Camelback Real Estate Investments

In 2006, sales volume for single tenant retail totaled $7.5 billion, up 24% versus the year ago period. Proportionally, single tenant retail comprises 18% of the overall retail market, up from 13%recorded in 2005.  Nationwide,on a price per sq. ft. basis, single tenant retail property traded at an average of $169, which was off 15% versus last year. However, there was a large increase in transaction volume in the Midwest which might have brought down the overall average. In 2006, driven by the strong 1031 exchange market, the Midwest recorded $1.4 billion in sales, representing 24% of activity nationwide. Single tenant cap rates increased by 7 basis points versus a 35 basis point decline for multi-tenant. Once again, investor interest in secondary markets in middle America drove the overall average cap rate upwards. However, several markets on the coasts experienced downward pressure for average caps throughout 2006 for single tenant retail property. Mutli tenant retail recorded a much higher drop in average yields, due to a greater interest in properties with upside. Private investors were the dominant buyers recording 68% of acquisition volume. REITs were also significant net buyers in 2006, acquiring 20% of available properties in the single tenant marketplace versus only 11% for multi tenant. Users continue to be significant net sellers in a high pricing environment Retailers were significant net sellers as rising asset values allowed many to reallocate capital.

Buyer Composition:

Private:          68%

User/other:     10%

reit/public:      20%

Inst'l/foreign:   2%

Top Buyers:

1.  Staubach Capital

2.  Spirit Finance Corp

3.  Cole Capital Partners

4.  Inland Real Estate Group

5.  Kohls Department Stores

6.  Macerich

7.  Simon Property Group

8.  Wal-Mart

9.  Walgreen Co.

10. NorthStar Realty Finance

Seller Composition:

Private:           51%

User/other:      43%

reit/public:        3%

Inst'l/foreign:    3%

Top Sellers:

1.  CVS Corp

2.  Shopko Stores Inc.

3.  Federated Dept. Stores

4.  Klaff Realty

5.  Ceruzzi Properties

6.  Wal-Mart

7.  Compson Development

8.  Berkshire Development

9.  GE Capital

10.  Kings Super Markets

Information Courtesy of: