But now AIG is beginning to make plans for fresh investments across the U.S. that will begin later this year.
A real-estate division of the New York-based company has reached out to developers of new apartment buildings in major metropolitan areas, said people familiar with the matter.
"We've done multifamily deals with them before, and we're interested in working with them again," said Hal Fetner, president and chief executive of New York developer Durst Fetner Residential LLC who has been contacted by AIG about new developments.
AIG hasn't set specific targets on the size of its future investments in real estate, but people familiar with the insurer say that eventually it will amount to hundreds of millions of dollars annually.AIG started its real-estate investing business in 1987 and built it into one of the world's largest property-investment platforms with $25 billion in assets at its peak a few years ago. Its real-estate team is led by Robert Gifford, a 55-year-old industry veteran who was hired in 2009, shortly before Robert Benmosche was appointed chief executive.
http://online.wsj.com
Showing posts with label Property. Show all posts
Showing posts with label Property. Show all posts
Friday, April 13, 2012
Monday, February 27, 2012
New York City Widened its Lead Over Competitors
NYC increases lead over London as top commercial property market
After taking over the top spot for global property investment in the third quarter, New York City widened its lead over competitors. The city attracted $35.7 billion in commercial property sales, including multi-family buildings, compared to $29.2 billion in London and $22.6 billion in Tokyo, according to a global property market report released today by Cushman & Wakefield.
Overall, global sales activity, including multi-family properties, rose 14 percent in 2011 to $808 billion, and the volume is now 83 percent greater than 2009′s lows. Half of all activity occured in Asia, but the North American market showed the greatest improvement in the last year, with investment volumes rising 52 percent. That increased demand led to the greatest compression of yields in the Americans, as capitalization rates fell in the region by 31 basis points, compared to the global average of 20 points. And overseas investors took notice, as the Americas saw a 94 percent increase in cross-border investment activity.
http://therealdeal.com/blog/2012/02/27/nyc-increases-lead-over-london-as-top-commercial-property-market/
After taking over the top spot for global property investment in the third quarter, New York City widened its lead over competitors. The city attracted $35.7 billion in commercial property sales, including multi-family buildings, compared to $29.2 billion in London and $22.6 billion in Tokyo, according to a global property market report released today by Cushman & Wakefield.
Overall, global sales activity, including multi-family properties, rose 14 percent in 2011 to $808 billion, and the volume is now 83 percent greater than 2009′s lows. Half of all activity occured in Asia, but the North American market showed the greatest improvement in the last year, with investment volumes rising 52 percent. That increased demand led to the greatest compression of yields in the Americans, as capitalization rates fell in the region by 31 basis points, compared to the global average of 20 points. And overseas investors took notice, as the Americas saw a 94 percent increase in cross-border investment activity.
http://therealdeal.com/blog/2012/02/27/nyc-increases-lead-over-london-as-top-commercial-property-market/
Thursday, February 23, 2012
Property Group is Planning to Develop 2.2 million sf of Mixed-Use Space
Property Group is planning to develop 2.2 million square feet of mixed-use space
After years of battles, Washington may finally realize a decades-old desire to rejoin two downtown neighborhoods with a $1.3 billion project on a platform over a stretch of Interstate 395.
City officials say they hope to close in the next 60 days on the sale of six embattled acres of land and air rights to Property Group Partners, a developer that owns or manages about three million square feet of office buildings, mostly in Washington. Property Group is planning to develop 2.2 million square feet of mixed-use space, mostly office with some retail and housing.
http://online.wsj.com/article
After years of battles, Washington may finally realize a decades-old desire to rejoin two downtown neighborhoods with a $1.3 billion project on a platform over a stretch of Interstate 395.
City officials say they hope to close in the next 60 days on the sale of six embattled acres of land and air rights to Property Group Partners, a developer that owns or manages about three million square feet of office buildings, mostly in Washington. Property Group is planning to develop 2.2 million square feet of mixed-use space, mostly office with some retail and housing.
http://online.wsj.com/article
Tuesday, August 30, 2011
Global Demand for Distressed Commercial Property Soars
Global demand for distressed commercial property increased dramatically in the second quarter of 2011 and is expected to outstrip supply in the next three months, according to the latest report from the Royal Institution of Chartered Surveyors.
