ccim live! vendor runway - cole real estate
TRANSCRIPT
1 ©2011 Cole Capital Advisors. All Rights Reserved.
COLE REAL ESTATE INVESTMENTSCCIM Live! Vendor Runway – October 2011
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Cole Real Estate Cole Real Estate InvestmentsInvestments
Real Estate Acquisitions
Boyd Messmann, CCIM
Senior Vice President, Acquisitions
2 ©2011 Cole Capital Advisors. All Rights Reserved.
COLE REAL ESTATE INVESTMENTSCCIM Live! Vendor Runway – October 2011
Cole Real Estate Investments – 30-year historyCole Real Estate Investments – 30-year history
• Commercial real estate investment management firm focused on net lease properties:
• Single-tenant retail
• Multi-tenant retail (Power centers and grocery anchored centers)
• Single-tenant office and industrial
• Founded in 1979 in Arizona
• Based in Phoenix, Arizona with more than 280 employees and growing
• 186 employees at end of 2009
• 242 employees at end of 2010
• Up to 310 employees projected by end of 2011
Data as of 03/31/11
3 ©2011 Cole Capital Advisors. All Rights Reserved.
COLE REAL ESTATE INVESTMENTSCCIM Live! Vendor Runway – October 2011
Cole Real Estate InvestmentsCole Real Estate Investments
• Approximately $9 billion in commercial real estate assets
• Owns properties across 46 states and the U.S. Virgin Islands
Data as of 03/31/11
4 ©2011 Cole Capital Advisors. All Rights Reserved.
COLE REAL ESTATE INVESTMENTSCCIM Live! Vendor Runway – October 2011
Cole Real Estate InvestmentsCole Real Estate Investments
• Cole entities own and manage a consolidated portfolio of more than 1,500 properties
• Average remaining lease term of more than 13 years
• Occupancy rate of 97.5%
• Industry diversification
• More than 50 industry sectors
• Nearly 500 tenant concepts
• Targeting $10 billion of total combined commercial real estate assets acquired by year end
Data as of 03/31/11
5 ©2011 Cole Capital Advisors. All Rights Reserved.
COLE REAL ESTATE INVESTMENTSCCIM Live! Vendor Runway – October 2011
Cole Real Estate Investments - 2010Cole Real Estate Investments - 2010
Data as of 03/31/11
* United States, March/April 2011
• In 2010, acquired $2.5 billion of high-quality real estate
• $1.2 billion single-tenant retail
• $500 million power centers/ grocery anchored centers
• $700 million office & industrial
• Closed $1.4 billion in financing in 2010
• Ranked No. 13 by Retail Traffic for retail real estate owners and No. 15 for retail real estate property managers for 2010*
6 ©2011 Cole Capital Advisors. All Rights Reserved.
COLE REAL ESTATE INVESTMENTSCCIM Live! Vendor Runway – October 2011
Recent track recordRecent track record
7 ©2011 Cole Capital Advisors. All Rights Reserved.
COLE REAL ESTATE INVESTMENTSCCIM Live! Vendor Runway – October 2011
A market leader in quality acquisitionsA market leader in quality acquisitions
Transaction date:8/26/10 through 8/25/11 | Excludes joint
ventures
#1 #3
#3 #9
8 ©2011 Cole Capital Advisors. All Rights Reserved.
COLE REAL ESTATE INVESTMENTSCCIM Live! Vendor Runway – October 2011
2011 Goals2011 Goals
• Targeting $3 billion of acquisitions in 2011− $1.0 billion single-tenant retail− $500 million retail sale-leaseback− $750 million multi-tenant retail− $750 million office & industrial
• Acquired $1.55 billion through August 2011• $669 million single-tenant retail• $525 million office & industrial• $358 million power centers/grocery
anchored centers
9 ©2011 Cole Capital Advisors. All Rights Reserved.
