PropertyEU - October 16, 2008
Dutch firm Green Real Estate has acquired 27 properties from healthcare organisation Meavita Nederland in a sale-and-leaseback transaction. The financial details were not disclosed.
Meavita Nederland disposed of the properties as it no longer views real estate ownership as a core activity. The portfolio comprises 14,000 m2 of lettable area and includes consultancy offices and medical centres in the north, centre and east of the Netherlands.
The healthcare division of property broker DTZ Zadelhoff acted for Green Real Estate. Ans de Wijn Bedrijfshuisvesting advised Meavita Nederland.
Sphere: Related Content
Saturday, October 18, 2008
Wednesday, October 15, 2008
GM Seeking $500 Million Sale Leaseback of Detroit HQ
Commercial Property News - October 14, 2008
Less than six months after it paid off its debt on its Detroit headquarters, struggling automaker General Motors is trying to refinance the Renaissance Center or arrange a sale-leaseback to raise about $500 billion.
GM officials recently appeared before the Detroit Police & Fire Retirement System Pension Fund board in an effort to get the board to agree to a $250 million collateralized revenue bond investment, according to a Detroit Free Press report. If that pension board agrees, GM would seek another $250 million from another city pension fund.
But GM may have trouble getting the first pension board to invest. Several pension board trustees told news groups that they considered it too big of a risk.
GM moved into the Renaissance Center, a seven-building complex in downtown Detroit in 1996. The automaker bought the complex for $75 million, and then borrowed $500 million against it for remodeling, according to a Detroit News story by Robert Snell. As reported May 9 by CPN, GM paid $626 million to take full control of the building.
John Blanchard, GM’s executive director of worldwide real estate, could not be reached by press time, but has stated this week that if the deal with the pension funds could not worked out, the auto giant would consider selling the Renaissance Center and leasing back space. He said the company is committed to staying in Detroit. The proposed refinancing comes as GM is trying to raise $15 billion to provide cash flow through 2010, according to published reports. Sphere: Related Content
Less than six months after it paid off its debt on its Detroit headquarters, struggling automaker General Motors is trying to refinance the Renaissance Center or arrange a sale-leaseback to raise about $500 billion.
GM officials recently appeared before the Detroit Police & Fire Retirement System Pension Fund board in an effort to get the board to agree to a $250 million collateralized revenue bond investment, according to a Detroit Free Press report. If that pension board agrees, GM would seek another $250 million from another city pension fund.
But GM may have trouble getting the first pension board to invest. Several pension board trustees told news groups that they considered it too big of a risk.
GM moved into the Renaissance Center, a seven-building complex in downtown Detroit in 1996. The automaker bought the complex for $75 million, and then borrowed $500 million against it for remodeling, according to a Detroit News story by Robert Snell. As reported May 9 by CPN, GM paid $626 million to take full control of the building.
John Blanchard, GM’s executive director of worldwide real estate, could not be reached by press time, but has stated this week that if the deal with the pension funds could not worked out, the auto giant would consider selling the Renaissance Center and leasing back space. He said the company is committed to staying in Detroit. The proposed refinancing comes as GM is trying to raise $15 billion to provide cash flow through 2010, according to published reports. Sphere: Related Content
Tuesday, September 30, 2008
Kesko Completes EUR 44 Million Sale Leaseback of 23 Stores in Finland
Kesko Web Site - September 30, 2008
The Kesko Group, the Kesko Pension Fund and Valluga-Sijoitus Oy have today sold 23 of their store properties in different parts of Finland to Aberdeen Property Fund Finland 1 Ky. The selling price is about 56 million euros, of which the Kesko Group's share is about 44 million euros. The Kesko Group's gain on the sale is about 16 million euros, which will be treated as a non-recurring item in Kesko's third quarter operating profit.
All of the above premises have been leased back for use by Kesko's division parent companies mainly under 5 or 10-year leases with extension options. The total lease liability for the properties sold by the Kesko Group is approximately 27 million euros (a 6.2% initial yield) and is not classified as a finance lease.
Of all the 23 properties included in the sale 20 are used by K-food store chains, and two by the K-rauta and Rautia chains. The sale also includes Kesko's Northern Finland district centre property in Oulu. The sale will not change the stores' operations. The total area of the properties sold is about 50,000 m2, of which the Kesko Group's share is about 35,000 m2
The aim of the property disposal is to enhance the use of the Kesko Group capital. The proceeds from the sale will be used to strengthen the store network in Finland and abroad,
At 31 December 2007, Kesko owned 1.0 million m2 of properties and had 2.6 million m2 of properties on leasehold in Finland and other Nordic countries, the Baltic countries and Russia. Kesko's store site investments were 189 million euros in 2007. Sphere: Related Content
The Kesko Group, the Kesko Pension Fund and Valluga-Sijoitus Oy have today sold 23 of their store properties in different parts of Finland to Aberdeen Property Fund Finland 1 Ky. The selling price is about 56 million euros, of which the Kesko Group's share is about 44 million euros. The Kesko Group's gain on the sale is about 16 million euros, which will be treated as a non-recurring item in Kesko's third quarter operating profit.
All of the above premises have been leased back for use by Kesko's division parent companies mainly under 5 or 10-year leases with extension options. The total lease liability for the properties sold by the Kesko Group is approximately 27 million euros (a 6.2% initial yield) and is not classified as a finance lease.
Of all the 23 properties included in the sale 20 are used by K-food store chains, and two by the K-rauta and Rautia chains. The sale also includes Kesko's Northern Finland district centre property in Oulu. The sale will not change the stores' operations. The total area of the properties sold is about 50,000 m2, of which the Kesko Group's share is about 35,000 m2
The aim of the property disposal is to enhance the use of the Kesko Group capital. The proceeds from the sale will be used to strengthen the store network in Finland and abroad,
At 31 December 2007, Kesko owned 1.0 million m2 of properties and had 2.6 million m2 of properties on leasehold in Finland and other Nordic countries, the Baltic countries and Russia. Kesko's store site investments were 189 million euros in 2007. Sphere: Related Content
Monday, September 29, 2008
Pep Boys Completes $77.5 Million Sale Leaseback of 22 Auto Parts Stores
CoStar Group - September 24, 2008
Corporate Partners Capital Group Inc., a Los Angeles-based company that specializes in structuring purchase-leaseback transactions with corporations, acquired 22 properties in various locations across the United States from The Pep Boys Manny Moe & Jack of California and Wachovia Development Corp. The aggregate purchase price was $77.5 million, or approximately $177.50 per square foot, and had an estimated cap rate of 7.5%.
