Best Commercial Properties to Invest in the US

Top 6 Properties 02-24-10

noreply@blogger.com (David V. Tran) — Wed, 10 Mar 2010 22:49:00 +0000

Tahoe Joe’s Steakhouse in Roseville, CA: 7166 SF franchised restaurant built in 2001 on 1.6 acres corner lot near I-80 exit in middle-class Sacramento suburb. 100% NNN corp lease till 2021 by Tahoe Joe’s, a national restaurant chain with over 500 locations. NOI $288K/yr with 2.25% annual rent bump. $3.1M. 9.31% cap.
Walgreens in Brooklyn, NY: brand new 11,120 SF drugstore in a densely-populated New York metro with over 1.5M residents within 5 miles ring. 25 yrs NNN lease. NOI $716K/yr. 10.608M. 6.75% cap.
Holiday Inn Express in Perry, CA: 104-room hotel removed in Dec 2009 on 1.79 acres lot just off I-215 exit in a fast growing city. Avg daily rate of $79. $7.9M.
CVS Pharmacy in Jonesboro, GA: 10,722 SF drug store built in 1997 on .92 acre corner parcel on a busy artery in Atlanta metro. 100% NNN lease with 8 yrs remaining. NOI $213K/yr currently and $219K in 2012. $2.513M. 8.5% cap.
Medical Building in Downers Grove, IL: 19,600 SF medical office building on 1.93 acres lot in upper middle class suburban Chicago with AHI $109K/yr. Near Advocate Good Samaritan Hospital. 100% leased by stable tenants with below market rent. NOI $272K/yr. $3.2M. 8.5% cap.
Apartments in Glendale, AZ: 144-unit gated apartments complex built in 1984 on over 6 acres lot in Phoenix metro. Exterior amenities include barbeque grills, playground, covered parking, sparkling swimming pool, heated spa, central courtyard and access gates. $4.2M. Buyer to assume $3.4M loan at low 5.79% fixed rate till 2018.

© Transmercial 2010. All rights reserved.

Top 9 Properties 02-23-10

noreply@blogger.com (David V. Tran) — Wed, 10 Mar 2010 22:42:00 +0000

NOI: Net Oper Income
AHI: Avg. Household Income

Liquor Store in Dallas, TX: 8000 SF single-tenant retail store on 1.1 acres lot just off I-35E exit in Dallas. 10yrs NNN corp lease from Big Daddys Liquor, a regional tenant with 33 stores in Dallas metro. NOI $108K/yr. with over 11% rent increase in 5 yrs. $1.44M. 7.5% cap.
Apartments in Fresno, CA: 21 unit condo-style apartments as part of 118 unit complex with each unit on a separate parcel. 95% occupied. NOI $93K/yr. $1.2M. 7.74% cap.
Tuffy Auto in Omaha, NE: 3900 SF automotive center built in 2007 on .63 ac pad to a newly constructed Super Target, OfficeMax, Hobby Lobby & Sports Authority. Across the Street from Walmart Supercenter & in upper middle class area with AHI over $109K/yr. 20 yrs NNN corp lease. NOI $111K/yr. $1.369M. 8.15% cap.
Taco Bell in West Columbia, SC: 2334 SF restaurant on an outparcel to a shopping center. 10 yrs absolute NNN lease. NOI $96K/yr. $1.24M. 7.75% cap.
Childcare center in Indianapolis, IN: 8000 SF child care center in a affluent area with AHI over $128K/yr. 100% NNN lease by Goddard School, a regional childcare provider. NOI $134K/yr. $1.675M. 8% cap.
Apartments in Dallas, TX: 111-unit apartments on 3 acres lot in a high income area (AHI $99K/yr). Renovated in 2004. 83% occupied. NOI $213K/yr. $2.5M. 8.54% cap.
Walkin Clinic in Rockford, IL: 3440 SF Walk-in Clinic on .7 acre lot. 10 yrs absolute NNN leased by Physicians Immediate Care, a regional tenant. NOI $61K/yr. $818K. 7.5% cap.
Starbucks & Taco Time in Spokane Valley, WA: 2 free-standing retail properties built in 2005 with combined squarefootage of 4055 SF. 100% NNN leased by Starbucks and Taco Time. NOI $151K/yr. $2.095M. 7.2% cap.
Strip Mall in Cathedral City, CA: 6600 SF 6-unit strip mall on 1/3 acre lot. 100% leased. NOI $126K/yr. $1.26M. 10% cap.

© Transmercial 2010. All rights reserved.

Top 7 Properties 02-22-10

noreply@blogger.com (David V. Tran) — Mon, 08 Mar 2010 23:07:00 +0000

NOI: Net Oper Income
AHI: Avg. Household Income

Walgreens in Arvada, CO: 14,490 SF drug store built in 2008 on 2.8 acres lot in a middle class Denver metro with AHI $74K/yr. 100% NNN leased till 2033. NOI $453K/yr. $6.2M. 7.32% cap.
Checker Auto Parts (O’reillys) in Phoenix, AZ: 7000 SF auto parts store built in 2005 on ¾ acre lot across from 83,000 SF Fry’s supermarket anchored shopping center. 100% absolute NNN lease with 10 yrs left. NOI $128K/yr. $1.775M. 7.25% cap.
Shopping Center in Hickory, NC: 70,756 SF shopping center on over 10 acres lot in a growing city. Anchored by Fresh Air Galaxy Foods and Dollar General. 100% leased. NOI $478K/yr. $4.89M. 9.78% cap.
Italian Restaurant in Avondale, AZ: 6722 SF beautiful restaurant built in 2005 on 1.55 acres lot in front of a neighborhood center anchored by Sprouts Farmers Market, JoAnn Frabrics, Kohls, and Big 5 Sports. Fast growth (129%) middle-class Phoenix metro. 100% long term NNN lease. NOI $128K/yr. with annual rent increase. $1.575M. 8% cap. Note: this is a short sale. Property currently has over $4M loans with 2 lenders.
Michaels in Mountain View, CA: 21,579 SF single tenant retail center on 1.41 acres lot in the middle of Silicon Valley with AHI over $138K/yr. & high barrier to entry. 100% NNN lease by Michael’s Arts & Crafts, a national tenant. NOI $513K/yr now and increased to $564K/yr in Nov 2012. Price reduced from $6.95M to $6.65M. 7.72% cap now and 8.48% in Nov 2012. Buyer to assume $5.25M non-recourse loan at 6.5% fixed rate till 2017.
Christian Brothers Automotive in Roanoke, TX: 4921 SF automotive center built in 2007 on .58 acre lot in a fast growing upper class Dallas suburb with AHI over $150K/yr. Near Home Depot, Wal-mart Supercenter, & Albertsons. 15 yrs absolute NNN lease by a fast growing automotive franchise. NOI $135K/yr. $1.588M. 8.5% cap.
Firestone Automotive Center in Des Plaines, IL: 9200 SF automotive center on 2/3 acre parcel North of O’hare Airport. 100% NNN lease. NOI $133K/yr. $1.78M. 7.5% cap.

© Transmercial 2010. All rights reserved.

