Tag Archives: purchasers

Prologis: With Purchasers Paying Top Dollar, It'' s Out with the Old, In with the New

REIT Stays in Capital Recycling Mode, Planning To Sell Off Previous AMB Assets While Redeploying Proceeds Into New Development as Storage Facility Demand Remains Hot

Prologis established this four-story, multi-level mezzanine center for Amazon in Tracy, CA.Prologis Inc.( NYSE: PLD), expects to wrap up several possession sales of industrial property, much which it acquired in the purchase of the AMB Home Corp. and its 1,130 commercial structures totaling 142 million rentable square feet 7 years back.

Leading off its standard position as one of the very first REITs to report quarterly profits, Prologis this week announced it prepares to continue to take advantage of the extraordinary financier demand for warehouse/distribution home by offering another $1.6 billion in assets in 2018 and recycle the earnings into new advancement.

A bit surprisingly, that disposition method will keep Prologis operating counter to other public REITs in the commercial home sector.

In 2015, public REITs were net purchasers of industrial residential or commercial properties purchasing about 110 million square feet of residential or commercial properties for about for $14.8 billion, inning accordance with CoStar data. They sold about 66 million square feet for $6.5 billion.

Prologis’ share of the activity consisted of purchasing about 4.1 million square feet in the U.S. for $466.2 million, while offering 16.7 million square feet for $1.2 billion, according to the business.

“Simply to put everything in context, we offered $11.6 billion of realty since the merger (with AMB),” Tom Olinger, CFO of Prologis told experts today. “I think that represents a couple of business included our sector. So we have been very intentional and active in the dispositions market, most likely more than anybody in the business.”

Bottom line, Olinger said, Prologis has actually offered 88% of exactly what it wished to offer, and has done it quicker than it projected, thanks to ongoing financier need for the sector and continued renting need in the markets where it runs.

Prologis has actually been releasing capital from those sales back into development. In 2015, the REIT started building on 11.8 million square of new development in the United States valued at more than $1 billion. This year, it expects to finish another 10.1 million square feet in the United States valued at $990 million.

A few of that new circulation space might wind up being on behalf of Prologis’ largest tenant: Amazon, which leases more than 16.6 million square feet from the REIT and accounts for 3% of its net reliable rent.

In its quarterly teleconference, experts asked Prologis executives about Amazon’s plans. The dominant online seller is said to have 30 to 35 build-to-suit storage facility specs out in the marketplace for a new model. The warehouses would have a much smaller sized footprint, measuring from 100,000 to 200,000 square feet, but much higher at 75-foot heights, and multi-story.

“Amazon has pretty much got the very same technique we do. They wish to be near where the customers are,” Hamid Moghadam, chairman and CEO of Prologis said.

But, Moghadam included, understanding the best strategy is something. Discovering the offered land to support it is another.

“Look, it’s sort of getting more difficult and more difficult to discover large plots of land that support single story, 800 million-square-foot type buildings in these urban locations,” stated the Prologis CEO. “So they need to be able to squeeze that much service into a smaller sized footprint by going vertical. And even in the 800 million-square-foot, they mezzanine them at 3 levels. So running multiple levels with low clear heights are nothing uncommon for them by any stretch.”

“Any structure that we provide for Amazon, or for anyone else, we go through the very same analysis,” Moghadam included. “Do we want to own this structure in a soft leasing market without Amazon renewing? And if the response to that is that the building is fungible and divisible and we can lease it to a normal tenant, we keep it.”

Demand for distribution area is also coming from other customer sections, including transport, building, food and vehicle, Moghadam stated. And e-commerce as a portion of the demand has likewise been fairly stable.

There are several others in the e-commerce sector besides Amazon who have big plans for new distribution rollouts this year, he added.

Piedmont Strikes Offers to Sell 14 Office Complex to Pair of Undisclosed Purchasers


Piedmont Pointe II in Bethesda, MD. As part of its continuous strategy to focus on owning Class An office residential or commercial properties in select submarkets primarily within 8 significant Eastern U.S. office markets, Piedmont Workplace Real Estate Trust (NYSE: PDM) said it is in the process of offering 14 office buildings across the nation to two different buyers for a total minimum gross prices of roughly $425.9 million.

