Uncategorized Archives - Page 7 of 36 - Mike Graham Real Estate

May 16, 2018

Johnny’s Pizza on McKeen…I mean North 18th Street

Sold: Vacant Land / Corner of North 18th and Avenue of America

Seller: Campco of Monroe, Inc. (Mr. Guy Campbell)

Buyer: Johnny’s Pizza House, Inc.

Price: $875,000 (source: Clerk of Court records)

Sale Date: May 15, 2018

Lot One (1) of Regions Subdivision

Lot Size: 1.32 acres or 57,500 sq. ft. (source: tax assessor)

Indicated $ / Square Foot: $15.22

The above information is for reference only and should not be relied upon without proper verification.

April 27, 2018

Sold: 13.89+/- Ac on I-20 in Ruston, LA

Sold: Approximately 13.89 acres in Ruston, LA at the LA Tech exit. Tract is located on Woodward Avenue and Cooktown Road. I-20 exposure.

Seller: Lincoln Tech Partners, LLC

Buyer: Hutton Ruston Marketplace, LLC

Sale Date: 04/06/2018

Sale Price: $3,150,000

Land Size: 13.89 acres (Assessor’s estimate)

Sources: Lincoln Parish Assessor’s website, Legal Recorder, Conveyance Record

April 23, 2018

SOLD: Scott’s Self Storage on Arkansas Road in West Monroe, LA

Sold: Scott’s Self Storage facility on Arkansas Road in West Monroe, Louisiana

Seller: Gary S. and Lisa J. Tullis

Buyer: CSS Properties, LLC

Sale Date: 04/19/2018

Sale Price: $2,100,000

Land Size: Two Tracts – 2.093 acres and 1.511 acres

Sources: Ouachita Parish Assessor’s website, Legal Recorder, Conveyance Record

February 22, 2018

Walmart – Desiard / Analysis

The previously posted sale of the DeSiard Street Walmart represents an example where there is a national market of investors searching for a return on their investment through NNN leased properties.

Based on a listing price of $12,520,392 by Marcus & Millichap, the listing cap rate was 5.10%, which indicates a first year net operating income of $638,540. This is a 20 year, modified NNN lease expiring in 2035. (landlord: roof and structure only)

If the income is level over the primary term, an actual sale price of $11,935,327 indicates an overall capitalization rate of 5.35%. Lower cap rates are normally associated with newer properties that are occupied by high credit tenants and / or anticipated increases in income / value over the holding period.

Other common “build to suit” examples with lower cap rates are: Dollar General, Family Dollar, Walgreens, along with many other national retailers.

While the return “on” investment (annual return on investment) may appear to be low risk based on the strength of a company, the return “of” investment (recapture of investment upon sale of the property) can sometimes be significantly less than the price paid when the tenant vacates the building. The point is there are many factors driving the sale price when long term lease contracts are in place.

Have questions? Contact us at 318-387-9092 to discuss.

Mike Graham Real Estate and Appraisals

February 22, 2018

Sold: Neighborhood Walmart – 4430 DeSiard Street, Monroe

Sold: Neighborhood Walmart / DeSiard Street / Monroe, LA

Date: Feb. 20, 2018

Price: $11,935,327

Seller: Polestar La Monroe Desiard LLD

Buyer: Terraza 8 LLC (principle office in California)

This is a build to suit project completed by the seller for Walmart. This sale is a leased fee transaction with the right of occupancy held by Walmart. The purchase price is based on the anticipation of rental income over the lease term.

Note: All information is for reference only and should not be relied upon without proper verification.

Source: The Legal Recorder / OP Tax Assessor / LA Secretary of State database