Continued Economic Uncertainty Restrains Private-Sector Hiring;

Posted July 3, 2010 by netleased
Categories: US Economy

Private Sector job Growth Following recessionary periods

Continued Economic Uncertainty Restrains Private-Sector Hiring;
Risk of Stalled Growth Rising in Second Half

  • Heightened uncertainty among businesses over the sustainability of the recovery hampered employment momentum in June, as census cuts outpaced weak hiring in the private sector. While a double-dip recession remains unlikely, persistent weakness in the labor market continues to drive down consumer confidence and weigh on personal balance sheets, restricting spending and dampening the recovery. In the second half, private businesses will continue to add workers at a modest pace, bringing the 2010 total to 1.3 million. These limited payroll gains, as well as lingering doubts about credit availability and concerns the recovery may not become self-sustaining, will drag on the economy in the coming quarters.
  • Employers shed a net of 125,000 jobs in June, the first monthly decline in 2010, intensifying concerns over the strength of the recovery. Despite these losses, a few bright spots persisted, as several sectors expanded during the month, led by the addition of 37,000 leisure and hospitality positions. Growth in most segments was minimal, however, highlighting the cautious stance prevailing at most companies. Also, employers continue to rely heavily on temporary workers, who account for nearly one-third of all private jobs added this year. Contraction in June was most pronounced in the government sector, as 225,000 temporary census positions expired.
  • Private-sector employment growth in June outpaced the previous month but lagged the gains recorded earlier this year, as firms remain hesitant to commit resources until the recovery demonstrates clear signs of sustainability. Private employers added 83,000 workers in June, the sixth consecutive month of gains. Year to date, employers have added 593,000 non-government positions for a 0.6 percent increase, the slowest private-payroll growth following a recession since 1992 and the second slowest pace of recovery since World War II. Without more substantial hiring by the private sector, unemployment will remain elevated, and the economic recovery will be slow to gain momentum.
  • The unemployment rate dipped 20 basis points to 9.5 percent in June; however, the decline was attributable to individuals leaving the labor force, rather than improving employment conditions. While elevated unemployment will restrain household formation in the near term, apartment vacancy will inch down 50 basis points in 2010 to 7.5 percent as the expiration of the homebuyer tax credit and continued weakness in the housing market sustain the renter pool.
  • Weakness in the financial activities sector has weighed on tenant demand for office space. Employers continue to eliminate financial positions, shedding 73,000 workers thus far in 2010. Despite minimal completions, office vacancy will increase 100 basis points this year to 18 percent on negative net absorption of nearly 25 million square feet. Metro areas with high concentrations of financial firms, such as New York City, Dallas/Fort Worth and San Francisco, will likely see a rise in competition from sublease space.

 

The information contained herein was obtained from sources deemed reliable. Every effort was made to obtain complete and accurate information; however, no representation, warranty or guarantee to the accuracy, express or implied, is made.

Fannie Mae, Freddie Mac Continue to Lead Multifamily Lending; Delisting From NYSE Likely to Have Little Impact

Posted June 19, 2010 by netleased
Categories: Bank Watch, Financing, US Economy

  • Fannie Mae, Freddie Mac Continue to Lead Multifamily Lending;

    Fannie Mae, Freddie Mac Continue to Lead Multifamily Lending;

    Fannie Mae and Freddie Mac have provided much-needed liquidity to the apartment investment market through the credit crunch and recession, helping to offset the void left by the stagnant CMBS sector. Since the federal government took control of Fannie Mae and Freddie Mac in the third quarter of 2008, the amount of multifamily mortgage debt outstanding in the GSEs’ portfolios and federally related mortgage pools has increased by more than 10 percent, or approximately $33.5 billion. During the same period, other major sectors, including commercial banks, CMBS and life insurance companies, registered decreases in multifamily debt outstanding, curbing their exposure to real estate debt.

