58 unit Apartment Building Just Listed for Sale in Mountain View!

A beautiful and well-located 58 unit apartment building just hit the market for sale in one of the best Bay Area cities. A mix of studios and 1 bedroom units in a courtyard setting with buildings wrapped around a common pool area. Very good location across the street from the Safeway shopping center at Shoreline & Middlefield Road in Mountain View. Offered at 13x gross current rents and a price of $12,650,000.  This is a rare offering of a trophy location asset in the heart of Silicon Valley.  Call for details and a detailed broker package.

Single Tenant Bank NNN LA County for Sale

We are tracking a just-listed single tenant NNN investment property of a bank in Los Angeles County that looks very attractive.  5.5% cap rate, 8 years remaining on a 10 year lease, two 10 year options to renew, COLA (cost of living increases) of 3% - 5% per year!, $2,695,000.  The price is very good for such a high quality and well-located single tenant NNN deal with a corporate signature. Excellent 1031 tax-deferred exchange property.  Many multi-family apartment owners are reaping high sales prices for their 50 year old rental properties and exchanging into solid commercial assets such as this for excellent cash flow and more tax-depreciation write offs. Call the MPIRES group for more details soon.

Why Buy a NNN Drug Store commercial investment?

So this may sound a little like a rant and it very well may be!

Let me start with the statement that NNN investments are great commercial investment properties for the right individuals at the right time.  Many buyers want the best location, best quality - read corporate guarantee, longest remaining lease term, highest cap rate, newest building, etc for their NNN investment property purchase.  The cream of the crop in this list of "must haves" tends to be the drug stores (CVS, Walgreens, Eckert). Almost all of these - especially the new construction ones - have 25 year leases, corporate signatures, and cap rates that are better than most mom & pop strip centers or the typical Burger King NNN deal.
So, what is wrong with that???

The 25 year lease tends to be flat for 25 years.  No increases in rent.  Price paid for an investment property tends to be the Net Operating Income divided by the prevailing cap rate.  NNN assets increase in value as the NOI does with rent increases or with new tenants paying market rents.  In a flat lease example: at time of purchase - $3,000,000 purchase price, NOI of $210,000 per year, 7% cap rate. 10 years later, that asset still has $210,000 of NOI at a prevailing cap rate of 7%, then the value is still $3,000,000.  20 years later, same value because of same NOI - $3,000,000.  The $210,000 per year income is wonderful, yet the value of the property has stayed flat.  If you bought any other traditional real estate investment - such as a single family home or an apartment building, the assumption is appreciation over 10 years or 20 years.

Also, consider that the buying power of $210,000 today is far greater than what it will be in 20 years.  Do you remember what $1,000 felt like 20 years ago?  It barely lasts one day in Las Vegas these days - sorry for the personal reference!

Stability! - One reason why drug store investments have been so much in demand is their extremely low rate of default.  Many drug stores are sold based on the number of prescriptions held by the store - 1,500 is OK, 1,800 is good, over 2,000 is excellent. These patients that return to the store every month will buy additional items as they make their way to the exit.

And then there is Technology... "Curiosity killed the cat" should be translated to "Technology killed the retail investment".  I just drove past a billboard touting a new app for ordering prescription drugs from your iPhone. If FedEx will deliver your prescriptions to your mailbox with the click of a  mouse, then what will happen to those tempting bags of chips displayed on the drug stores shelves? I will let you connect the dots.

And don't get me started on land lease drug store NNNs!

Let's talk about why I like local, multi-tenant strip centers occupied by bakeries, nail salons, sandwich shops, dry cleaners and convenience stores. These un-corporate signature deals have stability, upside and are protected from technology killers. As said many times before, as healthy as our county gets, we will always want to buy a burger - said burger cannot be FedExed - yet!

Commercial REO Hayward & Commercial REO San Jose

Two commercial REO deals in the Bay Area for sale:

Coming soon for sale in Hayward is a bank owned commercial 6,400 square foot automotive facility.  Well located on a major thoroughfare in Hayward and on a hard corner.  Clean building perfect for an investor or owner occupant. Call for details prior to the property going on the market.  This is a great opportunity to buy a bank owned commercial property in Hayward. Pricing in the $600,000 range.