The 22-retail properties total 474,434 square feet. The buyer entered into agreements to lease the properties back to be operated as Pep Boys stores.
Howard Sands of Corporate Partners Capital Group Inc. represented the buyer in-house. Harry Yanowitz, Alexander Spooner and Joe Cireli of Pep Boys and John Altmeyer of Wachovia represented the sellers in-house. Sphere: Related Content
Corporate Partners Capital Group Inc., a Los Angeles-based company that specializes in structuring purchase-leaseback transactions with corporations, acquired 22 properties in various locations across the United States from The Pep Boys Manny Moe & Jack of California and Wachovia Development Corp. The aggregate purchase price was $77.5 million, or approximately $177.50 per square foot, and had an estimated cap rate of 7.5%.
The 22-retail properties total 474,434 square feet. The buyer entered into agreements to lease the properties back to be operated as Pep Boys stores.
Howard Sands of Corporate Partners Capital Group Inc. represented the buyer in-house. Harry Yanowitz, Alexander Spooner and Joe Cireli of Pep Boys and John Altmeyer of Wachovia represented the sellers in-house. Sphere: Related Content
Friday, September 26, 2008
Del Taco Completes $24 Million Sale Leaseback of 15 Store Restaurant Portfolio
Cityfeet / GlobeSt - September 24, 2008
A locally based group of investors in a 1031 exchange have acquired a 15-store portfolio from Del Taco restaurants in a sale-leaseback, according to Faris Lee Investments, which brokered the deal. The restaurants are located in Arizona, California and Nevada and were built between 1998 and 2002.
The buyer was Innovative Property Partners LLC, a group of investors based in Orange County, who were represented by Richard Walter and Dennis Vaccaro of Faris Lee, which is based in Irvine. Del Taco Corp., which represented itself in the transaction, executed 20-year absolute NNN leases with the buyer and will continue to operate the properties.
Del Taco was founded in 1961 and operates or franchisees more than 510 restaurants in 16 states. The company is based in the Orange County city of Lake Forest.
According to Walter, who is president of Faris Lee Investments, “Del Taco Corp. was interested in a quick sale of the properties, and we were able to close the sale in just 45 days, which also met the needs of the 1031 buyer.” Walter notes that closing on 15 different sites in three different states “required a great deal of work during the due diligence process” in order to close by the deadline and to meet the expectations of both the seller and the buyer.
Walter adds that Faris Lee Capital, the financing arm for Faris Lee, coordinated and placed the financing for the buyer, who was attracted to the long-term leases and well located properties. He notes that Faris Lee is seeking other sale-leaseback opportunities to match buyer needs with niche opportunities like this one." Sphere: Related Content
A locally based group of investors in a 1031 exchange have acquired a 15-store portfolio from Del Taco restaurants in a sale-leaseback, according to Faris Lee Investments, which brokered the deal. The restaurants are located in Arizona, California and Nevada and were built between 1998 and 2002.
The buyer was Innovative Property Partners LLC, a group of investors based in Orange County, who were represented by Richard Walter and Dennis Vaccaro of Faris Lee, which is based in Irvine. Del Taco Corp., which represented itself in the transaction, executed 20-year absolute NNN leases with the buyer and will continue to operate the properties.
Del Taco was founded in 1961 and operates or franchisees more than 510 restaurants in 16 states. The company is based in the Orange County city of Lake Forest.
According to Walter, who is president of Faris Lee Investments, “Del Taco Corp. was interested in a quick sale of the properties, and we were able to close the sale in just 45 days, which also met the needs of the 1031 buyer.” Walter notes that closing on 15 different sites in three different states “required a great deal of work during the due diligence process” in order to close by the deadline and to meet the expectations of both the seller and the buyer.
Walter adds that Faris Lee Capital, the financing arm for Faris Lee, coordinated and placed the financing for the buyer, who was attracted to the long-term leases and well located properties. He notes that Faris Lee is seeking other sale-leaseback opportunities to match buyer needs with niche opportunities like this one." Sphere: Related Content
Wednesday, September 17, 2008
Citibank Seeking Sale Leaseback of 18 Bay Area Bank Branches
Silicon Valley / San Jose Business Journal - September 15, 2008
Citibank, the retail banking operation of financial services giant Citigroup Inc., has put 18 Bay Area branch locations on the market.
The locations for sale -- which include sites in Burlingame, San Mateo, Los Altos, Palo Alto, San Jose, Santa Clara and Sunnyvale -- are exceptional, said retail broker Don Tepman.
“Most, if not all, of these properties are very well located and I consider them to be among the Bay Area’s top real estate sites for retail,” Tepman said. “Rarely do we see product of this quality with such strong credit tenant backing.”
Citibank is offering to sell the locations and to sign 10-year leases plus options, according to an offering document. The company is promising annual 3 percent rent increases. The sites are for sale individually and en masse.
Citi has retained CB Richard Ellis to handle the offering. Sphere: Related Content
Citibank, the retail banking operation of financial services giant Citigroup Inc., has put 18 Bay Area branch locations on the market.
The locations for sale -- which include sites in Burlingame, San Mateo, Los Altos, Palo Alto, San Jose, Santa Clara and Sunnyvale -- are exceptional, said retail broker Don Tepman.
“Most, if not all, of these properties are very well located and I consider them to be among the Bay Area’s top real estate sites for retail,” Tepman said. “Rarely do we see product of this quality with such strong credit tenant backing.”
Citibank is offering to sell the locations and to sign 10-year leases plus options, according to an offering document. The company is promising annual 3 percent rent increases. The sites are for sale individually and en masse.