Over 80% of the countries surveyed in the RICS Global Distressed Property Monitor reported heightened levels of interest from specialist funds in the second quarter with three quarters of these reporting even greater levels of demand than last quarter.
Indeed, in over half of the countries covered, the net balance figure for second quarter demand for distressed property outstrips the comparative number for the third quarter expected supply, most noticeably in Japan, China, Singapore and Hong Kong.
Investor demand rose most dramatically in Japan and Hungary this quarter, where net balance scores moved from +6 to +68 and +3 to +64 quarter over quarter, respectively. In Italy, Poland and Russia agents reported noticeable shifts in sentiment with demand swinging from negative into positive territory.
http://www.propertywire.com/news/europe/global
Over 80% of the countries surveyed in the RICS Global Distressed Property Monitor reported heightened levels of interest from specialist funds in the second quarter with three quarters of these reporting even greater levels of demand than last quarter.
Indeed, in over half of the countries covered, the net balance figure for second quarter demand for distressed property outstrips the comparative number for the third quarter expected supply, most noticeably in Japan, China, Singapore and Hong Kong.
Investor demand rose most dramatically in Japan and Hungary this quarter, where net balance scores moved from +6 to +68 and +3 to +64 quarter over quarter, respectively. In Italy, Poland and Russia agents reported noticeable shifts in sentiment with demand swinging from negative into positive territory.
http://www.propertywire.com/news/europe/global
Friday, August 5, 2011
Brookfield Office Beats Estimates After Commercial-Property Revenue Climbs
New York Commercial Property Revenue Climbs Up 30%
The company is seeing “steady demand and controlled supply within our primary markets,” Chief Executive Officer Ric Clark said in the statement. “We remain optimistic about our performance over the balance of the year and the next few years to come.”
Brookfield Office Properties Inc., owner of Manhattan’s World Financial Center, reported funds from operations that beat analyst estimates after increasing revenue and adding income from Australian properties acquired last year.
Revenue Up 30%
FFO, a gauge of a property company’s ability to generate cash, was $152 million, or 30 cents a share, in the second quarter, the New York-based landlord said today in a statement. Analysts expected 26 cents a share, the average of 14 estimates in a Bloomberg survey. FFO was $201 million, or 40 cents, a year earlier, when results included a $53 million gain from the repayment of a loaThe companywide occupancy rate was 93.3 percent, down from 95 percent at the end of last year and 94.8 percent a year earlier, according to the supplemental report.
http://www.bloomberg.com/news
The company is seeing “steady demand and controlled supply within our primary markets,” Chief Executive Officer Ric Clark said in the statement. “We remain optimistic about our performance over the balance of the year and the next few years to come.”
Brookfield Office Properties Inc., owner of Manhattan’s World Financial Center, reported funds from operations that beat analyst estimates after increasing revenue and adding income from Australian properties acquired last year.
Revenue Up 30%
FFO, a gauge of a property company’s ability to generate cash, was $152 million, or 30 cents a share, in the second quarter, the New York-based landlord said today in a statement. Analysts expected 26 cents a share, the average of 14 estimates in a Bloomberg survey. FFO was $201 million, or 40 cents, a year earlier, when results included a $53 million gain from the repayment of a loaThe companywide occupancy rate was 93.3 percent, down from 95 percent at the end of last year and 94.8 percent a year earlier, according to the supplemental report.
http://www.bloomberg.com/news
Wednesday, July 20, 2011
U.S. Commercial Property Prices Increased
NNN Lease market news
U.S. commercial property prices increased in May for the first time in six months as a rebound in distressed real estate helped boost values, according to Moody’s Investors Service.
The Moody’s/REAL Commercial Property Price Index rose 6.3 percent from April, the largest gain since the measure began in 2000. It’s down 11 percent from a year earlier and 46 percent below the peak of October 2007, the company said today.
“A number of transactions that were recorded in May had their most recent prior sales in 2009 as the market was beginning to bottom and subsequently traded for substantial returns,” Tad Philipp, director of commercial real estate research at Moody’s, said in a separate statement. “We are likely to see a pickup in post-peak repeat sales and expect such transactions to play an important role in helping drive the CPPI higher.”
http://www.bloomberg.com/news
U.S. commercial property prices increased in May for the first time in six months as a rebound in distressed real estate helped boost values, according to Moody’s Investors Service.
