Cole Real Estate Investments Real Estate Acquisitions Boyd Messmann, CCIM Senior Vice President, Acquisitions
Cole Real Estate Investments – 30-year history <ul><li>Commercial real estate investment management firm  focused on net l...
Cole Real Estate Investments <ul><ul><ul><ul><li>Approximately  $9 billion  in commercial real estate assets </li></ul></u...
Cole Real Estate Investments <ul><li>Cole entities own and manage a consolidated portfolio of  more than 1,500 properties ...
Cole Real Estate Investments - 2010 Data as of 03/31/11 * United States, March/April 2011 <ul><ul><ul><ul><li>In 2010, acq...
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 <ul><ul><ul><ul><li>Targeting  $3 billion  of acquisitions in 2011 </li></ul></ul></ul></ul><ul><ul><ul><ul><ul...
Cole in Arizona Data as of 03/31/11 Through August 15, 2011 <ul><ul><ul><ul><li>49 properties </li></ul></ul></ul></ul><ul...
  Acquisitions Strategy
Acquisition criteria SINGLE-TENANT RETAIL, OFFICE & INDUSTRIAL POWER CENTERS AND GROCERY-ANCHORED CENTERS PUBLIC, PRIVATE ...
Conservative underwriting Single-tenant retail example
Active buyer, selective process For illustrative purposes only; Closed through December 31, 2010. PROPERTIES SCREENED (EST...
Advantages of working with Cole <ul><ul><ul><ul><li>Certainty  of close </li></ul></ul></ul></ul><ul><ul><ul><ul><li>All-c...
  Acquisitions
<ul><li>PetSmart Campus Headquarters </li></ul>Acquisition spotlight <ul><ul><li>Phoenix, AZ </li></ul></ul><ul><ul><li>35...
<ul><li>Apollo Group’s University of Phoenix Office Complex </li></ul>Acquisition spotlight <ul><ul><li>Phoenix, AZ </li><...
<ul><li>Walgreens - 2011 </li></ul><ul><ul><li>18 States | 23 Pharmacies </li></ul></ul><ul><ul><li>$108,000,000 </li></ul...
Multi-Tenant acquisitions <ul><li>Manchester Highlands </li></ul><ul><ul><li>St. Louis, MO | 354,000 SF </li></ul></ul><ul...
<ul><li>Medtronic Office Building </li></ul><ul><ul><li>San Antonio, TX | 145,000 SF </li></ul></ul><ul><ul><li>Class A of...
Sale-Leaseback acquisitions <ul><li>Alimentation Couche-Tard </li></ul><ul><ul><li>8 states | 83 convenience stores </li><...
Joint ventures & Strategic initiatives <ul><ul><ul><ul><li>Strategic partnerships and programmatic joint ventures </li></u...
Build-to-suits, Re-capitalization, Note purchase <ul><li>Kohl’s </li></ul><ul><ul><li>Rice Lake, WI | 64,000 SF  </li></ul...
  Cole Real Estate Investments Real Estate Acquisitions www.ColeCapital.com [email_address]
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CCIM Live! Vendor Runway - Cole Real Estate

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CCIM Live! Vendor Runway - Cole Real Estate

  1. 1. Cole Real Estate Investments Real Estate Acquisitions Boyd Messmann, CCIM Senior Vice President, Acquisitions
  2. 2. Cole Real Estate Investments – 30-year history <ul><li>Commercial real estate investment management firm focused on net lease properties: </li></ul><ul><ul><li>Single-tenant retail </li></ul></ul><ul><ul><li>Multi-tenant retail (Power centers and grocery anchored centers) </li></ul></ul><ul><ul><li>Single-tenant office and industrial </li></ul></ul><ul><li>Founded in 1979 in Arizona </li></ul><ul><li>Based in Phoenix, Arizona with more than 280 employees and growing </li></ul><ul><ul><li>186 employees at end of 2009 </li></ul></ul><ul><ul><li>242 employees at end of 2010 </li></ul></ul><ul><ul><li>Up to 310 employees projected by end of 2011 </li></ul></ul>Data as of 03/31/11
  3. 3. Cole Real Estate Investments <ul><ul><ul><ul><li>Approximately $9 billion in commercial real estate assets </li></ul></ul></ul></ul><ul><li>Owns properties across 46 states and the U.S. Virgin Islands </li></ul>Data as of 03/31/11
  4. 4. Cole Real Estate Investments <ul><li>Cole entities own and manage a consolidated portfolio of more than 1,500 properties </li></ul><ul><li>Average remaining lease term of more than 13 years </li></ul><ul><li>Occupancy rate of 97.5% </li></ul><ul><li>Industry diversification </li></ul><ul><ul><ul><li>More than 50 industry sectors </li></ul></ul></ul><ul><ul><ul><li>Nearly 500 tenant concepts </li></ul></ul></ul><ul><ul><ul><li>Targeting $10 billion of total combined commercial real estate assets acquired by year end </li></ul></ul></ul>Data as of 03/31/11
