NNN Lease Market News
Commercial real estate investors are optimistic that a U.S. industry recovery will continue even as the economy shows signs of slowing.
A lack of new supply and low interest rates are helping to drive investor interest in commercial properties. Capitalization rates, which decline when real estate prices increase, fell in 27 of 31 markets surveyed.
Office properties led cap-rate declines in the second quarter, the report showed. The average cap rate for office buildings in central business districts was 6.95 percent, down 1.2 percent from a year earlier. Cap rates, a measure of yield, are net income divided by the sales price
Buyers are pursuing deals as the market improves, and concern that that the economic recovery will falter has deterred “very few” investors from acquiring assets.
There will be “very few additions” to the commercial- property supply in the near term, which will help absorb existing space and drive up rents as tenant demand increases, according to the report. Lease rates remain below peak levels for most property types and increased in 25 of 31 markets surveyed.
The Northeast is the strongest office market, with nine out of 10 regions surveyed in recovery or expansion this year.
Two-thirds of investors view current market conditions as favorable to sellers, and all 81 multifamily markets surveyed are expected to be out of recession by the end of the year.
http://www.bloomberg.com/news
Wednesday, June 22, 2011
Brownstone Tampa Partners LLC Announced it has Acquired the Former Trump Tower
NNN Lease Market News
Mr. Trump wasn't the developer of the planned 52-story Tampa project, but he licensed his name to its Florida developer, Simdag/Robel LLC. Mr. Trump did numerous of these types of deals in the years leading up the economic downturn, earning large fees. Most turned out well. But a few proved to be a headache for Mr. Trump after the market soured.
Some of the Tampa lawsuits against Mr. Trump have been settled out of court, says a person familiar with the matter.
Mr. Trump, who made his name as a Manhattan developer, said in an interview on Tuesday that most of his licensing deals have been successful and the Tampa project was one of numerous projects hurt by bad timing. He also said that his company, Trump Organization, plans to continue licensing the Trump name.
But now, he said, he plans to "look in more detail into the market where we're going, whether it's Tampa or somewhere else."
For months, Dagostino has said the property where he had intended to build a 52-story, $225 million Trump Tower Tampa is on the market but that he still held out hope of building a revised project that could include both condominium and hotel components.
Robert Owens said a partnership he is leading (Brownstone Tampa Partners LLC ) paid $5 million for the former Trump site and an adjacent six-story office building. He said he plans to build a mixed-use complex with retail, offices and a hotel or condominiums there.
http://online.wsj.com/public/page/news-real-estate-commercial.html?mod=WSJ_topnav_na_realestate
Mr. Trump wasn't the developer of the planned 52-story Tampa project, but he licensed his name to its Florida developer, Simdag/Robel LLC. Mr. Trump did numerous of these types of deals in the years leading up the economic downturn, earning large fees. Most turned out well. But a few proved to be a headache for Mr. Trump after the market soured.
Some of the Tampa lawsuits against Mr. Trump have been settled out of court, says a person familiar with the matter.
Mr. Trump, who made his name as a Manhattan developer, said in an interview on Tuesday that most of his licensing deals have been successful and the Tampa project was one of numerous projects hurt by bad timing. He also said that his company, Trump Organization, plans to continue licensing the Trump name.
But now, he said, he plans to "look in more detail into the market where we're going, whether it's Tampa or somewhere else."
For months, Dagostino has said the property where he had intended to build a 52-story, $225 million Trump Tower Tampa is on the market but that he still held out hope of building a revised project that could include both condominium and hotel components.
Robert Owens said a partnership he is leading (Brownstone Tampa Partners LLC ) paid $5 million for the former Trump site and an adjacent six-story office building. He said he plans to build a mixed-use complex with retail, offices and a hotel or condominiums there.
http://online.wsj.com/public/page/news-real-estate-commercial.html?mod=WSJ_topnav_na_realestate
Monday, June 20, 2011
Time to Buy (NNN) Net Leased Properties
NNN Lease Market
Now is the Time to Buy (NNN) Net Leased Properties
As our nation suffers from “deficit disorder” making financial decisions has not been this difficult since the 1980’s. With doom and gloom on the news each night and the word “crisis” in every paragraph, and the capital markets in a state of collapse most investors have frozen their decision making. The availability of high quality assets has rarely been better.Active lenders are funding selectively and mostly with long term relationships into only the best investments. They look to value of the asset, the ability to pay the loan back and the ability to weather any storm that may come up. We are gripped in a recession a recession and there is no recovery predicted in the near term. Many investors are sitting in strong cash positions and looking for the bottom. It very well be that we would not recognize the bottom even if someone pointed it out. For the long-term investor, they are in the market at all points, up and down. The market is now serving up many great opportunities to buy quality properties at attractive pricing.
Inventory is increasing and there are many products to choose from. All tenant types, credits, lease terms, and types of construction to look at. We look for this trend to continue for the balance of 2010 and most of 2011.
