RealStake

The Biggest Gets Bigger

Tom Hanna — Mon, 10 Jul 2006 20:19:26 +0000

The largest U.S. owner of community shopping centers, Hyde Park, New York-based Kimco Realty Corp., is getting even bigger with the agreed $4 billion purchase of Pan Pacific Retail Properties. Pan Pacific owns 138 retail properties, about 22.6 million square feet, in California, Washington, Oregon and Nevada. Kimco already owns 1,117 properties.

The deal is $70/share in cash and stock ($2.9 billion) plus the assumption of $1.1 billion in debt by Kimco. This brings announced REIT acquisitions for 2006 to $44 billion, more than doubling last years pace.

REIT,shopping centers,acquisitions

Kimco to acquire Pan Pacific

Kimco Realty to acquire Pan Pacific Retail

Kimco to Acquire Pan Pacific Retail for $2.9 Billion

Kimco Realty Inks $4Bln Merger Deal With Pan Pacific Retail

Kimco paying $4B for Pan Pacific

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1031 Investment Pressure Raises North Dakota Land Values

Tom Hanna — Mon, 10 Apr 2006 07:45:32 +0000

Pressure from development, investors and farmers exchanging for land outside the path of development has North Dakota cropland prices at an all time high after two years of double digit price growth.

The 10-percent cropland value hike followed increases of 11 percent and 7 percent in previous years, making them the three largest annual increases since 1979, according to a release from NDSU Agriculture Communications.

The hikes have increased land values to roughly $500, $550 and $600 per acre in three successive years, eclipsing the previous high of $430 set in 1981.

Grand Forks Herald | 04/08/2006 | AGRICULTURE: N.D. cropland values continue rise, but not at accelerating rate

1031,investment

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46% of US Millionaires Invest in Real Estate

Tom Hanna — Mon, 03 Apr 2006 05:08:48 +0000

A report by TNS Financial Services found that the number of US households with net worth over $1 million excluding primary residence rose by 8 percent in the last year. Not surprisingly, a large percentage of them invest in real estate.

Although real estate is not their sole source of wealth, it remains a staple for many. Forty-six percent of those surveyed own investment real estate like a second home or rental properties.

Report: Number of U.S. millionaires reaches record - Mar. 29, 2006

millionaires,investing

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Commercial Real Estate Outlook Bright

Tom Hanna — Tue, 21 Mar 2006 07:08:48 +0000

The recently released Commercial Real Estate Outlook from the National Association of Realtors and the Real Estate Industry Outlook from PNC Financial Group both predict a positive year for commercial real estate ahead.

«Investors' love affair with real estate is still very much alive, but the risk is that that, too, can quickly change,» [PNC Financial Group Senior Vice President Nick] Buss said.

The multifamily housing and retail sectors are at greatest risk: multifamily because for the past year the supply of rental units was diminished by a wave of condominium conversions, which may not continue; and retail because consumers may cut back on their spending, much of which has been fueled by home equity loans that are becoming less attractive as interest rates rise.

Bright outlook for commercial real estate

commercial real estate

David Lereah, NARâ€™s chief economist, said the fundamentals are solid. â€œVacancy rates are declining in all of the major commercial sectors, and rents are rising at healthy rates,â€ he said. â€œJob growth and international trade are fueling demand for space and facilities.â€

NAR President Thomas M. Stevens from Vienna, Va., said the flow of funds into commercial real estate is extraordinary. â€œInvestment grade real estate has been changing hands at unprecedented rates, which demonstrates that the value of portfolio diversification into commercial real estate is being embraced strongly in the investment marketplace,â€ said Stevens, senior vice president of NRT Inc.

Commercial Real Estate Improving With Record Investment

(more...)

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Scottsdale Retail Center $473/square foot

Tom Hanna — Sun, 12 Feb 2006 07:38:39 +0000

The five year old, 25,575-square-foot, 3.14 acre North Scottsdale Gateway zero vacancy retail center in North Scottsdale, Arizona has sold for $12.1 million or $473/square foot.

Originally built in 2000, the retail center is situated on 3.14 acres and is 100 percent leased to FedEx Kinko's, Quiznos and Cingular Wireless among others. The center is part of a larger, mixed-use development that includes BNC National Bank, Residence Inn Marriott, restaurants and a Class-A office building.

