Thursday, September 20, 2012

Single Tenant Sale Reflects Market Trend

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.

David Wells (top right photo), Senior Investment Advisor & Head of the Net Lease Division, of Sperry Van Ness's Miami office has just closed a single tenant Family Dollar in Louisiana yielding a 9.00% return and sees demand strengthening.

"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.

The transaction, which Wells just placed one of his investors in was a Family Dollar in Vidalia, LA. The deal closed all cash at a 9.00% cap rate with six years of term left on an initial 10-year lease with 6 options to extend the lease for 5 years.

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:

$25.1 Million Bucks County Multifamily Property Sold by Marcus & Millichap

LEVITTOWN, Pa., Sept. 19, 2012 – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has brokered the sale of the Chesterfield Apartments (top left photo), a 247-unit multifamily property in the planned community of Levittown. The sales price of $25,155,000 equates to $101,842 per unit and $143 per square foot.

Donald “Ridge” MacLaren, a first vice president investments, and senior associates Clarke Talone and Andrew Townsend, all in Marcus & Millichap’s Philadelphia office, represented the seller, a multifamily REIT. They also procured the buyer, a local partnership.

“Chesterfield Apartments is a very well-maintained property in a strong Lower Bucks rental market,” says MacLaren. “The seller did a terrific job improving the asset over their hold period and was rewarded with a tremendous amount of buyer activity. The buyer has acquired a well-performing asset that should produce strong returns,” adds MacLaren.

“The low interest rate environment, strong apartment fundamentals and next year’s potential increase in capital gains taxes are spurring buyer interest in quality Delaware Valley apartment communities,” MacLaren concludes.

The 175,495-square foot property is located at 1338 Veterans Highway in Levittown, a suburban community situated at the southern end of Bucks County between Philadelphia and Trenton, N.J. Interstate 95, the Pennsylvania Turnpike, U.S. Route 1 and Route 413 are within close proximity. Public transportation in the area is provided by the Southeastern Pennsylvania Transportation Authority.

Chesterfield Apartments was built in 1974 on 15.5 acres. The community consists of 10 buildings containing 153 one-bedroom units, 93 two-bedroom apartments and one three-bedroom house. A majority of the units have been updated with new kitchens and baths. Many units also feature washers and dryers. Common area amenities include a swimming pool, fitness center and clubhouse.


Stacey Corso
Public Relations Manager
(925) 953-1716

Lincoln Property Company Southeast to Market Valencia College’s Chicone Building in Downtown Orlando, FL

ORLANDO, FL (Sept. 19, 2012) – After purchasing a Metrowest property that will assist Valencia College in centralizing and economizing its key administrative functions, Valencia Foundation is offering its historic Chicone Building (top left photo) for sale or competitive lease.

Located on the corner of what realtors refer to as “Main and Main,” the building at Church Street and Orange Avenue – also known as Valencia Downtown Center – is the sole original structure on that corner. The towers of SunTrust, Seaside and the Plaza occupy the rest of the intersection.

Lincoln Property Company is marketing the property, which offers a prestigious address at 190 South Orange Avenue, outstanding access to downtown nightlife and a bit of timeless charm. The 28,716-square-foot space can potentially be used for residences or offices and also is well-suited for ground-floor retail, as it once housed a pharmacy.

“We are excited to have landed this assignment and to be marketing a property that is close to the hearts of so many Orlando residents,” said Joe Rossi (lower right photo)  senior vice president of investment sales at Lincoln. “It is a special building in a hard-to-beat location, and we look forward to talking with potential buyers about it.”

Constructed in 1930, the building is a notable part of Orlando’s downtown history. It is an Orlando Historic Landmark included in the Downtown Historical Preservation District and is a regular stop on walking tours. In fact, it was the site of the city’s very first bank robbery in 1947 when it was the site of First National Bank and Trust Company.

For a comlete copy of the company’s news release, please contact:

Stephen Ursery
Wilbert Public Relations
Office: (404) 965-5026
Cell: (404) 405-2354