Sold: 3211 Sterlington Road, Monroe, LA
Property Type: Restaurant
Seller: Jose Antonio Sanchez, et ux
Buyer: El Paso Mexican Properties Monroe, LLC (Ruben Chavez)
Sold: 401 4th Street, Monroe, Louisiana (Former News Star World)
Seller: Gannett River States Publishing Corp.
Buyer: Ridgecrest Realty, LLC
Recorded: 6/19/2018 (Book 2550 Page 576)
Data: 2.24 +/- acres and a building of approximately 55,582 square feet, and all other improvements thereon, located at 401 4th Street and 411 4th Street, Monroe, LA. (Source: Conveyance Record)
This information is for reference only and should not be relied upon without proper verification by the user.
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.
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
Sold: Neighborhood Walmart / DeSiard Street / Monroe, LA
Date: Feb. 20, 2018
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
Sold: Tower Storage of Monroe
1251 Fulton Drive, Monroe, LA
Seller: Tower Storage of Monroe, LLC
Buyer: Clute Affordable Storage, LLC (Houston, TX)
Note: Sale includes property on Fulton and property behind Walgreen’s on Lamy Lamy. This is information is for reference only and should not be relied upon without proper verification. Source: Ouachita Parish Clerk of Court records.
Sold: 2230 Tower Drive, Monroe, LA
Portico Restaurant / Real Estate Only
Price: $1,150,000 (The Legal Recorder, Inc.)
Book / Page: 2493 / 662
Note: The above information is for reference only and should not be relied upon with proper verification. This is sale is reported to be a sale subject to a lease and tenant occupied status.
As an update to a recent post regarding the transfer of real estate for the Mac’s Fresh Market on Arkansas Road, please note the ownership change was between related parties and the Mac’s Fresh Market operation continues to operate as it has been since it recently opened. There has been no change in management regarding this business operation.