Envoy’s president Ralph Cram will be featured on RealShare’s Capital Markets Update panel on Thursday, April 16, at 9:15 a.m., along with several other capital providers and originators from the net lease financing realm.
The panelists will share their thoughts on where the money is coming from, what it’s targeting and how they make the deals happen. The panel will also analyze the most popular capital structures and the short- and long-term outlook for the capital markets in the net lease space.
Excerpts from the Globe St. article on net lease demand:
Ralph Cram, featured in the Globe St. interview, had this to say:
"Net lease properties between $1 million and $5 million with highly recognized tenant names are the most popular; they appeal to all buyer groups. The low price points allow small investors to purchase them with or without leverage and portfolios of small net lease properties give the large buyer, such as REITS and large Institutional buyers, credit and location diversification. Mortgage debt is more plentiful for these properties as well.”
The least popular property types, Cram asserts, “Are specialty use properties with less than five years remaining on their lease term, especially if the unit is a poor performer or the rent is above market.”
Still, the market is rife with opportunity, Cram contends.
“We are seeing leasing activity for both existing single tenant buildings and ground up development increasing. Also, the recent increase in retail tenant closures gives developers the opportunity to purchase vacant buildings and re-purpose or demolish them for tenants wanting to enter land constrained markets. We see this type of activity occurring especially on the East Coast and infill neighborhoods.”
To read the full Globe St. article, go here.