Citi has retained CB Richard Ellis to handle the offering. Sphere: Related Content
Sunday, September 14, 2008
State of California Enters 20 Year Lease for Highway Patrol HQ in Sacramento
GlobeSt.com - September 12, 2008
The state has inked a 20-year lease for a 285,000-sf, three-building low-rise campus here on behalf of the California Highway Patrol. Known as Continental Plaza, the buildings will be used to consolidate CHP’s administrative functions, which are now spread among several buildings in the Sacramento area. The law enforcement agency is slated to fill its new headquarters with 1,000 employees next September.
The state’s lease rate starts at $2.44 per sf per month, fully serviced with the exception of utilities, an information office with the state Department of General Services tells GlobeSt.com. The lease agreement includes a $41-million ($144 per-sf) tenant improvement allowance, annual rental rate bumps (approximately 1.5%) and a purchase option that may be exercised at the end of either year 10 or year 20. If exercised at year 10, the purchase price would be based on a 7% cap rate on the property’s NOI for year 11, according to DGS. If exercised at the end of the lease term, the purchase price would be based on a 7% cap rate on the NOI rent from year 19. If the state pays rent for 20 years, it would pay the property owner $193 million, according to DGS.
“The fact that Continental Plaza was an existing facility offered many benefits, including cost savings to the agency, an accelerated occupancy schedule and the reuse of an existing structure, [which is] part of the state’s ‘green’ strategy,” Newland says. Per state requirements, all three buildings will be renovated with the goal of receiving a LEED-NC-Silver certification from the US Green Building Council.
The property owner is Grove Investment Co. of Newport Beach, CA. Grubb & Ellis brokers Bill Newland, Clyde Rawlings and Toss Vallentine represented the building owner in the transaction. Cornish & Carey represented the state. Sphere: Related Content
The state has inked a 20-year lease for a 285,000-sf, three-building low-rise campus here on behalf of the California Highway Patrol. Known as Continental Plaza, the buildings will be used to consolidate CHP’s administrative functions, which are now spread among several buildings in the Sacramento area. The law enforcement agency is slated to fill its new headquarters with 1,000 employees next September.
The state’s lease rate starts at $2.44 per sf per month, fully serviced with the exception of utilities, an information office with the state Department of General Services tells GlobeSt.com. The lease agreement includes a $41-million ($144 per-sf) tenant improvement allowance, annual rental rate bumps (approximately 1.5%) and a purchase option that may be exercised at the end of either year 10 or year 20. If exercised at year 10, the purchase price would be based on a 7% cap rate on the property’s NOI for year 11, according to DGS. If exercised at the end of the lease term, the purchase price would be based on a 7% cap rate on the NOI rent from year 19. If the state pays rent for 20 years, it would pay the property owner $193 million, according to DGS.
“The fact that Continental Plaza was an existing facility offered many benefits, including cost savings to the agency, an accelerated occupancy schedule and the reuse of an existing structure, [which is] part of the state’s ‘green’ strategy,” Newland says. Per state requirements, all three buildings will be renovated with the goal of receiving a LEED-NC-Silver certification from the US Green Building Council.
The property owner is Grove Investment Co. of Newport Beach, CA. Grubb & Ellis brokers Bill Newland, Clyde Rawlings and Toss Vallentine represented the building owner in the transaction. Cornish & Carey represented the state. Sphere: Related Content
Thursday, September 11, 2008
Norske Skog Completes $75 Million Sale Leaseback of HQ in Norway
Reuters - September 9, 2008
Norwegian papermaker Norske Skog (NSG.OL) has sold its headquarters for 429.5 million Norwegian crowns ($75.76 million) and will book a gain of 230 million in the fourth quarter from the property sale, it said on Tuesday.
'The sale of the property is part of the work efforts to reduce Norske Skog's debts,' the company said in a statement.
Norske Skog simultaneously signed a lease agreement on the Oxenoen property in Lysaker with the new owners, Aspelin Ramm and Oslo housing and savings society OBOS, enabling it to stay in the building for some time, the company said. Sphere: Related Content
Norwegian papermaker Norske Skog (NSG.OL) has sold its headquarters for 429.5 million Norwegian crowns ($75.76 million) and will book a gain of 230 million in the fourth quarter from the property sale, it said on Tuesday.
'The sale of the property is part of the work efforts to reduce Norske Skog's debts,' the company said in a statement.
Norske Skog simultaneously signed a lease agreement on the Oxenoen property in Lysaker with the new owners, Aspelin Ramm and Oslo housing and savings society OBOS, enabling it to stay in the building for some time, the company said. Sphere: Related Content
Monday, September 08, 2008
IRS Extends Offer to Settle LILO & SILO Law Suits
The Providence Journal / Bloomberg - September 6, 2008
The Internal Revenue Service gave 45 companies, including Providence-based Textron Inc. as well as utilities and banks, an extra month to decide whether to settle disputes over their use of a leasing tax shelter ruled improper by several courts.
In exchange for terminating the transactions, known as lease-in, lease-out or sale-in, lease-out deals, the companies can keep 20 percent of their savings and the IRS will waive some penalties.
The settlement offer involves shelters such as the one used by Wachovia Corp., which an appeals court ruled against in April. The bank said the ruling would cost it $975 million in back taxes.
The tax agency, in an announcement on its Web site, said companies have 60 days to respond to an offer letter it began sending on Aug. 6. The extension from 30 days was granted “to provide taxpayers with sufficient time to evaluate the offer,” the Web site says.
Under the terms of the IRS’ offers, the companies must use their best efforts to terminate the transactions by Dec. 31. In some cases, the IRS will give taxpayers until Dec. 31, 2010, to unwind the deals.
Companies must agree to concede 80 percent of all deductions associated with the transactions for taxes due in years before 2008. In exchange, the IRS won’t tax certain income generated by the transactions for the same years.
An IRS release said the government won’t agree to settle any of a taxpayer’s shelter-related tax issues unless the bank or company accepts the settlement terms for all of its lease transactions.
Companies have been trying to decide whether to accept the settlement or take their chances in court, said Ralph Izzo, chief executive officer of one of the 45 targeted companies, Public Service Enterprise Group Inc., owner of New Jersey’s largest utility. The IRS has scored victories in federal courts against BB&T Corp., Fifth Third Bancorp and KeyCorp.
Izzo said at an investor conference that, in his company’s case, taking the settlement may exceed cash reserves it has set aside.