The Moody’s/REAL Commercial Property Price Index rose 6.3 percent from April, the largest gain since the measure began in 2000. It’s down 11 percent from a year earlier and 46 percent below the peak of October 2007, the company said today.
“A number of transactions that were recorded in May had their most recent prior sales in 2009 as the market was beginning to bottom and subsequently traded for substantial returns,” Tad Philipp, director of commercial real estate research at Moody’s, said in a separate statement. “We are likely to see a pickup in post-peak repeat sales and expect such transactions to play an important role in helping drive the CPPI higher.”
http://www.bloomberg.com/news
Tech Meets the Tenderloin
NNN Lease Market News
The growth in technology businesses that has boosted the San Francisco office market has spilled over into a blighted six-block stretch of Market Street that until now has missed out on most booms in the city's commercial-property valuations.
The "midmarket" office corridor on the southern edge of the Tenderloin district got its first boost in April when Twitter Inc. announced plans to relocate its headquarters to the gritty area better known for empty storefronts and government workers than Internet buzz.
http://online.wsj.com/article
Thursday, May 12, 2011
Property Buyers Expand
Minneapolis, Dallas and Denver are enticing U.S. commercial-property investors as a rebound in demand spreads from prime markets along the U.S. coasts.
The cities had three of the four biggest gains in sales by dollar volume among major metropolitan areas outside the coasts in the first quarter, according to CoStar Group Inc. (CSGP), a Washington-based property-research firm. Sales rose 127 percent from a year earlier in Minneapolis, 108 percent in Dallas and 89 percent in Denver. Nationally, the increase was 47 percent.
http://www.bloomberg.com
The cities had three of the four biggest gains in sales by dollar volume among major metropolitan areas outside the coasts in the first quarter, according to CoStar Group Inc. (CSGP), a Washington-based property-research firm. Sales rose 127 percent from a year earlier in Minneapolis, 108 percent in Dallas and 89 percent in Denver. Nationally, the increase was 47 percent.
http://www.bloomberg.com
Tuesday, January 25, 2011
Blackstone Bets on Industrial Property
Net lease market News
Blackstone bets big on industrial property rebound
In six months, the private equity firm's real estate arm, Blackstone Real Estate Advisors, has amassed a portfolio of 275 industrial properties, spanning about 45 million square feet.
It might more than triple its holdings to about 150 million square feet, according to an industry source with knowledge of the plans, but who is not authorized to talk about them.
These warehouses and distribution facilities -- sometimes as large as 17 U.S. football fields -- sit beside highways, near airports and shipping ports throughout the United States. The hulking concrete shells are stuffed with televisions, shampoo, soft drinks and other goods headed for stores. Tenants include shippers, manufacturers and retailers.
"Industrial real estate in the private market has been cheaper than other property sectors," said Green Street Advisors analyst Steven Frankel. "Industrial last year had not recovered at nearly that same pace as apartments, or hotels or the majority of other sectors. Pricing looked very attractive on a relative basis."
SOURCES:http://www.reuters.com/article/idUSTRE70O68920110125
Net Lease Industrial Assets it has been estimated that as much as $97 billion will be invested in the US commercial market by global investors in 2011. DTZ, a British-based real estate services firm, stated this represents a 54% increase from their December 2009 prediction. In short, growing confidence in real estate investment will pull investors off the bench – leaving the industrial sector poised to benefit. However, investors scrambling to find viable and profitable net lease investments are running into a short term problem. There is a lack of both current supply and new industrial construction in the pipeline.
Investors want quality, top rated tenants in the strongest urban markets. These investments are increasingly rare. However, “Mission Critical” net lease industrial assets are available - investors may just need to rethink their criteria. These properties often have existing permitted industrial uses, are located in and around quality commercial markets, and provide goods and services unique to their businesses. The real values of these investments are not only the tenant, or even the property, but the permitted use so critical to the nature of the business. Sellers are willing to sign long-term leases at higher returns than current market rates because these properties are so critical. Increasingly, investors are overlooking traditional analytics and considering these investments. With intelligent investment they can provide a highly profitable return.
