NNN Lease Market News
Jared Kushner, the real-estate scion and Donald Trump's son-in-law, plunged into the New York market at the top of the boom, paying $1.8 billion for a Fifth Avenue office and retail tower, the highest price ever for a single building at the time.
New to the New York office market, Mr. Kushner, then 26, took the lead in buying 666 Fifth Ave., at 52nd Street, from landlord Tishman Speyer. The price—paid for with $1.75 billion in debt and $50 million in equity and $100 million in reserves from the Kushner family and family business partner George Gellert—assumed that a string of below-market expiring office leases would be replaced with companies paying far higher prices, according to loan documents. They also planned to sell a stake in the retail portion of the building and paid off junior debt.http://online.wsj.com/article/SB10001424052748703461504576231132984824372.html
Have you ever wondered if there are secrets to investing that would help you make successful investments? Well, the truth is, there are no secrets. Simple knowledge is all you need for your investments to do well.
Wednesday, March 30, 2011
Family Dollar Tops Profit Estimates
NNN Lease Market News
Family Dollar Stores Inc., which posted a 23% rise in fiscal fourth-quarter profit Wednesday, said low-income shoppers are being joined by middle-class consumers in the discount chain's aisles.
Family Dollar said it plans to open about 300 stores during the new fiscal year, up 50% from the prior year, and close 80 to 100 locations. Family Dollar, which operates 6,785 stores, added a net 61 in the latest quarter.
The company also plans to renovate 600 to 800 stores, which JMP Securities analyst Peter Keith said would be "quite an undertaking" for a single year. The move is expected to boost sales because the new store designs likely will have additional room for food products that have helped buoy results.
Family Dollar expects the renovations to cost $100,000 to $130,000 per store, or a total of $60 million to $104 million, and will include exterior touch-ups as well as changes to the sales floor. The company said it is likely to complete 200 renovations by the holiday season. Early feedback about renovations that began in August has been "very encouraging," said Mr. Levine, the CEO. http://blogs.wsj.com/marketbeat/2011/03/30/family-dollar-up-after-solid-earnings/?mod=wsjcrmain
Family Dollar Stores Inc., which posted a 23% rise in fiscal fourth-quarter profit Wednesday, said low-income shoppers are being joined by middle-class consumers in the discount chain's aisles.
Family Dollar said it plans to open about 300 stores during the new fiscal year, up 50% from the prior year, and close 80 to 100 locations. Family Dollar, which operates 6,785 stores, added a net 61 in the latest quarter.
The company also plans to renovate 600 to 800 stores, which JMP Securities analyst Peter Keith said would be "quite an undertaking" for a single year. The move is expected to boost sales because the new store designs likely will have additional room for food products that have helped buoy results.
Family Dollar expects the renovations to cost $100,000 to $130,000 per store, or a total of $60 million to $104 million, and will include exterior touch-ups as well as changes to the sales floor. The company said it is likely to complete 200 renovations by the holiday season. Early feedback about renovations that began in August has been "very encouraging," said Mr. Levine, the CEO. http://blogs.wsj.com/marketbeat/2011/03/30/family-dollar-up-after-solid-earnings/?mod=wsjcrmain
In 1958, a 21-year-old entrepreneur with an interest in merchandising became intrigued with the idea of operating a low-overhead, self-service retail store. Leon Levine believed he could offer his customers a variety of high-quality, good value merchandise for under $2. Because he had grown up in his family’s retail store, he understood value, quality and customer satisfaction.
In November 1959, Leon Levine opened the first Family Dollar store in Charlotte, North Carolina, and was on his way to becoming a retailing legend. Right from the start, he had a well-developed philosophy of what Family Dollar would be and how it would operate, a philosophy from which he and his management team have never strayed. The concept is a simple one, “the customers are the boss, and you need to keep them happy.”
Friday, March 25, 2011
Walgreen Buys Drugstore.com For $400M
Walgreens To Buy Drugstore.com For $400M
Expanding further into the fast-growing business of online retail, Walgreen Co. said Thursday it will buy Drugstore.com for more than $400 million.
Expanding further into the fast-growing business of online retail, Walgreen Co. said Thursday it will buy Drugstore.com for more than $400 million.
The deal comes just weeks after the Deerfield-based drugstore giant said it would shed its pharmacy benefit management business for more than $500 million. That deal, Walgreens said, would help it better focus on its primary business of serving customers’ daily health and living needs.
“Our acquisition of Drugstore.com today significantly accelerates our online strategy to leverage the best community store network in America by becoming the most convenient choice for health and daily living needs whether customers shop online or in our stores,” said Walgreens chief executive officer Greg Wasson in a statement announcing the deal.
Thursday, March 24, 2011
Story of Cap Rate Movement & NNN Deal Making
NNN Lease Market News
The story of cap rate movement in 2010 is a tale of two trends. Beginning with promise and an increase in NNN deal making, the year quickly faded in the wake of poor global economic news – only to rebound and rally around mid-year in select markets (headlined by New York and Washington D.C.). Overall, cap rates in the second half of the year were lower than the first. In fact, sellers of credit rated NNN properties in core markets closed at cap rates rivaling the 2007 peak of the market. Numerous reasons have been offered as the cause but chief among these were a lack of quality supply, a more positive lending environment and improving market fundamentals.
It is no secret that there was dramatic contraction in development over the past two years. The pause in expansion by national retailers coupled with stagnant retail sales and the tight debt market all but encouraged already wary developers to halt or slow projects slated for development. Those eager to invest quickly discovered that NNN properties were in short supply and properties of real quality in strong primary markets were even rarer still. In early summer, these factors created a dwindling pool of quality investment grade NNN assets.
