Monday, December 3, 2012

Single Tenant NNN for Sale in Orange County

Corporate signature single tenant NNN investment property for sale in Huntington Beach, CA Orange County.

10 year new lease renewal for a well known 80+ location casual dining restaurant in a major power center off the 405 freeway in Orange County.

This 5.5% cap rate, 10 year lease is a solid investment property with low landlord responsibilities. For a commercial property which has highway visibility off off the 405 and situated in a shopping center with the likes of Costco, Macys and more, this property will have strong appeal for years to come.  Excellent vehicle for a tax-deferred 1031 exchange or as a straight investment property to add to your portfolio.

The straight numbers are: $5,235,000 purchase price. $287,693 net operating income per year. If this is an all-cash purchase then it is a 5.5% rate of return.  This is an excellent rate of return when compared to other investment options.  In addition, tax depreciation is taken on the income received for a better after tax rate of return.

When financed with 65% leverage, the rete of return increases significantly.

Further things to consider: Southwest Airlines from San Jose or San Francisco to LAX round trip range from $140 - $225 and takes about 1 hour flying time.  Investment properties within your state of residence do not require an out of state tax filing. 

Call for more details.

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