Blackstone bets big on industrial property rebound
In six months, the private equity firm's real estate arm, Blackstone Real Estate Advisors, has amassed a portfolio of 275 industrial properties, spanning about 45 million square feet.
It might more than triple its holdings to about 150 million square feet, according to an industry source with knowledge of the plans, but who is not authorized to talk about them.
These warehouses and distribution facilities -- sometimes as large as 17 U.S. football fields -- sit beside highways, near airports and shipping ports throughout the United States. The hulking concrete shells are stuffed with televisions, shampoo, soft drinks and other goods headed for stores. Tenants include shippers, manufacturers and retailers.
"Industrial real estate in the private market has been cheaper than other property sectors," said Green Street Advisors analyst Steven Frankel. "Industrial last year had not recovered at nearly that same pace as apartments, or hotels or the majority of other sectors. Pricing looked very attractive on a relative basis."
SOURCES:http://www.reuters.com/article/idUSTRE70O68920110125
Net Lease Industrial Assets it has been estimated that as much as $97 billion will be invested in the US commercial market by global investors in 2011. DTZ, a British-based real estate services firm, stated this represents a 54% increase from their December 2009 prediction. In short, growing confidence in real estate investment will pull investors off the bench – leaving the industrial sector poised to benefit. However, investors scrambling to find viable and profitable net lease investments are running into a short term problem. There is a lack of both current supply and new industrial construction in the pipeline.
Investors want quality, top rated tenants in the strongest urban markets. These investments are increasingly rare. However, “Mission Critical” net lease industrial assets are available - investors may just need to rethink their criteria. These properties often have existing permitted industrial uses, are located in and around quality commercial markets, and provide goods and services unique to their businesses. The real values of these investments are not only the tenant, or even the property, but the permitted use so critical to the nature of the business. Sellers are willing to sign long-term leases at higher returns than current market rates because these properties are so critical. Increasingly, investors are overlooking traditional analytics and considering these investments. With intelligent investment they can provide a highly profitable return.
Friday, January 21, 2011
Brooklyn Showed Some Improvement in 2010
Commercial property sales in Brooklyn showed little improvement in 2010 even as the volume of sales surged in Manhattan.
There were 778 commercial real-estate transactions in Brooklyn in 2010, down from 805 in 2009, according to a new report by commercial-brokerage firm Terra CRG LLC.
TerraCRG: Commercial Real Estate Stabilizing
Terra CRG just released its 2010 report on the state of the commercial real estate market in Brooklyn. According to the report, the billion dollars or so in sales is about in line with 2009 number. While you can check out data on retail and multi-family sales here, we were particularly interested in the levels at which developable property was changing hands. Despite cries of oversupply and a handful of high-profile projects going belly up, developers apparently have not lost their appetite for North Brooklyn. Williamsburg had the highest number of sales (8) and the highest dollar volume ($20,597,593). As the chart above shows, Williamsburg and Greenpoint also put up the highest numbers on a price-per-buildable-square-foot basis. Interesting.
There were 778 commercial real-estate transactions in Brooklyn in 2010, down from 805 in 2009, according to a new report by commercial-brokerage firm Terra CRG LLC.
TerraCRG: Commercial Real Estate Stabilizing
Terra CRG just released its 2010 report on the state of the commercial real estate market in Brooklyn. According to the report, the billion dollars or so in sales is about in line with 2009 number. While you can check out data on retail and multi-family sales here, we were particularly interested in the levels at which developable property was changing hands. Despite cries of oversupply and a handful of high-profile projects going belly up, developers apparently have not lost their appetite for North Brooklyn. Williamsburg had the highest number of sales (8) and the highest dollar volume ($20,597,593). As the chart above shows, Williamsburg and Greenpoint also put up the highest numbers on a price-per-buildable-square-foot basis. Interesting.