Top 6 Properties 02-19-10

noreply@blogger.com (David V. Tran) — Fri, 05 Mar 2010 22:38:00 +0000

Long John Silver’s restaurant in Desoto, TX: 2706 SF franchised restaurant on 1/3 ac next to I35 exit in a fast growing suburban Dallas. 20 yrs absolute NNN lease by an operator with 119 restaurants. NOI $63K/yr with 10% rent bump every 5 yrs. $795K. 8% cap. Great for 1st time investors.
Kroger supermarket in Cincinnati, OH: 54,920 SF grocery store on 4.88 acres lot near I-74 in a middle-class area with AHI $77K/yr. 100% NNN lease by Kroger, the second largest supermarket chain in the US with over 2400 locations and $76 Billion in sales. Tenant spent over $4.3M in improvements in 2004. Store with strong sales of over $559/SF (over $30M/year). NOI $631K/yr. $7.43M. 8.5% cap.
Burger King in Perris, CA: 2800 SF to-be-built restaurant on ½ acre outparcel to a 500,000 SF power center anchored by Home Depot and WinCo Foods. Boom town with 103% pop growth from 2000-2008. 20 yrs absolute NNN lease by an operator with 12 locations. NOI $112K/yr. with 10% rent bump every 5 yrs. $1.4M. 8%. Note: this is not an ordinary transaction. Investor needs $1.4M cash to buy this to-be-built property. Franchisee will construct the building with the fund and spend an extra $300-400K of its money for the restaurant equipments.
Dennys in Gurnee, IL: 5542 SF family restaurant on 1.08 acres lot next to Gurnee Mills Mall in the upper middle class Chicago suburbs (AHI $110K/yr). New 20 yrs NNN lease by an operator with 27 locations (this is the 3rd strongest in sales among 27). NOI $150K/yr. $1.875M. 8% cap.
Advance Auto Parts in Houston, TX: 6127 SF auto part store built in 2008. 15 yrs NNN corp lease. NOI $125K/yr. $1.518M. 8.25% cap.
Macaroni Grill Restaurant in Burlington, MA: 7956 SF franchised Italian restaurant on 2.66 acres lot next to 1,246,000 SF 170-shop Burlington Mall in an affluent (AHI $117K/yr) Boston suburb. 100% NNN lease. NOI $268K/yr. $3.352M. 8% cap.

© Transmercial 2010. All rights reserved.

Top 8 Properties 02-18-10

noreply@blogger.com (David V. Tran) — Thu, 04 Mar 2010 22:50:00 +0000

Burger King in Naperville, IL: 2917 SF restaurant on .57 ac outparcel to a shopping center in a affluent (AHI $129K/yr) Chicago suburb. 100% NNN leased till 2014 by an operator with 48 locations. NOI $120K/yr with 1% annual rent bump. $1.655M. 7.25% cap.
Family Dollar in Miami, FL: 8000 SF new Family Dollar store on .8 acre lot at an intersection of 2 major arteries. 10 yrs NNN corp lease. NOI $169K/yr with 10% rent bump every 5 yrs. $1.987M. 8.5% cap.
Apartments in Fresno, CA: 80-unit apartments complex on 2.9 acres lot in a high income & highly rated Clovis Unified School District. 95% occupied. NOI $236K/yr. $3.2M. 7.18% cap. Just $40K/unit.
Medical Building in Rialto, CA: 34,709 SF medical office building constructed in 1993 on over 3 acres next to hwy 210 in a growing city. 93% leased with low rents. NOI $413K/yr. $5.3M. 8% cap.
Medical Building in Huntington Beach, CA: 58,518 SF 4-story 40-unitmedical building on 2.6 acres lot on the campus Huntington Beach Hospital, a 131 bed facility with over 500 employees and 300 physicians. Excellent demographics: AHI $110K/yr and over 450K residents within 5 miles ring. 95% leased by all medical professionals. NOI $864K/yr. $10.975M. 7.95% cap.
Retail Building in Hempstead, NY: 3000 SF retail center in a densely-populated (over 500K residents) and high income (AHI $107K/yr) New York metro. 100% leased by a Pizzeria and Hair salon that both occupied the center since 1994. NOI $57K/yr. $714K. 8% cap.
Shopping center in Spokane, WA: 55,763 SF shopping center on 6.9 acres anchored by Joann Fabrics, Petco and shadow anchored by Rite Aid. Stable and high income area. 100% leased. NOI $398K/yr. $5.5M. 7.24% cap.
Tunex Automotive center in South Jordan, UT: 5800 SF new automotive center on .59 acre parcel in a fast growing (45%) and wealthy (AHI $99K/yr)Salt Lake City suburb. 10 yrs absolute NNN corp lease by Tunex Automotive, a fast growing franchise with 24 locations in UT. NOI $137K/yr. with 10% rent bump every 5 yrs. $1.768M. 7.75% cap.

© Transmercial 2010. All rights reserved.

Top 8 Properties 02-17-10

noreply@blogger.com (David V. Tran) — Wed, 03 Mar 2010 23:50:00 +0000

Simon Property offered to buy General Growth Properties for $10B: Simon Property, a major malls owner offered to buy General Growth Properties (GGP), another major malls owner who is bankruptcy, for $10 billion (or $9/share) on Tuesday. Per the Wall Street Journal, this offer represents 7.9% cap for all the properties owned by GGP. However, GGP investors want more so its stocks leapt from $9.40/share on Friday to $12.02 after the bid from Simon Group. This means GGP investors wanted to sell GGP at 7.1% cap.

Note from Transmercial: Simon Property probably has to offer at least $12.02/share for GGP. This acquisition may reduce cap rate in commercial properties in the near future.

Medical Office in Tempe, AZ: 24,195 SF medical building on 2.59 acres of land at a hard corner location near Fwy-101/60/202 and I-10. 100% leased by two tenants. NOI $313K/yr. $3.915M. 8% Cap.
Shopping Center in San Diego, CA: 32,494 SF beautiful neighborhood center on 3.8 acres of land consisting of three separate buildings. Anchored by McDonald’s/KFC at densely populated area off of Fwy-805. 97% NNN leased to a diverse mix of tenants. NOI $800K/yr. $9.9M. 8.09% Cap. Buyer to assume $6.423M loan at low 5.98% rate fixed till 2017.
Shopping Center in San Bernardino, CA: 93,129 SF well located shopping center built in 1995 anchored Fiesta Foods Warehouse (with strong sales volumes in excess of $900/SF), a regional grocery chain with 10 locations in Southern CA. 95% NNN leased by national/regional tenants: Fiesta Foods Warehouse, CVS Pharmacy, Burger King, US Postal Service, Little Caesars and Subway. NOI $980K/yr. $11.995M. 8.20% Cap. Just $129/SF! Upside potential.
CVS Pharmacy in Homestead, FL: 14,579 SF free-standing retail building constructed in 2006 on 1.59 acres of parcel in fast growing Miami metro. Long NNN corp lease till 2026. NOI $360K/yr. $4.675M. 7.72% Cap.
On The Border Restaurant in Mira Loma, CA: 7586 SF Mexican Grill restaurant on 1 acre outparcel to Eastvale Gateway Center home to over 55 popular retailers: Target, Best busy, Kohl’s, Sport Chalet, Edwards Theatres, Home Depot and Vons next to I-15. 100% NNN leased. NOI $228K/yr. $3.144M. 7.25% Cap.
Apartments in Dallas, TX: 339-units beautiful well-kept apartment complex with clubhouse facility, pool and exercise room near schools close to I-635/75. NOI $1,109M. $11M. 10.09% Cap.
Strip Center in Cathedral City, CA: 11,550 SF strip center on .76 acre lot anchored by super market with excellent visibility. 100% NNN leased by 11-tenants. NOI $245K/yr. $2.999M. 8.20% Cap.
Shopping Center in Lake in the Hills, IL: 24,593 SF attractive shopping center adjacent to La Petite Academy with excellent tenant mix: Alfredo’s Pizza, Cleaners, H&R Block, Bistro Wasabi, Eye-Care, Spa, Insurance and more in fast growing (75.92%) wealthy (AHI $93K/yr.) Chicago suburbs. 90% leased. NOI $377K/yr. $5M. 7.55% Cap.