  • The government takeover of Fannie Mae and Freddie Mac came after the companies reported massive losses tied to their residential mortgage portfolios. Losses have continued to mount in the quarters since, and the government has provided $146 billion to aid the struggling GSEs, taking a massive toll on their values and shareholders. By June 15, the day before it was announced that both companies would voluntarily delist from the NYSE, Freddie Mac’s share price was only slightly greater than $1, and Fannie Mae’s had fallen below the same threshold. The companies remain registered with the SEC and will be traded on the over-the-counter market. The delisting should have little impact on their day-to-day operations but highlights the precarious positions of both firms.
  • While soft housing market conditions and related losses have battered Fannie Mae and Freddie Mac’s balance sheets, the GSEs’ multifamily portfolios have performed relatively well through the recession. As of the first quarter of 2010, Freddie Mac reported a multifamily delinquency rate of 0.24 percent, while Fannie Mae’s came in at just under 0.8 percent. These rates compare favorably to commercial mortgage performance trends in the banking and CMBS sector, where delinquency rates have reached 4.24 percent and 7.24 percent, respectively.
  • Despite problems surrounding Fannie Mae and Freddie Mac and the expectation of government-mandated changes in the quarters ahead, it remains probable the GSEs’ multifamily lending arms will operate with few changes. Apartment loan originations by the GSEs may continue at depressed levels this year when compared to activity in early 2009, however, reflecting a paucity of attractive deals in the marketplace rather than a shortage of available debt capital. Last year, GSE originations volume received a boost from apartment owners refinancing ahead of loan maturity to avoid further erosion in fundamentals and values.
  • The GSEs will remain selective, employing strict underwriting standards and shying away from riskier deals. At present, however, Fannie Mae and Freddie Mac continue to offer competitive terms and pricing on new multifamily loans. Loan-to-values range from 55 percent to 75 percent, with five-year loans pricing in the 4.5 percent to 5.0 percent range and 10-year rates averaging 5.25 percent to 5.75 percent.

100% Leased | Atlanta (MSA) | 10%+ Cap | $2,150,000

Posted February 1, 2010 by netleased
Categories: 1031 Exchange

16,500 SF shopping center in Metro Atlanta at $2,150,000 which is 100% leased at 10.22% cap.

Please click here for details.

Posted via email from PhotoBlog RAM Investments Group of Marcus & Millichap

Posted February 1, 2010 by netleased
Categories: 1031 Exchange

2010 Store Openings: Complete List of U.S. Retail Industry Future Expansion

Posted January 15, 2010 by netleased
Categories: 1031 Exchange, CVS/Pharmacy, Store Closing, US Economy, Walgreens

Anticipating Economic Recovery U.S. Retailers Plan Beyond the Recession

By , About.com Guide

Judging from the store opening plans announced for 2010, there are many members of the U.S. retail industry who believe that economic recovery is a foregone conclusion and retail expansion will be resuming in the near future. Retailers are looking forward to life beyond the recession.

What follows is a complete and ongoing list of the store openings announced for 2010. The numbers in the left column indicate the total number of U.S. stores each retailer anticipates opening sometime in the 2010 calendar year. Information for this 2010 Store Openings list is obtained from credible published sources available to the general public. Numbers will be updated and additions to the list will be made as new store opening information is made public.

This list was last updated 12/14/09. The most recent additions are indicated by bold lettering.

2010 U.S. Retail Industry Store Openings Planned:

1000  McDonald's (global) 
900  Go Green Station 
600  Dollar General
450  Zara 
350  Walgreens 
300  Burger King
200  Muscle Maker Grill 
150   Advance Auto Parts 
130   Chipotle 
128  Target

