SVN Live 4-3-2017

© 2017 SVN International Corp.

WEEKLY PROPERTY BROADCAST

APRIL 3, 2017

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ECONOMIC TALKING POINTS

Recent Real Capital Analytics report shows minor cap rate increase following interest rate moves• RCA reports cap rate increases of 20-30 bps in 4th quarter;

annual volume decline of 11%, and annual price growth of 9%.

• Overall, 2016 was a very healthy year for all commercial real estate with the apartment sector seeing the most growth in deal volume; the 4th quarter shows a pause in some activity as investors and lenders were caught by surprise by the election result and resultant increase in rates; this may level out in the first quarter of ’17.

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• Trepp reports that the national CMBS delinquency rate fell 5 basis points to 5.18% in January; prior to this, the rate had moved up in 9 of the last 10 months.

• Overall, the very modest gains represent a clearance of default from legacy loans that had reached maturity; this should continue in 2017 assuming lending markets remain open.

CMBS delinquencies improve in January ’17, reversing multi-month trend

ECONOMIC TALKING POINTS


RECENTLY CLOSED DEALS

Sale Price $

Size

$/SF $

*For qualified transactions, 50% of the gross commission to the buy side. 50 % O F THE CO MMI SSIO N | 1 00 % O F TH E T I ME* | TH E SV N D IFFERE NCE

PROPERTY HIGHLIGHTSPROPERTY DETAILS


SVN | David Cook Co., LLC

DAVID [email protected]

39.40

1,050,000

26,650 SF

• Sold to a user• Buyer will occupy 40%• Sold for 95.5% of asking price

INDUSTRIAL | 11720 CHAIRMAN | DALLAS, TX

Sale Price $

Size

$/Acre $




SVN | Lord Partners

PAUL [email protected]

13,298

1,250,000

94 Acres

• Owner was frustrated- fired second national CRE Firm then hired Paul Mann of SVN | Lord Partners in St. Louis

• Action plan:• Extensively counseled all client decision makers re market forces

and pricing • Secured government initiatives resolved floodplain issues• Subdivided larger parcel to carve out sites for restaurant and

assisted living

• 3 sales totaling over $2,000,000; 3 double ended commissions; higher net for client

LAND | 121 SOUTH BLUFF ROAD | METRO ST. LOUIS, ILKURT [email protected]

Sale Price $

Size

$/Acre $




880,282

1,250,000

1.42 Acres

• St. Andrews Bay front development parcel• 1.42+/- acres• 160’ of bay frontage on St. Andrews Bay• Downtown district in City of Panama City• Located at the Gateway to the Panama City Marina

LAND | 113 BEACH DRIVE | PANAMA CITY, FL

SVN | SouthLand Commercial

KEVIN [email protected]

Sale Price $

Size

$/SF $




SVN | SouthLand Commercial


80.42

1,900,000

23,625 SF

• Off market transaction• Former freestanding Office Max• 2.1 acre out-parcel to Target• Main Location: East 23rd and Highway 77 across from

Panama City Mall

RETAIL | 731 EAST 23RD STREET | PANAMA CITY, FL

Sale Price $

Size

$/Acre $




681,395

1,465,000

2.15 Acres

• 35 unit affordable housing development site• Former pre-school site• Two and a half year contract• Closed via friendly foreclosure• Broker commission based on foreclosure value

MULTIFAMILY | 1787 GRANT AVENUE | NOVATO, CA

SVN | Delta Group Realty, Inc.

JOHN WILLIAMSBRE #[email protected]

Sale Price $

Size

$ /SF $

Cap




SVN | Denver Commercial


105.09

7.15%

1,625,000

15,463 SF

• 68% occupied retail center• All cash deal - 40 day close• Sold at 96% of list price• Had to amend several leases quickly to get the deal

done• The team worked on this property for seven years

RETAIL | 709 & 727 WEST RAY ROAD | GILBERT, AZTROY [email protected]

RYAN [email protected]

SVN | Desert Commercial Advisors

Sale Price $

Size

$ /SF $

Cap





CARRICK [email protected]

65.32

8%

2,244,000

34,356 SF

• 65 Units• $34,523/ unit• Co-operation resulted in highest offer coming in from

another broker• Achieved top of market price for seller

MULTIFAMILY | 3665 NORTH 1ST AVENUE | TUCSON, AZ

CHIP [email protected]

Sale Price $

Size

$ /SF $

Cap





DANNY [email protected]

115.22

4.5%

2,850,000

24,736 SF

• Good location in northeast Mesa with great frontage

• All 2 bedroom/ 2 bath units with W/D hookups

• Well maintained property showed pride of ownership

• Historically high occupancy with rent upside

• Separately metered for electricity and water

• Sold under 4.5% cap rate

• Local cash buyer

• Contract to close in 30 days

MULTIFAMILY | 2850 E. BASELINE ROAD | MESA, AZ


FEATURED INVENTORY

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FEATURED INVENTORY$42,341,500

BUY-SIDE COMMISSION$906,305

FEATURED INVENTORY FINANCIAL SUMMARY

Price $

Buy Side Fee $

Size

$ /SF $

Cap




SVN | David Cook Co., LLC

DAVID [email protected]

23,925 SF

71.06

1,700,000

42,500

7.3%

INDUSTRIAL | 1467 LEMAY | CARROLLTON, TX

• Multi tenant flex industrial• 100% leased to three tenants• 15,000 SF possible for user• Great location

Price $

Buy Side Fee $

Size

$ /SF $

Cap




SVN | Trinity Advisors

STEVE [email protected]

