NNN Lease Market
The owners of Manhattan’s 11 Times Square, a 40-story skyscraper built as the office market was peaking, have signed their second tenant, law firm Zukerman Gore Brandeis & Crossman LLP. The lease is for 17,144 square feet (1,593 square meters) of the 1.1 million-square-foot tower, said Peter Turchin, a broker at CB Richard Ellis Group Inc. (CBG) who represents the building’s landlords.
The Zukerman lease, signed May 20, should help turn around the $1.2 billion project, Turchin said. Construction of the skyscraper was begun in 2007 during a boom in Manhattan office demand, and completed in 2010 after the credit bubble burst.
“The building was constructed in a flat market, and it is now seeing a benefit from a market that’s in rebound mode,” Turchin said. “I have a high degree of confidence that there will be other tenants, and you’ll be hearing announcements like this in the next coming months.”
Tuesday, May 31, 2011
Irish Banks PLC Has Struck a Deal to Sell U.S. Commercial Real Estate Portfolio
NNN Lease Market News
Allied Irish Banks PLC has struck a deal to sell a portfolio of roughly $1 billion in U.S.
"We certainly have a portion of our loan book that we need to delever," said Paul McDonnell, head of real estate for corporate banking at the Bank of Ireland. "It's a pretty good quality book; the market is reasonably strong for this type of asset."
Anglo Irish Bank Corp., which is being wound down by Ireland, also is being pressed by regulators to sell its $10 billion U.S. commercial real-estate portfolio. While decisions have yet to be made about how much of the portfolio to sell, Anglo's U.S. holdings have been closely watched given its size. Numerous U.S. investors have made trips to Ireland to discuss possible purchases, according to people familiar with the matter.
The price paid by Blackstone and Wells Fargo for the Allied Irish loans is higher than other recent deals, partly because commercial real-estate values have been rising in many of the top U.S. markets. Also, competition for distressed real-estate assets is intense among the funds that raised money when the downturn hit.
http://online.wsj.com/article
Allied Irish Banks PLC has struck a deal to sell a portfolio of roughly $1 billion in U.S.
"We certainly have a portion of our loan book that we need to delever," said Paul McDonnell, head of real estate for corporate banking at the Bank of Ireland. "It's a pretty good quality book; the market is reasonably strong for this type of asset."
Anglo Irish Bank Corp., which is being wound down by Ireland, also is being pressed by regulators to sell its $10 billion U.S. commercial real-estate portfolio. While decisions have yet to be made about how much of the portfolio to sell, Anglo's U.S. holdings have been closely watched given its size. Numerous U.S. investors have made trips to Ireland to discuss possible purchases, according to people familiar with the matter.
The price paid by Blackstone and Wells Fargo for the Allied Irish loans is higher than other recent deals, partly because commercial real-estate values have been rising in many of the top U.S. markets. Also, competition for distressed real-estate assets is intense among the funds that raised money when the downturn hit.
http://online.wsj.com/article
Friday, May 20, 2011
NNN Dollar General
NNN Lease Market News
Dollar general for sale!
Triple Net Lease Information on Dollar General
Ferrum, VA Madison, VA Richmond, VA
$1,319,225 $1,294,975 $1,361,239
HIGHLIGHTS
•Brand new, 15-year NNN lease
•3% rent increase in lease-year 11 & 10% increases every 5 years during the option periods
•Guaranty from Dollar General Corp., the largest discount retailer in the US
•Strong tenant with stable & positive outlook; improving credit ratings
•Strategic trade area locations with supporting demos & target market characteristics
Dollar General Corporation
Industry Discount, Variety store
Founded 1939
Headquarters Goodlettsville, Tennessee, U.S.
Number of locations 9200+[1]
Products Low cost items
Revenue $11.796 billion (2010)
Operating income $953.258 million (2010)
Net income $339.442 million (2010)
Employees 79,800
References: In June 2007, Dollar General was acquired by a group of private investors.
Dollar General Stores are typically in small shopping plazas or strip malls in local neighborhoods. The company acquired the 280 stores of the P.N. Hirsh Division of Interco, Inc. (now Furniture Brands International, Inc.) in 1983 and in 1985 added 206 stores and a warehouse from Eagle Family Discount Stores, also from Interco, Inc. In recent years, the chain has started constructing more stand-alone stores, typically in areas not served by another general-merchandise retailer. In some cases, stores are within a few city blocks of each other.
Since the turn of the century, Dollar General has experimented with stores that carry a greater selection of grocery items. These stores (similar to the Wal-Mart Supercenter, but much smaller) operate under the name "Dollar General Market".
Recently, Dollar General began selling produce, meat, and baked goods in new stores called "Dollar General Market" in former supermarket locations, even though this idea is similar to the Dollar General Market.