The story of cap rate movement in 2010 is a tale of two trends. Beginning with promise and an increase in NNN deal making, the year quickly faded in the wake of poor global economic news – only to rebound and rally around mid-year in select markets (headlined by New York and Washington D.C.). Overall, cap rates in the second half of the year were lower than the first. In fact, sellers of credit rated NNN properties in core markets closed at cap rates rivaling the 2007 peak of the market. Numerous reasons have been offered as the cause but chief among these were a lack of quality supply, a more positive lending environment and improving market fundamentals.
It is no secret that there was dramatic contraction in development over the past two years. The pause in expansion by national retailers coupled with stagnant retail sales and the tight debt market all but encouraged already wary developers to halt or slow projects slated for development. Those eager to invest quickly discovered that NNN properties were in short supply and properties of real quality in strong primary markets were even rarer still. In early summer, these factors created a dwindling pool of quality investment grade NNN assets.
Click Here To Read the White Paper
NNN Industrial Investment
NNN Lease Market News
NNN Industrial Investment One-Liners
Don’t lose sight of the fundamentals:
• The length remaining on the lease term may not be as important as the location and the use of the property. An opportunity to renew or release could be a benefit to investors, especially if the underlying real estate meets the long term requirements of the tenant or use group.
• All things being equal, should the investment value of a property with a stable, high quality industrial tenant, who is operating with a short lease term, be overlooked or discounted? If the business model of the tenant shows creditable future growth and the site and location are critical to their operation, the investment has value beyond the initial lease term.
• Should the real estate be as equally important to the equation, as lease term and financial strength? All attributes of a NNN investment play a critical role in determining the true value if the asset and in some special cases, the value of the real estate may be as important as the strength of the tenant and the uniqueness of the location.
• The location, zoning and uniqueness of the property will always add to the real estate value. The tenant’s use of the real estate and their special requirements can make a case for a much higher value of the intrinsic real estate.
• Spending the time to quantify the real estate value with special consideration put on permitted use requirements and necessary equipment in place, can make or break a NNN deal even if the financial fundamentals say differently.
• Should savvy NNN industrial investors consider the real estate as just one factor of a NNN investment or the most critical component of the equation? In a NNN transaction, real estate having necessary site specific requirements to the Tenant’s business operation, it should disproportionately add value to unattractive real estate.
http://www.calkain.com/
Wednesday, March 23, 2011
Government Cuts Clip Office Market
NNN Lease Market News
Smaller government means less demand for office space, and that is acting as a drag on the recovery of the commercial-real-estate market.
In Washington and elsewhere, government leasing has helped prop up demand in tough times. But now cash-strapped governments are moving to cut back on office space, even as commercial real estate struggles to recover.
After the financial crisis first hit, buildings with government tenants were a safer bet. Washington emerged as the healthiest office market in the country, with rents falling much less than other cities.
Rents have been rising in some prime markets since the depths of the downturn. In Washington's Georgetown market, effective rents were up 2.2% in 2010, according to Reis. In Midtown Manhattan, rents rose 0.2% during the year.
But in many markets rents actually fell last year, with net effective rents down 1.5% nationally, according to Reis. If government agencies contract without the private sector expanding more, downward pressure will continue, some predict.
http://online.wsj.com/
Smaller government means less demand for office space, and that is acting as a drag on the recovery of the commercial-real-estate market.
In Washington and elsewhere, government leasing has helped prop up demand in tough times. But now cash-strapped governments are moving to cut back on office space, even as commercial real estate struggles to recover.
After the financial crisis first hit, buildings with government tenants were a safer bet. Washington emerged as the healthiest office market in the country, with rents falling much less than other cities.
Rents have been rising in some prime markets since the depths of the downturn. In Washington's Georgetown market, effective rents were up 2.2% in 2010, according to Reis. In Midtown Manhattan, rents rose 0.2% during the year.
But in many markets rents actually fell last year, with net effective rents down 1.5% nationally, according to Reis. If government agencies contract without the private sector expanding more, downward pressure will continue, some predict.
http://online.wsj.com/
New Rules For California Commercial Real Estate Market
NNN Lease Market News
Just as the California commercial real-estate market begins to stir from its postcrisis lows, many property developers fear they are about to lose a financing tool needed for hundreds of projects across the state.
Builders are lashing out against a provision in Gov. Jerry Brown's proposed budget that would eliminate the state's 425 redevelopment agencies, local authorities that pay for low-income housing as well as roads, sidewalks and other infrastructure.
The developments cover everything from a proposed $2.2 billion project with houses, shops and transit access across the river from downtown Sacramento to a planned affordable and senior housing development and child-care center near downtown San Diego.
http://online.wsj.com/
Just as the California commercial real-estate market begins to stir from its postcrisis lows, many property developers fear they are about to lose a financing tool needed for hundreds of projects across the state.
Builders are lashing out against a provision in Gov. Jerry Brown's proposed budget that would eliminate the state's 425 redevelopment agencies, local authorities that pay for low-income housing as well as roads, sidewalks and other infrastructure.
The developments cover everything from a proposed $2.2 billion project with houses, shops and transit access across the river from downtown Sacramento to a planned affordable and senior housing development and child-care center near downtown San Diego.
http://online.wsj.com/
Westfield Group Doubles London Bets
Westfield Group (WDC), the world’s biggest shopping-center owner, is making a $1.2 billion bet that its new mall in east London will thrive long after the 2012 Olympic Games are over. That’s because it’s targeting some of the country’s wealthiest consumers.