The settlement offer affects a “broad range of companies,” Shulman said last month. In addition to banks, companies such as Altria Group Inc., the largest U.S. tobacco company, and Textron, maker of Cessna aircraft, engaged in the transactions.
The tax shelters, known by the acronyms LILO and SILO, entail letting banks or other companies to buy subway cars or other public assets and lease them back to cities or transit authorities. The banks and companies claimed tax deductions, such as depreciation on the equipment.
The leasing arrangements provided revenue to cities, transit systems, airport authorities and other municipal services.
Promoters of the transactions, such as Brussels-based Dexia SA, told clients that the arrangements would let buyers save on taxes as the assets depreciated, although the companies wouldn’t own or operate the equipment or services. The IRS challenged the arrangements in court, saying the purchase-and-lease transactions were shams designed to produce tax deductions on assets that the banks and companies never truly owned.
From 2001 to 2003, at least 16 U.S. companies bought transportation assets from cities through 35 leasing agreements. Other companies sought tax breaks by leasing municipal services, such as sewer lines in Germany and the Alamodome arena in San Antonio, as well as emergency 911 call centers in Chicago and air-traffic-control systems in Australia, Canada and France.
Shulman said about 1,000 separate transactions could be unwound as a result of the settlement. Sphere: Related Content
The Internal Revenue Service gave 45 companies, including Providence-based Textron Inc. as well as utilities and banks, an extra month to decide whether to settle disputes over their use of a leasing tax shelter ruled improper by several courts.
In exchange for terminating the transactions, known as lease-in, lease-out or sale-in, lease-out deals, the companies can keep 20 percent of their savings and the IRS will waive some penalties.
The settlement offer involves shelters such as the one used by Wachovia Corp., which an appeals court ruled against in April. The bank said the ruling would cost it $975 million in back taxes.
The tax agency, in an announcement on its Web site, said companies have 60 days to respond to an offer letter it began sending on Aug. 6. The extension from 30 days was granted “to provide taxpayers with sufficient time to evaluate the offer,” the Web site says.
Under the terms of the IRS’ offers, the companies must use their best efforts to terminate the transactions by Dec. 31. In some cases, the IRS will give taxpayers until Dec. 31, 2010, to unwind the deals.
Companies must agree to concede 80 percent of all deductions associated with the transactions for taxes due in years before 2008. In exchange, the IRS won’t tax certain income generated by the transactions for the same years.
An IRS release said the government won’t agree to settle any of a taxpayer’s shelter-related tax issues unless the bank or company accepts the settlement terms for all of its lease transactions.
Companies have been trying to decide whether to accept the settlement or take their chances in court, said Ralph Izzo, chief executive officer of one of the 45 targeted companies, Public Service Enterprise Group Inc., owner of New Jersey’s largest utility. The IRS has scored victories in federal courts against BB&T Corp., Fifth Third Bancorp and KeyCorp.
Izzo said at an investor conference that, in his company’s case, taking the settlement may exceed cash reserves it has set aside.
The settlement offer affects a “broad range of companies,” Shulman said last month. In addition to banks, companies such as Altria Group Inc., the largest U.S. tobacco company, and Textron, maker of Cessna aircraft, engaged in the transactions.
The tax shelters, known by the acronyms LILO and SILO, entail letting banks or other companies to buy subway cars or other public assets and lease them back to cities or transit authorities. The banks and companies claimed tax deductions, such as depreciation on the equipment.
The leasing arrangements provided revenue to cities, transit systems, airport authorities and other municipal services.
Promoters of the transactions, such as Brussels-based Dexia SA, told clients that the arrangements would let buyers save on taxes as the assets depreciated, although the companies wouldn’t own or operate the equipment or services. The IRS challenged the arrangements in court, saying the purchase-and-lease transactions were shams designed to produce tax deductions on assets that the banks and companies never truly owned.
From 2001 to 2003, at least 16 U.S. companies bought transportation assets from cities through 35 leasing agreements. Other companies sought tax breaks by leasing municipal services, such as sewer lines in Germany and the Alamodome arena in San Antonio, as well as emergency 911 call centers in Chicago and air-traffic-control systems in Australia, Canada and France.
Shulman said about 1,000 separate transactions could be unwound as a result of the settlement. Sphere: Related Content
Saturday, August 30, 2008
Southern Cross Healthcare Agrees to £31.1 Million Sale Leaseback of Nine UK Care Homes
RTTNews - August 29, 2008
Southern Cross Healthcare, a provider of UK care home services, announced the sale and long-term leaseback of the freehold interests in nine care homes to a subsidiary of Daejan Holdings Plc for £31.1 million.
The gross asset value of the nine freehold interests is £37.2 million. The company said it would incur a book loss of £6.1 million on completion of the sale. It will pay £2.5 million for these homes as annual rent (8.0% cap rate.)
The company said it will use the proceeds from the divestment to partially pay down two syndicated credit facilities and a bilateral credit facility put in place earlier this year to fund additional acquisitions and developments.
Further, Bill Colvin, chief executive of Southern Cross, said, "Discussions are ongoing with other potential purchasers regarding further 20 freeholds to be divested and the proceeds from any sale will also be used to further reduce borrowings. Southern Cross is continuing to discuss with its banking syndicate the provision of longer term funding arrangements for the Group." Sphere: Related Content
Southern Cross Healthcare, a provider of UK care home services, announced the sale and long-term leaseback of the freehold interests in nine care homes to a subsidiary of Daejan Holdings Plc for £31.1 million.
The gross asset value of the nine freehold interests is £37.2 million. The company said it would incur a book loss of £6.1 million on completion of the sale. It will pay £2.5 million for these homes as annual rent (8.0% cap rate.)
The company said it will use the proceeds from the divestment to partially pay down two syndicated credit facilities and a bilateral credit facility put in place earlier this year to fund additional acquisitions and developments.
