Cole Real Estate Investments, a sponsor of non-traded REITs, filed two registration statements with the Securities and Exchange Commission: one for Cole Advisor Retail Income REIT Inc. and the other for Cole Advisor Corporate Income REIT Inc.
Cole Advisor Retail Income REIT and Cole Advisor Corporate Income REIT are newly organized corporations formed to invest primarily in single-tenant, income producing commercial properties, which are leased to creditworthy tenants under long-term net leases. Cole Advisor Retail Income REIT will focus primarily on necessity retail tenants, while Cole Advisor Corporate Income REIT will focus on mission critical office and industrial properties.
Each of the companies intends to distribute shares principally through registered investment advisors and broker/dealers that charge their clients a fee for their services.
The common shares of each company is expected to be offered on a continuous basis and for an indefinite period of time, subject to regulatory approvals, with an initial offering for each company of up to $3.5 billion.
After an initial escrow period, the purchase price for each company’s stock will vary from day to day and, on any given day, will be equal to that company’s net asset value, or NAV, divided by the number of common shares outstanding for that company, as of the end of business on each day (NAV per share). The calculation of each company’s NAV will be based principally on the market value of the company’s real estate portfolio, as determined by an independent valuation expert. The offerings are not contingent on each other.
Cole Capital Corp., an affiliate of the sponsor, will be the dealer manager of each offering and will offer the shares of each company on a best efforts basis.
Equity One Increases Credit Facility; Buys Manhattan Retail Condo
Equity One Inc. increased its unsecured revolving credit facility from $272 million to $400 million by exercising its accordion feature.
Four new banks joined the existing facility with no modification to the terms and covenants and several of the incumbent banks added to their previous commitment. The company currently has $14 million outstanding on the line which bears interest at a rate of LIBOR plus 1.40 percent.
The company separately announced it has acquired a fee interest in a retail condominium located at 1175 Third Avenue in Manhattan for $21 million. The retail condominium is located on Third Avenue between E. 68th and E. 69th Street and consists of 27,701 square feet. The retail condominium is located at the base of The Trump Palace and includes the entire frontage on the east side of Third Avenue. All of the space is currently leased to The Great Atlantic & Pacific Tea Co. on a triple-net basis, which is operating this store under the Food Emporium brand.
Faris Lee Completes Trio of Retail Sales
Faris Lee Investments completed two sales in a breakup of parcels of a center in Corona, Calif., and also brokered the sale of a single-tenant building in Lake Elsinore, Calif.
The two sales in Corona completed a strategy to sell three parcels within the Shops at Sycamore Creek. Overall, the three sales garnered a total of $9.66 million.
The parcels include a 20-year, 23,087-square-foot NNN ground lease for a Von’s fuel station and a 12,900-square-foot single-tenant standalone drugstore occupied by CVS/Pharmacy that is situated on 1.89 acres. In a previous transaction, a standalone bank branch occupied by Wells Fargo was sold.
Dennis Vaccaro, senior managing director, and Richard Walter, president, represented the seller, Orange County, Calif.-based Shops at Sycamore Creek LLC on all three sales.
The Vons fuel station was purchased for $2.13 million by Corona-based Knaak Family Partnership who was represented by Skip Crane of Grubb & Ellis. The buyer paid all cash for the asset.
YFP Sycamore Creek LLC acquired the CVS/Pharmacy parcel for $4.93 million and was represented by Nick Coo of Faris Lee Investments. The buyer also paid all cash.
Earlier this year, the Wells Fargo-occupied parcel sold for $2.6 million with the buyer placing a 50 percent loan on the property. The cap rate for all three sales was below 7 percent.
In a separate deal, Faris Lee completed the $8.8 million sale of a 45,560-square-foot retail building fully occupied by L.A. Fitness in Lake Elsinore.
Richard Walter, president and Chris Tramontano, director at Faris Lee Investments, represented the seller/developer, California Grand Investments LLC in partnership with Lake Fitness LLC. The buyer, a private trust from Villa Park, Calif., was in a 1031 exchange. The cap rate was 8.5 percent.
The loan on the property totaled $6.1 million at a 6.5 percent interest rate for a seven-year term.
HFF Secures $8.4M Refinancing in Vermont
The New Jersey office of Holliday Fenoglio Fowler L.P. (HFF) arranged an $8.4 million refinancing for the 149,560-square-foot Price Chopper Plaza grocery-anchored retail center in Berlin, Vt.
Working exclusively on behalf of Redstone Investments, Thomas Didio, HFF senior managing director, and Michael Lachs, associate director, placed the 10-year, fixed-rate loan with the Ohio National Life Insurance Co. Loan proceeds will refinance existing debt and help fund a repositioning, renovation and lease-up of the center.
Canopy Commercial Closes $3.65M Sale
Canopy Commercial | Auction announced the $3.65 million sale of the 72,329-square-foot Plaza East Shopping Center in McPherson, Kan.
The building is 100 percent occupied space by three tenants including Hibbett Sports, Orscheln Farm & Home and Hutchinson Community College.
Jason Little, CCIM and Daniel Morris of Canopy Commercial | Auction and Gib Kerr of Sperry Van Ness | Gibson Kerr Co. were the listing agents for MCPHSN LLC. Little was also the buy side agent for Cedar Hill Realty LLC.
Title and escrow services were provided by Mary Gardner and Michelle Roberts of Lawyers Title Co. Acquisition financing was provided by Bryan Geiger of Bank of Oklahoma NA.
Boulder Group Completes Sale of CVS Ground Lease
The Boulder Group completed the sale of a single-tenant net-leased CVS ground lease in Chicago, Ill., for $3.63 million.
Randy Blankstein and Jimmy Goodman of the Boulder Group represented the seller, a private Chicago developer. A New York based institutional real estate company was the purchaser.