CCIM Live! Vendor Runway - Cole Real Estate

Cole Real Estate Investments Real Estate Acquisitions Boyd Messmann, CCIM Senior Vice President, Acquisitions

Cole 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

Cole 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

Cole 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

Cole 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*

Recent track record

A market leader in quality acquisitions Transaction date: 8/26/10 through 8/25/11 | Excludes joint ventures # 1 # 3 # 3 # 9

2011 Goals
Targeting $3 billion of acquisitions in 2011
$1.0 billion single-tenant retail
$500 million retail sale-leaseback
$750 million multi-tenant retail
Acquired $1.55 billion through August 2011
$669 million single-tenant retail
$358 million power centers/grocery anchored centers

Cole 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

Acquisitions Strategy

Acquisition criteria SINGLE-TENANT RETAIL, OFFICE & INDUSTRIAL POWER CENTERS AND GROCERY-ANCHORED CENTERS PUBLIC, PRIVATE NN, NNN PREFER 10 YEARS OR GREATER NATIONAL PREFER INVESTMENT GRADE OR CREDITWORTHY SALE-LEASEBACKS, BUILD-TO-SUITS, JOINT VENTURES, DEVELOPMENT CAPITAL

Conservative underwriting Single-tenant retail example

Active 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

Advantages 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

Acquisitions

PetSmart Campus Headquarters
Acquisition spotlight
Phoenix, AZ
356,000 SF
NNN lease
3 mid-rise office towers
1 parking garage
Mission-critical facility
1997 original construction/
2008 expansion & upgrade
$102,500,000

Apollo Group’s University of Phoenix Office Complex
Acquisition spotlight
Phoenix, AZ
600,000 SF
20-year NNN lease
3 mid-rise office towers
2 parking garages
Mission-critical facility
2006-07 construction
$170,000,000
Sale-leaseback

Walgreens - 2011
18 States | 23 Pharmacies
$108,000,000
Single-Tenant retail acquisitions
Kohl’s – 2011
3 States | 4 Stores
$31,500,000
CVS Portfolio
11 States | 13 Pharmacies
$70,000,000
PetSmart Portfolio 7 States | 11 Stores $74,000,000
Buffets, Inc. Portfolio
13 states | 32 Restaurants
$82,000,000
Tractor Supply - 2010
15 states | 28 Stores
$77,600,000

Multi-Tenant acquisitions
Manchester Highlands
St. Louis, MO | 354,000 SF
WalMart, Best Buy, Bed Bath & Beyond, PetSmart, ULTA, Mattress Firm
$48,500,000
Whitwood Town Center
Whittier, CA | 688,000 SF
Target, Sears, JCPenney, Vons, PetSmart, Kohl’s, Cost Plus, CVS, AT&T
$83,500,000
Breakfast Point Marketplace
Panama City Beach, FL | 98,000 SF
Publix, Office Depot, Dunkin’ Donuts and approximately 11,000 SF of shops
$16,000,000
Atascocita Commons
Humble, TX | 307,000 SF
Kohl’s, TJ Maxx/Home Goods, Ross, Office Depot, Party City, Petco
$56,500,000
Camp Creek Marketplace
East Point, GA | 425,000 SF
BJ’s, Marshalls, Ross, TJ Maxx, Staples, Old Navy, Party City
$76,350,000
Folsom Gateway II
Folsom, CA | 109,000 SF
Bed Bath & Beyond, PetSmart, DSW, ULTA
$36,000,000

Medtronic Office Building
San Antonio, TX | 145,000 SF
Class A office
$32,900,000
Office & industrial acquisitions
Hanesbrands Distribution Center
Rural Hall, NC | 930,000 SF
$31,700,000
HealthNow New York
Buffalo, NY | 430,000 SF
Class A office
$84,500,000
The Home Depot Distribution Center
Tolleson, AZ | 467,000 SF
$30,500,000
Freezer Facility
Riverside, CA | 496,000 SF
Warehouse/Distribution Facility
$91,500,000
ConAgra Distribution Center
Milton, PA | 719,000 SF
$28,500,000

Sale-Leaseback acquisitions
Alimentation Couche-Tard
8 states | 83 convenience stores
$132,000,000
Albertsons
15 states | 32 grocery stores
$266,000,000
Apollo Group/University of Phoenix
Phoenix, AZ | 600,000 SF
$170,000,000

Joint 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

Cole Real Estate Investments Real Estate Acquisitions www.ColeCapital.com [email_address]

CCIM Live! Vendor Runway - Cole Real Estate

by CCIM Institute on Nov 03, 2011

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CCIM Live! Vendor Runway - Cole Real Estate Presentation Transcript