COLE REAL ESTATE INVESTMENTSCCIM Live! Vendor Runway – October 2011
Cole in ArizonaCole in Arizona
Data as of 03/31/11
Through August 15, 2011
• 49 properties• 20 retail assets• 10 storage facilities• 3 shopping centers• 3 office assets• 1 industrial asset
• $534 million acquisition cost
• 3.1 million square feet
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©2011 Cole Capital Advisors. All Rights Reserved.
COLE REAL ESTATE INVESTMENTSCCIM Live! Vendor Runway – October 2011
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Acquisitions StrategyAcquisitions Strategy
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©2011 Cole Capital Advisors. All Rights Reserved.
COLE REAL ESTATE INVESTMENTSCCIM Live! Vendor Runway – October 2011
Acquisition criteriaAcquisition criteria
SINGLE-TENANT RETAIL, OFFICE & INDUSTRIALPOWER CENTERS AND GROCERY-ANCHORED CENTERSPUBLIC, PRIVATE
NN, NNN
PREFER 10 YEARS OR GREATER
NATIONAL
PREFER INVESTMENT GRADE OR CREDITWORTHY
SALE-LEASEBACKS, BUILD-TO-SUITS, JOINT VENTURES, DEVELOPMENT CAPITAL
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©2011 Cole Capital Advisors. All Rights Reserved.
COLE REAL ESTATE INVESTMENTSCCIM Live! Vendor Runway – October 2011
Conservative underwritingConservative underwriting
Single-tenant retail example
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©2011 Cole Capital Advisors. All Rights Reserved.
COLE REAL ESTATE INVESTMENTSCCIM Live! Vendor Runway – October 2011
Active buyer, selective processActive buyer, selective process
For illustrative purposes only; Closed through December 31, 2010.
PROPERTIES SCREENED (EST.)
LETTERS OF INTENT SENT
LETTERS OF INTENT SIGNED
PROPERTY ACQUISITIONS
$25 BILLION
$11.3 BILLION
$3.2 BILLION
=
$2.5 BILLION
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©2011 Cole Capital Advisors. All Rights Reserved.
COLE REAL ESTATE INVESTMENTSCCIM Live! Vendor Runway – October 2011
Advantages of working with ColeAdvantages of working with Cole
• Certainty of close
• All-cash transactions
• Quick and efficient closing process
• Pre-approved letter of intent
• National profile, including secondary and tertiary markets
• Opportunities include sale-leasebacks, build-to-suits, joint ventures and development capital
Data as of 03/31/11
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©2011 Cole Capital Advisors. All Rights Reserved.
COLE REAL ESTATE INVESTMENTSCCIM Live! Vendor Runway – October 2011
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AcquisitionsAcquisitions
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©2011 Cole Capital Advisors. All Rights Reserved.
COLE REAL ESTATE INVESTMENTSCCIM Live! Vendor Runway – October 2011
PetSmart Campus Headquarters
Acquisition spotlightAcquisition spotlight
Phoenix, AZ356,000 SFNNN lease3 mid-rise office towers1 parking garageMission-critical facility1997 original construction/2008 expansion & upgrade
$102,500,000
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©2011 Cole Capital Advisors. All Rights Reserved.
COLE REAL ESTATE INVESTMENTSCCIM Live! Vendor Runway – October 2011
Apollo Group’s University of Phoenix Office Complex
Acquisition spotlightAcquisition spotlight
Phoenix, AZ600,000 SF20-year NNN lease3 mid-rise office towers2 parking garagesMission-critical facility2006-07 construction
$170,000,000Sale-leaseback
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©2011 Cole Capital Advisors. All Rights Reserved.
COLE REAL ESTATE INVESTMENTSCCIM Live! Vendor Runway – October 2011
Walgreens - 201118 States | 23 Pharmacies$108,000,000
Single-Tenant retail acquisitionsSingle-Tenant retail acquisitions
Kohl’s – 20113 States | 4 Stores$31,500,000
PetSmart Portfolio7 States | 11 Stores$74,000,000
Buffets, Inc. Portfolio13 states | 32 Restaurants$82,000,000
CVS Portfolio11 States | 13 Pharmacies$70,000,000
Tractor Supply - 201015 states | 28 Stores$77,600,000
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©2011 Cole Capital Advisors. All Rights Reserved.