“We see two completely separate markets,” Peter Lowy, one of Sydney-based Westfield’s joint managing directors, said in an interview. “There’s strength in London and much less strength in the rest of the country.”
Westfield Stratford City will be Europe’s largest urban mall when it opens close to the main Olympic site in September. Many of its customers will come from the City of London and Canary Wharf financial districts and neighborhoods such as Shoreditch and Islington, where disposable incomes are higher than the national average and the risk of government job losses is lower.
www.businessweek.com/news
“We see two completely separate markets,” Peter Lowy, one of Sydney-based Westfield’s joint managing directors, said in an interview. “There’s strength in London and much less strength in the rest of the country.”
Westfield Stratford City will be Europe’s largest urban mall when it opens close to the main Olympic site in September. Many of its customers will come from the City of London and Canary Wharf financial districts and neighborhoods such as Shoreditch and Islington, where disposable incomes are higher than the national average and the risk of government job losses is lower.
www.businessweek.com/news
Tuesday, March 22, 2011
U.S. Commercial Property Prices Slipped For The Second Straight Month
NNN Lease Market News
U.S. commercial property prices slipped for the second straight month in January, as distressed real estate sales weighed on values, according to Moody’s Investors Service.
The Moody’s/REAL Commercial Property Price Index slumped 1.2 percent from the previous month and 4.3 percent from a year earlier. It’s up 4.2 percent from an eight-year low in August, Moody’s said in a statement today.
The U.S. economy grew at a 2.8 percent annual rate in the fourth quarter, helping boost demand for office, retail and industrial space and apartments. Price increases are being held back by the number of distressed properties on the market, said Christopher Cornell, an economist at Moody’s Analytics Inc. in West Chester, Pennsylvania.
http://www.bloomberg.com/
U.S. commercial property prices slipped for the second straight month in January, as distressed real estate sales weighed on values, according to Moody’s Investors Service.
The Moody’s/REAL Commercial Property Price Index slumped 1.2 percent from the previous month and 4.3 percent from a year earlier. It’s up 4.2 percent from an eight-year low in August, Moody’s said in a statement today.
The U.S. economy grew at a 2.8 percent annual rate in the fourth quarter, helping boost demand for office, retail and industrial space and apartments. Price increases are being held back by the number of distressed properties on the market, said Christopher Cornell, an economist at Moody’s Analytics Inc. in West Chester, Pennsylvania.
http://www.bloomberg.com/
Walgreen’s Profit Rises 10 Percent
NNN Lease Market News
Walgreen Co. (WAG), the largest U.S. drugstore chain, reported a 10 percent gain in second-quarter profit, helped by demand for flu-related prescriptions.
Net income rose to $739 million, or 80 cents a share, in the period ended Feb. 28, the Deerfield, Illinois-based company said today in a statement. Analysts anticipated 80 cents, according to the average of estimates in a Bloomberg survey.
Walgreen, led by Chief Executive Officer Greg Wasson, benefited as more people fell ill from colds and the flu later in the season than a year ago. The company filled one in five retail prescriptions in the U.S. for the first time in history last quarter, Wasson said in the statement.
The shares rose $1.06 to $41.97 yesterday in New York Stock Exchange composite trading. They had gained 7.7 percent this year before today.
http://www.bloomberg.com/
Walgreen Co. (WAG), the largest U.S. drugstore chain, reported a 10 percent gain in second-quarter profit, helped by demand for flu-related prescriptions.
Net income rose to $739 million, or 80 cents a share, in the period ended Feb. 28, the Deerfield, Illinois-based company said today in a statement. Analysts anticipated 80 cents, according to the average of estimates in a Bloomberg survey.
Walgreen, led by Chief Executive Officer Greg Wasson, benefited as more people fell ill from colds and the flu later in the season than a year ago. The company filled one in five retail prescriptions in the U.S. for the first time in history last quarter, Wasson said in the statement.
The shares rose $1.06 to $41.97 yesterday in New York Stock Exchange composite trading. They had gained 7.7 percent this year before today.
http://www.bloomberg.com/
Monday, March 21, 2011
Dollar General in Folkston, GA Sold
Reston, VA - Calkain Companies', a national real estate investment brokerage firm, recently completed the sale of a Dollar General store located in Folkston, GA. The 9,014 SF investment property is leased to Dollar General on a long-term, double net (NN) basis. The purchaser was a private investor seeking a passive, incoming-producing asset leased to a national tenant.
Calkain's Rich Murphy brokered the transaction on the buy side and worked with Bill Weitzenkorn from Tri-Oak Commercial who represented the seller. Calkain utilized its extensive database to match its buyer up with properties that would fit their investment strategy. “Knowing the buyer's criteria, it was a matter of finding an attractive property at the right price point,” says Murphy. “This property was actually a relocation of an existing successful Dollar General. That along with a solid location and an excellent CAP rate made this a great transaction for all involved,” adds Murphy. The asset traded at an 8.9% CAP rate, illustrating that good deals exist out there for those willing to look hard enough. This Dollar General deal represents the type of stable asset that investors are focused on purchasing in the current environment.
The transaction closed within the last thirty days and is recorded in the public record.
Calkain is a full service real estate brokerage firm with a national scope focusing on single and multi tenant retail, industrial, hotel and office net-leased transactions. Calkain has offices in Reston, VA (Washington, DC), Florida, Maryland and Delaware. Additional information about the firm and its listings may be found at
http://www.calkain.com/
Calkain's Rich Murphy brokered the transaction on the buy side and worked with Bill Weitzenkorn from Tri-Oak Commercial who represented the seller. Calkain utilized its extensive database to match its buyer up with properties that would fit their investment strategy. “Knowing the buyer's criteria, it was a matter of finding an attractive property at the right price point,” says Murphy. “This property was actually a relocation of an existing successful Dollar General. That along with a solid location and an excellent CAP rate made this a great transaction for all involved,” adds Murphy. The asset traded at an 8.9% CAP rate, illustrating that good deals exist out there for those willing to look hard enough. This Dollar General deal represents the type of stable asset that investors are focused on purchasing in the current environment.