Top 9 Properties 02-16-10

noreply@blogger.com (David V. Tran) — Tue, 02 Mar 2010 23:05:00 +0000

Shopping center in Granite City, IL: 106,791 SF neighborhood center on 9.8 acres lot in St. Louis metro. Anchored by several national and regional tenants: Regions Bank, Save-A-Lot Grocery, Glik's Fashion, Dollar General and Advanced Auto Parts. 99% leased. NOI $535K/yr. $5.35M. 10% cap.
Shopping Center in Riverdale, GA: 69,480 SF shopping center on 9.66 acres corner lot in a fast growing (39%) middle class (AHI $70K/yr) Atlanta metro. 98% leased. NOI $534K/yr. $5.35M. 10% cap.
Walgreens in Douglasville, GA: 13,965 SF new drug store on 1.87 acres lot adjacent to Kroger Grocery Anchored Center in a high-growth (47%) high income (AHI $86K/yr) Atlanta suburbs. 100% NNN lease. NOI $400K/yr. $5.553M. 7.5% cap.
Walgreens in Surprise, AZ: 13,905 SF drug store built in 1999 on 2 acres corner lot in a booming (89%) and good income (AHI $69K/yr) Phoenix metro. 100% NN lease with 9 yrs remaining. NOI $264K/yr. $3.206M. 8.25% cap.
Apartments in Sacramento, CA: 14 2-br-unit bank-owned apartments in a desirable area. 79% occupied. $999K.
Walgreens in Mesa, AZ: 13,905 SF pharmacy built in 1998 on 1.92 acres corner lot in a stable middle class Phoenix suburb (AHI $85K/yr) with over 250K residents within 5 miles ring. 100% NN lease with 8 yrs remaining. NOI $254K/yr. $2.994M. 8.5% cap.
Childcare center in Flossmoor, IL: 10,000 SF brand new childcare center on 1.75 acres lot in an affluent (AHI $115K/yr) Chicago suburb. 15 yrs NN lease from Children of America, a regional childcare provider with 32 schools in 8 states. NOI $240K/yr with 1.25% annual rent bump from 6-th yr. $2.8M. 8.5% cap. Seller will provide $2.1M financing.
Restaurant in Atlanta, GA: 3372 SF trendy & popular Holy Taco restaurant. 100% NNN lease with 6 yrs remaining. NOI $82K/yr. $919K. 9% cap.
Apartments in Highland, CA: 24-unit bank-owned 3-br townhouse apartments with large 1182 SF units in Southern CA. $1.65M.

© Copyright Transmercial 2010. All rights reserved.

Top 6 Properties 02-12-10

noreply@blogger.com (David V. Tran) — Mon, 01 Mar 2010 21:16:00 +0000

Retail center in Riverdale, UT: 5000 SF single-tenant retail enter on 2/3 acres outparcel to Home Depot just off I-84 exit North of Salt Lake City metro. Prime commercial area surrounded by Super Target, Wal-mart Supercenter, Sam's Club, PetSmart, Sportsman's Warehouse, Home Depot, Sports Authority, Dollar Tree, FYI Superstore, and Office Max. 10 yrs NNN lease by Wallpaper Warehouse Blinds & Paint, regional tenant with 6 locations. NOI $100K/yr. $1.053M. 9.5% cap.
Tire Kingdom in Orange Park, FL: 5760 SF automotive center built in 1994 in a good income Jacksonville suburb. 100% NNN leased by Tire Kingdom, a regional chain. NOI $98K/yr. $1.2M. 8.3% cap. Recession insensitive tenant.
Sonic Restaurant in Orem, UT: 1796 SF restaurant built in 2000 on over 1 acre lot in a good income and stable Salt Lake City metro. New 20 yrs absolute NNN lease from an operator with 27 locations. NOI $100K/yr. with 10% rent bump every 5 yrs. $1.26M. 8% cap.
Dollar General Store in Acworth, GA: 9375 SF retail center on 1.52 acres lot in a fast growing and high income Atlanta metro. New 10 yrs NNN corp lease. NOI $82K/yr. $1.052M. 7.8% cap. Recession resistant tenant.
Advance Auto Parts in Lawrenceville, GA: 7000 SF retail center on 1.61 acres lot in fast growing and high income (AHI $82K/yr) Atlanta suburbs. 15 yrs NNN corp lease with 12 yrs remaining. NOI $140K/yr. $1.792M. 7.8% cap.
Ryan’s Steakhouse in Hiram, GA: 10,136 SF restaurant on 1.82 acres lot in a heavily commercial area in fast growing Atlanta metro (62%). across the street from Wal-mart and adjacent to a large strip center anchored by Kroger supermarket and Kmart. Long term NNN lease by Ryan’s Steakhouse, a regional chain with restaurants in 23 states. NOI $193K/yr. $1.93M. 10% cap.

© Transmercial 2010. All rights reserved.

Top 4 Properties 02-11-10

noreply@blogger.com (David V. Tran) — Fri, 26 Feb 2010 22:43:00 +0000

Walgreens in Elk Grove, CA: 14,905 SF drug store built in 2004 on 2.47 acres corner lot in an upper income Sacramento suburb with AHI over $93K/yr within 1 mile ring. 100% absolute NNN lease with 14 yrs remaining. NOI $345K/yr. $4.93M. 7% cap. Buyer to assume $3.356M non-recourse loan (68% LTV) at low 5.54% fixed till June 2015.
Apartments in Sacramento, CA: 17-unit bank-owned apartments on ¾ acre gated lot with 12 2-br units. 50% occupied. $725K.
Denny’s restaurant in Palmdale, CA: 4149 SF restaurant built in 2002 on .6 acre outparcel to Lowes and Wal-mart. 20 yrs NNN lease with 18 yrs remaining. NOI $155K/yr. $1.97M. 7.77% cap. Store with strong sales revenue of over $2.2M/yr., i.e. very profitable.
Walgreens in Selma, CA: 14,550 SF new drug store on 1.65 acres lot just off Hwy-99 in a fast growing town in San Joaquin Valley. 25 yrs absolute NNN lease. NOI $470K/yr. $6.266M. 7.5% cap.

© Transmercial 2010. All rights reserved.

Top 8 Properties 02-10-10

noreply@blogger.com (David V. Tran) — Thu, 25 Feb 2010 23:08:00 +0000

Arby’s in Clinton, UT: 3200 SF fast-food restaurant as part of a new shopping center anchored by Lowe’s, Walgreens and Kohl’s department store in a high-growth (90%) city South of Salt Lake City. New 20 yrs absolute NNN lease. NOI $162K/yr with 10% rent bump every 5 yrs. $1.965M. 8.25% cap.
Apartments in Redwood City, CA: 18-unit apartments in the middle of affluent Silicon Valley (AHI $150K/yr). 100% leased. Gross income of over $300K/yr. $3.5M.
Sports Authority in Lake Saint Louis, MO: 42,081 SF new single-tenant retail building sits directly between Wal-Mart and Lowe's in a major power center in a upper-middle class suburb of Saint Louis (AHI $107K/yr). 100% NNN corp lease with 9 yrs remaining. NOI $462K/yr. $5.29M. 8.75% cap.
2 Jiffy Lubes in Chicago, IL: 2 Jiffy Lubes (1400 SF and 1795 SF) in Chicago metro. 100% NNN corp lease. Combined NOI $137K/yr with 1.25% annual rent bump. $1.527M for both. 9% cap.
Kindercare Childcare center in Moreno, CA: 7095 SF childcare center on 1.09 acres lot in a growing area. 100% NNN leased by KinderCare, a national childcare provider that has been here since 1987. NOI $138K/yr. $1.458M. 9.5% cap.
Shopping Plaza in Orlando, FL: 20,200 SF lender-owned retail center in a fast growing area. Appraised at $3.29M. 78% leased. $1.75M. Lender will finance with $750K down.
Microtel Inn & Suites in Morgan Hill, CA: 60-unit hotel built in 1999 with Hwy 101 visibility in a wealthy Silicon Valley suburb (AHI $129K/yr). Price reduced from $3.295M to $2.995M.
Apartments in Oakland, CA: 29-unit apartments complex in a densely populated SF Bay Area. 90% occupied. Gross income $273K/yr. Price reduced from $1.66M to $1.45M. 10.5% cap.

Indexes Commercial Real Estate Investors Should Know
By David V. Tran & Fred Rivera.

Consumer Price Index (CPI): It is the measure of inflation as experienced by urban consumers. CPI is more well-known among senior citizens as their Social Security benefit checks are adjusted to the CPI in January to keep pace with inflation. While most commercial real estate leases have fixed annual rent increases, e.g. 2%, some have annual rent increases based on the CPI. Therefore, knowing what CPI is and how to calculate it is an important factor in making a sound investment decision.

The US Department of Labor, Bureau of Labor Statistics collects data about costs of various things from 87 urban areas in the US. The data is published each month and available from the website http://stats.bls.gov. The CPI varies for different regions: Northeast urban, Midwest urban, South urban, West urban, US city average, as well as 14 major metro areas. So, knowing which CPI stated in the lease will enable an investor to correctly calculate the rent increase. For example, the CPI for US city average was 190.9 in Oct 2004 and 199.2 in October 2005. This reflects a 4.3% increase for the above period or in another words, the inflation was 4.3% during that period. So if the rent from October 2004 to September 2005 was $1000/month and the lease has CPI-based rent increase, then the new rent from October 2005 to September 2006 would be $1043 a month or 4.3% higher. The CPI fluctuates from time to time. When there is no inflation, the CPI is zero and thus there is no rent increase. It could also be negative during a deflationary period which in turn will translate to rent reduction for the tenant.