  5. 5. Cole Real Estate Investments - 2010 Data as of 03/31/11 * United States, March/April 2011 <ul><ul><ul><ul><li>In 2010, acquired $2.5 billion of high-quality real estate </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>$1.2 billion single-tenant retail </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>$500 million power centers/ grocery anchored centers </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>$700 million office & industrial </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><li>Closed $1.4 billion in financing in 2010 </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Ranked No. 13 by Retail Traffic for retail real estate owners and No. 15 for retail real estate property managers for 2010* </li></ul></ul></ul></ul>
  6. 6. Recent track record
  7. 7. A market leader in quality acquisitions Transaction date: 8/26/10 through 8/25/11 | Excludes joint ventures # 1 # 3 # 3 # 9
  8. 8. 2011 Goals <ul><ul><ul><ul><li>Targeting $3 billion of acquisitions in 2011 </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>$1.0 billion single-tenant retail </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>$500 million retail sale-leaseback </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>$750 million multi-tenant retail </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>$750 million office & industrial </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><li>Acquired $1.55 billion through August 2011 </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>$669 million single-tenant retail </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>$525 million office & industrial </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>$358 million power centers/grocery anchored centers </li></ul></ul></ul></ul></ul>
  9. 9. Cole in Arizona Data as of 03/31/11 Through August 15, 2011 <ul><ul><ul><ul><li>49 properties </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>20 retail assets </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>10 storage facilities </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>3 shopping centers </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>3 office assets </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>1 industrial asset </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><li>$534 million acquisition cost </li></ul></ul></ul></ul><ul><ul><ul><ul><li>3.1 million square feet </li></ul></ul></ul></ul>
  10. 10. Acquisitions Strategy
  11. 11. 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
  12. 12. Conservative underwriting Single-tenant retail example
  13. 13. 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
  14. 14. Advantages of working with Cole <ul><ul><ul><ul><li>Certainty of close </li></ul></ul></ul></ul><ul><ul><ul><ul><li>All-cash transactions </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Quick and efficient closing process </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Pre-approved letter of intent </li></ul></ul></ul></ul><ul><ul><ul><ul><li>National profile , including secondary and tertiary markets </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Opportunities include sale-leasebacks, build-to-suits, joint ventures and development capital </li></ul></ul></ul></ul>Data as of 03/31/11
  15. 15. Acquisitions
  16. 16. <ul><li>PetSmart Campus Headquarters </li></ul>Acquisition spotlight <ul><ul><li>Phoenix, AZ </li></ul></ul><ul><ul><li>356,000 SF </li></ul></ul><ul><ul><li>NNN lease </li></ul></ul><ul><ul><li>3 mid-rise office towers </li></ul></ul><ul><ul><li>1 parking garage </li></ul></ul><ul><ul><li>Mission-critical facility </li></ul></ul><ul><ul><li>1997 original construction/ </li></ul></ul><ul><ul><li>2008 expansion & upgrade </li></ul></ul><ul><ul><li>$102,500,000 </li></ul></ul>
  17. 17. <ul><li>Apollo Group’s University of Phoenix Office Complex </li></ul>Acquisition spotlight <ul><ul><li>Phoenix, AZ </li></ul></ul><ul><ul><li>600,000 SF </li></ul></ul><ul><ul><li>20-year NNN lease </li></ul></ul><ul><ul><li>3 mid-rise office towers </li></ul></ul><ul><ul><li>2 parking garages </li></ul></ul><ul><ul><li>Mission-critical facility </li></ul></ul><ul><ul><li>2006-07 construction </li></ul></ul><ul><ul><li>$170,000,000 </li></ul></ul><ul><ul><li>Sale-leaseback </li></ul></ul>
  18. 18. <ul><li>Walgreens - 2011 </li></ul><ul><ul><li>18 States | 23 Pharmacies </li></ul></ul><ul><ul><li>$108,000,000 </li></ul></ul>Single-Tenant retail acquisitions <ul><li>Kohl’s – 2011 </li></ul><ul><ul><li>3 States | 4 Stores </li></ul></ul><ul><ul><li>$31,500,000 </li></ul></ul><ul><li>CVS Portfolio </li></ul><ul><ul><li>11 States | 13 Pharmacies </li></ul></ul><ul><ul><li>$70,000,000 </li></ul></ul>PetSmart Portfolio 7 States | 11 Stores $74,000,000 <ul><li>Buffets, Inc. Portfolio </li></ul><ul><li>13 states | 32 Restaurants </li></ul><ul><ul><li>$82,000,000 </li></ul></ul><ul><li>Tractor Supply - 2010 </li></ul><ul><li>15 states | 28 Stores </li></ul><ul><ul><li>$77,600,000 </li></ul></ul>
