Rare I tell you, rare. Expensive too, this is not so rare.
Great Willow Glen-ish location at the corner of Leigh and Curtner. This location will do well always. Starbucks and Wireless Toyz, both with firm leases till mid 2011 only. Starbucks does not pay increased property taxes till 2011, if they decide to stay. Wireless pays 3% rent increases every year, then flat in both 5 year options after the first increase. This structure in confusing. Must use CCIM spreadsheet, Must use CCIM spread...
$670 per foot, 4.8% Cap Rate, 8 years old, $2,198,000 price.
When you buy a strip center, you buy the leases. If these leases were structured better, this center would fly off the shelves. Then again, it's Starbucks in San Jose. I could be wrong.
