Toll Brothers is Acquiring Seattle Builder CamWest Development

NNN Lease Market News


Toll Brothers to Buy Seattle Builder


It is Toll's first acquisition since its 2005 purchase of Landstar Homes in Florida and its first new state since the housing market sank.
While the Seattle market weakened during the downturn, prices have stabilized around 2004-2005 values and some neighborhoods are even seeing modest price increases, said David Bell, managing broker with RE/MAX Metro in downtown Seattle. The market didn't see a construction glut during the boom and has strong employers in the software and biotech industries, a combination that has buffered it from the foreclosure crisis that has depressed values by 30% or more nationwide.
Just one in every 856 of the Seattle area's households received a foreclosure filing in October, according to RealtyTrac. That is compared with one in every 563 housing units nationwide and one in every 143 in Stockton, Calif., one of the nation's biggest boom-to-bust markets.
Toll has been looking at the Seattle market for about a decade, but it has been tough to find suitable sites in the land-constrained market with tough environmental regulations for home construction, Toll Chief Executive Douglas C. Yearley Jr. said in an interview. http://online.wsj.com


You get value on many levels when you become a Toll Brothers homeowner. 

NNN Market Loan Prices Rise in October

NNN Lease Market News

Commercial Real Estate Loan Prices Rise in October

In October, DebtX priced 52,806 CRE loans with a $628.4 billion aggregate principal balance. These loans, which collateralize 647 US CMBS trusts, each received a DXMark(R), a price based on 10 years of data from billions of dollars in loan sales executed by DebtX, the largest marketplace for loan sales. Access to individual DXMark prices is available through the BLOOMBERG PROFESSIONAL(R) Service. Type DXMKfor more information.

DebtX's CMBS loan pricing analysis is part of DXMarket Datasm, a subscription service that provides loan buyers with insight about transactions at www.debtx.com . DXMarket Datasm is available to registered DebtX buyers and includes six components: Non-Performing Loan Sale Prices, Bank Watch, Secondary Loan Market Commentary, CMBS Loan Collateral Prices, Secondary Loan Market Liquidity and CRE  Capital Markets Observations.  http://www.marketwatch.com/


Over the last 12 months high quality assets have been in strong demand;drugs store such “Walgreens” being the perfect example. As a result of this strong demand, cap rates for high quality assets have been driven down to the low/mid 6% range. Investors are now looking for higher returns. Washington D.C., New York, Boston, Chicago, Dallas, L.A and San Francisco are all popular locations for acquiring net leased assets and urban infill locations with good demographics are highly sought after. www.calkain.com

New York Real Estate Market is Shrinking

NNN Lease Market News

Manhattan Luxury-Home Supply Dwindles

Jason Haber, who runs a New York real estate brokerage firm, is struggling to find apartments to show a client who’s in the market for a Manhattan home priced around $8 million. “That’s not something you would do if the market was flush with high-end inventory,” said Haber, co-founder and chief executive officer of Rubicon. “That’s a sign of the times. This is a ready, willing and able buyer and we can’t find the product for him.
There were 832 homes on the market with asking prices of at least $5 million last month, compared with 862 in October 2010, 917 in 2009 and 909 in 2008, StreetEasy data show. In October 2007, near the real estate market’s peak, there were 588 listings.
Prices haven’t returned to peak levels. The third-quarter median price in the top 10 percent of the market was $4.17 million, down 16 percent from the high of $4.99 million in the first three months of 2008, according to Miller.


http://www.bloomberg.com/news

NNN Walgreen in Texas Close for $7.3 million

NNN Lease Market News

Net leased Walgreens sells for $7.3 million in McKinney, Texas

McKINNEY, Texas - In a quick-moving, all-cash close, a private family trust from California has paid $7.3 million for a 14,820-square-foot store, net leased until 2033 to Walgreens.

Jim Casale, principal in the San Diego office of Lee & Associates, represented the buyers. Brad and Gavin Kam of Net Lease Realty Advisors in Dallas marketed the property for the sellers, JK 720 Custer LLC. The Walgreen build-to-suit delivered in 2008 at 8996 Stacy Rd. in the 2,500-acre Craig Ranch. The Deerfield, Ill.-based pharmacy chain's long-term lease includes options.


http://dallasrealestate.citybizlist.com

European Banks Will Sell More (NNN) Distressed Commercial Properties

NNN Lease Market News

Europe Is Seen as Ripe Market for Distressed Property Loan Sales by Banks

European banks will be forced to sell more distressed commercial property loans in the coming year, as more borrowers default, said panelists at the Bloomberg Commercial Real Estate Summit.

The U.S. commercial real estate market slowed in the third quarter as the sputtering economy and a pullback in debt financing limited deals. A total of $49.8 billion of commercial property changed hands in the period, down from $58.5 billion in the previous three months, according to Real Capital Analytics Inc. in New York. The 15 percent decline is the second-biggest since the first quarter of 2009, the real estate research firm’s data show.

Dune Real Estate Partners LP expects investment opportunities in the U.S. next year, said CEO Daniel Neidich. Most investors are focusing on major coastal cities such as New York, Washington and San Francisco, according to Leslie Wohlman Himmel, managing partner at Himmel & Meringoff Properties, a New York investment firm that owns and operates more than 2 million square feet (186,000 square meters) of office and retail space.

http://www.bloomberg.com/news

Eight Triple Net (NNN) Leased Building Industrial Park Sold

NNN Lease Market News

Triple Net Leased Trinity Ridge Business Center Sold

Dalfen America Corp. announced today the acquisition of Trinity Ridge Business Center.

Built between 1998 and 2007, this eight-building industrial park totals 234,000 square feet and is located in Cordova, Tennessee, an affluent suburb of Memphis.

In 2007, Trinity Ridge Business Center was acquired by DBSI Inc. for $22.9 million. The property was foreclosed on last year and the loan servicer, LNR Partners, LLC, sold the property to Dalfen America Corp for $7.2 million.

This property is the latest acquisition made by DAC's most recent value-added industrial fund, the firm's 17th real estate fund. Since its closing in February of this year, DAC's fund has acquired close to 1 million square feet of institutional quality multi-tenanted industrial properties and mortgage notes in select metropolitan markets across the United States.

"We continue to see areas of opportunity in the current real estate market and we believe this transaction offers a unique opportunity for Dalfen America Corp. to add value and generate superior returns for our investors," said Sean Dalfen, Dalfen America Corp.'s Executive Managing Director.

Dalfen is confident that the firm is uniquely positioned to capitalize on the steady flow of overleveraged assets being sold by lenders both on and off market because of its cash position, ability to make decisions quickly, and reputation for fair dealings.

www.prnewswire.com/news

Net Lease Grocery Stores are a Major Player in the NNN Market

NNN Lease Market News

 Location is Central to a Grocer's Success

Net lease grocery stores are a major player in the NNN market. Their focus on staple products and central locations are the definition of a stable asset. While other retailers with large foot prints couldn't weather the recession (Circuit City) net lease grocery stores made it through relatively unscathed.

Like all real estate, location is central to a grocer’s success. However, unlike other sectors such as office or traditional retail, there it not a strong temptation to overbuild. Grocery stores inhabit a very stable area of the consumer’s basket. A recession may force customers to cut back on casual dining and weekend shopping but milk and bread will still be bought.

For these reasons cap rates for grocery stores have recently compressed at a faster rate than the rest of the net lease market. Investors are demanding stable, recession proof assets and grocery stores fit this bill perfectly.

Read the full report here.