Further, Bill Colvin, chief executive of Southern Cross, said, "Discussions are ongoing with other potential purchasers regarding further 20 freeholds to be divested and the proceeds from any sale will also be used to further reduce borrowings. Southern Cross is continuing to discuss with its banking syndicate the provision of longer term funding arrangements for the Group." Sphere: Related Content
Wednesday, August 27, 2008
Life Time Fitness Complets $100 Millon Sale Leaseback of Four US Fitness Centers
MarketWatch / Business Wire - August 25, 2008
Senior Housing Properties Trust (SNH) today announced that it has acquired four health and wellness centers operated by Life Time Fitness, Inc. (LTM) for $100 million. Simultaneously, SNH entered into a long term lease arrangement with Life Time Fitness for these same properties.
The rent payable by Life Time Fitness to SNH for these four health and wellness centers will be $9.1 million per year (9.1% cap rate), plus fixed increases during the lease term. These health and wellness centers have a lease term ending in 2028, plus tenant renewal options thereafter. SNH has funded this transaction by drawing under its revolving bank credit facility.
Senior Housing Properties Trust is a real estate investment trust which owns independent and assisted living communities, nursing homes, rehabilitation hospitals, wellness centers and medical office buildings throughout the United States. SNH is headquartered in Newton, MA. Sphere: Related Content
Senior Housing Properties Trust (SNH) today announced that it has acquired four health and wellness centers operated by Life Time Fitness, Inc. (LTM) for $100 million. Simultaneously, SNH entered into a long term lease arrangement with Life Time Fitness for these same properties.
The rent payable by Life Time Fitness to SNH for these four health and wellness centers will be $9.1 million per year (9.1% cap rate), plus fixed increases during the lease term. These health and wellness centers have a lease term ending in 2028, plus tenant renewal options thereafter. SNH has funded this transaction by drawing under its revolving bank credit facility.
Senior Housing Properties Trust is a real estate investment trust which owns independent and assisted living communities, nursing homes, rehabilitation hospitals, wellness centers and medical office buildings throughout the United States. SNH is headquartered in Newton, MA. Sphere: Related Content
Sunday, August 24, 2008
AT&T Completes $72 Million Sale Leaseback of Atlanta Office Complex
Jones Lang LaSalle Web Site - August 22, 2008
Jones Lang LaSalle announced today it has closed the sale and leaseback of the two-building complex in Atlanta’s Northlake/Lavista submarket for AT&T. Equity Capital Management purchased the 406,292 square foot complex for $72 million.
At closing, AT&T executed a long-term leaseback for for both 2245 and 2247 Northlake Parkway in Tucker, Georgia, signaling its continued commitment to the facility and market.
This transaction marks the first closing within the Jones Lang LaSalle capital markets group by a newly-merged/legacy Staubach team. Managing Directors Jay Koster (New York) and Brad Armstrong (Atlanta) completed this assignment along with Vice Presidents Mike Hochanadel and Chris Wagner. The same transaction team completed the $275.2 million, 1.1 million square foot, sale-leaseback of Lenox Park, located in Atlanta’s Buckhead submarket, for AT&T in May of this year.
The Class-A property is located in the northeast Atlanta metropolitan area in the city of Tucker. It has immediate access to I-285 and is just three miles from the I-85/I-285 junction. Atlanta’s Hartsfield-Jackson International Airport is less than 25 minutes away, and the property is just 15 minutes from Dekalb Peachtree Airport. The building known as 2245 Northlake Parkway has three stories and was built in 1980. The building known as 2247 Northlake Parkway is a 10-story building built in 2000. Combined, the properties have more than 1,500 parking spaces, both structured and surface. Sphere: Related Content
Jones Lang LaSalle announced today it has closed the sale and leaseback of the two-building complex in Atlanta’s Northlake/Lavista submarket for AT&T. Equity Capital Management purchased the 406,292 square foot complex for $72 million.
At closing, AT&T executed a long-term leaseback for for both 2245 and 2247 Northlake Parkway in Tucker, Georgia, signaling its continued commitment to the facility and market.
This transaction marks the first closing within the Jones Lang LaSalle capital markets group by a newly-merged/legacy Staubach team. Managing Directors Jay Koster (New York) and Brad Armstrong (Atlanta) completed this assignment along with Vice Presidents Mike Hochanadel and Chris Wagner. The same transaction team completed the $275.2 million, 1.1 million square foot, sale-leaseback of Lenox Park, located in Atlanta’s Buckhead submarket, for AT&T in May of this year.
The Class-A property is located in the northeast Atlanta metropolitan area in the city of Tucker. It has immediate access to I-285 and is just three miles from the I-85/I-285 junction. Atlanta’s Hartsfield-Jackson International Airport is less than 25 minutes away, and the property is just 15 minutes from Dekalb Peachtree Airport. The building known as 2245 Northlake Parkway has three stories and was built in 1980. The building known as 2247 Northlake Parkway is a 10-story building built in 2000. Combined, the properties have more than 1,500 parking spaces, both structured and surface. Sphere: Related Content
Friday, August 22, 2008
General Reinsurance Signs 20 Year Lease for Stamford HQ
BNET / Real Estate Weekly - August 20, 2008
A team that recently joined Jones Lang LaSalle through its merger with The Staubach Company has completed a new direct lease transaction for General Reinsurance Corp. at Building and Land Technology's Long Ridge Corporate Center campus in Stamford, Conn. The reinsurance company signed a 20-year lease for the entire 310,000 s/f 120 Long Ridge Road office building.
The tenant was represented by Brian Higgins, managing director--brokerage, Jay Koster, managing director--capital markets, and Chris Kraus, managing director--brokerage, all with Jones Lang LaSalle's New York office. The team worked closely with Michael A. Rea, vice president with Gen Re, throughout the process. Property owner Building and Land Technology was represented in-house by Carl Kuehner, chief executive officer, and Paul Kuehner, chief financial officer.
Gen Re is relocating to 120 Long Ridge Road from 695 East Main Street, also known as Financial Centre, which had served as the reinsurer's headquarters for the past 25 years. The company's master lease at Financial Centre is set to expire in 2010. Gen Re plans to occupy its new headquarters space at 120 Long Ridge Road in late 2009. Sphere: Related Content
A team that recently joined Jones Lang LaSalle through its merger with The Staubach Company has completed a new direct lease transaction for General Reinsurance Corp. at Building and Land Technology's Long Ridge Corporate Center campus in Stamford, Conn. The reinsurance company signed a 20-year lease for the entire 310,000 s/f 120 Long Ridge Road office building.
