping center built in 2001 on 2,7 acres lot in fast growing middle class area in West Palm Beach.  100% lease.  NOI$305K/yr. $3.2M. 9.5% cap.

© Transmercial 2011.

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

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

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

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

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

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

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

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

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

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

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

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

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

Welcome new investors from the WSJ.

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

AHI: Avg. Household Income.  National average is about $50+K/yr.

NOI: Net Operating Income.  It’s the income after all expenses (prop taxes, ins., maintenance) paid.

NNN: Triple net lease in which tenants pay taxes, insurance and maintenance expenses.

NNN-: Triple net lease with landlord responsible for roof and structure.  Used by Transmercial only.

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

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

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

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

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

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

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

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

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

© Transmercial 2011.

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

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

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

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

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

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

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

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

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

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

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

© Transmercial 2011.