Scottsdale Retail Center Sells for $12M, Part of 1031 Exchange

retail real estate,shopping center,1031 exchange

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Research is Key with Tenant-in-Common Investments

Tom Hanna — Mon, 06 Feb 2006 02:26:07 +0000

With tenant-in-common investments becoming a hot commodity in the commercial and multifamily real estate markets, homework is key. Many 1031 investors rush to purchase within the IRS guidelines, while other investors not involved in a 1031 purchase TICs for the promised management. The problem? High fees and low returns can wipe out any tax savings. For non-1031 investors the extra costs associated with the tax deferral isn't offset by tax savings so there may be more profitable alternatives (such as REITs).

Fees aren't cheap. In a typical deal, sponsors charge a property-acquisition fee of 2% to 6% of the equity they put into the deal. Sales commissions are 5% to 8% of equity collected, and there can be a 2% to 3% fee for organization and marketing expenses, not to mention the ordinary annual property management fees, which run from 2% to 6% of net rental income.

Getting A Slice Of The Commercial Market

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Grubb & Ellis 2006 Forecast Sees Growth in Many Commercial Markets

Tom Hanna — Thu, 26 Jan 2006 07:31:03 +0000

The 2006 Grubb & Ellis commercial real estate forecast is out and they see growth in many North American markets. The Kansas City office market is expected to see positive net absorption, while right up I-70 the St. Louis market is expected to see lots of new space leased with old space vacated - lots of activity but low net absorption. The Wichita market is expected to see growth in medical office space. In Miami and Orlando job growth is expected to fuel the office market through 2006 and into 2007.

The picture varies from market to market and between office, industrial, retail, investment and multifamily properties, but the overall picture is positive. They expect asking rental rates to increase 5 percent for Central Business District office properties and 6 percent for suburban office space. Visit Grubb & Ellis for a clickable map to see the markets you're interested in.

commercial real estate,investment real estate

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Regulators issue warning to banks on commercial real estate loans

Tom Hanna — Tue, 17 Jan 2006 02:01:04 +0000

Commercial mortgage requirements could get tougher as federal banking regulators issued guidance to banks on commercial loans and recommended that banks with high concentrations of certain loans keep a higher capital cushion than required.

The caution focuses on loans where repayment depends mostly on rental income or on the sale, refinancing or permanent financing of the property. That includes loans to real estate investment trusts and unsecured loans to developers. Regulators said lenders with high concentrations should hold more of a capital cushion than the minimum required and enough to match the level of risk.

Buffalo News - Regulators issue warning to banks on commercial real estate loans

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Grubb & Ellis Sees Healthy 2006 in Chicago

Tom Hanna — Thu, 05 Jan 2006 03:10:35 +0000

Grubb & Ellis expect a healthy year in Chicago's commercial and industrial markets. Positive absorption is expected in the suburban office market, though the city will see office construction in an environment of negative absorption. The industrial market is expected to see absorption over 20 million square feet, compared to 15.8 million in 2005 with the fastest growth in the south suburbs.

«Like 2005,» he said, «this year's going to be a Goldilocks year, not too hot, not too cold. There will be a cooling in the housing market and perhaps a slowdown in economic growth toward the second half of the year, but not enough to upset what will be a good year for real estate. Interest rates will remain surprisingly low, and payroll jobs will be created. In most places, absorption will be up and rents firm.»

Chicago Primed for a Healthy 2006, Grubb & Ellis Contends

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Boca Raton Vacancy Rates on the Decline

Tom Hanna — Wed, 28 Dec 2005 00:17:45 +0000

A strong economy combined with heavy residential development taking up the available vacant land translates to declining vacancy rates for commercial and industrial properties in the Boca Raton, Florida market according to CB Richard Ellis. Industrial space leasing at an average rate of $7.96 per square feet has only a 4.1 percent vacancy rate. Office space vacancy rate is 8.8 percent with lease rates of $16.90 per square foot. 47,500 square feet of office space is under construction with more planned, but little if any industrial development is occurring, so expect industrial vacancy rates to remain tight.

«Because the economy is coming back pretty strong, any future developments being planned will be leased rather quickly due to the demand we face here and the remainder of Palm Beach,» Kelly said. «Vacancy rates are destined to stay tight for some time.»

Boca Raton News - The Leader in Local News Online

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