Thursday, January 20, 2011
Net lease Investment Property For Sale
Net lease Investment Property For Sale 
Regal Cinema | Royal Palm Beach, FL
$20,000,000
$5,770,000 in equity needed
1003 N State Road 7 | Royal Palm Beach, FL 33411
NOI $1,399,793.25
Lease Expiration Date 04/30/2018
Increases Every 5 years
(Next Increase 5/1/2013)
Options Two (2), Five (5) year options
Lease Type NNN
Credit Rating S&P: BB- Sr Sec Debt
B+ Corp Rating
Land Area 23.6 +/- Acres
Existing Loan Balance $14,230,000
Amortization 30 years
Interest Rate 5.61%
Annual Debt Service $1,011,236
Loan Maturity 9/1/2015
Balloon at Maturity $13,050,231
Loan Type Non-Recourse
HIGHLIGHTS
• This net lease property is 76,701 square ft 18 screen theatre on over 23 acres in suburban West Palm Beach, Florida
•This Net lease property is located near WalMart Supercenter, Super Target; adjacent to Shoppes at Regal Centre, numerous restaurants and national retailers
•This net lease Location performs at or above all major industry metrics for performance with historical sales data available during due diligence
LOCATION OVERVIEW
Teal Henderson
Associate
(813) 282-6000
thenderson@calkain.com
For More information Contact:
Patrick Nutt
Senior Associate
(813) 282-6000
pnutt@calkain.com
Regal Cinema | Royal Palm Beach, FL
$20,000,000
$5,770,000 in equity needed
1003 N State Road 7 | Royal Palm Beach, FL 33411
NOI $1,399,793.25
Lease Expiration Date 04/30/2018
Increases Every 5 years
(Next Increase 5/1/2013)
Options Two (2), Five (5) year options
Lease Type NNN
Credit Rating S&P: BB- Sr Sec Debt
B+ Corp Rating
Land Area 23.6 +/- Acres
Existing Loan Balance $14,230,000
Amortization 30 years
Interest Rate 5.61%
Annual Debt Service $1,011,236
Loan Maturity 9/1/2015
Balloon at Maturity $13,050,231
Loan Type Non-Recourse
HIGHLIGHTS
• This net lease property is 76,701 square ft 18 screen theatre on over 23 acres in suburban West Palm Beach, Florida
•This Net lease property is located near WalMart Supercenter, Super Target; adjacent to Shoppes at Regal Centre, numerous restaurants and national retailers
•This net lease Location performs at or above all major industry metrics for performance with historical sales data available during due diligence
LOCATION OVERVIEW
Teal Henderson
Associate
(813) 282-6000
thenderson@calkain.com
For More information Contact:
Patrick Nutt
Senior Associate
(813) 282-6000
pnutt@calkain.com
Wednesday, January 19, 2011
Walgreens NNN Lease as Replacement Property
Walgreens NNN Lease as Replacement Property
According to the IRS, in 2002 individuals entered into 143,184 1031 exchanges. By 2005 that number had peaked to 283,560. Everyone can guess what happened next. The market dropped - dragging investments down with it. As a result, anywhere between 59,192 and 78,923 exchanges were estimated to be performed by individuals in 2008. However, it’s likely we’ve already returned to 2002 level numbers.
Institutional investors and traditional buy-and-hold investors believe the market is improving- thus, why "sell in a soft market?". However, clients with low-basis property that have certain events (death, retirement, financial distress) trigger property sales are opting to conduct like-kind exchanges. The natural processes of the life cycle along with an improving market have forced many investors out of the trenches.
An example would be an apartment building investor retiring to Florida and swapping out of an Arlington Apartment building and buying a Walgreens NNN lease as replacement property. The client gets cashflow without the "toilets, tenants, and trash". The market may not be perfect – but time waits for no one. Many of the baby boomers who could afford to wait just a few years ago are acknowledging and accepting current realities.
Another interesting and timely example are landowners selling to energy companies drilling on their property. This low-basis acreage with no depreciation benefits is great fuel for an income-producing commercial replacement property whether it be retail, industrial, or office. These clients often do not know that their land is "like-kind" with commercial real estate, and they do not know that passive real estate investments are out there that they do not have to actively manage.
Clients should really try to plan for both capital gains events and estate events. Unfortunately too much attention is put on deductions, current income, and economics of deal. Investors now face 25-50% in capital gains taxes upon disposition and upwards of 45-55% in estate taxes. This level of taxation will erode a substantial amount of the cash you will net from an investment when attempting to build real wealth.
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