Available now - San Jose single tenant restaurant building with good parking in the Rose Garden for sale. This is a good deal for an investor, as the tenant is in place and would most likely stay.  The business has been in operation for over 30 years! Will be priced in the $475,000 range.

Call Mario Pinedo 415-269-6249 for details.

Home inventory way low in Silicon Valley

As of today - for the county:

1453 active detached homes
406 active condo/THs

477 sales detached homes
145 sales condo/THs

Very little to choose from even though we are fast approaching the Spring historical inventory peak.

PUD Real Time Investment Numbers

The MPIRES group just ran an analysis on a PUD in the hot Santana Row rental area for an investor client.  Here are the numbers, what do you think?

Purchase price $475,000 (short sale)
3 bedrooms, 2.5 baths, 1500 square feet, 2 car attached garage, $115 HOA dues.
The home is 8 year old and looks great.
Rent comp in complex achieved in November - same model - $2700 per month!
 4% financing
$196,000 down payment
2.6% cash on cash return year 1
8.67% IRR per year average before tax on a 10 year hold.
6.96% IRR after tax on a 10 year hold.

Great, solid asset in a hot rental area.  Our projection of sales price in year 10 is based on a same Cap Rate as the purchase price Cap Rate. We feel the market will have a lower Cap Rate in 10 years which will dramatically increase the rate of return.

We know other great short sales, REOs and well-priced equity sales throughout Silicon Valley for investors - call us today!

2 Tenant Bay Area NNN for Sale

Corporate leased NNN investment property for sale in Antioch.  $4,1550,000 at a 7% cap rate.  Approximately $1,500,000 down payment needed to match current attractive existing fixed rate financing. Well positioned pad in a grocery and drug store anchored neighborhood center. This is a solid investment property in the Bay Area with good long-term prospects.  If you look at NNN investment throughout California - single tenant, decent leases, known tenants - cap rates are 6% -  6.5%.  This is a Bay Area NNN investment property with good tenants at a 7% asking rate. I like this deal - call for details.

Commercial Condo for Sale Silver Creek Evergreen San Jose

Attention business owners: this is an excellent opportunity to own your own space for an office or warehouse near Silver Creek Valley Country Club. 1,500 square feet of shell condition space for an attractive price of $175,000. Commercial financing rates are very attractive especially for owner-user space through the SBA program.

Bank Owned Commercial Car Care REO for Sale in Hayward

Coming soon for sale in Hayward is a bank owned commercial 6,400 square foot automotive facility.  Well located on a major thoroughfare in Hayward and on a hard corner.  Clean building perfect for an investor or owner occupant. Call for details prior to the property going on the market.  This is a great opportunity to buy a bank owned commercial property in Hayward.

Santana Row Facing Condo Loft for Short Sale!

Coming soon is a wonderful condition Santana Row condo loft that overlooks the Row as a short sale.  Very good value for one of the best "B" floorplans.  And... the best parking option offered!  If you have a car that you love, you will really love the parking that comes with this unit. Call me for details on this excellent Santana Row condo opportunity,

Office Building Notes for Sale San Francisco Bay Area

There are 5 office building non-performing notes for sale in the Bay Area from one Bankruptcy filing. Offices are located in Oakland, Redwood City, San Rafael, San Francisco and San Mateo.  Notes can be purchased as a bulk or separately.  BK is Chapter 7 or full liquidation.  This is best when an investor wants to foreclose on the properties and acquire the hard assets. Aggregate unpaid balance is just over $9,000,000.  Call for details.

Rose Garden San Jose Short Sale Home for Sale

Coming soon is a great short sale house opportunity in San Jose historic Rose Garden. Not your typical small house in the Rose Garden. This is a well-located larger home on one of the best streets in the Rose Garden.
Short sales are the new bank owned opportunity in today's real estate market. Most banks now prefer to work through a short sale than the more abrassive foreclosure processs. Patience is a virtue and a necessity in acquiring a short sale - and the rewards are better!
1341 McKendrie Street, San Jose, CA 95126 offered at $795,000.

Rocklin Short Sale Hotel for Sale

Sacramento area short sale hotel for sale.  Very nice flag and excellent condition property.  Listed at $6,900,000.  Short selling bank is looking for surety of close - not an uncommon request from banks that are taking a loss on a loan - therefore an all-cash purchase is mandated.  Call for details on this rare flagged hotel opportunity.  Also - three other hotels for sale in Southern California with premier locations.

