Company Newsletter: 2nd Quarter, 2014
Supply of Net Lease Properties in 1st Quarter 2014
According to Real Capital Analytics the supply of Net Lease Properties increased to more than 3000 properties available in the first quarter. Although most of this supply are Net Lease Properties with shorter lease terms.
Hopefully the new availability of Construction / Preferred Equity financing that was non- existent during the credit crunch will help to increase the supply of Net Lease Properties in the second quarter of 2014 and quench buyers demand for net lease properties.
National Real Estate Investor reported in an article dated April 17, 2014 that part of 2013’s cap rate compression coincided with the drop in Treasury rates. But even as Treasury rates perked up in early 2014, cap rates have actually moved down. REIT’s that specialize in net lease investing used to have the “pick of the litter,” but competition has caused them to alter their risk profiles. Walgreens and CVS Portfolios , which used to trade in the 7 percent range, are now trading in the mid-5s. To maintain a yield in the 7’s, today’s investors are forced to go for sub-investment grade properties, into tertiary markets, to buildings with shorter-term leases, or maybe assets that are all of those things.
Marabella to Attend International Council of Shopping Centers Convention May 17-21, 2014 in Las Vegas, NV.
Marabella Commercial Finance will be attending the International Council of Shopping Centers from Saturday, May 17, 2014 to Wednesday, May 21, 2014. Chris Marabella and Shari Eckert will be passing out rate sheets and meeting clients near the Walgreens and CVS Booth. To setup an appointment time to meet at ICSC in Las Vegas, please coordinate with Chris Marabella by calling ahead of the convention at (760) 479-0800 or e-mail Chris Marabella at [email protected] You can also text Chris at the event at (760) 803-6464.
Marabella Recently Funded / Under Application Net Lease Transactions
|Credit Tenant||Loan Amount||Amortization||Fixed Rate||Rate||Status|
|7-Eleven / Gas||$590,000||17.50 Yrs.||10 Yrs.||4.75%||Funded|
|Family Dollar||$1,000,000||25 Yrs.||5 Yrs.||3.69%||In Closing|
|Walgreens||$4,500,000||6 Year I/O||10 Yrs.||197 BP over 10 Yr. swap||Loan Committiee|
Call Marabella Today to Discuss Your Next Financing Options for Your Next Net Lease Transaction
All rates and terms are subject to change without notice. Certain other loan terms and costs will apply to loans.