Finance Net Leasing
Specialization Helps Close Deals
Oct 22, 2009
In most sports, coaches use specialists to deal with pressure situations. In football, for example, they will bring in a slash-type runner on offense to cross the goal line or a pass rusher on defense to sack the quarterback. These specialists have specific skills and in many cases prove to be the difference between victory and defeat. For those in real estate, and particularly with Stan Johnson Co., specialization is the maxim for those that want to succeed in these trying times and get deals closed, no matter what the size or complexity.
As Firms Move to Outsource Project Management, CBRE Inks Deal with Cisco
Oct 08, 2009
As companies work to streamline operating efficiencies and cut costs,
the outsourcing of services has become increasingly popular, and real
estate services are high on the priority list. In the latest high
profile outsourcing, CB Richard Ellis Inc. has agreed to a deal to
provide project management services for Cisco Systems.
Finicky Tastes
Oct 07, 2009
The pronouncement earlier this month by Federal Reserve chairman Ben Bernanke that the recession was “very likely over” was scoffed at by some business leaders and economists who believe that, unfortunately, the economy is not out of the woods yet. To the Fed chair’s credit, he did note that while the economy is in recovery, the improvement at least for the short term will be moderate. And the good news, as reported by Real Capital Analytics Inc., is that the net lease market is “a relative bright spot in a dim marketplace.”
$330M HSBC Sale-Leaseback Makes Splash in Sluggish Market
Oct 06, 2009
With the commercial real estate market still hindered by a chilly
credit market and declining property values, sale-leaseback activity
has dwindled, but London-headquartered HSBC Holdings plc's HSBC Bank
USA N.A. still sees some advantages in such deals. The financial
services company has signed a $330 million cash sale-leaseback
agreement with a subsidiary of Israel-based IDB Group for its
865,000-square-foot New York City headquarters.
$49M Exxon Deal a Rarity in Quiet Seal-Leaseback Market
Sep 30, 2009
A convenient method for property owners to secure a quick cash
infusion, sale-leaseback transactions were plentiful just a couple of
years ago, but now it is usually only the more financially burdened of
sellers that resort to accepting lowball sale-leaseback offers. Whether
White Oak Petroleum L.L.C. falls into the aforementioned category is
unclear, but the Springfield, Va.-based company just sold 36 Exxon
gasoline station and convenience store properties for $49 million in a
sale-leaseback transaction with Jericho, N.Y.-based Getty Realty Corp.
1031 Exchange: Low-Cost Option in Difficult Times
Sep 17, 2009
If you have talked to anyone about real estate values recently, you likely have heard of at least one example in which a property is “under water” and the owner is facing difficult decisions. Data shows this is far from an isolated problem.Many real estate investors who have seen their properties lose significant value in this down market are facing a perplexing quandary: continue servicing the debt despite lower or no tenant income, face an uphill and expensive battle to refinance or hand the keys back to the lender in lieu of foreclosure.
Safe Haven from CMBS Delinquencies?
Sep 17, 2009
There is a growing concern among economists regarding the $685 billion commercial mortgage-backed securities market and the tremendous risks it holds for the commercial real estate industry as well as the general economy. Real estate investment trusts may provide a relative safe haven from this looming threat.
W.P. Carey Closes $120M in Debt for NYT Building
Sep 10, 2009
Reportedly, the credit crunch is beginning to ease, but frozen credit
market or no, fully leased premier properties are still managing to
attract lenders now and again. W. P. Carey & Co. L.L.C. is among
the lucky few borrowers. The investment firm and its CPA(R):16 - Global
and CPA(R):17 - Global REIT affiliates have just secured $119.8 million
in debt financing for its $225 million sale-leaseback deal involving
the New York Times Building in March of
this year.
Net Lease Deals and The 3-Legged Stool
Sep 02, 2009
Here at Stan Johnson Company, we have coined the principle of the
“Three-Legged Stool” as the cornerstone of how net lease deals are
valued. While the market has changed over the last two years, the axiom
of the three-legged stool and its driving influence on net lease
transactions is more important than ever.
The Changing Face of the Net Lease Market
Aug 20, 2009
The net lease market is radically different than what it was just a few years ago. The most dramatic change that has taken place is in the capital markets. Even back in the 1980s, when interest rates soared, financing was available. Today, liquidity has all but evaporated, and there is minimal capital available to net lease investors on terms that make good business sense. Today’s financing options originate predominantly from local and regional banks that offer recourse debt with lower loan-to-value ratios. As a result, the leveraged buyers unwilling to take on recourse debt are largely out of the market.
Net Lease Players Thinking Small to Get Deals Done
Aug 04, 2009
While the net-lease investment market remains sluggish in the face of
the lingering economic uncertainty, buyers and sellers still looking to make deals are finding it necessary to adapt their strategy.
For some, that means simply making fewer moves. But others have been
able to stay active by setting their sights on smaller deals.
16-Property Healthcare Portfolio Snapped Up in $162M Cash Deal
Jul 21, 2009
Grubb & Ellis Healthcare REIT Inc., currently among the minority of
real estate investment concerns that have the cash on hand to make big
purchases, has signed an agreement to acquire a 16-building healthcare
property portfolio in metropolitan Greenville, S.C., from Greenville
Hospital System. The $161.6 million deal will allow the hospital to
lease back the portions of the 855,000-square-foot portfolio of medical
office and healthcare related facilities it currently occupies.