Cost of Living Index (COLI): COLI is a number that indicates the relative cost of living in various cities in the US with 100 being the average. Employers often increase an employee’s salary when they relocate the employee to a city with higher COLI. The COLI is weighted according to percent of income spent on groceries (12.49%), housing (29.84%), utilities (9.94%), transportation (10.73%), healthcare (4.07%) and others (32.93%). You could obtain the indexes for various cities from http://www.infoplease.com/business/economy/cost-living-index-us-cities.html. The website www.bankrate.com has a COLI comparison calculator for over 300 US cities which provides the costs of 60 various items in each city. In 2007, the COLI for San Francisco was 169.5 while Dallas was only 91.5. This means you would have had to earn 85% (169.5 minus 91.5 then divide by 91.5) more in San Francisco to maintain the same lifestyle in Dallas. Most of the costs will be higher in San Francisco, e.g. housing is 285% higher (housing index is 278.3 in San Francisco and 72.3 in Dallas), some expenses may be lower, e.g. utilities are 11% cheaper in San Francisco compared to Dallas (utilities index is 88.1 in San Francisco and 98.9 in Dallas).

An investor often reviews demographic data of a city where the property is located and generally prefers to invest in areas that are more affluent. However, looking at data of the Average Household Income (AHI) alone does not give you the whole picture. Let’s assume you are an investor in the San Francisco Bay Area and you want to see how the AHI in Plano (Dallas metro) is compared with San Francisco income. You will have a better perspective if you adjust the AHI in Plano to the Cost of Living Index and then compare with the AHI in the San Francisco Bay Area. For example if the AHI is $100K a year in Plano, it would be equivalent to $185,000 in San Francisco. With this adjusted income, you know that Plano is an upper middle class area.

© Transmercial 2010. All rights reserved.

Top 10 Properties 02-09-10

noreply@blogger.com (David V. Tran) — Wed, 24 Feb 2010 23:02:00 +0000

Apartments in McAllen, TX: 88-units beautiful apartment complex on 3.90 acres of land with many amenities: tennis court, basketball court, picnic area with gazebo, playground, and swimming pool. Close to shopping centers and in affluent (AHI $109K/yr.) area. 95% leased. NOI $280K/yr. $5M. 8% Cap.
Retail Center in Brentwood, CA: 7969 SF four-years old retail center on over one acre lot in a booming (66% growth) middle class (AHI of $87K/yr) San Fran Bay Area. 100% NNN leased. NOI $208K/yr. $2.675M. 7.79% Cap. Seller will carry 70% LTV loan at 6% interest.
Shopping Center in Arlington, TX: beautiful upscale Class-A trophy shopping center built in 2007 just off of I-360 in high income Dallas metro. 96% leased by local/national tenants. 8% Cap. $197/SF. Price not disclosed.
Office Building in San Francisco, CA: 11,747 SF office building renovated in 1984 with several recent upgrades at busy corner location. 93% leased by multiple tenants. 7% Cap. Price not disclosed.
Shopping Center in Lombard, IL: 124,627 SF well located, recently remodeled shopping center on 9.84 acres of land anchored by Hobby Lobby and Dollar General in middle-class Chicago suburbs. 100% NNN leased. NOI $1.065M. $11.835M. 9% Cap.
Shopping Center in Jonesboro, GA: 16,554 SF shopping center on 2.89 acres of parcel adjacent to Kroger with great access to I-75. 100% NNN leased by long term tenants: Church’s Chicken, Metro PCS mobile, tax service and more. NOI $198K/yr. price reduced to $2.090M. 10.22% Cap.
Office Building in San Jose, CA: 6520 SF 2-stories vacant office building with excellent visibility along the prestigious Saratoga Ave. $1.595M. Excellent for owner user!
Shopping Center in Milpitas, CA: 48,468 SF well-maintained shopping center on 4.30 acres of land anchored by Starbucks, Subway and H&R Block at highly visible location off of Fwy-680. Excellent demographics with AHI over $125K/yr within 1 mile ring. NOI $1.218M. $16.500M. 7.5% Cap.
Shopping Center Hialeah, FL: beautiful 23,260 SF newly constructed shopping center on 1.75 acres of land near Palmetto General Hospital off of Expw-826 in North Miami. NOI $510K/yr. $6.8M. 7.5% Cap.
KFC in Norcross, GA: 2243 SF free-standing retail building in fast growing Atlanta metro. Absolute NNN leased till 2024 by strong multi-unit franchisee. 10% rent increases every 5-years. NOI $73K/yr. $800K. 9.24% Cap. Excellent for 1st time investor.

© Transmercial 2010. All rights reserved.

Top 10 Properties 02-08-10

noreply@blogger.com (David V. Tran) — Tue, 23 Feb 2010 23:47:00 +0000

AHI: Avg Household Income
NOI: Net Oper Income

Walgreens in Cape Coral, FL: 14,820 SF brand new drugstore on 1.54 acres parcel next to Publix Supermarket anchored shopping center in Fort Myers area. 25 yrs NNN lease. NOI $348K/yr. $4.8M. 7.25% cap.
Advance Auto Parts in Cheyenne, WY: 7000 SF auto parts store built in 2008 on ¾ acre lot. 15 yrs NNN lease. NOI $128K/yr. $1.602M. 8% cap.
Strip Center in Hayward, CA: 5096 SF strip mall built in 2004 on .43 acre lot on a major artery in high income San Fran Bay Area. 100% NNN leased by 5 tenants. NOI $157K/yr. $2.15M. 7.3% cap.
Starbucks Coffee in Little Rock, AR: 1750 SF Starbucks coffee built in 2006 on ½ acre lot. 100% NN lease till 2017 with no termination clause. NOI $83K/yr. with 10% rent bump in 2012. $956K. 8.75% cap.
Goodyear Just Tires Auto in Apex, NC: 7600 SF automotive center built in 2007 on .9 acre outparcel to a center anchored by Super Target and Lowes in a high-growth (74% growth) and high-income (AHI $92K/yr) Raleigh metro. 100% NNN lease with 12 yrs remaining. NOI $216K/yr. $2.7M. 8% cap.
Shopping center in Glendale, AZ: 22,280 SF neighborhood center shadow anchored by Albertsons Supermarket in a wealthy (AHI $118K/yr) city in Phoenix metro. Next to Loop 101 exit. 100% NNN lease. NOI $524K/yr. $5.995M. 8.75% cap.
Burger King in Corpus Christi, TX: 3000 SF restaurant on 1 acre lot. New 20 yrs absolute NNN lease by a franchisee with 37 locations. NOI $110K/yr. with 1% annual rent bump. $1.375M. 8% cap.
Shopping Plaza in Bakersfield, CA: 32,897 SF bank-owned shopping plaza built in 2006 on 3 acres lot. Anchored by a 15,555 grocery store. Once appraised over $6M. $1.995M.
Walgreens in Tucson, AZ: 13,905 SF drug store built in 1998 on 2.17 acres corner lot across from Northwest Medical Center in a fast growing area. 100% NNN lease with 8 yrs remaining. NOI $322K/yr. $3.8M. 8.48% cap.
Dollar General in Pueblo CO: 9100 SF brand new Dollar General store. 10 yrs modified NNN lease. NOI $106K/yr. $1.324M. 8% cap.

Sales Activities:

1. Office building in Colleyville, TX: 4415 SF, 855K. In contract.
2. Walgreens in West Palm Beach, FL: $4.95M. In contract.
3. Staples in Reno, NV: 18,000 SF. 7.73% cap. Closed escrow.
4. Big Lots in Munhall, PA: $3.2N. In contract.
5. Dicks Sporting Goods in Irving, TX: 55,000 SF. 9% cap. Closed escrow.
6. Retail center in Fredericksburg, VA: 11,400 SF. 3.874M. In contract.

© Transmercial 2010. All rights reserved.

