9% Cap Rate Investment Property, Retail, Office, Industrial, NNN, Single Tenant

9% Cap Rate Properties

Here are a number of properties that offer 9% cap rates with solid tenants, good leases, and (sometimes) assumable financing. Keep in mind that high rewards are often accompanied by high risk. Nevertheless, sometimes the potential reward outweighs the risk, and sometimes the risk is overstated. As Warren Buffet is supposed to have said, "be afraid when others are greedy, and be greedy when others are afraid."

For more information, or to discuss your needs, please call John Bremner at 415-234-6093.

Principals Only, Please.

1) Fort Worth TX - Jefferson Dental Clinic: $1,375,000, 9.0% Cap Rate, 12 Year NNN Lease. Jefferson Dental Clinic began in 1967 and since then has become Dallas/Fort Worth's premium dental provider, as the exclusive provider for the Sonrisa Dental plan. The Clinic recently extended its lease to 12 year NNN. Offered at $1,375,000 with a cap rate of 9.0%.

2) Dayton OH - Lone Star Steakhouse: $1,720,000, 11 Year Corporate NNN Lease, 10.2% Cap Rate. This absolute, corporate guaranteed, NNN Lease has 11 years remaining on a 15 year lease, with 2% annual increases, and two 5-yr options. The property offers excellent highway visibility, strong demographics and high traffic counts. Offered at $1,720,000, 10.2% cap rate.

3) Shawnee KS - Christian Brothers Automotive: $1,960,000, 9.0% Cap Rate, 15 Year Corporate NNN Lease. Christian Brothers Automotive has over 80 locations in 11 states, with a strong corporate balance sheet. This property is subject to a 15 year corporate NNN Lease, with 1.5% annual increases. Sited along the parkway with 26,000 cars/day, near Interstate 435, with significant barriers too entry for competitors, there are significant national retailers - McDonalds, Dillons, Bank of America, Wendy's, etc. Offered at $1,960,000 with a cap rate of 9.0%

4) Dayton OH - Sunbelt Rentals: $2,085,000, 12 Year NN Corporate Lease, 8.75% Cap Rate. Sunset is the second largest equipment rental company and most profitable subsidiary of Ashtead Group PLC, with Sunset generating revenues of $1B+. This is a successful location for Sunbelt, which relocated to this site three years ago. Offered at $2,085,000, cap rate of 8.75%.

5) Midwest City OK - Goodwill: $2,100,000, 9 Year NNN Lease, 9.0% Cap Rate. Goodwill Industries of Central Oklahoma, a stable long-term tenant, leased this 25,133 SF property on a ten year lease with nine years remaining, with a 6% rent increase each five years, and two 5-yr options. The building is located on a corner lot on a busy commercial thoroughfare. Offered at $2,100,000, with a cap rate of 9.0%

6) Buffalo NY - Rite Aid: $2,800,000, 15 Year NNN Corporate Lease, 10% Cap Rate. This Rite Aid location is one of the dominant Rite Aid Pharmacies in the Buffalo trade areaa, where Rite Aid is the dominant drugstore chain in sales and market share, with over 39% of the market. Located on a hard, signalized corner, surrounded by dense residential communities, this is a strong performer, with excellent sales, and a low rent to sales ratio. Rite Aid was recently upgraded by S&P to B+, and is listed on the NYSE: RAD. Offered at $2,800,000, with a 10% cap rate.

7) Crest Hill IL - The Learning Experience: $2,990,000, 12 Year Corporate NNN Lease, 9.0% Cap Rate. The Learning Experience, a national daycare tenant with corporate guarantee, leases the property on a 15 year lease with 12 years remaining, on an absolute triple net basis, with 12% rent increases every five years. Offered at $2,990,000 with a 9.0% cap rate.

8) Denver CO - Hometown Buffet: $3,150,000, 12 Year Absolute NNN Lease with Corporate Guarantee, 9.5% Cap Rate. Hometown Buffet is a succcessful restaurant operation under the Buffets Inc corporate parent. Buffets Inc, a billion dollar corporation, guarantees the 12 year absolute NNN lease, with 10% rent increases every five years, and four 5-yr options. Located in the Quebec Square shopping center, which has a Walmart, a Home Depot and Sam's Club, the restaurant benefits from a strong retail location with a population in excess of 240,000 within a five mile radius. Offered at $3,150,000 with a 9.5% cap ratet.

9) Grand Rapids MI - Spectrum Health: $3,466,000, 8 Year NNN Lease, Credit Tenant, 9.0% Cap Rate. This is a single tenant medical office building leased to Spectrum Health (Moody's Rating: Aaa), one of Michigan's largest health care providers. Spectrum is operating under a 20 year absolute NNN lease which commenced in September 1999, leaving eight years remaining. Offered at $3,550,000, 9.0% Cap Rate.

10) Mankato MN - Best Buy: $4,070,000, 9 Year NNN Lease, Credit Tenant, 9.5% Cap Rate. Best Buy (S&P Rated BBB-) is operating under a 20 year NNN lease which commenced in 7/2000 and has nine years remaining, with two 5-yr options, and 3% rent increases every five years. An existing loan of $2,600,000 (approx) must be assumed. Offered at $4,070,000 with a cap rate of 9.5%.

11) Port Huron MI - AT&T Call Center: $5,385,000, 4 Year NNN Lease, Credit Tenant, 10.2% Cap Rate. This office building has been leased by AT&T (S&P Rating of A-) since 1959, with a $1M refurbishment (paid for by tenant) in 2005. There are currently four years remaining on its latest lease, with four 7-yr options. There is an assumable loan of $3,580,000 (approx) with interest at 5.7%, 18 year amortization. With the loan assumption, the cash on cash return is 13%, and the total yield is 19%. Offered at $5,385,000, 10.2% cap rate.

12) Charlotte NC - Haverty's Furniture: $6,600,000, 7 Year Corporate NNN Lease, 9.2% Cap Rate. Haverty's Furniture is a strong tenant, publicly traded (NYSE: HVT), with a ten year absolute triple net lease with 7 years remaining, with five 5-yr options, and 5% rent increases every five years. The property is located on the corner of Smith Corners Blvd and Hwy 21 alongside I-77, in an area known as Furniture Row. The surrounding commercial trade area has high barriers to entry, with very little vacancy or turnover. Offered at $6,600,000, with a cap rate of 9.2%

13) Glendale AZ - Tutor Time: $7,475,000, 22 Year Corporate NNN Lease, 9.8% Cap Rate. This is a newly built property at the dominant intersection of 59th Ave and Thunderbird Rd., bordered by shopping centers and a surrrounding residential area with over 350,000 within a 5 mile radius. This is a corporate signature lease with the Learning Care Group, Inc., which is majority owned and controlled by Morgan Stanley. There are 22 years remaining on the absolute NNN lease, with 1.75% annual increases. Offered at $7,475,000, with a cap rate of 9.8%.

For more information, please call John Bremner 415-234-6093.

Principals Only, Please.