MIAMI, FL, Sept. 20, 2012 -- Investors are scrambling to place capital in safe havens with higher yields offered in the stock market and single tenant assets are at the forefront. "As yields on traditionally safe investments, corporate & government bonds and treasuries, are averaging roughly 1--3% single tenant assets have become an extremely attractive option.
“Investment grade credit tenants with corporate backed leases are an excellent option when looking to place capital. An investor can achieve a yield between 6 – 9 percent from an S&P rated corporation with a long-term lease with the physical real estate serving as collateral" says Wells.
From the beginning of the marketing period to the closing took a total of 6 months. The seller was a large developer based out of the Southern United States whom wells also represented and is marketing a portfolio of assets for currently.
"The transaction is representative of what we are seeing transpire in the retail commercial real estate market today,” says Wells. “Demand has increased tremendously over the past few quarters. The velocity is all trophies and trash.
“Either investors are buying high vacancy foreclosed deals direct from lenders or single tenant investment grade credit, anything S&P BBB-, Moody's Baa3 or higher, assets with long-term leases.
“The recent closing yields my client a 9.00% return with an excellent tenant with a phenomenal balance sheet and investment grade rating. This is the sweet spot in today's market and demand is only increasing."
David Wells has been involved in the acquisition and disposition of over $1 billion worth of commercial real estate transactions throughout the country. Based in Miami, Mr. Wells specializes in selling credit rated single tenant retail assets throughout the United States.
He represents a unique mix of investors from both the US and South America and work with both private and institution clients.
For more information, contact:
David Wells:
david.wells@svn.com
305.498.6095
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