VIRGINIA LOCATIONS
For More information Contact:
Associate
(703) 787-4714
Wednesday, May 18, 2011
Africa Market Is The Epicenter of Growth For The Future
Dabur India Ltd. (DABUR), a maker of packaged honey, traditional medicine and hair oil, plans to set up two new factories and introduce more products in Africa as part of a goal to almost double profit in three years.“It makes sense to move, spring out to other emerging markets, because competition these days is very hard in India,” Taina Erajuuri, a Helsinki-based fund manager with FIM Asset Management Ltd. said. “It’s easier for Dabur to go to emerging markets than developed markets because there you have Unilever, Procter & Gamble and L’Oreal.”
Dabur rose 0.1 percent to 103.7 rupees at the close of trading in Mumbai today. The stock has risen 3.4 percent this year, compared with a 12 percent drop in the benchmark Sensitive Index of the Bombay Stock Exchange.
Profitable Growth
“The Africa market is the epicenter of our growth prospects for the future,” Duggal said May 13. “The upsides in some of these markets are as much, if not bigger than India. I’m talking about not just revenue growth, but profitable growth.”
“There are markets where for another 20 years there may not be a significant growth,” Kulkarni said. “You’d find it very difficult to distribute products.” We’ll have to buy companies outside Africa and then seed the markets with those products or develop our own products.”
http://www.bloomberg.com/news
Blackstone Using the Same Formula to Convince Creditors Holding Debt
NNN Lease Market News
Blackstone now is using the same formula to convince creditors holding debt on other hotel investments by the firm, some likely worth less than their overall debt, to do similar restructuring deals.
Blackstone already has gone into the market and purchased junior, or "mezzanine," debt on these deals at a discount. The firm wants to retire that debt, and then convince the remaining mortgage holders to extend their loans' due dates in exchange for Blackstone paying a slice of the principal—usually about 5%—plus a small fee or higher interest rate.
The tactic is a reminder of the power that well-capitalized private-equity firms have in restructuring talks with lenders, particularly if they are willing to use their balance sheets. That gives them the power to go into the market and buy debt on their potentially stressed deals that already have been written down.
Moreover, the end game for some of Blackstone's hotel investments is likely an initial public offering. So far, though, that market remains unproven. Two hotel owners have sought IPOs of shares this year with tepid results.
http://online.wsj.com/article
Blackstone now is using the same formula to convince creditors holding debt on other hotel investments by the firm, some likely worth less than their overall debt, to do similar restructuring deals.
Blackstone already has gone into the market and purchased junior, or "mezzanine," debt on these deals at a discount. The firm wants to retire that debt, and then convince the remaining mortgage holders to extend their loans' due dates in exchange for Blackstone paying a slice of the principal—usually about 5%—plus a small fee or higher interest rate.
The tactic is a reminder of the power that well-capitalized private-equity firms have in restructuring talks with lenders, particularly if they are willing to use their balance sheets. That gives them the power to go into the market and buy debt on their potentially stressed deals that already have been written down.
Moreover, the end game for some of Blackstone's hotel investments is likely an initial public offering. So far, though, that market remains unproven. Two hotel owners have sought IPOs of shares this year with tepid results.
About
The Blackstone Group L.P. (Blackstone) is a manager of private capital and provider of financial advisory services. Blackstone is an independent manager of private capital with assets under management of $128.1 billion, as of December 31, 2010.
http://online.wsj.com/article
Tuesday, May 17, 2011
NNN Leased McDonald's
NNN Lease Market News
Calkain Companies Featured Listing (NNN) Lease McDonald's
Absolute NNN 20 Year Corporate McDonald's with 10% rent bumps every 5 years Zero Landlord Obligations. McDonald's Corporation operates over 31,300 restaurants in 118 countries. McDonald’s (S&P: A, NYSE: MCD) Triple Net (NNN) originally meant net of taxes, net of insurance, and net of maintenance. According to the terms of an absolute NNN, the tenant is responsible for all property operating expenses, including insurance, taxes and internal and external maintenance.
NNN properties offer the benefit of little or no management responsibilities, as the tenant pays for most, if not all, of the expenses depending on the terms of the lease. The investor receives the rent with little to no other involvement. With an absolute triple net lease, the tenant is responsible for all expenses, making this a true passive investment for the owner.
LEASE SUMMARY
Total NOI $136,000*
Tenants McDonald's & Marathon Petroleum
Guarantee Corporate
Lease Commencement March 2008
MCDONALD'S
NOI $65,000*
Rentable Square Feet 2,726 +/- sf
Lease Type NNN
Lease Term 10 years
Increases Percentage Rent & 10% increase in base rent beginning with the 2nd renewal option
Options Automatic Six (6), five (5) year
Includes percentage rent MARATHON PETROLEUM
NOI $71,000
Rentable Square Feet 3,040 +/- sf
Lease Type NNN
Lease Term 15 years
Increases 10% every 5 years
Options Automatic Five (5), five (5) year
HIGHLIGHTS
•Rent-to-Sales ratio of approximately 3%, growing sales year over year
•Corporate Backed Leases by McDonald's and Harper Oil
•15-year Accelerated Depreciation
•Only McDonald's within 20 mile radius Multiple Locations Nationwide
http://www.calkain.com/
Friday, May 13, 2011
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