Top 7 Properties 02-05-10

noreply@blogger.com (David V. Tran) — Tue, 23 Feb 2010 00:09:00 +0000

Another sign of economy is in recovery: unemployment rate drops to 9.7%. click here to see why it’s a good time to invest.

O’Reilly Auto in Decatur, GA: one-year old 6800 SF free-standing retail building on 1.43 acres of parcel at major retail artery in fast growing Atlanta metro. Long NNN corp lease with rent increases. NOI $ 110K/yr. $1.375M. 8% Cap.
Medical Office Building in Aurora, CO: 32,180 SF 3-stories recently renovated medical building on 1.63 acres of land just one block from Heath One Medical Center off of I-225 in Denver metro. Anchored by a VA clinic. 91% leased to a great mix of tenants. NOI $418K/yr. $4.7M. 8.91% Cap.
Apartments in San Diego, CA: 22-units apartment complex at a densely-populated area with new Spanish tile mansard roof. 100% leased. NOI $133K/yr. $1.858M. 7.20% Cap.
3-Jiffy Lube’s in CA:
---Concord, CA: 4170 SF recently renovated retail building on .36 acre pad. New 10-years absolute NNN corp lease with 2½% annual rent increases. NOI $119K/yr. $1.998M. 6% Cap.
---San Mateo, CA: 4060 SF newly renovated retail building along main retail corridor near Bay Meadows Racecourse/Fwy-92. 10-years absolute NNN corp lease with 2½% annual rent increases. NOI $95K/yr. $1.590M. 6% Cap.
---Castro Valley, CA: 4170 SF newly-renovated retail building on .28 acre lot conveniently located at busy signalized intersection off of Fwy-580. 10-years absolute NNN corp lease with 2½% annual rent increases. NOI $64K/yr. $1.077M. 6% Cap.
Shopping Center in Athens, GA: 210,969 SF shopping center built in 1990 on 22 acres of land. Anchored by Goodwill & across from Georgia Square Mall at heavily traveled thoroughfares. NOI $1.115M. $6.5M. 8.49% Actual Cap. Upside Potential.
Indio Security Self Storage in Indio, CA: 92,300 SF storage facility on 5.71 acres of land with numerous amenities including perimeter beam alarm system, gated entry, video surveillance, RV parking, and perimeter fencing. NOI $370K/yr. $4.625M. 8% Cap.
Strip Center in Chicago, IL: 10,400 SF strip center built in 1993 on .59 acre lot with great tenant mix: Dollar Way Plus, Pizza, Los Picosas, Team Doctors, Insure One, Subway, Laundromat and Gintaras Cepanas JD. 100% leased. NOI $231K/yr. $2.685M. 8.60% Cap.

© Transmercial 2010. All rights reserved.

Top 6 Properties 02-04-10

noreply@blogger.com (David V. Tran) — Fri, 19 Feb 2010 23:05:00 +0000

Apartments in North Hills, CA: 10-units well-maintained apartment complex with many recent upgrades. 100% leased. NOI $83K/yr. $1.150M. 7.26% Cap.
Walgreens Pharmacy in Corinth, TX: 13,650 SF pharmacy built in 2003 across from Wal-Mart Supercenter in affluent (AHI $104K/yr.) Dallas suburbs. Long absolute NNN leased. NOI $330K/yr. $4.409M. 7.5% Cap.
Office Building in Temecula, CA: 28,353 SF two-story single-tenant office buildings on 1.80 acres of land conveniently located near I-15. 100% leased to Mt. San Jacinto Community College with options to renew. NOI $548K/yr. $5.750M. 9.54% Cap.
Shopping Center in Houston, TX: 82,732 SF mature shopping center on over 7 acres of land at hard corner location along I-45. 84% leased. NOI $756K/yr. $7.4M. 10.22% Actual Cap. Upside Potential.
Strip Center in Long Beach, CA: 5823 SF strip center in well populated area at busy corner location. 100% NNN leased by strong tenants: Wells Fargo, Hawaiian BBQ, Jamba Juice and Red Brick Pizza. NOI $279K/yr. $3.6M. 7.77% Cap.
Shopping Center in Bakersfield, CA: 11,915 SF mature well located shopping center on over one acre lot near Fwy-210. NOI $79K/yr. $988K. 7% Cap.

© Transmercial 2010. All rights reserved.

Top 8 Properties 02-03-10

noreply@blogger.com (David V. Tran) — Fri, 19 Feb 2010 00:03:00 +0000

Strip Center in Humble, TX: 10,510 SF newly-constructed attractive strip center on over one acre lot in fast growing middle-class Houston suburbs. Across from a Supermarket. 100% leased by 9 tenants: State Farm, Goodwill Industries, Jackson Hewitt, Verizon Wireless, dental office, Nail salon, hair salon, Optometry and Baskin Robbins. NOI $239K/yr. $2.815M. 8.5% Cap.
Surgical Center in Bedford, TX: one-year old 15,332 SF single-tenant best-in-class surgical center on 1.5 acres of land adjacent to a 30-acre healthcare facility in Dallas metro. 15-yrs absolute NNN corp lease by the Brown Hand Center, the industry leader in treating carpel tunnel syndrome. NOI $605K/yr with 1.5% annual rent increases. $6.923M. 8.75% cap.
Tuffy Auto in Omaha, NE: 3900 SF recently constructed retail building on .63 acre pad across from Wal-Mart Supercenter. 20-years corp lease with rent escalations. Tenant operates 235 locations. NOI $111K/yr. $1.369M. 8.15% Cap.
Office Building in Woodridge, IL: 51,579 SF Class-A office building constructed in 2000 on 3.76 acres of parcel in well off area in Chicago metro (AHI $93K/yr) with easy access to I-355. 91% leased with one vacant unit. NOI $589K/yr. $6.150M. 9.58% Cap.
Shopping Center in Houston, TX: 58,460 SF eye-catching shopping center built in 2002 with I-45 frontage in high-growth area. 74% leased with great tenant mix: Budget Rent-A-Car, Slick Willies Family Pool Hall, Wings N More and Tokyohana. NOI $824K/yr. $9.1M. 9.06% Cap.
Apartments in Garland, TX: 59-units fully renovated 5-buildings 2-story apartment complex on 2.30 acres of land across from new rec center in Dallas metro. 93% leased. NOI $193K/yr. $1.960M. 9.87% Cap.
Medical Office in Snellville, GA: 10,000 SF beautiful multi-tenant medical building on 1.44 acres of land adjacent to 188-bed acute care Emory Eastside Medical Center in an affluent Atlanta metro with AHI over $106K/yr. 100% NNN leased by 4 medical tenants. NOI $152K/yr. $1.790M. 8.5% Cap.
Apartments in Vacaville, CA: 6-units newly constructed apartment building on ¼ ac lot in high income area. 100% leased. NOI $61K/yr. $825K. 7.38% Cap.

© Transmercial 2010. All rights reserved.

Top 6 Properties 02-02-10

noreply@blogger.com (David V. Tran) — Thu, 18 Feb 2010 00:18:00 +0000

Walgreens in El Segundo, CA: 13,650 SF drug store completed in 2007 on 1.2 acres lot with rare 3 points of access from 3 different roads. Irreplaceable location in a wealthy coastal city in Southern CA just South of LAX with AHI over $105K/yr. 100% NNN lease with 22 yrs remaining. NOI $595K/yr. $9.915M. 6% cap.
Arby’s in Omaha, NE: 2879 SF 8-yr old franchised restaurant on 2/3 ac outparcel to Home Depot in a city with low 5% unemployment rate and home of Warren Buffett. New 20 yrs NNN lease by an operator with 19 stores. NOI $93K/yr. with 8% rent increase every 5 yrs. $1.094M. 8.5% cap.
Office Building in Sunnyvale, CA: 34,483 SF Office/industrial building on 2.41 acres lot in the heart of Silicon Valley. New 5 yrs NNN lease by Fujitsu Components America, a national credit tenant. Tenant has been at this location since 1996. NOI $303K/yr with annual rent bump. Rent below market at $0.77/SF means tenant has high incentive to stay. $3.789M. 8% cap.
Office Building in Neptune Beach, FL: 5600 SF class A office building on 1/3 ac lot with great ocean and city view in a wealthy Jacksonville metro with AHI over $96K/yr. 100% leased. NOI $150K/yr. $1.499M. 10% cap.
Shopping Center in los Angeles, CA: 34,179 SF 2-story retail center on 1.42 acres lot in a densely populated area with over 1.25 Million residents within 5 miles. 100% NNN leased by 2 national recession-resistant tenants: Ross and Dollar Tree. NOI $899K/yr. $11.575M. 7.77% cap.
Medical Office Building in Las Vegas, NV: 44,100 SF class-B medical office building on 2.35 acres lot next to Desert Springs Hospital, a 286-bed acute care facility. 98% leased with 86% space occupied by national tenants. NOI $750K/yr. $8.75M. 8.6% cap. Buyer to assume low-interest loan with 30% down.