COLE REAL ESTATE INVESTMENTSCCIM Live! Vendor Runway – October 2011
Multi-Tenant acquisitionsMulti-Tenant acquisitions
Manchester HighlandsSt. Louis, MO | 354,000 SFWalMart, Best Buy, Bed Bath & Beyond, PetSmart, ULTA, Mattress Firm$48,500,000
Whitwood Town CenterWhittier, CA | 688,000 SFTarget, Sears, JCPenney, Vons, PetSmart, Kohl’s, Cost Plus, CVS, AT&T$83,500,000
Breakfast Point MarketplacePanama City Beach, FL | 98,000 SFPublix, Office Depot, Dunkin’ Donuts and approximately 11,000 SF of shops$16,000,000
Atascocita CommonsHumble, TX | 307,000 SFKohl’s, TJ Maxx/Home Goods, Ross, Office Depot, Party City, Petco$56,500,000
Camp Creek MarketplaceEast Point, GA | 425,000 SFBJ’s, Marshalls, Ross, TJ Maxx, Staples, Old Navy, Party City$76,350,000
Folsom Gateway IIFolsom, CA | 109,000 SFBed Bath & Beyond, PetSmart, DSW, ULTA$36,000,000
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©2011 Cole Capital Advisors. All Rights Reserved.
COLE REAL ESTATE INVESTMENTSCCIM Live! Vendor Runway – October 2011
Medtronic Office BuildingSan Antonio, TX | 145,000 SFClass A office$32,900,000
Office & industrial acquisitionsOffice & industrial acquisitions
Hanesbrands Distribution CenterRural Hall, NC | 930,000 SF$31,700,000
HealthNow New YorkBuffalo, NY | 430,000 SFClass A office$84,500,000
The Home Depot Distribution CenterTolleson, AZ | 467,000 SF$30,500,000
Freezer FacilityRiverside, CA | 496,000 SFWarehouse/Distribution Facility$91,500,000
ConAgra Distribution CenterMilton, PA | 719,000 SF$28,500,000
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©2011 Cole Capital Advisors. All Rights Reserved.
COLE REAL ESTATE INVESTMENTSCCIM Live! Vendor Runway – October 2011
Sale-Leaseback acquisitionsSale-Leaseback acquisitions
Alimentation Couche-Tard8 states | 83 convenience stores$132,000,000
Albertsons15 states | 32 grocery stores$266,000,000
Apollo Group/University of PhoenixPhoenix, AZ | 600,000 SF$170,000,000
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©2011 Cole Capital Advisors. All Rights Reserved.
COLE REAL ESTATE INVESTMENTSCCIM Live! Vendor Runway – October 2011
Joint ventures & Strategic initiativesJoint ventures & Strategic initiatives
• Strategic partnerships and programmatic joint ventures− JV programs with leading developers− Build-to-suits & development capital− Acquisitions− Re-capitalization & re-positioning− Note purchases – performing & non-performing
• Long-term benefits− Creates pipeline of future projects− Enhanced yield on investments
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©2011 Cole Capital Advisors. All Rights Reserved.
COLE REAL ESTATE INVESTMENTSCCIM Live! Vendor Runway – October 2011
Build-to-suits, Re-capitalization, Note purchaseBuild-to-suits, Re-capitalization, Note purchase
Kohl’sRice Lake, WI | 64,000 SF $5.9 million | Build-to-suit
Waterside MarketplaceChesterfield, MI | 244,000 SF$26,500,000 | Re-capitalization
Nature Coast CommonsSpring Hill, FL | 226,000 SF$29 million | Note purchase
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©2011 Cole Capital Advisors. All Rights Reserved.
COLE REAL ESTATE INVESTMENTSCCIM Live! Vendor Runway – October 2011
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Cole Real Estate Cole Real Estate InvestmentsInvestments
Real Estate Acquisitions
www.ColeCapital.com