CPN - September 2008 - (Page 20) INDUSTRY PULSE NET LEASE Capital Connections Credit Crunch Generates Partnerships Between Net Lease Operators, Investors By Brad Berton ittery property-debt markets are still putting the kibosh on highly leveraged transactions, even in the relatively safe net lease arena, so a number of savvy specialists are teaming with deeppocketed equity sources. These ventures have been pouncing on opportunities to close attractively priced deals using cash, while would-be competitors are still struggling to line up financing. J Most owners seeking to sell today are more motivated by a buyer’s ability to perform than by squeezing out the last nickel, noted Darren Sides, senior director for national net lease investment brokerage firm Stan Johnson Co.Hence,many will opt to finalize a deal with an impeccably heeled buyer rather than one that is offering a slightly higher price but is dependent on securing financing. Indeed, in an uncertain credit CAPITAL GAINS TAX SOLUTIONS FOR PROPERTY SELLERS WITH A LOW TAX BASIS environment, speed and certainty of closing can provide a significant competitive advantage for ventures that team net lease expertise with deep capital pockets, added Randy Blankstein, president of multi-service net lease investment specialist The Boulder Group. Its Boulder Net Lease Funds L.L.C. has a $150 million fund with ORIX The Boulder Group and ORIX Real Estate CapiReal Estate Capital Inc. to tal Inc. most recently purchased an Allen, Texas, acquire net lease office and industrial building net leased to electronicsmanufacturer Sanmina-SCI Corp. industrial property. “The reason Boulder Net Lease Funds entered into our joint needing the debt market.” ORIX provided the bulk of the venture is that we know sellers will go with a buyer who can close $150 million in equity that is quickly on an all-cash basis rather behind the latest Boulder-managed than someone (hampered by) net lease investment fund.The comfinancing contingencies,” Blank- pany brings plenty of real estate stein continued.“So you could say finance expertise to the table, and we’ve insulated ourselves from Boulder, as operating partner, pro- I I I 500 Million in tax savings achieved 4 Billion in transactions closed 5 Billion of credit tenant property available Rock solid foundation. Rock solid commitment. Maximize sale proceeds with the leading strategies nationwide for addressing capital gains tax concern. Sophisticated solutions integrate innovative tax and legal strategies, financial modeling, capital markets expertise, brokerage and equity participation into a comprehensive advisory package. Net leasing made simple. CRIC Capital professionals of Boston-based CRIC with the depth of brings together the pioneering net leasing Prudential Financial. Our expertise and strength allow us to acquire your net leased property quickly and efficiently. Can you afford to rely on anyone else for your net lease transaction? You need CRIC Capital. Personal Commitment. Deep Resources. Boston New York 603-598-1144 212-240-9950 617 303 4400 www.criccapital.com 20 COMMERCIAL PROPERTY NEWS • September 2008 • www.cpnonline.com http://www.criccapital.com http://www.criccapital.com http://www.cpnonline.com
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