Shopping center

 

 

 

 

 

Property Type:

Shopping Center

Property Sub-type:

Specialty Center

Property Use Type:

Net Lease Investment with 10+ years left on lease

 

Price:

$9,000,000

Gross Leasable Area:

20,164 SF

Price/SF:

$446.34

Cap Rate:

8.54%

Occupancy:

100%

No. Stories:

1

Tenancy:

Multiple

Year Built:

2010

Description

The subject property is a recently-constructed, multi-tenant retail asset at the
corner of a highly-visible intersection in a dense, diverse and growth-oriented
area. the property includes three tenants, Rite Aid, New millenium bank and
Dunkin' Donuts, all with NNN, long-term leases.

It is located just south of two
full interchanges of I-287 and is situated in the midst of a corridor of mixeduse
properties that directly support its tenants. these properties include upscale
and low-vacancy residential developments (with several gated communities),
fortune 500 mega-offices and office parks (such as metLife), and other
shopping, dining and entertainment amenities. the property is only a 10 to 15
minute drive from Rutgers University. In July 2010, the University announced
its latest major expansion, a $215 million project on its Piscataway campus,
which will positively impact the entire region.

 

 

Financial Summary

• Actual
• Year
  2010
• Scheduled Gross Income
  $768,200
• Net Operating Income
  $768,200

   

   

• 참고사항.CAP RATE을 보는방법(Google에서 가져왔슴) 

• If you are able to obtain a market cap rate, you can then use this information to estimate what similar income properties should sell for.  This will help you to gauge whether or not the asking price for a particular piece of property is over or under priced.

  NOI                                                                                  NOI

  Cap Rate   =    ------------------                 Estimated Market Value   =     --------------

  Market Value                                                                     Cap Rate

  Example 1:   A property has a NOI of $126,000 and the asking price is $1,200,000.

  $126,000

  Cap Rate   =       --------------         X      100     =    10.5

  $1,200,000

  Example 2:  A property has a NOI of $120,000 and Cap Rates in the area for this type of

  property average about 10.

  $120,000

  Estimated Market Value   =     --------------       =       $1,200,000

  .10

  Net operating income is determined by subtracting vacancy amount and operating expenses from a property's gross income.  Operating expenses include the following items: advertising, insurance, maintenance, property taxes, property management, repairs, supplies, utilities, etc.  Operating expenses do not include the following items; Improvements such as a new roof, personal property such as a lawn mower, mortgage payments, income and capital gains taxes, loan origination fees, etc. Appraisers use the Income Approach, Cost Replacement and Market Comparison methods to estimate the value of property.  The Income Approach utilizes the theory of Capitalization. The on Target Real Estate Investment Software calculates the Cap Rate for an income producing property as you enter the property data.  You can run "what if" scenarios changing the sales price, rental income, vacancy rate and operating expense amounts and the cap rate is automatically recalculated.  No need to use a calculator to run different scenarios.  The ratio analysis report summarizes the cap rate data over a ten year period based on your input data and assumptions.                                       © Copyright 2000 - 2010 Advantage Software LLC