The transaction closed within the last thirty days and is recorded in the public record.
Calkain is a full service real estate brokerage firm with a national scope focusing on single and multi tenant retail, industrial, hotel and office net-leased transactions. Calkain has offices in Reston, VA (Washington, DC), Florida, Maryland and Delaware. Additional information about the firm and its listings may be found at
http://www.calkain.com/
Friday, March 18, 2011
Questions and Answers About Today’s Net lease Market
NNN Lease Market News
Can you quantify cap rate differences by market for the same credit tenant?
Demand for credit rated property within the MSA of the elite primary markets is strong but the lack of product means that a NNN net investor is going to pay a premium for that property. The spread for credit rated tenants can vary by up to 100 basis points if you are in New York or Washington, D.C. versus other primary market cities with another modest drop in cap as you enter the secondary and tertiary markets around the country. There is not as significant a variance in the recorded caps for credit rated tenants in secondary, tertiary and the primary markets outside of the elite group mentioned above. A review of closed transactions in 2010 shows that a Walgreens minutes from D.C. in suburban Virginia might sell for a 6.5 cap or better whereas a similar property might sell at a 7.5 cap in Philadelphia.
How do investors weigh credit tenant versus strong location and market?
The greatest disparity in cap rates between markets can be seen in the transactions recorded for non-credit rated tenants. At the height of the market, investors often looked at NNN net properties with the same overly optimistic view as their well-documented counterparts in residential real estate. Today, NNN net investors rightly focus on core real estate fundamentals, the survivability and strength of the tenant and the landlord’s ability to replace the tenant and rent should the tenant fail. NNN net investors are buying national non-credit rated tenants and local mom and pop shops in the elite markets if the performance and prospects of the tenant is known and the underlying real estate is strong. In D.C., the seller of a NNN net retail condominium with a local tenant operating a quick-serve restaurant in the heart of a thriving urban market sold at a 7 percent cap rate. By comparison, non-credit retail properties outside of the primary markets trade from 50 to 200 basis points higher than their primary market counterparts.
Have you seen a difference in debt terms based on geography or is it just on the investor side?
Debt terms do vary by market and tenant with a local lender the only prospect for debt in some markets. National lenders continue to pull back in many cities but insurers and the big banks are financing a great variety of transactions in the primary markets. As the supply of NNN net property remains limited, do you see investors moving towards lower credit or other markets?
In today’s market, suitable NNN net investment property is hard to find. Quality NNNnet investment property is harder still. Perhaps hardest of all are the $1 million to $5 million size transactions where average investors focus their attention. For many of these investors, as with many of the REITs, the return will not be equal to the risks associated with non-credit tenants in secondary and tertiary markets and they will remain on the sideline.
Net Lease Market Expected In 2011
Vibrant Net Lease Market Expected In 2011
NNN Lease Market News
With 2010 behind us and 2011 under way, it's a good time to take stock of the net lease market in review and where it seems to be heading in 2011.
Last year's sales started off at a slow pace—not surprising, given that we had just exited the recession of 2009—but the net lease market began to pick up in earnest in the second half of 2010. Although we have not yet seen full-year figures for the industry, the amount of growth in investment sales during the first three quarters of 2010 as compared to the prior year is very encouraging.
http://www.stanjohnsonco.com/emailers/campaigns/Newsletter/NBNMar2011.htm
Net Lease Market Expected In 2011
Vibrant Net Lease Market Expected In 2011
With 2010 behind us and 2011 under way, it's a good time to take stock of the net lease market in review and where it seems to be heading in 2011.
Last year's sales started off at a slow pace—not surprising, given that we had just exited the recession of 2009—but the net lease market began to pick up in earnest in the second half of 2010. Although we have not yet seen full-year figures for the industry, the amount of growth in investment sales during the first three quarters of 2010 as compared to the prior year is very encouraging.
Monday, March 14, 2011
7-Eleven and FamilyMart to Collect Donations. (王明仁) .
First batch of relief supplies delivered to Japan (王明仁)
The Red Cross Society of the Republic of China yesterday announced it would work with convenience store chains 7-Eleven and FamilyMart to collect donations for relief efforts in tsunami-ravaged Japan.
The organization said that starting today, people who want to donate small amounts of money — ranging from NT$100 (US$3.40) to NT$20,000 — could do so through the electronic kiosks found in stores of the two chains.
The Taiwan Fund for Children and Families has also launched a fundraising drive, in part to recognize Japan’s assistance to Taiwan in the past.
Wang Ming-jen (王明仁), the group’s executive director, said that in the wake of the 921 Earthquake in 1999, Japanese groups such as Childfund Japan not only donated money, but sent officials several times to express their concern.
Wednesday, March 9, 2011
Sale of a NNN Lease Investment Property in Lorton, VA.
NNN Lease Market News
Reston, VA – Calkain Companies, a national real estate investment brokerage firm, has procured the sale of a triple net (NNN) lease investment property in Lorton, VA.
This "NNN" triple net leased property is a 3,695-square-foot office condominium. This "NNN" triple net leased property is located within the Lorton Station Town Center. The Tenant under the triple net lease is Defense contractor EOIR Technologies Inc. The purchaser of this triple net lease property a private investor. The NNN Lease Investment sold for $1.15 million, or about $311 per square foot.