The tenant was represented by Brian Higgins, managing director--brokerage, Jay Koster, managing director--capital markets, and Chris Kraus, managing director--brokerage, all with Jones Lang LaSalle's New York office. The team worked closely with Michael A. Rea, vice president with Gen Re, throughout the process. Property owner Building and Land Technology was represented in-house by Carl Kuehner, chief executive officer, and Paul Kuehner, chief financial officer.
Gen Re is relocating to 120 Long Ridge Road from 695 East Main Street, also known as Financial Centre, which had served as the reinsurer's headquarters for the past 25 years. The company's master lease at Financial Centre is set to expire in 2010. Gen Re plans to occupy its new headquarters space at 120 Long Ridge Road in late 2009. Sphere: Related Content
AT&T Completes $345 Million Sale Leaseback of Dallas HQ
Atlanta Business Chronicle - August 20, 2008
An otherwise pretty mundane summer 2008 in the Atlanta commercial real estate marketplace is closing out with the biggest of bangs, thanks to a mega-deal involving several big names and a high-profile property.
In a blockbuster, $345 million transaction that closed Aug. 14, global telecommunications provider AT&T Inc. (NYSE: T) entered into a sale-leaseback agreement for AT&T Tower, the 1.8 million-square-foot building at 675 West Peachtree St. that is the most visible component of its three-building Southeastern regional headquarters complex.
AT&T sold the landmark 47-story Midtown building — which was known as the BellSouth Tower until the $86 billion AT&T/BellSouth merger in 2006 — to a wholly owned subsidiary of Icahn Enterprises L.P., a holding company headed by billionaire financier and investor Carl Icahn. As part of the transaction, AT&T agreed to lease the building back on an unspecified mid- to long-term basis.
On the brokerage side, the deal was negotiated by a Jones Lang LaSalle Inc. capital markets team comprising managing directors Jay Koster and Brad Armstrong, along with vice presidents Mike Hochanadel and Chris Wagner. Koster and Hochanadel are based in JLL’s New York office, while Armstrong and Wagner are part of the real estate services provider’s Atlanta operations. Sphere: Related Content
An otherwise pretty mundane summer 2008 in the Atlanta commercial real estate marketplace is closing out with the biggest of bangs, thanks to a mega-deal involving several big names and a high-profile property.
In a blockbuster, $345 million transaction that closed Aug. 14, global telecommunications provider AT&T Inc. (NYSE: T) entered into a sale-leaseback agreement for AT&T Tower, the 1.8 million-square-foot building at 675 West Peachtree St. that is the most visible component of its three-building Southeastern regional headquarters complex.
AT&T sold the landmark 47-story Midtown building — which was known as the BellSouth Tower until the $86 billion AT&T/BellSouth merger in 2006 — to a wholly owned subsidiary of Icahn Enterprises L.P., a holding company headed by billionaire financier and investor Carl Icahn. As part of the transaction, AT&T agreed to lease the building back on an unspecified mid- to long-term basis.
On the brokerage side, the deal was negotiated by a Jones Lang LaSalle Inc. capital markets team comprising managing directors Jay Koster and Brad Armstrong, along with vice presidents Mike Hochanadel and Chris Wagner. Koster and Hochanadel are based in JLL’s New York office, while Armstrong and Wagner are part of the real estate services provider’s Atlanta operations. Sphere: Related Content
Thursday, August 21, 2008
Tesco Completes $1.1 Billion Sale Leaseback of 13 UK Stores & Distribution Center
Bloomberg - August 21, 2008
Tesco Plc, the U.K.'s biggest retailer, sold properties to real-estate investors for 605 million pounds ($1.1 billion), its fourth such disposal in two years, freeing up capital for overseas expansion.
The 13 stores and a distribution center were purchased by four buyers, including investment arms of insurers Prudential Plc and Sun Life Financial Inc., and represent 2.4 percent of the value of the grocer's stores, Cheshunt, England-based Tesco said today. The company is leasing back the properties for 20 years, with the right to extend the contracts.
Tesco has about 1,780 U.K. outlets. It gets more than 25 percent of its sales abroad and entered the U.S. last year. Over the past two years, rising values for property assets had lured investors to retailers such as J Sainsbury Plc, which rebuffed demands for a real-estate split.
``Tesco freehold property sales show that there is still good pension-fund appetite for supermarkets,'' analyst Nick Bubb of Pali International said in an e-mailed note.
The disposal is part of Tesco's plan, announced two years ago, to raise 5 billion pounds through property sales, of which it has so far raised 2 billion pounds, including today's announcement.
The stores all pay landlords a return of at least 4.88 percent on their investment as a percentage of the purchase price, Tesco said. The company has estimated the value of all of its real estate at 31 billion pounds.
One of the buyers was the Universities Superannuation Scheme, Britain's second-largest pension fund, which runs money for academics and college staff. Tesco formed a joint venture with USS that will own the property.
The rest of the properties were bought by Prudential Plc's Prupim property-investment arm, Sun Life's Canada Life division, and LaSalle Investment Management, a unit of commercial real- estate broker Jones Lang LaSalle Inc. Sphere: Related Content
Tesco Plc, the U.K.'s biggest retailer, sold properties to real-estate investors for 605 million pounds ($1.1 billion), its fourth such disposal in two years, freeing up capital for overseas expansion.
The 13 stores and a distribution center were purchased by four buyers, including investment arms of insurers Prudential Plc and Sun Life Financial Inc., and represent 2.4 percent of the value of the grocer's stores, Cheshunt, England-based Tesco said today. The company is leasing back the properties for 20 years, with the right to extend the contracts.
Tesco has about 1,780 U.K. outlets. It gets more than 25 percent of its sales abroad and entered the U.S. last year. Over the past two years, rising values for property assets had lured investors to retailers such as J Sainsbury Plc, which rebuffed demands for a real-estate split.
``Tesco freehold property sales show that there is still good pension-fund appetite for supermarkets,'' analyst Nick Bubb of Pali International said in an e-mailed note.
The disposal is part of Tesco's plan, announced two years ago, to raise 5 billion pounds through property sales, of which it has so far raised 2 billion pounds, including today's announcement.