110  Sonic 
105  Panera 
100   Edible Arrangements 
100  rue21 
98    Five Below 
75    Pizza Fusion 
75    Sephora
55    Darden Restaurants 
50    Boost Mobile 
50    Kohl's
45    Lowe's 
40    Jos. A. Banks Clothiers 
40    Pep Boys 
40    Qdoba
35    Pizza Hut
35    Rent-a-Center 
29    Max Muscle
27    Jamba Juice 
25    Aldi 
25    New Home 
25    Safeway 
24    Dicks Sporting Goods 
22    Best Buy
22    hhgregg 
20    Anthropologie 
20    Apple 
20    Free People 
20    Urban Outfitters 
18    Smashburger 
16    Casey's General Store
16    WalMart
16    Whole Foods 
15    Bruegger's 
15    Nordstom Rack 
15    Red Robin Gourmet Burgers 
15    Sam's Club 
15    Sprouts 
15    Stevi B's 
14    Costco
13    Maurice's
12    99c Only 
12    Fresh & Easy 
12   Target
11    Charlotte Russe 
8      Duckwall-ALCO 
7      Cracker Barrel 
6      Chuck E. Cheese 
6      Forever 21 
6      The Dump 
5      Little Caesar's 
4      JC Penney
3      Buffalo Wild Wings 
3      HomeGamers 
3      Jack in the Box 
3      Macy's
3      Manhattan Bagel 
3      Meijer 
3      Nordstom 
3      Ruby Tuesday 
3      WinCo 
2      Bloomingdale's 
2      Michael Kors 
2      The Greene Turtle


CVS/Caremark Coming to Market With Sale/Lease-back Deal

Posted December 15, 2009 by netleased
Categories: CVS/Pharmacy, Sale Leaseback

Another Financial News

2009-12-14

AFP Staff
Based on information received through December 8, 2009, Moody’s Investors Service assigns a provisional (P) Baa2 rating to $744.9 million of CVS/Caremark Lease-Backed Pass-Through Certificates, Series 2009-B, to be issued by a trust that will acquire 166 first-priority lien commercial mortgage, credit-tenant lease loans.

The loans will be secured by mostly newly constructed drug stores and related realty that will be triple-net leased to subsidiaries of CVS/Caremark Corporation (“CVS”). Each of the leases will be bondable and guaranteed by CVS, and bankruptcy-remote, special purpose borrowers will own each of the fee or ground-leased properties. The loans mature in January 2032.

Fixed net rent under the leases will be sufficient to pay in full all interest and principal of the loans. The 166 drugstores are located in 34 states.

In rating this transaction, Moody’s used its credit-tenant lease (“CTL”) financing rating methodology (“CTL approach”). Under Moody’s CTL approach, the rating of a transaction’s certificates is primarily based on the senior unsecured debt rating (or the corporate family rating) of the tenant, usually an investment grade rated company, leasing the real estate collateral supporting the bonds.

This tenant’s credit rating is the key factor in determining the probability of default on the underlying lease. The lease generally is “bondable”, which means it is an absolute net lease, yielding fixed rent paid to the trust through a lock-box, sufficient under all circumstances to pay in full all interest and principal of the loan. The leased property should be owned by a bankruptcy-remote, special purpose borrower, which grants a first lien mortgage and assignment of rents to the securitization trust.

The dark value of the collateral, which assumes the property is vacant or “dark”, is then examined; the dark value must be sufficient, assuming a bankruptcy of the tenant and rejection of the lease, to support the expected loss consistent with the certificates’ rating. Moody’s may make adjustments reflecting the possibility of lease affirmations by the tenant and for the landlord’s claim for lease rejection damages in bankruptcy. Moody’s also may give credit for some amortization of the debt, depending upon the rating of the credit tenant. In addition, Moody’s considers the overall structure and legal integrity of the transaction. The certificates’ rating may change as the senior unsecured debt rating (or the corporate family rating) of the tenant changes.

Citigroup sale a new start for Primerica

Posted November 21, 2009 by netleased
Categories: Atlanta Economy

Monday November 16, 2009 09:00 AM

Industry analysts said the deal will move Primerica, which employs about 1,991 people, mostly in Gwinnett County, out from under Citigroup’s shadow. That may allow Primerica to better capitalize on its organization of 100,000 independent salespeople, who operate similarly to multilevel marketers such as Amway, where higher-level agents earn a cut of commissions from the agents they recruit. …

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