© Transmercial 2010. All rights reserved.

Top 8 Properties 02-01-10

noreply@blogger.com (David V. Tran) — Wed, 17 Feb 2010 00:12:00 +0000

Automotive center in Surprise, AZ: 25,800 SF center on 1.68 acres parcel in a fast growing (47%) Phoenix metro. Anchored by Firestone. 88% leased. NOI $142K/yr. $1.5M. 9.5% cap.
Buffalo Wild Wing in San Antonio, TX: 7211 SF brand new franchised restaurant on 2.09 acres outparcel to Lowes. Next to South Park Mall with visibility from I-35. 15 yrs absolute NNN lease. NOI $236K/yr with 10% rent bump every 5 yrs. $2.949M. 8% cap.
AppleBee’s in Mesa, AZ: 5934 SF franchised restaurant built in 1998 on a corner lot in Phoenix metro. New 15 yrs absolute NNN lease from an experienced operator with 90 locations. NOI $213K/yr. $2.509M. 8.5% cap.
Strip Center in Garden Grove, CA: 7052 SF multi-tenant strip center on a corner lot on the busy Garden Grove Blvd. in a strong income (AHI $77K/yr) Orange county. 100% leased with most tenants occupied for over 10 yrs. NOI $117K/yr. $1.95M. 6% cap.
MRI medical center in Montgomery, AL: 4293 SF single-tenant 10-yrs old medical building next to 150-bed acute care Baptist Medical Center East. Growing & high income area. 100% NNN corp lease with 7 yrs remaining from MQ Associates, Inc., who Operate 103 Diagnostic Imaging Centers. NOI $98K/yr with CPI-based rent increase. $1.161M. 8.44% cap.
Walgreens in North Fort Myers, FL: 15,930 SF drug store on 2.69 acres corner lot. 100% NNN lease with 7 yrs remaining. NOI $350K/yr. $4.268M. 8.2% cap.
Shopping Center in Morrow, GA: 117,081 SF multi-tenant shopping center on a major artery to Southlake Mall in Atlanta metro. Anchored by K&G Fashion Superstore, a regional tenant with multiple locations. 95% leased. NOI $649K/yr. $6.6M. 9.85% cap.
Arbys in Colorado Springs, CO: 3246 SF fast-food restaurant built in 2005 on .83 ac outparcel to King Soupers Grocery. Excellent demographics: fast growing (102%) and high income (AHI $77K/yr). 15 yrs absolute NNN lease by the largest Arby’s franchisee with 260 locations. NOI $129K/yr with 7.5% rent bump every 5 yrs. $1.7M. 7.59% cap.

© Transmercial 2010. All rights reserved.

Top 8 Properties 01-29-10

noreply@blogger.com (David V. Tran) — Fri, 12 Feb 2010 22:53:00 +0000

Strong evidence of economy in recovery phase: economy grew 5.7% in last quarter. Click here to see why it’s a best time to buy/invest now.

AHI: Avg Household income
NOI: Net Oper Income

Shopping Center in Humble, TX: 91,078 SF nice-looking shopping center on 4.73 acres of land across from 1.1 mil SF Deerbrook Mall with exceptional visibility to Fwy-59 in Houston metro. 94% leased by well-established tenants. 8.75% Cap. Buyer to assume $7.250M at below market rate of 5.97% interest rate.
Multifamily Building in Orange, CA: well-kept 10-units apartment building with numerous recent upgrades. Conveniently located near schools/parks/restaurants and more in a middle-class area with AHI over 83K/yr. NOI $85K/yr. $1.195M. 7.12% Cap.
Apartments Complex in Houston, TX: 3-stories 117-units Class-B apartments constructed in 1984 on 4.5 acres of parcel near Hwy-59. No deferred maintenance. 90% leased. NOI $494K/yr. $4.8M. 10.30% Cap.
Mimi’s Café in Montgomery, AL: 7230 SF recently constructed single-tenant restaurant on 1.22 acres of land adjacent to 250,000 SF Shoppes at Eastchase in an affluent (AHI $105K/yr.) neighborhood. 20-years NNN copr ground lease (buyer owns the land). NOI $125K/yr. $1.612M. 7.75% Cap.
Public Storage in Seabrook, TX: 97,669 SF well-performing storage facility on 5.73 acres of land along Hwy-146 in fast growing and upper middle-class Houston suburbs (AHI $98K/yr). 91% leased. NOI $541K/yr. $5.950M. 9.06% Cap.
Walgreen’s Pharmacy in Coral Springs, FL: 16,161 SF Walgreen’s with drive-thru retail building on 1.92 acres of land at signalized main retail corridor off of Expy-869. Wealthy area with AHI of $114K/yr. 100% NNN leased with 7 yrs remaining. NOI $237K/yr. $3.131M. 7.6% Cap.
Medical Office in Columbia, SC: 4200 SF recently constructed medical office on 1.92 acres of land located off of I-20. 100% NNN leased till 2020 by strong operator with CPI rent increases every 5-yrars. NOI $90K/yr. $1.064M. 8.5% Cap.
Advance Auto Parts in Hoover, AL: 6000 SF single-tenant retail building at highly visible location in an affluent (AHI $126K/yr.) Birmingham suburbs. Long NNN corp lease. NOI $138K/yr. $1.791M. 7.75% cap.

© Transmercial 2010. All rights reserved.

Top 5 Properties 01-28-10

noreply@blogger.com (David V. Tran) — Fri, 12 Feb 2010 00:10:00 +0000

Retail Center in Pearland, TX: 10,400 SF recently constructed shopping center on over one acre lot shadow-anchored by Wal-Mart with national credit tenants: Payless, Verizon, Sally Beauty and CATO fashion. Fast growing Houston metro. 92.43% NNN leased. NOI $174K/yr. $1.950M. 8.93% Cap.
Shopping Center in San Antonio, TX: 32,567 SF shopping center constructed in 2007 on 3.32 acres of land in growing (74.66%) well-off (AHI $101K/yr) neighborhood ideally located on US Hyw-281. 100% NNN leased by nine tenants. NOI $807K/yr. $8.5M. 9% Cap.
Multifamily Building in Spring Valley, CA: 15-units 2-stories apartment complex with spacious one/two bedroom units near I-125. NOI $92K/yr. $1.260M. 7.36% Cap.
Strip Center in Wilmington, CA: 6500 SF recently renovated strip center on .43 acre lot at major signalized intersection. 100% NNN leased. NOI $191K/yr. $2.285M. 8.32% Cap.

CPI & COLI -- Indexes Commercial Real Estate Investors Should Know

noreply@blogger.com (David V. Tran) — Fri, 12 Feb 2010 00:02:00 +0000

By David V. Tran & Fred Rivera.

Consumer Price Index (CPI): It is the measure of inflation as experienced by urban consumers. CPI is more well-known among senior citizens as their Social Security benefit checks are adjusted to the CPI in January to keep pace with inflation. While most commercial real estate leases have fixed annual rent increases, e.g. 2%, some have annual rent increases based on the CPI. Therefore, knowing what CPI is and how to calculate it is an important factor in making a sound investment decision.