The stores all pay landlords a return of at least 4.88 percent on their investment as a percentage of the purchase price, Tesco said. The company has estimated the value of all of its real estate at 31 billion pounds.
One of the buyers was the Universities Superannuation Scheme, Britain's second-largest pension fund, which runs money for academics and college staff. Tesco formed a joint venture with USS that will own the property.
The rest of the properties were bought by Prudential Plc's Prupim property-investment arm, Sun Life's Canada Life division, and LaSalle Investment Management, a unit of commercial real- estate broker Jones Lang LaSalle Inc. Sphere: Related Content
Tuesday, August 19, 2008
Bulgarian Telecom Planning EUR 300 Million Sale Leaseback of 100 Properties
Estates Gazette is reporting that Bulgaria’s former state telecom operator Bulgarian Telecommunications Co (BTC) is seeking international investors for a large 20-year sale-and-leaseback transaction.
The company will reportedly market a €300m portfolio of its most valuable 100 sites in September, including the Telecom Palace in Sophia, which could be redeveloped. BTC will lease back some of the offices and warehouses for up to 20 years, offering the rest for development. The initial yield on the 3.2m sq ft portfolio will be 10%.
Cushman & Wakefield affiliate Forton International is representing BTC which is reviewing whether it needs to own any of its 2,000 properties. BTC wants to release equity to invest in core operations.
BTC was privatised in 2004 and is now owned by US insurance giant AIG. Sphere: Related Content
The company will reportedly market a €300m portfolio of its most valuable 100 sites in September, including the Telecom Palace in Sophia, which could be redeveloped. BTC will lease back some of the offices and warehouses for up to 20 years, offering the rest for development. The initial yield on the 3.2m sq ft portfolio will be 10%.
Cushman & Wakefield affiliate Forton International is representing BTC which is reviewing whether it needs to own any of its 2,000 properties. BTC wants to release equity to invest in core operations.
BTC was privatised in 2004 and is now owned by US insurance giant AIG. Sphere: Related Content
Canadian Tire Agrees to CAN $174 Million Sale Leaseback of 12 Stores Across Canada
The Chronicle Herald - August 19, 2008
Hard goods retailer Canadian Tire Corp. says it has struck a deal to sell and lease back 12 of its store properties for $174 million. Canadian Tire said late Monday the company will book a pre-tax gain on the sale of about $70 million. The transaction is subject to Competition Act approval and is expected to close in September.
The properties are located across Canada and include recently built or expanded Canadian Tire stores. Six of the properties also have a Mark’s Work Wearhouse outlet, the retailer’s clothing division.
Canadian Tire owns about 74 per cent of its store network and leases the rest of its other retail properties. The properties sold Monday represent about four per cent of Canadian Tire’s total real estate portfolio.
"While we continue to see real value in owning the majority of our real estate assets, carefully selected sale-leasebacks enable us to monetize the value of select properties creating financial flexibility while maintaining our overall operating flexibility." said Tom Gauld, president and CEO of the company.
"The properties included in this transaction are locations featuring stores that are either new or recently expanded so we do not see a need to relocate these stores in the foreseeable future. "This enables us to monetize these sites at attractive rates while creating financial flexibility."
Canadian Tire did not identify the buyer or buyers of the retail properties. Earlier this summer, however, the company sold an Ottawa store property for $40 million to RioCan Real Estate Investment Trust, Canada’s largest shopping mall owner, in a sale-leaseback deal.
In its release late Monday, Canadian Tire said it will continue to selectively look at cashing in on its extensive real estate assets, including two urban Canadian Tire stores and an Eastern Canada warehouse announced earlier this year.
Canadian Tire operates 1,170 general merchandise and apparel retail stores and gasoline stations across Canada. The company, with 57,000 employees, sells auto parts, sports and lesure equipment and home products. Sphere: Related Content
Hard goods retailer Canadian Tire Corp. says it has struck a deal to sell and lease back 12 of its store properties for $174 million. Canadian Tire said late Monday the company will book a pre-tax gain on the sale of about $70 million. The transaction is subject to Competition Act approval and is expected to close in September.
The properties are located across Canada and include recently built or expanded Canadian Tire stores. Six of the properties also have a Mark’s Work Wearhouse outlet, the retailer’s clothing division.
Canadian Tire owns about 74 per cent of its store network and leases the rest of its other retail properties. The properties sold Monday represent about four per cent of Canadian Tire’s total real estate portfolio.
"While we continue to see real value in owning the majority of our real estate assets, carefully selected sale-leasebacks enable us to monetize the value of select properties creating financial flexibility while maintaining our overall operating flexibility." said Tom Gauld, president and CEO of the company.
"The properties included in this transaction are locations featuring stores that are either new or recently expanded so we do not see a need to relocate these stores in the foreseeable future. "This enables us to monetize these sites at attractive rates while creating financial flexibility."
Canadian Tire did not identify the buyer or buyers of the retail properties. Earlier this summer, however, the company sold an Ottawa store property for $40 million to RioCan Real Estate Investment Trust, Canada’s largest shopping mall owner, in a sale-leaseback deal.
In its release late Monday, Canadian Tire said it will continue to selectively look at cashing in on its extensive real estate assets, including two urban Canadian Tire stores and an Eastern Canada warehouse announced earlier this year.
Canadian Tire operates 1,170 general merchandise and apparel retail stores and gasoline stations across Canada. The company, with 57,000 employees, sells auto parts, sports and lesure equipment and home products. Sphere: Related Content
Friday, August 15, 2008
Longs Drug Stores to Pursue $1 Billion Sale Leaseback of Drug Stores, Distribution Centers and Office Buildings
The Modesto Bee - August 13, 2008
Longs Drug Stores, a regional drugstore chain based in Walnut Creek, is being acquired by industry giant CVS Caremark Corp., based in Woonsocket, R.I.
The $2.9 billion acquisition will make CVS Caremark the largest drugstore chain in California, with 830 stores. The company is the leading provider of prescriptions in the United States, and with the acquisition of the 521 Longs stores, it will operate 6,800 drugstores in 41 states and the District of Columbia.
