I found this article and thought I would post it for lack of other news.
Finance Net LeasingMore Net Lease Deals Ahead in Tough Credit Times? March 17, 2008 By: Dees Stribling, Contributing Correspondent
CRIC Capital, a joint venture of Boston-based Corporate Realty Investment Co. and Prudential Real Estate Investors, has closed on a net lease deal involving a 72,000-square-foot to-be-built office and research facility for Amcol Corp. in Hoffman Estates, Ill., a northwest suburb of Chicago.
The transaction features a 20-year base lease term. Mortgage financing for the deal was provided by RBS Greenwich Capital.
Though this particular deal was fairly modest--$33.5 million--W. Kyle Gore, managing director of RBS Greenwich Capital's real estate net lease group, told CPN this morning that it augers more net leases deals in the coming months. The state of the credit market is creating the right conditions for such deals, he explained.
"We view the current credit market dislocation as fomenting significant new net lease debt and equity investment opportunities for our group," Gore said. "We have expanded our efforts to include equity and mezzanine-level financing, as well as first mortgage financing."
Given the virtual freeze in the CMBS market, he continued, "our growing first mortgage debt efforts are focused on long-term credit tenant loan financing." This sort of deal is nothing new to the company, however. According to Gore, his group has closed over $9 billion in credit tenant loan transactions over the past 17 years.
The Hoffman Estates deal comes on the heels of a much larger net lease deal in Chicago for RBS Greenwich Capital in December 2007. In that transaction, telecommunications giant AT&T sold a Downtown office building for $292 million and leased it back. An affiliate of RBS Greenwich Capital was the initial contract purchaser in the deal, and arranged the first mortgage, mezzanine and third-party equity tax-deferred exchange capital.
Found an update on this new facility. I would assume there will be some costs associated with moving into the new building also. Will the sale/leaseback show as an increase to earnings or does it wash out?
AMCOL Preleases 72,000 SF for New HQ Facility Firm Inks Build-to-Suit Office Deal in Hoffman Estates
AMCOL International Corp. leased 72,000 square feet in a build-to-suit at 2370 Forbs Ave. in Hoffman Estates, IL. The building will be its new international headquarters and wet lab facility.
The facility, at Prairie Stone Business Park, will be two stories on 7 acres overlooking a natural wetland area. It will provide AMCOL with a state-of-the-art lab and the facility will achieve LEED Silver rating. The building and the site were designed to conserve both water and energy. AMCOL will occupy the space in the third quarter of this year.
AMCOL provides and markets a wide range of specialty mineral products used for industrial, environmental and consumer-related applications.
Pamela Rose and Jonathan Goldman of MB Real Estate represented AMCOL. CRIC Capital LLC is the recorded owner.