Temecula - Riverside County - Single Tenant Restaurant Absolute NNN deal for sale

7.2% cap rate, brand new 10 year lease, 20+ unit operator, great location, not a bank owned deal - just a very good investment property with high likelihood of stable tenancy.  This is one of the frequent deals that we are tracking which will provide an investor with a solid investment now and into the future. $1,075,000 and it is an absolute NNN deal.

6.7% cap rate self storage available for sale in Silicon Valley!

There is a very rare opportunity to buy a solid self-storage facility property in one of the best locations in the San Jose metro.  6.7 cap rate at a $2,900,000 purchase price.  Call for details.

1031 Exchanges Coming Back in Silicon Valley

For the last couple years, the volume of 1031 tax-deferred exchanges was very low in comparison to the last decade.  There is now a resurgence in the amount of 1031 exchanges being opened and completed in the last 6 months.  A typical 1031 exchange was of a single family home that was used as a rental property.  This home had a few hundred thousand dollars in equity and was being sold to trade up into a single tenant NNN investment - less hassles, less tenants, more cash flow.  When the single family home market drop starting in 2007, the equity in these rental properties dropped off and an exchange was no longer warranted.
Now, some 2 years after Silicon Valley's bottom (March 2009), equities are coming back and there is now a renewed need for the 1031.  Also, some investors who bought at the bottom in 2009 and 2010, are looking at newly created equity which also suggests rolling equities to a new property via the 1031.
The rules have not changed much and are still very favorable for an investor to leverage his equity into a new investment property, while deferring capital gains taxes.

Great Opportunity in the Multi-Family Market

This distressed four-plex represents a real opportunity for an investor. The 3,200 square foot building was built in 1963 and sits on a nicely sized 7,104 square foot lot. Although the property is currently vacant, this highly desirable Cambrian neighborhood will ensure a quick occupancy. Currently on the market for $599,000 this property represents a real value, especially when you consider it last traded in 2006 for $828,000 which correlates to a 38% reduction in price. This investment opportunity won't last long contact the MPIRES group for more information or to schedule a tour.

Two Single Family Homes in San Jose for Sale Bank Owned & Short Sale

We have two great deals on two single family homes for sale in San Jose - one is a bank owned property and the other is a short sale.  Both are excellent opportunities.
1. Bank Owned - in need of a contractor - this is not your paint and carpet fixer - if you scare easily then this is not for you!  Previous owner took the kitchen (cabinets and all) and the bathrooms (no toilets or tubs).  Now for the good part: it is a newer home (built in 1991) in the hot Berryessa area of San Jose, 2,350 square feet on a decent sized lot, 4 bedrooms, 2.5 baths.  This home is being offered at a discount to compensate for the repairs and the sweat equity needed.  Price approximately $600,000.
2. Short sale single family home in South San Jose 95138 zip code off of Monterey Expressway. 1,450 square feet, built in 1990, on a 5,700 square foot pie shaped lot.  This IS a paint and carpet fixer.  Nice location on the street and in the development.  Great for rental investment or owner-occupant. Pricing estimate is $450,000.
Both are not on the market yet - let us know if you want more details.

Distressed Duplex in San Jose

This short-sale duplex represents a real value for an investor looking to either get into, or expand their portfolio, in the duplex/ four-plex market. The 1,550 square foot San Jose building, which sits on a 5,600 square foot lot, was built in 1956. The current asking price of $425,000 represents a 33% reduction in price from its original 2005 listing price of $638,000. The two unit building has two - 2 bedroom, 1 bath units, both of which are currently occupied, and is in the Campbell Union School District. This won't be on the market long, contact MPIRES Group to schedule a tour or to obtain further information on this exciting opportunity.

Single Family House Bank REO in Berryessa Coming Soon!

Contractor special - home is large, newer but needs a few things: kitchen, baths, flooring, etc.  Should be on the market in the next couple weeks.  All cash buyers only - lenders will not lend on homes without stoves - let alone whole kitchens and baths.  Very good deal for someone looking to flip this house.  Email me for details on this bank owned San Jose Berryessa home for sale.