The US Department of Labor, Bureau of Labor Statistics collects data about costs of various things from 87 urban areas in the US. The data is published each month and available from the website http://stats.bls.gov. The CPI varies for different regions: Northeast urban, Midwest urban, South urban, West urban, US city average, as well as 14 major metro areas. So, knowing which CPI stated in the lease will enable an investor to correctly calculate the rent increase. For example, the CPI for US city average was 190.9 in Oct 2004 and 199.2 in October 2005. This reflects a 4.3% increase for the above period or in another words, the inflation was 4.3% during that period. So if the rent from October 2004 to September 2005 was $1000/month and the lease has CPI-based rent increase, then the new rent from October 2005 to September 2006 would be $1043 a month or 4.3% higher. The CPI fluctuates from time to time. When there is no inflation, the CPI is zero and thus there is no rent increase. It could also be negative during a deflationary period which in turn will translate to rent reduction for the tenant.

Cost of Living Index (COLI): COLI is a number that indicates the relative cost of living in various cities in the US with 100 being the average. Employers often increase an employee’s salary when they relocate the employee to a city with higher COLI. The COLI is weighted according to percent of income spent on groceries (12.49%), housing (29.84%), utilities (9.94%), transportation (10.73%), healthcare (4.07%) and others (32.93%). You could obtain the indexes for various cities from http://www.infoplease.com/business/economy/cost-living-index-us-cities.html. The website www.bankrate.com has a COLI comparison calculator for over 300 US cities which provides the costs of 60 various items in each city. In 2007, the COLI for San Francisco was 169.5 while Dallas was only 91.5. This means you would have had to earn 85% (169.5 minus 91.5 then divide by 91.5) more in San Francisco to maintain the same lifestyle in Dallas. Most of the costs will be higher in San Francisco, e.g. housing is 285% higher (housing index is 278.3 in San Francisco and 72.3 in Dallas), some expenses may be lower, e.g. utilities are 11% cheaper in San Francisco compared to Dallas (utilities index is 88.1 in San Francisco and 98.9 in Dallas).

An investor often reviews demographic data of a city where the property is located and generally prefers to invest in areas that are more affluent. However, looking at data of the Average Household Income (AHI) alone does not give you the whole picture. Let’s assume you are an investor in the San Francisco Bay Area and you want to see how the AHI in Plano (Dallas metro) is compared with San Francisco income. You will have a better perspective if you adjust the AHI in Plano to the Cost of Living Index and then compare with the AHI in the San Francisco Bay Area. For example if the AHI is $100K a year in Plano, it would be equivalent to $185,000 in San Francisco. With this adjusted income, you know that Plano is an upper middle class area.

© Transmercial 2010. All rights reserved.

Top 9 Properties 01-27-10

noreply@blogger.com (David V. Tran) — Thu, 11 Feb 2010 00:07:00 +0000

Arbys in Flower Mound, TX: 2915 SF fast-food restaurant built in 1999 on .85 acre lot in a city voted as the “number one place to live in TX” in Dallas metro. 100% NNN corp lease till 2018. NOI 129K/yr with 2% annual rent bump. $1.537M. 8.4% cap. \
Family Dollar in Lakeland, FL: 9180 SF recently constructed retail building on 1.46 acres of land along busy thoroughfare. 100% absolute NNN corp lease. NOI $115K/yr. $1.283M. 9% Cap.
Shopping Center in Rowlett, TX: 49,273 SF well maintained shopping center built in 1994 on 5.52 acres of parcel anchored by Big Lots with excellent exposure to two main retail corridors. 100% NNN leased. NOI $456K/yr. $4.420M. 10.32% Cap.
Christian Brothers Automotive in Shawnee, KS: one-year old 4921 SF free-standing retail building on .98 acre lot in fast growing (129.09%) & well off (AHI $91K/yr within 3-miles radius) Olathe/Kansas city suburbs. 15-years absolute NNN corp lease with 1½% annual rent increases. NOI $173K/yr. Price reduced from $2.169 to $2.042M. 8.5% Cap.
Apartments in Los Angeles, CA: 2-story 18-units multifamily complex with nice landscape close recreation parks. Densely populated area with over 1.15M residents within 5 miles ring. 100% leased. NOI $139K/yr. $1.659M. 8.40% Cap.
Multifamily Building in San Antonio, TX: 150-units nice-looking apartment complex on 6.65 acres of land a nice quiet neighborhood near I-10. 94% Leased. NOI $423K/yr. $5.350M. 8.75% Cap.
Apartments in Los Angeles, CA: well-maintained 17-units apartments in populated area. 100% occupied. NOI $120K/yr. $1.190M. 10.12% Cap.
Medical Offices in Bloomington, IN: 10,000 SF beautiful medical building constructed in 2001 on over one acre lot in growing area. 100% leased by STAT Laboratory, American Cancer Society, Rose Internal Medicine and Chiropractic. NOI $122K/yr. $1.390M. 8.78% Cap.
Burger King in Indianapolis, IN: 2675 SF retail restaurant constructed in 1999 on over one acre lot. 100% absolute NNN unusual corp lease with rent increases. NOI $96K/yr. $1.097M. 8.75% Cap.

© Transmercial 2010. All rights reserved.

Top 8 Properties 01-26-10

noreply@blogger.com (David V. Tran) — Wed, 10 Feb 2010 00:28:00 +0000

Davita Dialysis center in Huntington Park, CA: 7400 SF brand new single-tenant medical office building on ½ ac lot in a densely-populated city with over 1.16 million residents within 5 miles ring. 12 yrs NNN lease by DaVita (NYSE: DVA), largest provider of dialysis services in the US with $6.6 Billion market cap. Area with very high barrier to entry. NOI $280K/yr. with 10% rent bump every 5 yrs. $4M. 7% cap.
Apartments in Los Angeles, CA: 9-unit apartments near University of Southern CA campus. 100% occupied. Gross revenue over $100K/yr. Only $725K. 9% cap.
Wendys in Reading, PA: 2170 SF fast food restaurant with new 20 yrs NNN lease from an operator operating 114 locations. NOI $107K/yr with 10% rent bump every 5 yrs. $1.303M. 8.25% cap.
Office Building in Southlake, TX: 7056 SF class-A 3-yrs old office building on ½ ac lot as part of a 6-building office park in a very affluent city in Dallas metro (AHI of $193K/yr within 1 mile.) 100% NNN leased by 2 stable tenants: a dental office and Kumon learning center. NOI $121K/yr. $1.4M. 8.65% cap.
Walgreens in Austin, TX: 13,650 SF 6-yrs old pharmacy on over 2 acres corner parcel. 100% NNN lease with 19 yrs left. NOI 4404K/yr. $5.48M. 7.37% cap. Buyer to assume loan at below market rate of 5.56% interest. Taxes-free state!
Office/Retail Centers in Overland Park, CA: 136,318 SF 3-building retail/office centers in the Palm Beach metro with excellent visibility. NOI $1.189M. $11.89M. 10% cap. Bankruptcy sale.
Office Max in Leawood, KS: 14,000 SF retail center built in 2007 in a very affluent area in Kansas city metro with AHI over $136K/yr. Located at a major intersection facing Super Target, Wal-mart supercenter and Lowe’s. 10 yrs NNN corp lease. NOI $285K/yr. withrent bump every 5 yrs. $3.351M. 8.5% cap.
Retail center in Fort Collins, CO: 12,773 SF retail center built in 1999 as a part of a shopping center anchored by Rite Aid. 100% NNN leased by 5 tenants. NOI $232K/yr. $2.6M. 8.93% cap.

© Transmercial 2010. All rights reserved.

