Discount Store Family Dollar Has a 10-year lease in Riverside,CA

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Discount store Family Dollar has a 10-year lease on a location on Van Buren Boulevard in Riverside, according to a statement from the commercial real estate company that helped put the deal together.

Family Dollar will take up a 10,000-square-foot site at Van Buren Plaza, on Riverside's west side. They are leasing the store from Tustin-based Kensington Real Estate Group.

A Hesperia shopping center anchored by a Fresh & Easy market has been sold to an Irvine-based real estate investment trust for $13.5 million, according to a statement.

The 52,000-square-foot Topaz Marketplace, in the 14100 block of Main Street, is three years old and 100 percent occupied. Other tenants include DeVita Dialysis, Wood Grill Buffet and Metro PCS.

The price, $253 per square foot, is considered one of the healthiest of the year for retail properties with a price tag above $10 million, according to Faris Lee Investments, a commercial real estate firm that specializes in retail deals.

http://www.pe.com

Investors Lack Confidence in Net Lease Market

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Investors Lack Confidence in Net Lease  Market 


Even the CMBS markets have cooled. Where there were about $20 billion in CMBS loans completed by the second quarter and there were thoughts the year could hit $50 billion, now respondents almost unanimously agreed that there will be less than $40 billion in CMBS for the year.

More than 70 percent of 280 surveyed real estate CEOs, COOs and CFOs said they have a negative, or "bearish," outlook for the commercial real estate sector over the next 12 months. The poll, cited by Reuters, was conducted by global law firm DLA Piper in connection with its Global Real Estate Summit held today in Chicago.

A lack of confidence in the Obama administration, the general gridlock in Washington and poor job growth were reasons behind the pessimism. Though sales have increased this year, and prices are up 12.5 percent from their lows in April, investors worry that the Net Lease market will lose more footing.

"What you now see is a growing degree of uncertainty, and uncertainty begins to push money to the sidelines because people are much more reluctant to make a decision," said Jay Epstien, a partner with DLA Piper.

The 29.4 percent of respondents who were bullish on the Net lease market cited increased opportunity for profit as a reason to be optimistic. Even the bears conceded on that point. Seventy-four percent said they did not expect interest rates to change, 67 percent felt cap rates would remain unchanged, and 24 percent believed they would rise. 

However financing for deals will be hard to come by, according to about 90 percent of respondents. They expect the commercial mortgage-backed securities market to slow over the next year. Already, just $26.7 billion worth of securities have been issued thus far in 2011, down from $243.3 billion in all of 2007.

NNN Lease Market: Barclays PLC and Bank of America Corp Selling Thei...

NNN Lease Market: Barclays PLC and Bank of America Corp Selling Thei...: NNN Lease Market News Two Archstone Owners Decide to Sell Their Stakes After months of wrangling with the estate of Lehman Brothers Holding...

Barclays PLC and Bank of America Corp Selling Their Stakes

NNN Lease Market News

Two Archstone Owners Decide to Sell Their Stakes

After months of wrangling with the estate of Lehman Brothers Holdings Inc. over how to unwind apartment giant Archstone, co-owners Barclays PLC and Bank of America Corp. have decided to wash their hands of the deal.

Unable to reach a consensus with Lehman on a plan to sell the entire company, the two banks are now trying to sell their stakes, which total 53%, according to people familiar with the matter. The banks' combined equity stakes in the company are likely worth between $2 billion and $3 billion, according to people familiar with Archstone's finances.


http://online.wsj.com/article

The Biggest U.S Pizza Hut Franchisee is for Sale

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BofA to Seek $800M in Deal to Sell Pizza Assets

Bank of America Corp. (BAC), the lender divesting assets to raise capital, is in exclusive talks to sell its stake in the biggest U.S. Pizza Hut franchisee for more than $800 million, said two people with knowledge of the discussions.Bank of America accelerated asset sales amid concern that the firm, which reported a record $8.8 billion second-quarter loss, will have to issue stock to bolster capital. The lender has lost more than half its market value this year. Moynihan has said repeatedly that the bank will reach capital targets by divesting assets deemed less important to customers, rather than issuing shares or divesting core units.Last month, the bank announced deals to divest a Canadian credit-card unit for C$7.5 billion ($7.3 billion) and sell about half its stake in China Construction Bank Corp., the world’s second-biggest lender by market value, for $8.3 billion in proceeds.

Two private-equity firms teamed up to bid for NPC International Inc., which operates 1,140 Pizza Hut restaurants, said the people, who declined to be identified because the talks are confidential. One hurdle in closing the transaction is arranging debt financing for Overland Park, Kansas-based NPC as credit markets for buyouts tighten, the people said.

http://www.bloomberg.com

NNN Commercial Real Estate Properties Prices Up !!!

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NNN Commercial Real Estate Prices in U.S. Increased 5% in July


U.S. commercial real estate prices rose for a third straight month in July as deals for smaller properties led a rebound that may stall as the economy slows, according to Moody’s Investors Service.

Demand had increased for real estate outside of major cities such as New York before a recent slowdown in CMBS lending. The CMBS slump may hurt demand for non-distressed building sales of less than $10 million in metro areas outside U.S. cities where real estate is most sought after, Tad Philipp, director of commercial real estate research at Moody’s, said in a telephone interview. These deals accounted for 60 percent of July repeat sales, Moody’s said.
“The CMBS market largely is a main source of financing for the middle market,” Philipp said.
A gain in commercial-property values may be held back by buyers making more conservative estimates for rent increases and leasing amid slow job growth, according to the report.
“Price increases in the near term are likely to be earned the old-fashioned way, by rent growth, rather than through higher leverage or financial engineering,” Moody’s said.
Green Street Advisors Inc., a real estate research company in Newport Beach, California, reported commercial property values rose 1 percent in August from the previous month and advanced 18 percent from a year earlier.

http://www.bloomberg.com/news

What NNN Investors Really Really Want

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Grocery Shopping Centers Lure Buyers as $200 Million U.S. Venture Formed

Phillips Edison-ARC Shopping Center REIT Inc., a Cincinnati-based company that isn’t listed on an exchange, will contribute $52 million to the partnership, and clients of CBRE Investors will put in $50 million, the REIT said today in a statement. They will borrow about $102 million for U.S. deals.
Retail centers with supermarkets are attracting investors because of the perceived safety of properties that consumers have to visit for necessities in a slow-growing economy. Sales of such real estate in the first half of the year exceeded the total for all of 2010, according to research company Real Capital Analytics Inc.
About $5.58 billion of grocery centers were sold this year through the second quarter, 22 percent more than the $4.57 billion in all of 2010, according to New York-based Real Capital. The 2011 total is the highest since 2007, the peak of the commercial real estate market.
Supermarket-anchored centers haven’t been immune to the economic slowdown. Vacancy rates have risen as local retailers, such as dry cleaners and restaurants, have gone out of business. Reduced access to capital has prevented other stores from taking up their space.

http://www.bloomberg.com/news