The properties total 2.6 million square feet and have a combined tenancy of 76%.

The price might increase an additional $5 million to $10 million if specific leasing targets are fulfilled within six months after the closing date, which Piedmont anticipates will remain in January 2018.

The REIT stated it expects to tape-record a gain of approximately $40 million in conjunction with closing one of the deals and a non-cash problems loss of roughly $48 million on the other transaction, prior to considering any extra cash made on meeting the leasing targets. Both agreements are subject to traditional closing conditions.

The sales will see the Atlanta-based REIT exit four markets: Detroit, Nashville, South Florida and Phoenix. The REIT owns seven office buildings in those markets.

Piedmont is also cutting the variety of submarkets where it owns property within several of its core markets, consisting of in Atlanta, Boston and Washington DC’s Maryland suburban areas.

It is also decreasing its exposure in Chicago where three of the structures being offered lie and where it owns 11 properties in total. The list of office complex associated with the pending offers appears below.

” As we’ve indicated before, we believe that being a net seller today is the right thing to do at this moment in the cycle,” Robert Bowers, CFO Piedmont told experts this month.

During the third quarter, the REIT finished two sales: Two Self-reliance Square at 300 E St. SW in Washington D.C for $360 million, or $593 per square foot; and 8560 Upland Drive, an 149,000 square foot office/warehouse building, which was Piedmont’s last possession in Denver, offered $17.6 million.

ARIZONA

Desert Canyon 300, Phoenix

FLORIDA

2001 NW 64th St. Ft. Lauderdale

5601 Hiatus Roadway, Tamarac

GEORGIA

Suwanee Entrance One, Suwanee

ILLINOIS

Windy Point I and II, Schaumburg

2300 Cabot Drive, Lisle

MARYLAND

Piedmont Pointe I & & II, Bethesda
MASSACHUSETTS

1200 Crown Colony Drive, Quincy
MICHIGAN

Auburn Hills Corporate Center, Auburn Hills

1075 West Entrance Drive, Auburn Hills

TENNESSEE

2120 West End Ave., Nashville

5301 Maryland Method, Brentwood

Dissatisfaction Will Make Purchasers of Multifamily Tenants

People Renting Single-Family Characteristic Are More Likely to Purchase Than Those in Homes

Fulfillment with one’s rental experience may be an aspect when deciding to purchase a house. According to new Freddie Mac research, occupants who are most pleased with their rental experience are most likely to continue leasing (68 %) than to purchase a home (32 %).

And it appears multifamily apartment renters are more pleased than single-family home tenants.

Sixty-seven percent of apartment or condo occupants report being pleased compared with 60 % of single-family property renters.

Freddie Mac’s research reveals that people leasing single-family homes (renting a house/townhouse or apartment) might be more likely to purchase than those in apartments. In the united state about 15 million households lease a single-family house and 25 million lease a home, according to U.S. Census Data.

The latest research, carried out in June, shows 55 % of renters, both of single-family and multifamily homes, plan to remain to lease in the next three years. Single-family occupants are considerably more likely to state they anticipate to buy than multifamily renters (53 % vs 36 %) when asked about their plans in the next three years.

“As we gather information each quarter, we are discovering the old understanding that leasing is something people do until they purchase is not still real. The trend shows that pleased renters are most likely to continue renting, even as we are seeing rising leas in the market,” said David Brickman, executive vice president of Freddie Mac Multifamily. “Dissatisfaction may drive tenants to purchase, and we are seeing a small decline in fulfillment among single-family renters. We will certainly remain to monitor this for stronger indicators and trends, but for now, the single-family rental house market might be a good place to look to find possible house buyers.”

Brickman added, “The number of U.S. tenant households is up once again for the 10th straight year, according to the U.S. Census Bureau. More families of all sizes, earnings levels and age ranges now rent their houses. Renters are leading household formations, which are anticipated to keep climbing up due to the enhancing economy, Millennials continuing into their adult years and immigration.”