  19. 19. Multi-Tenant acquisitions <ul><li>Manchester Highlands </li></ul><ul><ul><li>St. Louis, MO | 354,000 SF </li></ul></ul><ul><ul><li>WalMart, Best Buy, Bed Bath & Beyond, PetSmart, ULTA, Mattress Firm </li></ul></ul><ul><ul><li>$48,500,000 </li></ul></ul><ul><li>Whitwood Town Center </li></ul><ul><ul><li>Whittier, CA | 688,000 SF </li></ul></ul><ul><ul><li>Target, Sears, JCPenney, Vons, PetSmart, Kohl’s, Cost Plus, CVS, AT&T </li></ul></ul><ul><ul><li>$83,500,000 </li></ul></ul><ul><li>Breakfast Point Marketplace </li></ul><ul><ul><li>Panama City Beach, FL | 98,000 SF </li></ul></ul><ul><ul><li>Publix, Office Depot, Dunkin’ Donuts and approximately 11,000 SF of shops </li></ul></ul><ul><ul><li>$16,000,000 </li></ul></ul><ul><li>Atascocita Commons </li></ul><ul><ul><li>Humble, TX | 307,000 SF </li></ul></ul><ul><ul><li>Kohl’s, TJ Maxx/Home Goods, Ross, Office Depot, Party City, Petco </li></ul></ul><ul><ul><li>$56,500,000 </li></ul></ul><ul><li>Camp Creek Marketplace </li></ul><ul><ul><li>East Point, GA | 425,000 SF </li></ul></ul><ul><ul><li>BJ’s, Marshalls, Ross, TJ Maxx, Staples, Old Navy, Party City </li></ul></ul><ul><ul><li>$76,350,000 </li></ul></ul><ul><li>Folsom Gateway II </li></ul><ul><ul><li>Folsom, CA | 109,000 SF </li></ul></ul><ul><ul><li>Bed Bath & Beyond, PetSmart, DSW, ULTA </li></ul></ul><ul><ul><li>$36,000,000 </li></ul></ul>
  20. 20. <ul><li>Medtronic Office Building </li></ul><ul><ul><li>San Antonio, TX | 145,000 SF </li></ul></ul><ul><ul><li>Class A office </li></ul></ul><ul><ul><li>$32,900,000 </li></ul></ul>Office & industrial acquisitions <ul><li>Hanesbrands Distribution Center </li></ul><ul><ul><li>Rural Hall, NC | 930,000 SF </li></ul></ul><ul><ul><li>$31,700,000 </li></ul></ul><ul><li>HealthNow New York </li></ul><ul><ul><li>Buffalo, NY | 430,000 SF </li></ul></ul><ul><ul><li>Class A office </li></ul></ul><ul><ul><li>$84,500,000 </li></ul></ul><ul><li>The Home Depot Distribution Center </li></ul><ul><ul><li>Tolleson, AZ | 467,000 SF </li></ul></ul><ul><ul><li>$30,500,000 </li></ul></ul><ul><li>Freezer Facility </li></ul><ul><ul><li>Riverside, CA | 496,000 SF </li></ul></ul><ul><ul><li>Warehouse/Distribution Facility </li></ul></ul><ul><ul><li>$91,500,000 </li></ul></ul><ul><li>ConAgra Distribution Center </li></ul><ul><ul><li>Milton, PA | 719,000 SF </li></ul></ul><ul><ul><li>$28,500,000 </li></ul></ul>
  21. 21. Sale-Leaseback acquisitions <ul><li>Alimentation Couche-Tard </li></ul><ul><ul><li>8 states | 83 convenience stores </li></ul></ul><ul><ul><li>$132,000,000 </li></ul></ul><ul><li>Albertsons </li></ul><ul><ul><li>15 states | 32 grocery stores </li></ul></ul><ul><ul><li>$266,000,000 </li></ul></ul><ul><li>Apollo Group/University of Phoenix </li></ul><ul><ul><li>Phoenix, AZ | 600,000 SF </li></ul></ul><ul><ul><li>$170,000,000 </li></ul></ul>
  22. 22. Joint ventures & Strategic initiatives <ul><ul><ul><ul><li>Strategic partnerships and programmatic joint ventures </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>JV programs with leading developers </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Build-to-suits & development capital </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Acquisitions </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Re-capitalization & re-positioning </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Note purchases – performing & non-performing </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><li>Long-term benefits </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Creates pipeline of future projects </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Enhanced yield on investments </li></ul></ul></ul></ul></ul>
  23. 23. Build-to-suits, Re-capitalization, Note purchase <ul><li>Kohl’s </li></ul><ul><ul><li>Rice Lake, WI | 64,000 SF </li></ul></ul><ul><ul><li>$5.9 million | Build-to-suit </li></ul></ul><ul><li>Waterside Marketplace </li></ul><ul><ul><li>Chesterfield, MI | 244,000 SF </li></ul></ul><ul><ul><li>$26,500,000 | Re-capitalization </li></ul></ul><ul><li>Nature Coast Commons </li></ul><ul><ul><li>Spring Hill, FL | 226,000 SF </li></ul></ul><ul><ul><li>$29 million | Note purchase </li></ul></ul>
  24. 24. Cole Real Estate Investments Real Estate Acquisitions www.ColeCapital.com [email_address]

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