This triple net lease property is newly constructed. The office condo offers office space with the NNN lease current. The primary NNN lease term was 7 years expiring in July 2016. The NNN lease has 3% annual rent bumps and provides for one 5-year extension option.
http://www.calkain.com/
Reston, VA – Calkain Companies, a national real estate investment brokerage firm, has procured the sale of a triple net (NNN) lease investment property in Lorton, VA.
This "NNN" triple net leased property is a 3,695-square-foot office condominium. This "NNN" triple net leased property is located within the Lorton Station Town Center. The Tenant under the triple net lease is Defense contractor EOIR Technologies Inc. The purchaser of this triple net lease property a private investor. The NNN Lease Investment sold for $1.15 million, or about $311 per square foot.
This triple net lease property is newly constructed. The office condo offers office space with the NNN lease current. The primary NNN lease term was 7 years expiring in July 2016. The NNN lease has 3% annual rent bumps and provides for one 5-year extension option.
http://www.calkain.com/
Tuesday, March 8, 2011
NNN Net Leased IHOP Sold Dallas, TX
NNN Lease Market News
Tampa, FL — Calkain Companies, a national real estate investment brokerage firm, recently procured the $1,910,000 sale of a NNN Net Leased IHOP investment property in the Dallas, TX suburb of Lewisville. The property, located at 2345 South Stemmons Freeway, is occupied by ACG Texas, the IHOP franchisee for the state of Texas with over 70 restaurant locations in service. The NNN Net Lease restaurant is situated across the street from Vista Ridge Mall and near the high traffic intersection of Interstate 35E and E. Round Grove Road.
Patrick Nutt, Associate Vice President of Calkain Realty Advisors, the private market division of Calkain Companies, represented the private buyer in this cash transaction. Nutt commented, “The buyer was familiar with the tenant, already owning other NNN net leased sites within his portfolio, and was looking to expand that presence.” Nutt continued, “Rather than take the approach of limiting exposure to particular tenants, the purchaser prefers to have a substantial landlord relationship with each tenant occupying NNN net leased real estate within his portfolio.”
This sale marks the fourth closing in just over a month for Nutt, continuing the steady market velocity from the end of 2010. Nutt remarked, “While there was a slight ‘hangover’ effect from a busy December, the buyers are eager to wrap up the first quarter with strong numbers. If you have a property occupied by a quality tenant or located on strong real estate, there is considerable demand for those assets.”
Calkain is a full service real estate brokerage firm with a national scope focusing on single and multi tenant retail, industrial, hotel and office net leased transactions. Calkain has offices in Reston, VA (Washington, DC), Florida, Maryland and Delaware. Additional information about the firm and its listings may be found at http://www.calkain.com/.
Tampa, FL — Calkain Companies, a national real estate investment brokerage firm, recently procured the $1,910,000 sale of a NNN Net Leased IHOP investment property in the Dallas, TX suburb of Lewisville. The property, located at 2345 South Stemmons Freeway, is occupied by ACG Texas, the IHOP franchisee for the state of Texas with over 70 restaurant locations in service. The NNN Net Lease restaurant is situated across the street from Vista Ridge Mall and near the high traffic intersection of Interstate 35E and E. Round Grove Road.
Patrick Nutt, Associate Vice President of Calkain Realty Advisors, the private market division of Calkain Companies, represented the private buyer in this cash transaction. Nutt commented, “The buyer was familiar with the tenant, already owning other NNN net leased sites within his portfolio, and was looking to expand that presence.” Nutt continued, “Rather than take the approach of limiting exposure to particular tenants, the purchaser prefers to have a substantial landlord relationship with each tenant occupying NNN net leased real estate within his portfolio.”
This sale marks the fourth closing in just over a month for Nutt, continuing the steady market velocity from the end of 2010. Nutt remarked, “While there was a slight ‘hangover’ effect from a busy December, the buyers are eager to wrap up the first quarter with strong numbers. If you have a property occupied by a quality tenant or located on strong real estate, there is considerable demand for those assets.”
Calkain is a full service real estate brokerage firm with a national scope focusing on single and multi tenant retail, industrial, hotel and office net leased transactions. Calkain has offices in Reston, VA (Washington, DC), Florida, Maryland and Delaware. Additional information about the firm and its listings may be found at http://www.calkain.com/.
Ajinomoto Co. Seasonings Maker May Spend $3.7 Billion on Acquisitions in Three Years
NNN Lease Market News
Ajinomoto Co., the Japanese seasonings maker that first sold monosodium glutamate, may spend 300 billion yen ($3.7 billion) on acquisitions in the next three years as the company expands overseas.
“We want to beef up our strong areas like Brazil and Southeast Asian countries as well as expand in new markets such as the Middle East and Africa,” President Masatoshi Ito, 63, said in an interview at the company’s Tokyo headquarters yesterday. In July, a team directly reporting to Ito will be set up to study potential purchases and alliances, he said. ...http://www.bloomberg.com/news
Ajinomoto Co., the Japanese seasonings maker that first sold monosodium glutamate, may spend 300 billion yen ($3.7 billion) on acquisitions in the next three years as the company expands overseas.