Despite the economic downturn and the fact that many aspects of the commercial real estate industry still need time to season before true recovery takes place, some niche segments of the market are actually performing extremely well. In fact, some are at the same level they reached at the height of the market.
Financing is the number one issue today. For the owners of smaller properties, options in these difficult times are greater especially since capital is still available for these deals. However, for the larger property owners where potential buyers likely require financing, their choices are much more limited.
NNN Investment Property in Florida No Management Responsibilities
NNN Lease Market News
Calkain Companies, a national real estate investment brokerage firm, recently procured the $900,000 sale of a Burger King NNN investment property in Fort Myers, Florida. The property at 9041 College Parkway is operated by Furman's Inc, a regional franchisee of Burger King for over 30 years. The property is situated on .9 acres of land at the hard corner of College Parkway and South Pointe Blvd.
Patrick Nutt, Senior Associate of Calkain Realty Advisors, the private market division of Calkain Companies, represented both parties in this transaction. Nutt commented, "The real estate was the driving force on this deal. It's a quality corner where the tenant has occupied the space for a very long time." Nutt continued, "Even after seeing effective rents in the market decrease over the past two years, the existing lease is well below market, offering the buyer potential upside at the end of this lease term."
This sale marks the third closing in less than a month for Nutt, possibly signaling a turn in the perception of the investment market. Nutt remarked, "If you have a high credit tenant or high quality real estate, there is considerable demand for those assets, often attracting cash buyers looking to capitalize on the higher returns offered in net lease investments compared to the historically low interest rates of a traditional certificate of deposit or money market account."
Meanwhile, Burger King franchisees are spending big to take part in Burger King's massive, chain-wide remodeling program. The plan calls for all 12,000 worldwide stores to be fitted with rotating chandeliers, electronic-screen menus, and walls of brick and corrugated steel. The cost is reportedly between $300,000 and $600,000 per store.
It's all very confusing for the fast-food consumer. Burger King, even while positioning itself as the place to procure sacks of cheap burgers to be eaten on the run, also seems intent on also competing directly with "fast casual" chains like Chipotle (CMG) and Panera (PNRA), and even with straight-up, sit-down restaurants like Applebee's.
McDonald's, meanwhile, is offering premium, high-margin products, but without shedding its fast-food identity. Everything it sells -- the premium stuff, the healthy stuff, the coffee -- is affordable and convenient. And while it, too, is upgrading its stores, it's not trying to make them look like anything other than McDonald's outlets, where you can grab what you need and be on your way.
It will be interesting to see what the new Brazilian owners will make of Burger King's grandiose vision. Chidsey will step down as CEO, but will remain as a co-chairman along with Alex Behring, 3G's managing director. Supposedly they'll work together to find a new chief.
So far, a few dozen outlets have taken part in the remodeling. While the revamped stores, according to the company, have boosted sales by 12% to 15%, 3G will be looking for ways to cut costs (as is the wont of PE shops) as well as cheaper ways to boost the top line. Of course, 3G has promised to invest big in the chain, but given that it's paying $4 billion, or $24 a share -- a 46% premium to its share price earlier this week -- the new owners will have to show much more care in deploying such investments than Burger King has during its four-year life. NNN properties for sale are typically free standing buildings that are leased to tenants for a 10 to 25 year term. They offer the benefit of little or no management responsibilities as the tenant pays for all, if not most of the expenses. The investor receives their rent with little to no other involvement.
Friday, June 17, 2011
Boston Net Lease Market
NNN Lease Market News
Calkain Companies Inc., a national real estate investment brokerage firm, has recently opened a Boston-area office, located in Burlington, in order to better serve the New England and Northeast markets. The office will be staffed by three industry veterans: senior managing director Stan Wyrwicz, formerly the chief financial officer of General Investment and Development Cos. and also CFO with Cabot, Cabot and Forbes; managing director Rich Murphy, who has been part of the Calkain team for a year and who previously worked at the controller level for the Mills corporation and Akridge Real Estate Services; and vice president Mike O’Mara, wo has been in commercial real estate for 20 years.
CB Richard Ellis/New England, based in Boston, has named Jason Levendusky, Taidgh McClory and Patrick Mulready partners of the firm. Levendusky, who joined CBRE/NE in 2001, is a senior member of the Massachusetts suburban brokerage team. McClory, who joined CBRE/NE in 2003, is senior vice president, director of marketing & client services. Mulready, who began his career at CBRE/NE in 1996 as an appraiser, specializing in the valuation of office properties throughout Greater Hartford, transferred to the Hartford brokerage staff in 1998 to focus on the sale of investment properties.
Individual investors will continue to be attracted to Net Lease deals because those transactions are viewed as safe, income-producing real estate investments, says CEO of Calkain Jonathan W Hipp “We think that Boston-area is going to stay very competitive net lease market.
Calkain Companies Inc., a national real estate investment brokerage firm, has recently opened a Boston-area office, located in Burlington, in order to better serve the New England and Northeast markets. The office will be staffed by three industry veterans: senior managing director Stan Wyrwicz, formerly the chief financial officer of General Investment and Development Cos. and also CFO with Cabot, Cabot and Forbes; managing director Rich Murphy, who has been part of the Calkain team for a year and who previously worked at the controller level for the Mills corporation and Akridge Real Estate Services; and vice president Mike O’Mara, wo has been in commercial real estate for 20 years.