‘It’s like a big scavenger hunt’: Purchasers find bargains, collectibles at Riviera

Image

Steve Marcus

An indicator promotes the liquidation sale Thursday, May 14, 2015, at the Riviera.

Thursday, May 14, 2015|5:45 p.m.

Price are affixed all over the Riviera now, and crowds poured in to inspect them today as the resort’s liquidation sale opened to the public.

The sale started today after the building let in some people, specifically previous Riviera staffers, for very first dibs yesterday. Throughout the initial four days of the sale, possible purchasers need to pay $10 for a chance to snag memorabilia, gambling establishment equipment, room components and more from the 60-year old property that closed May 4.

After the very first four-day period, admission is free. The sale will range from 9 a.m. to 7 p.m. Monday through Saturday and 10 a.m. to 5 p.m. on Sundays.

As the sale began around 9 a.m. today, a prolonged line stretched all the method around the Riviera convention space. Clients reported waiting hours just to obtain in.

Riviera Liquidation Sale
Magician Murray Sawchuck waits to pay for chandeliers from the Frank Sinatra Suite during the first day of a liquidation sale Thursday, May 14, 2015, at the Riviera. Sawchuck performs at Planet Hollywood.Introduce slideshow “

Larry Fettis showed up around 6:30 a.m. to line up, and he said he was among the first couple of dozen inside. He’s a retired policeman who resides in Southern California, however he said he also has a place in Las Vegas, so he was looking for decorations for his local home.

“It resembles a huge scavenger hunt,” he said of the liquidation sale. “But it is exactly what it is– you have actually got to prioritize.”

Local resident Rhenita Quimby also appeared early and gladly safeguarded a hotel phone, which she wanted for her house office. She stated she suched as the concept of holding onto a piece of the hotel’s history.

“I’m tickled pink,” she said while sitting near her purchases by the hotel registration desk.

Those who swarmed to the Riviera today still had “a lot left” to choose from after the ex-employees swung by Wednesday, said Greg Hall, operations manager of National Material Liquidators, which is managing the sale.

The following 15 items offer a glance of the variety that was still readily available Thursday early morning.

Riviera neon: $395

Buyers can’t take the hotel’s entire neon signs with them, however they could get a smaller version of the brand. This traditional sign was located toward the casino’s southern end, near a box office.

A Riviera neon sign ($395.00) is shown during the first day of a liquidation sale at the Riviera Thursday, May 14, 2015.

A Riviera neon sign ($395.00) is shown throughout the very first day of a liquidation sale at the Riviera Thursday, May 14, 2015.

Chandelier: $3,500

Hanging over the gambling establishment floor, this chandelier had not been the only huge chandelier up for grabs– the multilayered one in the lobby likewise had price on it. However this one resembles a more workable acquisition.

A chandelier ($3,500.00) is shown over the casino floor during the first day of a liquidation sale at the Riviera Thursday, May 14, 2015.

A chandelier ($3,500.00) is shown over the gambling establishment floor during the very first day of a liquidation sale at the Riviera Thursday, Might 14, 2015.

‘Crazy Girls’ sign: $475

Although the much-photographed statuary that stood outside the Riviera was eliminated when the hotel closed last week, other images with the very same iconography remained within.

An illuminated Crazy Girls sign ($475.00) is shown during the first day of a liquidation sale at the Riviera Thursday, May 14, 2015.

A brightened Crazy Girls indication ($475.00) is revealed during the very first day of a liquidation sale at the Riviera Thursday, Might 14, 2015.

Gold drape: $4,000

It’s most likely not the most useful purchase for the casual buyer, but this 48-foot gold drape hung above a phase behind the casino bar.

A 48-foot gold drape ($4,000.00) is shown in Le Bistro Theater during the first day of a liquidation sale at the Riviera Thursday, May 14, 2015.

A 48-foot gold drape ($4,000.00) is revealed in Le Bistro Theater during the first day of a liquidation sale at the Riviera Thursday, May 14, 2015.

Craps table: $3,850

The fruit machine are all gone, however on Thursday morning there were some good tables to select from. People were eyeing them closely.

Lamar Hutch of Conyers, Ga. looks over a craps table ($3,850.00) during the first day of a liquidation sale at the Riviera Thursday, May 14, 2015.