“We want to beef up our strong areas like Brazil and Southeast Asian countries as well as expand in new markets such as the Middle East and Africa,” President Masatoshi Ito, 63, said in an interview at the company’s Tokyo headquarters yesterday. In July, a team directly reporting to Ito will be set up to study potential purchases and alliances, he said. ...http://www.bloomberg.com/news
Although traditional East Asian cuisine had often used seaweed extract, which contains high concentrations of glutamic acid, it was not until 1907 that MSG was isolated by Kikunae Ikeda. MSG was subsequently patented by Ajinomoto Corporation of Japan in 1909. In its pure form, it appears as a white crystalline powder that, as a salt, dissociates into sodium cations and glutamate anions while dissolving (glutamate is the anionic form of glutamic acid).
The European Markets Had Been Picking up, Partly Thanks to Banks Lending Again
NNN Lease Market
''The market had been picking up, partly thanks to banks lending again'',says Eric Sasson, who heads up the European operations at The Carlyle Group, the private equity firm. "But the Greece crisis put a hold to that. Having just got out of the freezing zone, banks went cold again – and some deals got delayed."
Concerns over the European markets have also kept international investors away. While the U.K. has attracted many big-ticket sovereign wealth funds and quasi-national pension funds from Asia and the Middle East over the past 12 months, the rest of Europe has been dominated by domestic institutions and property companies.
"There was a massive globalized real estate market in 2007," says Pierre Vaquier, chief executive of AXA Real Estate Investment Managers. "But then afterwards there was a 'flight to home' – as people wanted to go where they understand best."
Signs of a true recovery have therefore been seen in just a few core cities – markets that sovereign wealth funds and institutions know and understand: Primarily London, Paris and the five main German cities. For the first three quarters of 2010, investment volumes in the U.K., Germany and France accounted for two-thirds of all investment turnover in Europe, according to Jones Lang LaSalle.
online.wsj.com
''The market had been picking up, partly thanks to banks lending again'',says Eric Sasson, who heads up the European operations at The Carlyle Group, the private equity firm. "But the Greece crisis put a hold to that. Having just got out of the freezing zone, banks went cold again – and some deals got delayed."
Concerns over the European markets have also kept international investors away. While the U.K. has attracted many big-ticket sovereign wealth funds and quasi-national pension funds from Asia and the Middle East over the past 12 months, the rest of Europe has been dominated by domestic institutions and property companies.
"There was a massive globalized real estate market in 2007," says Pierre Vaquier, chief executive of AXA Real Estate Investment Managers. "But then afterwards there was a 'flight to home' – as people wanted to go where they understand best."
Signs of a true recovery have therefore been seen in just a few core cities – markets that sovereign wealth funds and institutions know and understand: Primarily London, Paris and the five main German cities. For the first three quarters of 2010, investment volumes in the U.K., Germany and France accounted for two-thirds of all investment turnover in Europe, according to Jones Lang LaSalle.
online.wsj.com
As a tested market that has endured with investors, Reynolds, in her PIGS-versus-BRICs comparison, attests that despite the somewhat deceptive figures, European property still may be the way to go when it comes to investment. "On the face of it, the emerging economies look a better bet, however they will need resources to grow, both money and raw materials (witness the spate of lead thefts to supply China with base metal requirements). Some emerging markets have not yet got a proven, 'foreign property buyer' track record. Sustainability of the domestic, property markets will also be a key question to bear in mind, as well as how foreign property buyers are treated by regulation."
Monday, March 7, 2011
Realty Income to Acquire up to $544 Million of Net Lease Propertiesn 11 Different industries
NNN Lease Market News
Realty Income to Acquire up to $544 Million of Net Lease Properties
Net leased properties are appealing to a wide variety of buyers, from high net worth individuals to partnerships to large institutional investors like real estate investment trusts, life insurance companies and pension funds. Net leased properties also are very attractive to investors who need to do 1031 tax-deferred exchanges, or 1031 exchanges for short.
http://www.calkain.com/
Realty Income to Acquire up to $544 Million of Net Lease Properties
The properties to be acquired are located in 17 different states and consist of approximately 3.8 million square feet of leasable space. The majority of the lease revenue from these single-tenant properties is generated from investment grade tenants, or their operating subsidiaries, in 11 different industries. The single-tenant distribution properties representing 34% of the lease revenue include; Aviall Services, Caterpillar, FedEx Corporation, and International Paper. The single-tenant retail properties representing 33% of the lease revenue include; AMC Theaters, Cinemark Theaters, Regal Cinemas, and Walgreens. The single-tenant office properties representing 25% of the lease revenue include; Fiserv, Inc., Novus International, Solae and T-Mobile USA. The single-tenant manufacturing properties representing 8% of the lease revenue include; Coca-Cola and MeadWestvaco Corporation. The average remaining lease term of the properties is over 11 years, which is consistent with the average remaining lease term of Realty Income’s existing portfolio of approximately 2,500 net leased properties.
Many investors are looking for a safe place to put their money with the wild fluctuations in the financial market. Stable, predictable investment vehicles are increasingly hard to find, but smart investors do have choices. One of the better choices is to invest in single-tenant, net-leased properties, which many investors also call a corporate bond combined with real estate investments that still make sense today.Net leased properties are appealing to a wide variety of buyers, from high net worth individuals to partnerships to large institutional investors like real estate investment trusts, life insurance companies and pension funds. Net leased properties also are very attractive to investors who need to do 1031 tax-deferred exchanges, or 1031 exchanges for short.
http://www.calkain.com/
NNN Lease Investment Portfolio for Sale
NNN Lease News
Reston, VA - Calkain Companies, a national NNN net lease investment brokerage company, has been name the exclusive advisor for the sale of four NNN net leased Arby’s. This four Net Lease Properties are located in the diverse Mid-Atlantic region. Here are the highlights of These Four NNN net leased investment properties,
Highlights
•Strong Locations on outparcels to Super Wal-Mart or Home Depot Anchored Centers
•Landlord Retains Possession of All Trade Fixtures and in-store equipment
•Percentage Rent in addition to base rent
•Personal Guarantee for each location
Arby’s - Wake Forest, NC
Square Footage: 3,119
Property Type: Restaurant, Retail
Lease Term 15 yrs.
