Tuesday, June 2, 2015

RECI Reports Real Estate Buyers and Sellers Enjoy Best Capital Market Ride in Years



Jeanne Peck
Chicago, IL – Real Estate Capital Institute reports Good News Bears stomp out Bad News Bulls,
as investors now worry about how good times keep getting better. 

  Rates are still low, but investors grow increasingly skeptical such trends will continue, including the following:

*   "Cap Rates are not capped" - Dipping below 5% for credit-tenant
properties and core assets is no longer impossible.  Low mortgage ranges
along with insatiable appetites for all type of cash-flowing commercial real
estate drive record-high pricing, even above 2006-2007 levels.  1031X buyers
prevail for smaller deals, while institutional players try to expand more
into urban-infill assets, where product availability is scarce.   Less
pricing differential for primary vs. secondary markets, as long as asset
quality and store sales performance [e.g., retail] reflect solid results.
Astute owners are pruning their portfolios, mainly selling assets in
smaller, less strategic markets to take advantage of current risk-pricing
dislocation.

*   "Flat spreads" -  As commercial property markets steadily improve with
the retail sector leading the way, mortgage spreads between various property
types flatten out.  Overall spreads start as low as 120 basis points over
comparable-term treasuries for low leverage loans (below 50% LTV); 150-170
basis points for moderate leverage (65% LTV) and under 220 basis points for
full leverage loans (75% LTV).  With rates remaining in comparatively low
ranges over the past few years, more owners comfortably stay with
floating-rate debt.  As with equity markets, little pricing differentiation
for mortgage rates in primary vs. secondary markets.

*   "Replacement costs count" - Peaking property values ignite more new
construction demand:  More and more, cost-equals-value formulas drive
investment decisions. Developers and tenants find new construction more
appealing.  In particular, users are driven to high-density urban areas near
public transportation.  Automobile parking lots are shrinking, while bicycle
racks grow.

Jeanne Peck of the Real Estate Capital Institute(r), suggests, "The party
continues as owners and sellers enjoy the best capital market ride in years.
When will the music stop?  No one knows for sure, but why worry -- just go
with the flow!"

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

Jeanne Peck, Executive Director
director@reci.com / 

www.reci.com

Marcus & Millichap Brokers $2.35 Million Sale of Tire Kingdom in Salisbury, NC



Alan Lipsky
SALISBURY, NC, June 2, 2015 – Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, today announced the sale of Tire Kingdom, a 6,656-square foot net-leased property located in Salisbury, NC. The asset sold for $2,350,000.

Barry M. Wolfe, a vice president investments, and Alan Lipsky, an associate, in Marcus & Millichap’s Fort Lauderdale office, had the exclusive listing to market the property on behalf of the seller, an individual/personal trust from Lake Worth, Fla. 

Sean Doyle, Matthew Hazelton and Adam "AJ" Prins, senior associates, and Cory Villaume and Brian Klancke, associates, all in Marcus & Millichap’s Minneapolis office, procured the buyer, a private investor from Minneapolis, MN.

The 6,656-square foot, freestanding Tire Kingdom has nine years left on a NNN lease and three, five-year renewal options. Located directly off of Interstate 85 at 310 Faith Road, the property is in a busy retail area with national retailers that include: Lowe’s, Food Lion, Aldi, Staples, Walmart and Starbuck’s.

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

Ryan Nee
Regional Manager
 Fort Lauderdale, FL

(954) 245-3400

Sale of North Chase Villas in Tampa, FL Handled by Marcus & Millichap


Evan P. Kristol
TAMPA, FL, June 2, 2015 – Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, today announced the sale of North Chase Villas, a 72-unit apartment property located at 1505 East 130th Avenue in Tampa, Fla in Tampa, Fla. 

The asset sold for $2,975,000.

Evan P. Kristol, a senior vice president investments in Marcus & Millichap’s Fort Lauderdale office, and Michael Donaldson, a vice president investments, and Nicholas Meoli, an associate vice president investments in Marcus & Millichap’s Tampa office, had the exclusive listing to market the property on behalf of the seller, a limited liability company from Lafayette, LA.

 The buyer, a partnership from Tampa, Fla, was secured and represented by Robert S. Hunter and Harrison Rein, associates in Marcus & Millichap’s Fort Lauderdale office. 

“North Chase Villas was an opportunity to acquire a rental community that was predominantly built in 2007, a rare find in the University submarket of Tampa given that the majority of communities under 100 units were built prior to 1990,” says Donaldson.

Michael Donaldson
“As a result of the favorable construction and majority two or three bedroom units averaging over 1,100 square feet, North Chase possesses an excellent competitive advantage over the surrounding communities, as evidenced by its consistent high occupancy level,” adds Meoli.

