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Monday, 30 April 2012

Cole Credit IV Pays $24Mln for 5 Retail Properties

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Cole Credit Property Trust IV Inc., a non-traded REIT that was given the regulatory green light to start raising capital in January, has completed its first acquisitions, paying $24 million for five retail properties with a total of 89,000 square feet.

The Phoenix REIT, which aims to raise up to $3 billion through the sale of its common shares, has so far raised $4.1 million.

It bought two of the properties from affiliates of Cole Real Estate Investments, its sponsor, with the remainder purchased from other parties.

The properties are: a 44,925-square-foot store in Tampa, Fla., leased to Nordstrom through 2020; a 14,820-sf store in Blair, Neb., leased to Walgreens Co. through 2033; a 12,259-sf store in Wilkesboro, N.C., leased to PetSmart Inc. through 2022; an 11,306-sf store in Corpus Christi, Texas, that is leased to CVS through 2037, and a 6,000-sf store in North Ridgeville, Ohio, that is leased to Advance Stores Co. through 2024.

Four of the five properties were constructed since 2008. The Corpus Christi property was built in 1989. The prices Cole paid result in initial yields ranging from 6.6 percent for the Walgreens, to 8.3 percent for the Advance Auto Parts store.

Cole funded part of the properties' purchase price by tapping a $50 million secured credit facility provided by JPMorgan Chase Bank. JPMorgan has been an active lender against properties owned by other Cole Real Estate Investments-sponsored REITs.

The REIT also lined up a $10 million subordinate credit line that pays a 4.5 percent coupon. It matures next April.

Meanwhile, Cole has struck deals to buy another seven similar properties, leased to CVS, O'Reilly Auto Parts and Walgreens, for a total of $21.2 million.

Comments? E-mail Orest Mandzy, or call him at (267) 247-0112, Ext. 211.



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Additional Info

  • Syndicate to Realpoint: No
  • Sector: Retail
  • Subject: Property Acquisitions (ACQ), REITS -general (REITS)
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Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44

 

RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41

 

 

 

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