Lease Structure: NNN
NOI: $159,178
Price: $2,165,692
Arby’s - South Hill, VA
Square Footage: 3,119
Property Type: Restaurant, Retail
Lease Term 15 yrs.
Lease Structure: NNN
NOI: $144,144
Price: $1,961,147
Arby’s - Rocky Mount, NC
Square Footage: 3,119
Property Type: Restaurant, Retail
Lease Term 15 yrs.
Lease Structure: NNN
NOI: $124,412
Price: $1,692,681
Arby’s - Roanoke Rapids, NC
Square Footage: 3,119
Property Type: Restaurant, Retail
Lease Term 15 yrs.
Lease Structure: NNN
NOI: $122,316
Cap Rate: 7.35%
Price: $1,664,159
For More information Contact:
Friday, March 4, 2011
Zara Spanish Retailer Bought NNN Lease Investment in Manhattan for $324 Million
NNN Lease Market News
Spanish retailer Inditex SA (ITX) said it bought the former NBA Store at 666 Fifth Ave. in Manhattan for $324 million and will make it into a flagship store for its Zara clothing chain.
Inditex acquired the 39,000-square-foot (3,600-square- meter) storefront between West 52nd and 53rd streets, the Arteixo, Spain-based company said today in a statement posted on its website. The site was the home of the National Basketball Association’s flagship shop, where it sold team jerseys and other memorabilia.
That deal helped the tower’s owner, Kushner Cos., cover some of the debt incurred after purchasing the building the year before for $1.8 billion, then the most ever paid for a single NNN Lease Investment U.S. building.
Inditex is one of the worlds largest fashion distributors, with eight sales formats -Zara, Pull and Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home and Uterqüe - boasting 4.430 stores in 73 countries.
The Inditex Group is comprised of over one hundred companies associated with the business of textile design, manufacturing and distribution.
Thanks to its achievements and the uniqueness of its management model based on innovation and flexibility, Inditex is one of the largest fashion distribution groups.
Our fashion philosophy -creativity and quality design together with a rapid response to market demands- has resulted in fast international expansion and excellent response to our sales concepts.
The first Zara shop opened its doors in 1975 in A Coruña (Spain), the city that saw the Group's early beginnings and which is now home to its central offices. Its stores can now be found in the most important shopping districts of more than 400 cities in Europe, the Americas, Asia and Africa.
Rochester Area's NNN Lease Commercial Real Estate Market Slowly Regaining its feet
NNN Lease Market News
NNN Lease Commercial Real Estate Market Slowly Regaining its feet
The Rochester area's commercial real estate market, which has had all the vitality of an empty strip mall the past two years, is slowly regaining its feet, local brokers and property owners say.
There is a noticeable thaw in banks' and other lenders' attitudes toward credit for both commercial and residential borrowers, and businesses have built up cash reserves to begin addressing their facility needs.
It will take time for the commercial market to return to the aggressively confident days of 2006 or 2007, the industry experts said. But the leasing of retail and industrial space and the sale of commercial properties are picking up.
"People are talking again. And when people talk, positive things happen," said Michael Frame, managing broker of CB Richard Ellis/Rochester, a major global player in the commercial field. CB Richard Ellis has been working with Eastman Kodak Co.
http://www.democratandchronicle.com/
NNN Lease Commercial Real Estate Market Slowly Regaining its feet
The Rochester area's commercial real estate market, which has had all the vitality of an empty strip mall the past two years, is slowly regaining its feet, local brokers and property owners say.
There is a noticeable thaw in banks' and other lenders' attitudes toward credit for both commercial and residential borrowers, and businesses have built up cash reserves to begin addressing their facility needs.
It will take time for the commercial market to return to the aggressively confident days of 2006 or 2007, the industry experts said. But the leasing of retail and industrial space and the sale of commercial properties are picking up.
"People are talking again. And when people talk, positive things happen," said Michael Frame, managing broker of CB Richard Ellis/Rochester, a major global player in the commercial field. CB Richard Ellis has been working with Eastman Kodak Co.
http://www.democratandchronicle.com/
Thursday, March 3, 2011
Health Care REIT Signed NNN Lease Agreement to Acquire Substantially All of Privately-Owned Genesis HealthCare
Health Care REIT Signed NNN Lease Agreement in Toledo Ohio
NNN Net Lease News
NNN Net Lease News
TOLEDO, Ohio--(BUSINESS WIRE)-- Health Care REIT, Inc. (NYSE:HCN) announced that it has signed a definitive agreement to acquire substantially all of the real estate assets of privately-owned Genesis HealthCare (Genesis), a leading provider of short-term post-acute, rehabilitation, assisted living and long-term care services, for a purchase price of $2.4 billion .
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Genesis’ highly respected and tenured management team will continue to operate the facilities pursuant to a long-term NNN net lease. HCN will have the right to own certain facilities that Genesis currently leases from third-party landlords, pursuant to fixed price purchase options, as well as any facilities that Genesis acquires or develops during the initial 15-year term of the lease at pre-determined attractive lease yields. In addition, HCN has the option to acquire a 9.9% ownership interest in Genesis for a fixed price equal to $47 million throughout the initial lease term. This option will enable HCN to share in the future growth of Genesis.