“These attributes attracted our ultimate buyer to the offering, a Canadian based investment group with a local presence in the Tampa market,” adds Kristol.

North Chase Villas is a 72-unit garden-style apartment community located within the University submarket of Tampa. Built in two phases, the property is situated on a 3.5-acre site, and includes two three-story concrete block buildings built in 1974 and four three-story concrete block buildings built in 2007. 

 The unit mix consists of 12 one-bedroom/one-bathroom units, 12 two-bedroom/one and one-half bathroom two-story townhome units and 48 three-bedroom/two-bathroom units.




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

Ryan Nee
Regional Manager
 Fort Lauderdale, FL

(954) 245-3400

Marcus & Millichap Brokers $5.85 Million Sale of CVS Pharmacy in Fort Myers, FL


Barry M. Wolfe
FORT MYERS, FL,  June 2, 2015 – Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, today announced the sale of CVS / Pharmacy, a 12,738-square foot, net-leased property located in Fort Myers, Fla.

 The asset sold for $5,859,200.

Barry M. Wolfe, a vice president investments, and Alan Lipsky, an associate, in Marcus & Millichap’s Fort Lauderdale office had the exclusive listing to market the property on behalf of the seller, an individual/personal trust from North Carolina.  

The buyer was a limited liability company from Wisconsin.  This is the ninth drug store property the agents have sold in the first half of 2015.

“As drugstores rebalance their portfolios after years of aggressive expansion, the number of available drug stores for sale becomes limited while demand remains high,” says Wolfe.  “This particular CVS received a lot of investor interest because of its location in a heavily populated, busy retail corridor.”

The 12,738-square foot CVS/Pharmacy has a long-term NNN lease with five years remaining and four, five-year renewal options. Located at 13400 South Cleveland Avenue, CVS is conveniently located off Tamiami Trail, one of the main roadways that runs through southwest Florida. 

The property is surrounded by many busy shopping centers as well as national retailers including: Target, DSW, Starbuck’s, Bed, Bath & Beyond and Costco.

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

Ryan Nee
Regional Manager
 Fort Lauderdale, FL

(954) 245-3400

Marcus & Millichap Arranges Sale of Camelot West Apartments in Wilton Manors, FL for $6 Million


Daniel J. Cunningham
WILTON MANORS, FL, June 2, 2015 – Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, today announced the sale of Camelot West Apartments, a 73-unit apartment property located in Wilton Manors, Fla. 

The asset sold for $6,000,000.

Daniel J. Cunningham and Derek R. Gibbs, senior associates in Marcus & Millichap’s Fort Lauderdale office, had the exclusive listing to market the property on behalf of the seller, a private investor from Toronto.

“This was a great opportunity for an investor to acquire a stabilized 73-unit apartment community in the attractive niche rental market of Wilton Manors.  The property will benefit from Wilton Manors’ growing rental demand trend and long-term outlook,” says Cunningham. 

The community is comprised of four two-story buildings with the following unit mix: two studios, 46 one-bedroom/one-bathroom units, one two-bedroom/one-bathroom unit, 17 three-bedroom/two-bathroom and seven office units (ground level commercial space facing Andrews Avenue).

Camelot West Apartments is located at 2625 North Andrews Avenue in Wilton Manors, Fla.

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

Ryan Nee
Regional Manager
 Fort Lauderdale, FL

(954) 245-3400

NAI Realvest negotiates sales of industrial properties in Orlando and Apopka, FL totaling $995,825 and 10,000 Square Feet


Michael Heidrich
ORLANDO, FL – NAI Realvest recently negotiated the sales of three industrial properties totaling $995,825 and 10,000 useable square feet.

Michael Heidrich, a principal at NAI Realvest negotiated the sale of a 5,000 square foot office/warehouse building at 2674 Pemberton Drive in Apopka representing the local seller Pemberton Drive, LLC.    The buyer, Permit Solutions of Florida, LLC paid $515,825.00.   Michael Maier of New Southern Properties Inc. represented the buyer. 

Senior Director Jeff Bloom, CCIM and Associate Megan Minter brokered the $230,000 sale for the local buyer and seller of the 1,800 square foot office/warehouse building at 1111 Division Ave. in Orlando.  The seller is KER Properties, Inc. and Diogenes Favery is the buyer.   
 
Heidrich and Associate Kristen Kemp negotiated the sale of a 3,200 square foot industrial condo at 10501 S. Orange Ave. representing the North Carolina-based landlord Orlando 1, LLC.  The buyer is MV Marvil, LLC, a real estate management firm, represented by Miguel de Oliveira of DEO Realty.

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

Beth Payan, Larry Vershel Communications, 407-644-4142 lvershelco@aol.com