Lamar Hutch of Conyers, Ga. looks over a craps table ($3,850.00) throughout the first day of a liquidation sale at the Riviera Thursday, May 14, 2015.

Space: varying

Samples by the registration desk indicated that king-size beds cost $99 and armchairs with ottomans cost $55. Art prints, on the other hand, cost simply $8, according to the sample listing.

A hotel room is shown during the first day of a liquidation sale at the Riviera Thursday, May 14, 2015.

A hotel room is shown throughout the very first day of a liquidation sale at the Riviera Thursday, May 14, 2015.

Tvs: $89

These 32-inch, flat-screen televisions were in such abundance that a whole room was devoted to offering them.

Flat panel televisions ($89.00) are shown during the first day of a liquidation sale at the Riviera Thursday, May 14, 2015.

Flat panel televisions ($89.00) are revealed throughout the very first day of a liquidation sale at the Riviera Thursday, May 14, 2015.

Vacuums: $75

Not the most renowned product from the Riviera, to be sure. Practical, though, and widely readily available.

Vacuum cleaners ($75.00 each) are displayed in a convention center ballroom during the first day of a liquidation sale at the Riviera Thursday, May 14, 2015.

Vacuum cleaners ($75.00 each) are shown in a convention center ballroom during the very first day of a liquidation sale at the Riviera Thursday, May 14, 2015.

Armchair: $110

These comfy chairs were clustered by what utilized to be the sports book.

Arm chairs ($110.00) from the sports book are shown during the first day of a liquidation sale at the Riviera Thursday, May 14, 2015.

Arm chairs ($110.00) from the sports book are revealed during the very first day of a liquidation sale at the Riviera Thursday, May 14, 2015.

Ticket redemption machine: $500

This would be one of the quirkier (or cooler?) purchases for the average Joe, considering that it doesn’t have an entire casino of fruit machine to accompany it.

A ticket cashing/bill breaking machine s shown during the first day of a liquidation sale at the Riviera Thursday, May 14, 2015.

A ticket cashing/bill breaking machine s revealed throughout the first day of a liquidation sale at the Riviera Thursday, May 14, 2015.

Slot chair: $75

Another widely offered option since Thursday morning.

Slot chairs ($75.00 each) are shown during the first day of a liquidation sale at the Riviera Thursday, May 14, 2015.

Slot chairs ($75.00 each) are shown throughout the very first day of a liquidation sale at the Riviera Thursday, May 14, 2015.

Portable bar: $345

Below the Riviera logo design, the indication on the front states “The Entertainment Center of Las Vegas” and “The Option for Grown-Ups.”

Portable bar fronts ($345.00 each) are shown during the first day of a liquidation sale at the Riviera Thursday, May 14, 2015.

Portable bar fronts ($345.00 each) are revealed during the first day of a liquidation sale at the Riviera Thursday, May 14, 2015.

Starlite chandelier: $1,750

One of numerous artistic elements for sale by the Starlite Theater.

A chandelier ($1,750.00) is shown by the Starlite Theater during the first day of a liquidation sale at the Riviera Thursday, May 14, 2015.

A chandelier ($1,750.00) is shown by the Starlite Theater during the first day of a liquidation sale at the Riviera Thursday, May 14, 2015.

Theater seats: $675

Purchasers had the ability to get their hands on the Versailles Theater’s red seats.

A row of seats ($675.00) is shown in the Versailles Theater during the first day of a liquidation sale at the Riviera Thursday, May 14, 2015.

A row of seats ($675.00) is shown in the Versailles Theater throughout the first day of a liquidation sale at the Riviera Thursday, May 14, 2015.

Piano: $5,500

It’s not every day you find for sale a musical instrument that was once housed in a 60-year-old traditional Las Vegas gambling establishment well-known for the numerous performers who carried out there over the years.

A piano ($5,500.00) is displayed during the first day of a liquidation sale at the Riviera Thursday, May 14, 2015.

A piano ($5,500.00) is shown throughout the very first day of a liquidation sale at the Riviera Thursday, May 14, 2015.