Top 7 Properties 01-25-10

noreply@blogger.com (David V. Tran) — Tue, 09 Feb 2010 18:25:00 +0000

AHI: Avg Household Income
NOI: Net Oper Income

Walgreens in Schertz, TX: 14,820 SF 2-yrs old new drug store on 2 acres lot directly across from Target in San Antonio metro. Excellent demographics: fast growing area with AHI of $84K/yr. 20 yrs absolute NNN lease. NOI $327K/yr. $4.424M. 7.4% cap.
Shopping Center in North Myrtle Beach, SC: 90,722 SF 20-unit shopping center built in 2008 on 9.65 acres lot in coastal town. Anchored by Bi Lo Supermarkets, a regional supermarkets chain with over 200 locations. Property is in front of 2300-acres golf resort community. 80% NNN leased. Proforma NOI $1.176M. Price reduced from $13M to $11.95M. 9.85% cap.
Apartments in Berkeley, CA: 8-unit well-kept apartments in high income area (AHI $91K/yr). 100% occupied. NOI $89K/yr. $1.05M. 8.5% cap.
Walgreens in Anderson, SC: 14,820 SF drug store built in 2008 on 1.58 acres in a growing city. Surrounded by 10+ Medical Care offices and within ½ miles from 2 large regional hospitals. 25 yrs absolute NNN lease with no landlord responsibilities. NOI $285K/yr. $3.8M. 7.5% cap.
Shopping center in Katy, TX: 24,285 SF shopping center built in 2004 in a fast growing (85% growth from 2000-2008) Houston metro. 100% NNN leased by 11 tenants with low rents (which means upside potential.) NOI$378K/yr. $3.95M. 10.2% cap.
Rite Aid in Roseville, CA: 17,700 SF drug store developed in 2003 in a prime commercial area NE of Sacramento. Middle upper class area with AHI exceeding $81K/yr. 18 yrs absolute NNN lease with rent increase in 2018 and every 5 yrs thereafter. NOI $476K/yr. $5.96M. 8% cap.
Walgreens in Daytona Beach, FL: 13,905 SF drugstore on 1.56 acres parcel. 100% NNN lease with 8 yrs remaining. NOI $226K/yr. $2.5M. 9.04% cap.

Activities:

1. Walgreens in Apple Valley, CA: $5.9M. 7.2% cap. In contract.
2. Shopping center in Miami, FL: 17,813 SF center. Price increased from $4.15M to $4.4M. 7.3% cap.
3. TX Land & Cattle Steakhouse in Plano, TX: $2.448M. in contract.
4. Apartments in Inglewood, CA: 32-unit, $2.25M. In contract.
5. Walgreens in Fort Pierce, FL: $5.99M. 7.6% cap. In contract.
6. Walgreens in Renton, WA: $7.38M. 7.45% cap. In contract.

© Transmercial 2009. All rights reserved.

Top 10 Properties 01-22-10

noreply@blogger.com (David V. Tran) — Fri, 05 Feb 2010 23:45:00 +0000

Retail center in Fort Worth, TX: 9244 SF inline retail center built in 2004 on 1.38 acres lot in growing and high income area. Shadow anchored by Albertsons supermarkets. 100% NNN leased by 6 tenants and BofA ATM. NOI $170K/yr. $1.763M. 9.66% cap.
Oil Changers in San Jose, CA: 3100 SF franchised Oil Changers with car wash built in 1989 on .45 ac corner slot on busy Monterey road. Tenant has been here for 20 yrs. 100% NNN lease expires on July 2010 (will let you know on Monday if tenant renews lease.) NOI $131K/yr. $1.19M. 11% cap.
Shopping Center in Katy, TX: 24,285 SF eye-catching shopping center constructed in 2004 on 1.39 acres of land in growing Houston suburbs with excellent tenant mix: Pizza, Insurance, Curves, Hair Salon, Plaster Funhouse, Dentist, Cleaners, Casual Patio, Katy Tile, Medusa Lounge and Nails Salon. 100% NNN leased. NOI $378K/yr. $3.950M. 9.59% Cap.
Retail Center in Austin, TX: 15,438 SF recently constructed retail center on over 2 acres of land with excellent visibility off of Hwy-290. 100% NNN leased. NOI $304K/yr. $3.5M. 8.6% Cap.
Dollar General in Jacksonville, FL: brand-new 8998 SF single-tenant retail building on 1.20 acres of land at signalized intersection in close proximity to I-23. Unusual 15-years absolute NNN corp lease. NOI $118K/yr. $1.390M. 8.5% Cap.
Strip Center in San Ysidro, CA: 30,625 SF strip center anchored by Factory 2-U with excellent exposure to I-5. 100% NNN leased in the last 10+ yrs. NOI $448K/yr. $4.850M. 9.25% Cap.
Jiffy Lube in Gilbert, AZ: 1504 SF free-standing retail building across from Albertsons at high traffic location in growing & well-off (AHI $94K/yr) Phoenix outskirts. 100% absolute NNN leased by strong operator. 3% annual rent increases. NOI $107K/yr. $1.130M. 9.50% Cap.
Medical Office in Huntington Beach, CA: 58,518 SF 40-unit well-kept four-story medical office building on 2.60 acres of parcel on Beach Blvd. Ideally located next to Huntington Beach Hospital. Excellent demographics with AHI over $110K/yr. 95% leased. NOI $864K/yr. $10.875M. 7.95% Cap.
Family Dollar in Colorado Springs, CO: 10,000 SF all brick retail building on 2.45 acres of land along Bus-24. 100% NNN leased by recession-resistant credit tenant. NOI $86K/yr. $1.020M. 8.5% Cap.
Apartments in Houston, TX: two-story 212-apartment complex on 7.50 acres of land with recent upgrades: new roofs, exterior pain and landscape. 94% occupied. Proforma NOI $448K/yr. $4.250M. 9.59% Cap.

Sales Activities:

1. Apartments in Dallas, TX: 63-unit, $2.35M. In contract.
2. Rite Aid in Concord, NC: $2.119M. 10.75% cap. In contract.
3. Rite Aid in Raleigh, NC: $2.647M. 10.75% cap. In contract.
4. Family Dollar in Deltona, FL: $1.466M. 8.75% cap. In contract.
5. Family Dollar in Arlington, TX: $820K. 9.26% cap. In contract.

© Transmercial 2009. All rights reserved.

Top 9 Properties 01-21-10

noreply@blogger.com (David V. Tran) — Fri, 05 Feb 2010 00:12:00 +0000

Apartments in Highlands, CA: 106-unit apartments complex on 3.56 acres lot in Sacramento metro. 80% occupied. Gross revenue of $948K/yr. $5.3M. short-sale.
Walgreens in Phoenix, AZ: brand new 14,832 SF drug store on 1.38 acres corner lot in well-off area (AHI 106K/yr within 1 mile radius) in Phoenix. New 25 yrs absolute NNN lease. NOI $560K/yr. $7.725M. 7.25% cap.
Apartments in Sacramento, CA: 26-unit apartments in strong income area within walking distance to hundreds of restaurants, shops and nightlife. 100% occupied. NOI $146K/yr. $1.95M. 7.5% cap.
Office building in Washington, DC: rare 6525 SF 4-story office building completely renovated in 2005. Conveniently located just 2 blocks from metro station and 1 mile from the National Mall/Capitol Hill. Amenities include kitchenettes, elevator service, a roof deck, and security cameras. 100% leased by a non-profit organization. NOI $193K/yr. $2.4M. 8.07% cap.
Apartments in San Diego, CA: 27-unit 3-story apartments built in 1987 in great central location with strong rental submarket & gated parking. Scheduled market rent of $249K/yr. $1.9M.
Office building in Visalia, CA: 9766 SF office building on ¾ ac lot. 100% occupied by County of Tulare Health & Human Services Agency since 1990. NOI $126K/yr. $1.4M. 9% cap.
Ryan’s Grill Buffet in Indianapolis, IN: 9601 SF restaurant on an outparcel to a shopping center anchored by Michaels, Hobby Lobby. New 20 yrs absolute NNN lease with guaranty by Buffet, Inc. NOI $188K/yr with 2% annual rent bump. $1.71M. 11% cap.
Carl Jr in Anaheim, CA: 2127 SF franchised restaurant with drive thru on .64 ac lot on a major artery near I-5. Area with high barrier for entry. Densely populated area with over 650K residents within 5 miles. 100% NNN ground lease with 2 yrs left and no options (Note: Investor buys the land and Improvements revert to landlord at end of lease if tenant does not sign a new lease.) Tenant has been at this location for nearly 40 yrs. NOI $80K/yr. $1.23M. 6.5% cap.
Davita Dialysis Center in Lakewood, CO: 14,055 SF single-tenant medical building in Denver metro. 100% NNN lease by a national tenant with 6 yrs remaining. NOI $275K/yr with 2% annual rent bump. $3.675M. 7.5% cap. Recession insensitive tenant.

Sales Activities:

1. KFC in Monroe, LA: $922K, 8.25% cap. In contract.
2. Macaroni Grill restaurant in Burlington, MA: $3.35M 8% cap. In contract.
3. CVS in Kennesaw, GA: closed escrow.

© Transmercial 2010. All rights reserved.