ProLogis Continues to Pay Down Debt, Remains Active in Chicago
Jul 21, 2009
Like all commercial property players, industrial REIT ProLogis has had
to deal with the challenges of the sagging economy and sluggish leasing
market. Despite the tumultuous environment though, the firm is still
getting deals done—including some very sizable transactions, like a
250,000-square-foot lease the firm recently inked with Roosevelt Paper
Co. near Chicago. That deal was the largest splash made by ProLogis in the region during
the second quarter, during which it racked up a total of nearly 600,000
square feet in leases.
RaceTrac Initiates Sale-Leaseback Program
Jul 20, 2009
RaceTrac Petroleum Inc., which owns and operates 530 convenience stores
and gas stations in 12 states, has tapped CB Richard Ellis Inc.'s
global corporate services unit to exclusively manage a sale/leaseback
program..
ProLogis to Develop 554,000-SF BTS Project in the Netherlands
Jul 15, 2009
Like so many real estate companies, ProLogis isn't developing spec
projects these days, but build-to-suits are a different story. The
Denver-based global industrial REIT just agreed to develop a
554,000-square-foot distribution center in The Netherlands for
Hi-Logistics, and if ProLogis has anything to do with it, more
build-to-suit transactions will materialize.
Retailers Caught in Limbo as Sale-Leasebacks Bring in Fewer Dollars
Jul 07, 2009
Beset by a still-icy lending climate, as well as continued weak
fundamentals as a result of the global economic slump, cash-strapped retailers are
increasingly finding themselves caught between a rock and a hard place
when it comes to monetizing their real estate holdings via sale
leaseback deals.
In Supply-Constrained Vancouver Market, 204,000SF Office Trades in Sale Leaseback
Jul 07, 2009
In the midst of the sluggish investment market, where most real assets
that are selling are on the smaller end of the spectrum, a major office
property in Vancouver has been acquired by Kingswood Capital Corp. The
21-story, 204,000-square-foot Grosvenor Building, located in the city’s
Downtown, was sold by property investor and developer Grosvenor
Americas, which will continue to make its home at the tower under a
leaseback agreement.
Net-Leased CVS Property Trades in Illinois
Jul 06, 2009
Marcus & Millichap Real Estate Investment Services has arranged the
sale of an 8,540-square-foot single-tenant net-leased property, located
in Westville, Ill.
Net Lease Market Sluggish, But Not Comatose
Jun 23, 2009
The net lease marketplace is hardly what it used to be, with deal volume at only a fraction of what it was during the mid-2000s boom years. But net lease never did quite grind to a halt, and there’s some evidence that the market is climbing out of the trough it found itself in during the last quarter of 2008.
Economic Update - Tesco Completes Sale-Leaseback, CMBS Deals
Jun 22, 2009
British retailer Tesco Plc. inked a sale-leaseback of 14 properties. The sale-leaseback followed on the heels of the company's successful
completion of the sale of commercial mortgage-backed securities. The offering by Tesco may mark the glimmering beginnings of a new, simpler CMBS market.
ProLogis Leases 75,000 SF in United Kingdom
May 27, 2009
ProLogis has leased 75,000 square feet of recently completed
distribution space near Heathrow International Airport in the United
Kingdom to City Link, the UK's parcel delivery service and subsidiary
of Rentokil Initial.
Sonic Franchisee Retains Calkain to Aid in Sale-Leasebacks
May 26, 2009
Calkain Cos. has been engaged by a multi-unit Sonic restaurant
franchisee to consult on the development and exit strategy of the new
locations under development in Virginia and Maryland. The franchisee
committed to the D.C. metro area and has plans to build 20 locations
within the next 12 to 18 months.
For AEI Capital, Asset Success Trumps Distress
May 26, 2009
Plenty of investors are preparing to benefit from the coming wave of
distressed asset sales, but net lease investors are not unanimously
enthusiastic about the prospects. As net lease investors weigh whether
to adopt an opportunistic approach, some veteran players are sticking
to longtime conservative strategies. In that debate, AEI Capital Corp.,
a 39-year-old firm specializing in net-lease retail assets, makes the
case for buying only successful stores tenanted by proven national
brands.
ProLogis Leases 127,000 SF in Northern Germany
May 21, 2009
Industrial property REIT ProLogis has signed two new lease agreements
for more than 127,000 square feet of recently developed space at
distribution parks in northern Germany.
High-Tech Data Centers Offer Bright Future
May 12, 2009
Data centers offer a digital-age wrinkle to the net lease industry. By
most accounts, demand will grow steadily for the highly sophisticated
facilities, which host mission-critical servers. Meanwhile, specialized
technical elements and heavy capital investment create high hurdles to
development.
CNL Takes Hawaii Waterpark in $29M Sale-Leaseback
May 09, 2009
CNL Lifestyle Properties Inc., a REIT focused on lifestyle properties,
has acquired the Hawaiian Waters Adventure Park in Kapolei, on the
island of Oahu, Hawaii, from a subsidiary of entertainment and media
firm Village Roadshow Limited.
For Commercial Development Trends use The Net Lease Professional's Resource
Commercial Property News understands the value of timely real estate news when it comes to commercial mortgage information, commercial development
trends and net-lease news. From commercial real estate lending
information to the health of commercial property investments, CPN is
the leading real estate news source for those within the commercial
real estate industry.
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