One of the big attractions to buying Longs, said Tom Ryan, CVS chairman, president and chief executive officer, is gaining a strong market position in Central and Northern California and Hawaii. The two chains have few overlapping stores, according to Ryan. The Central and Northern California markets are difficult to enter because of the lack of available drugstore sites, Ryan said. Expanding into the markets by developing its own stores would have taken CVS about 10 years, he said.
Part of the cost of buying the Longs stores would be raised by selling the store properties that Longs owns, along with three distribution centers and three office buildings. The properties would be leased back to CVS, Ryan said. He estimated the value of the Longs properties at $1 billion.
The sale is subject to Longs shareholder approval and federal review. It is expected to be completed during the fourth quarter of this year. Sphere: Related Content
Longs Drug Stores, a regional drugstore chain based in Walnut Creek, is being acquired by industry giant CVS Caremark Corp., based in Woonsocket, R.I.
The $2.9 billion acquisition will make CVS Caremark the largest drugstore chain in California, with 830 stores. The company is the leading provider of prescriptions in the United States, and with the acquisition of the 521 Longs stores, it will operate 6,800 drugstores in 41 states and the District of Columbia.
One of the big attractions to buying Longs, said Tom Ryan, CVS chairman, president and chief executive officer, is gaining a strong market position in Central and Northern California and Hawaii. The two chains have few overlapping stores, according to Ryan. The Central and Northern California markets are difficult to enter because of the lack of available drugstore sites, Ryan said. Expanding into the markets by developing its own stores would have taken CVS about 10 years, he said.
Part of the cost of buying the Longs stores would be raised by selling the store properties that Longs owns, along with three distribution centers and three office buildings. The properties would be leased back to CVS, Ryan said. He estimated the value of the Longs properties at $1 billion.
The sale is subject to Longs shareholder approval and federal review. It is expected to be completed during the fourth quarter of this year. Sphere: Related Content
Sears Completes $56.1 Million Sale Leaseback of Warehouse in PA
Cityfeet.com / GlobeSt.com - August 13, 2008
Sears Holdings Corp. has sold its one-million-sf distribution center at Covington Industrial Park to San Antonio-based USAA Real Estate Co.'s US Industrial REIT II. Published reports say the build-to-suit facility, which opened in April with Sears Logistics Services as its long-term tenant, changed hands for $56.1 million.
James Sheehan, senior director with Cushman & Wakefield Inc.'s Philadelphia office, tells GlobeSt.com that a sizable, brand-new facility like this is "extremely appealing to large institutional investors." Sheehan arranged the sale along C&W's Jerome Kranzel, Jeff Williams, Steve Cooper, Gerry Blinebury and James Vesey.
Completed in 2007, the building is the newest and largest of four facilities at the 800-acre industrial park, developed by Chicago-based First Industrial Realty Trust. It offers 32-foot clear heights, tilt-up concrete walls, ESFR sprinklers, cross-docking and additional trailer storage. Although a confidentiality agreement prevents him from disclosing the per-sf rates that Sears Logistics is paying, Sheehan says industrial rents in the northeastern Pennsylvania corridor range from "the high $3 to $4 range."
First Industrial had secured the Hoffman Estates, IL-based Sears as a build-to-suit tenant in in March 2007. The Sears site is in a portion of the park designated as a Keystone Opportunity Expansion Zone, which provides certain tax abatements through 2013. At that time, GlobeSt.com reported Pennsylvania's Department of Community and Economic Development and the Greater Scranton Chamber of Commerce provided Sears with $90,000 in customized job-training funds. Sphere: Related Content
Sears Holdings Corp. has sold its one-million-sf distribution center at Covington Industrial Park to San Antonio-based USAA Real Estate Co.'s US Industrial REIT II. Published reports say the build-to-suit facility, which opened in April with Sears Logistics Services as its long-term tenant, changed hands for $56.1 million.
James Sheehan, senior director with Cushman & Wakefield Inc.'s Philadelphia office, tells GlobeSt.com that a sizable, brand-new facility like this is "extremely appealing to large institutional investors." Sheehan arranged the sale along C&W's Jerome Kranzel, Jeff Williams, Steve Cooper, Gerry Blinebury and James Vesey.
Completed in 2007, the building is the newest and largest of four facilities at the 800-acre industrial park, developed by Chicago-based First Industrial Realty Trust. It offers 32-foot clear heights, tilt-up concrete walls, ESFR sprinklers, cross-docking and additional trailer storage. Although a confidentiality agreement prevents him from disclosing the per-sf rates that Sears Logistics is paying, Sheehan says industrial rents in the northeastern Pennsylvania corridor range from "the high $3 to $4 range."
First Industrial had secured the Hoffman Estates, IL-based Sears as a build-to-suit tenant in in March 2007. The Sears site is in a portion of the park designated as a Keystone Opportunity Expansion Zone, which provides certain tax abatements through 2013. At that time, GlobeSt.com reported Pennsylvania's Department of Community and Economic Development and the Greater Scranton Chamber of Commerce provided Sears with $90,000 in customized job-training funds. Sphere: Related Content
ECI Seeking $42 Million Sale Leaseback on Petah Tikva HQ
Globes - August 14, 2008
Sources inform ''Globes'' that ECI Telecom Ltd. wants to sell its Petah Tikva headquarters for NIS 150 million in a sale and lease-back deal in long-term contract. The company has already contacted a number of insurance companies about a deal.
This is not the first time that ECI has sought to sell the building. Three months ago, it published a tender for the sale of all its properties for NIS 350 million. The tender included the headquarters, building rights on the same lot in Petah Tikva, and an additional lot in Givat Shmuel. The tender was closed in May after no bids were filed, apparently because the development aspects of the lands on offer were of no interest to insurance companies. Sphere: Related Content
Sources inform ''Globes'' that ECI Telecom Ltd. wants to sell its Petah Tikva headquarters for NIS 150 million in a sale and lease-back deal in long-term contract. The company has already contacted a number of insurance companies about a deal.
This is not the first time that ECI has sought to sell the building. Three months ago, it published a tender for the sale of all its properties for NIS 350 million. The tender included the headquarters, building rights on the same lot in Petah Tikva, and an additional lot in Givat Shmuel. The tender was closed in May after no bids were filed, apparently because the development aspects of the lands on offer were of no interest to insurance companies. Sphere: Related Content
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