The long-term NNN net lease with Genesis will provide for rent in the first year of Vornado Realty Trust Spent a Total of $180 million in NNN Lease Building
NNN Lease Market News
Vornado Realty Trust spent a total of $180 million to recapitalize and gain control of the 925,000-square-foot office building 1 Park Avenue from Norman Sturner's Murray Hill Properties, which was in danger of losing the property to lenders.
The cash infusion included about $30 million in tenant improvement costs and other reserves, while at the same time Vornado secured $250 million in debt from a major investment bank, a person familiar with the deal, which closed last night, said. Murray Hill retained a small portion of the equity on the 20-story building located between 32nd and 33rd streets, the source said.
The cash infusion included about $30 million in tenant improvement costs and other reserves, while at the same time Vornado secured $250 million in debt from a major investment bank, a person familiar with the deal, which closed last night, said. Murray Hill retained a small portion of the equity on the 20-story building located between 32nd and 33rd streets, the source said.
Vornado Realty Trust is a fully-integrated real estate investment trust (REIT). Vornado is one of the largest owners and managers of commercial real estate in the United States with a portfolio totaling over 100 million square feet, primarily located in the New York City and Washington, DC metropolitan areas. The Company’s four major platforms include: New York City Office; Washington, DC Office; Retail and Merchandise Mart.
Investors Are Offering More Capital To So-Called REITs
NNN Lease Market News
Blockbuster NNN lease transactions this week for seniors housing, skilled nursing and other post-acute care assets by Ventas Inc. and Healthcare REIT Inc. underscore the expansion and growth potential of health-care REITs. The deals also demonstrate that investment in the seniors care subsector has picked up as public companies deploy hundreds of millions in equity capital raised over the last 12-18 months.
Investors are offering more capital to so-called REITs, with dividends averaging 13 percent, because their borrowing costs are being held at close to zero by the Federal Reserve while they buy higher yielding, mostly U.S.-guaranteed securities. One measure of the potential profits from such investing reached the highest in 10 months in February.
http://www.bloomberg.com/news
Blockbuster NNN lease transactions this week for seniors housing, skilled nursing and other post-acute care assets by Ventas Inc. and Healthcare REIT Inc. underscore the expansion and growth potential of health-care REITs. The deals also demonstrate that investment in the seniors care subsector has picked up as public companies deploy hundreds of millions in equity capital raised over the last 12-18 months.
Investors are offering more capital to so-called REITs, with dividends averaging 13 percent, because their borrowing costs are being held at close to zero by the Federal Reserve while they buy higher yielding, mostly U.S.-guaranteed securities. One measure of the potential profits from such investing reached the highest in 10 months in February.
http://www.bloomberg.com/news
Investors Look to Expand Retail Portfolios
The amount of money going into retail property has increased as a share of total European commercial-property investment, according to a survey by Jones Lang LaSalle. In 2010, the retail sector accounted for 28% of total commercial-property investment, up from 21% in 2006. Investment in offices accounted for 49% of total commercial-property investment in 2010, down from 53% in 2006.
Allianz Real Estate, a unit of German insurer Allianz SE, is telling investors in roadshows that it plans to invest about €11 billion ($15 billion) in European property, aiming to take its portfolio to €30 billion. Allianz Real Estate, which is looking for yields of between 5% and 6%, wants to have about 45% of its portfolio in offices, 25% in retail and 15% in residential. Offices account for 63% of Allianz's portfolio, residential is 20%, and retail is about 17%, according to Allianz Real Estate.
http://online.wsj.com/
Many investors are looking for a safe place to put their money with the wild fluctuations in the financial market. Stable, predictable investment vehicles are increasingly hard to find, but smart investors do have choices. One of the better choices is to invest in single-tenant, net leased properties, which many investors also call a corporate bond combined with real estate investments that still make sense today.
Allianz Real Estate, a unit of German insurer Allianz SE, is telling investors in roadshows that it plans to invest about €11 billion ($15 billion) in European property, aiming to take its portfolio to €30 billion. Allianz Real Estate, which is looking for yields of between 5% and 6%, wants to have about 45% of its portfolio in offices, 25% in retail and 15% in residential. Offices account for 63% of Allianz's portfolio, residential is 20%, and retail is about 17%, according to Allianz Real Estate.
http://online.wsj.com/
Many investors are looking for a safe place to put their money with the wild fluctuations in the financial market. Stable, predictable investment vehicles are increasingly hard to find, but smart investors do have choices. One of the better choices is to invest in single-tenant, net leased properties, which many investors also call a corporate bond combined with real estate investments that still make sense today.
NNN Lease Market in Rochester Area's are Picking Up
NNN Lease Market News
The Rochester area's commercial real estate market, which has had all the vitality of an empty strip mall the past two years, is slowly regaining its feet, local brokers and property owners say.
There is a noticeable thaw in banks' and other lenders' attitudes toward credit for both commercial and residential borrowers, and businesses have built up cash reserves to begin addressing their facility needs.
It will take time for the commercial market to return to the aggressively confident days of 2006 or 2007, the industry experts said. But the leasing of retail and industrial space and the sale of commercial properties are picking up.
http://www.democratandchronicle.com/
The Rochester area's commercial real estate market, which has had all the vitality of an empty strip mall the past two years, is slowly regaining its feet, local brokers and property owners say.
There is a noticeable thaw in banks' and other lenders' attitudes toward credit for both commercial and residential borrowers, and businesses have built up cash reserves to begin addressing their facility needs.
It will take time for the commercial market to return to the aggressively confident days of 2006 or 2007, the industry experts said. But the leasing of retail and industrial space and the sale of commercial properties are picking up.
http://www.democratandchronicle.com/
Wednesday, March 2, 2011
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