40,288 SF

44.55

1,795,000

53,850

1.1%

• Great access to newly widened Airport Freeway (Highway 183/121)

• “Value Add” opportunity; existing occupancy of 43.8% vs. market occupancy of 90%

• Dynamic Dallas/ Fort Worth market with robust employment growth and consistent strong population increases

• Attractive pricing significantly below replacement cost• Proforma cap rate of 17.1% after stabilized market occupancy

OFFICE | 1550 NORWOOD DRIVE | HURST, TX

CLINT [email protected]

Price $

Buy Side Fee $

Size

$ /SF $

Cap




SVN | Trinity Advisors

STEVE [email protected]

37,171 SF

74.18

2,757,500

82,725

6.71%

• Located in Dallas/ Fort Worth and Houston, two of the most dynamic economies in the US

• Opportunity to purchase a portfolio of 26 properties in competitive markets where it is difficult to purchase individual homes

• Recent capital improvements: $49,000 in 2016; over $100,000 in 2017 for seven homes being renovated and made ready for rent/sale in 4-6 weeks

• Proven upside in rents and ultimate value of homes after renovations to remaining homes with long term tenants at low rents

• Multiple exit strategies in future

MULTIFAMILY | SINGLE FAMILY HOMES PORTFOLIO | TEXAS

Price $

Buy Side Fee $

Size

$ /SF $

Cap





TROY [email protected]

3,750 SF

517.33

1,940,000

38,000

6%

RETAIL | 373 & 389 E. FILMORE STREET | COLORADO SPRINGS, CO

• 100% occupied Jimmy John’s and T-Mobile• Long term NNN leases with annual increases• T-Mobile has 10% rent increase in year 4• Located in the Colorado Springs central submarket, just

north of downtown• Over 30,000 vehicles per day• More than 250,000 residents within five miles


Price $

Buy Side Fee $

Size

$ /SF $

Cap





TROY [email protected]

32,885 SF

174.85

5,750,000

143,750

7.37%

RETAIL | 21476-21596 N. JOHN WAYNE PARKWAY | MARICOPA, AZ

• 94% occupied Class A shopping center anchored by Ace Hardware with excellent store sales

• Initial return on equity - 11.84%• Fantastic access and visibility from the busiest

thoroughfare in Maricopa• Diverse and stable tenant mix• No barriers to new financing


RYAN [email protected]


SVN | Rich Investment Real Estate Partners

TRAVIS [email protected]

Price $

Buy Side Fee $

Size

$ /Unit $

Cap




SVN | Pacific Commercial Advisors

KEVIN CHIN, CCIMBRE #[email protected]

56 Units

80,358

4,500,000

112,500

6.3%

• 20% below market rents• Average tenancy 6.5 years• Central heat and air• Individual hot water/ gas• Trust sale - court confirmation required

WALTER HELMBRE #[email protected]

MULTIFAMILY | 10430 COLOMA ROAD | RANCHO CORDOVA, CA

Price $

Buy Side Fee $

Size

$ /Unit $

Cap




MULTIFAMILY | 7474 LA MANCHA WAY | SACRAMENTO, CA

SVN | Pacific Commercial Advisors

KEVIN CHIN, CCIMBRE #[email protected]

94 Units

95,745

9,000,000

225,000

6.2%

• Below market rents• Gated community• Washer/dryer hookups in all units• Fitness Center and Spa• Trust sale- court confirmation required

WALTER HELMBRE #[email protected]

Price $

Buy Side Fee $

Size

$ /SF $

Cap




SVN | Commercial Real Estate Advisors

SPENCER [email protected]

70,756 SF

83.37

5,899,000

117,980

8%

RETAIL | 2471 SPRINGS ROAD | HICKORY, NC

• Galaxy Foods anchor along with many other national tenants including Dollar Tree, Subway, Nationwide, H&R Block and Boost Mobile

• Extremely strong grocer for this area with yearly sales in the $9,000,000 range and expecting to increase

• High traffic counts• Close proximity to Charlotte• Strong outparcels; i.e. McDonald’s, Taco Bell, Burger King

TOM [email protected]

FRANK [email protected]

Price $

Buy Side Fee $

Size

$ /SF $

Cap




SVN | Hotels

SANJAY [email protected]

55,448 SF

162.31

9,000,000

90,000

8.3%

HOSPITALITY | 8710 RESEARCH DRIVE | CHARLOTTE, NC

• 96 room extended stay hotel• Conveniently located off I-85 (Exit 45B)• Located in the heart of Charlotte Research Park• Minutes from University of North Carolina at

Charlotte• The Shoppes at University Place across I-85

BRYAN [email protected]

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SVN @ INDUSTRY TRADESHOWS

2017 SIOR Spring World ConferenceApril 26-29, 2017 | New Orleans, LA

Be sure to stop by and visit us at the SVN Booth (booth #22) at one of SIOR’s most important events

of the year!

RECon 2017May 21-24, 2017 | Las Vegas, NV

SVN will be at 2017 RECon!Visit us at Booth #C162F.

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APRIL 3 – APRIL 8, 2017

EVENTS & WEBINARS

Monday, April 3rd HOSPITALITY Council Meeting11:00 am PT / 2:00 pm ET

Tuesday, April 4th LEASING Council Meeting8:30 am PT / 11:30 am ET

Thursday, April 6th

RETAIL Council Meeting10:00 am PT / 1:00 pm ET

Saturday, April 8th

JOHN MCDERMOTT’S SATURDAY Call8:30 am PT / 11:30 am ET

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SVN Live 4-3-2017