Single-Tenant Industrial Assets Still Trade
Thursday, June 18, 2009
Source: GlobeSt
GlobeSt reports: The volume of single-tenant industrial property sales during the first quarter hit its lowest since the same quarter in 2003, at least among properties and portfolios of $5 million and greater, which is what Real Capital Analytics Inc. tracks.
The data provider counted $200 million of single-tenant industrial assets changing hands in the first three months of the year, and almost $3.34 billion for the 12 months through the first quarter, a 65% decline compared to the prior 12-month period.
Cap rates, as would be expected, rose further, to a 12-month average of 7.6% at the end of the first quarter, RCA also reports, a 108 basis point increase from the prior 12-month period.
But deals are getting done. New York City-based non-traded REIT American Realty Capital Trust Inc., for example, recently announced that it expects to close on a newly built freight facility double-net leased to FedEx Freight this month. The purchase price is $30.9 million and the 152,640-square-foot facility in northwest Houston has a 15-year lease, plus two five-year extension options, that is guaranteed by the tenant’s parent FedEx Corp. Base rent increases 8% every five years, according to ARCT, which is buying the property from developer PinPoint Commercial and putting approximately 50% leverage on it with a first mortgage from KBC Bank NA.
View the full article on GlobeSt: Single-Tenant Industrial Assets Still Trade
Posted by: Nina Turner