CB Richard Ellis/New England, based in Boston, has named Jason Levendusky, Taidgh McClory and Patrick Mulready partners of the firm. Levendusky, who joined CBRE/NE in 2001, is a senior member of the Massachusetts suburban brokerage team. McClory, who joined CBRE/NE in 2003, is senior vice president, director of marketing & client services. Mulready, who began his career at CBRE/NE in 1996 as an appraiser, specializing in the valuation of office properties throughout Greater Hartford, transferred to the Hartford brokerage staff in 1998 to focus on the sale of investment properties.
Individual investors will continue to be attracted to Net Lease deals because those transactions are viewed as safe, income-producing real estate investments, says CEO of Calkain Jonathan W Hipp “We think that Boston-area is going to stay very competitive net lease market.
Wednesday, June 15, 2011
Net Lease Market Report
NNN Lease Market News
Calkain Net Lease Market Report provides in-depth analysis of the (NNN) net lease market
A recent theme in the (NNN) net lease market has been the success of primary markets compared to their tertiary counterparts. While primary markets have been resilient and recently showed remarkable success, tertiary markets continue to struggle. The Washington DC area (D.C., Maryland and Virginia) is chief among the top tier markets and its relative success is easily measurable.
Net lease cap rates for retail, market compressed in the first quarter of 2011, while investment sales remained strong in the single tenant market, according to data from Calkain . Calkain Research provides in-depth analysis of the (NNN) net lease market. Our intimate knowledge and years of experience in the net lease industry gives us the unique opportunity to provide thought leadership and perspective. Through highly focused coverage over a diverse range of topics, we facilitate a culture of knowledge and enable intelligent investment strategies.
The (NNN) net lease market continues to improve, but many of the factors driving this appear short term. As more properties come to market due to improved pricing fundamentals, many believe that the cap rate compression will plateau. The high demand and scarcity of high performance markets will continue drive their cap rates lower.www.calkain.com/reports/research/calkain
Calkain Net Lease Market Report provides in-depth analysis of the (NNN) net lease market
A recent theme in the (NNN) net lease market has been the success of primary markets compared to their tertiary counterparts. While primary markets have been resilient and recently showed remarkable success, tertiary markets continue to struggle. The Washington DC area (D.C., Maryland and Virginia) is chief among the top tier markets and its relative success is easily measurable.
Net lease cap rates for retail, market compressed in the first quarter of 2011, while investment sales remained strong in the single tenant market, according to data from Calkain . Calkain Research provides in-depth analysis of the (NNN) net lease market. Our intimate knowledge and years of experience in the net lease industry gives us the unique opportunity to provide thought leadership and perspective. Through highly focused coverage over a diverse range of topics, we facilitate a culture of knowledge and enable intelligent investment strategies.
The (NNN) net lease market continues to improve, but many of the factors driving this appear short term. As more properties come to market due to improved pricing fundamentals, many believe that the cap rate compression will plateau. The high demand and scarcity of high performance markets will continue drive their cap rates lower.www.calkain.com/reports/research/calkain
NNN Lease Investments in High Traffic Corridors of Manhattan
NNN Lease Market News
NNN Lease investments activity will speed up...
Robust job growth and an increase in tourism will encourage consumer spending in New York City this year, driving retail operations to outperform most of the nation, predicts Marcus & Millichap in a second-quarter retail research market update, released yesterday.
As the local economy improves, the report predicts, retail investment activity will speed up, most notably in single-tenant and mixed-use sectors, with easing capital markets and low interest rates encouraging REITs and institutions to acquire single- tenant assets in high-traffic corridors of Manhattan. The Financial District and Times Square on the other hand will draw keen interest from risk-weary investors seeking long-term stability.
The report estimates that developers will deliver nearly 775,000 square feet of retail space to the New York City market this year, more than 40 percent of which will come online in Manhattan. That figure is down from 2010, when approximately 1.5 million square feet was finished within in the metro area.
http://therealdeal.com/
NNN Lease investments activity will speed up...
Robust job growth and an increase in tourism will encourage consumer spending in New York City this year, driving retail operations to outperform most of the nation, predicts Marcus & Millichap in a second-quarter retail research market update, released yesterday.
As the local economy improves, the report predicts, retail investment activity will speed up, most notably in single-tenant and mixed-use sectors, with easing capital markets and low interest rates encouraging REITs and institutions to acquire single- tenant assets in high-traffic corridors of Manhattan. The Financial District and Times Square on the other hand will draw keen interest from risk-weary investors seeking long-term stability.
The report estimates that developers will deliver nearly 775,000 square feet of retail space to the New York City market this year, more than 40 percent of which will come online in Manhattan. That figure is down from 2010, when approximately 1.5 million square feet was finished within in the metro area.
http://therealdeal.com/
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