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03-19: Professional Buildings, Pizza Hut, Walgreens Pharmacy, Retail Centers

Advisory: with all the travel restrictions due to Coronavirus disease (COVID-19), lots of investors put investment purchase on hold as they are unable to visit the properties. Transmercial believes this is an excellent opportunity for you as there is little competition if you are interested in buying a property. You understand this advantage a lot more if you have made several offers and lost to other investors. Of course, there is a some risk if you cannot visit the property. However, it’s more critical to visit a residential property to get a feel of the floor plan. For commercial properties, you don’t live there so it’s not critical. And so, Transmercial suggests to think outside the box by using:

1.   Google streetview and/or

2.   Facetime where the listing broker or property manager or someone local to the property can show the property using the camera on the phone.

 

The property will be inspected by a local inspector so you will know about the property condition. Transmercial will review all the documents: leases, income & expenses, etc. for you and provide you with a summary. And so Transmercial believes you make a calculated risk to purchase a property not being able to physically visit the property.

 

1.   Retail Center in Champaign, IL: 24,454 SF well maintained strip center built on 2.23 ac lot. Shadow anchored by Target and Lowe’s. Next to busy retail corridor with over 31,000 CPD. Close to Market Place Shopping Center Mall with over 100 stores. With easy access to I-74. 100% NNN leased to seven tenants including Sally Beauty Supply (600+ locations), David’s Bridal (330+ locations), Cost Cutters (600+ locations) and America’s Best Contacts (600+ locations). NOI $359K/yr. $4.11M. 8.75% cap.

2.   Walgreens in Indianapolis, IN: 13,379 SF well maintained drug store constructed in 1994 on over 1 ac lot at a signalized corner location. Close to Community Hospital. 100% NNN leased till 2025 with minimal landlord responsibilities. NOI $185K/yr. $2.47M. 7.50% cap.

3.   Professional Buildings in Canton, MA: 40,253 SF consisting of three attractive multistory office buildings in affluent Boston MSA with a MHI of $101K/yr in a 1 mile ring. Next to Canton train station. Leased to medical and professional tenants. NOI $308K/yr. $4M. 7.70% cap.

4.   Pizza Hut in Greenville, SC: 2228 SF well maintained drive-thru fast food restaurant completed in 2003 on .56 ac lot along busy retail artery. Across from Cherrydale Point Mall with T-J-maxx, Ross Dress for Less and Movie Theater, Recently extended NNN ground lease (land for sale) till 2026 to a strong franchisee. NOI $78K/yr with a rent bump in 2021. $1.121M. 7% cap.

5.   Walgreens in Arlington, TN: 15,120 SF drive-thru pharmacy competed in 2000 on 1.46 ac lot at a major corner intersection. Along Hwy-64 with over 47K CPD. Close to I-40. 100% NNN- lease till 2030. NOI $292K/yr. $4.178M. 7% cap.

6.   Retail Center in Oviedo, FL: 14,200 SF well maintained retail center built in 2001 on over 2 ac lot in Orlando suburbs. 100% NNN leased to retail and medical tenants. NOI $368K/yr. $5.047M. 7.3% cap.

 

 

About The Properties

Transmercial is the only company in the US that offers this list of best properties between $950K to $30M in 50 states. These properties are selected from 300-400 daily listings from many commercial real estate companies, and various other sources.  Each property has a brief description and a flyer. Please click here for selection criteria. Underlined names, if any, indicate safe hyperlinks that you can click for more info. For a full marketing brochure, please reply and specify the property number. Transmercial will guide you thru the whole acquisition process if needed. It will track all the issues via the “Due Diligence Summary” report until they are all resolved prior to closing.

Below are the most commonly used acronyms:

 

·    AHI/MHI: Avg./Median Household Income. National average is about $55+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.

 

David V. Tran

Chief Investment Advisor. CA BRE# 00969014

Transmercial — Commercial Real Estate Investments

408-288-5500 ext. 201, 408-288-5533 (F)