Capital Pacific News

Capital Pacific Named Among San Francisco and Portland's 2008 CoStar Power Brokers

2009-06-10T10:16:00.000-07:00

Capital Pacific has again been named a CoStar Power Broker for the Portland, Oregon and San Francisco, California areas. Capital Pacific was measured against all the commercial real estate brokerage firms active in the region and ranked based on overall sales transaction volume for 2008 as reported to CoStar. As the largest, independent information provider to commercial real estate professionals in the United States and United Kingdom, CoStar is uniquely qualified to rank and recognize the most active firms and individual dealmakers in each market.

Bank on Execution

2009-05-28T11:21:00.000-07:00

Capital Pacific just closed a National City Bank (Now PNC) ground lease in Chicago's South Side on 87th & South Cottage Grove.

Capital Pacific's dynamic marketing campaign helped generate multiple offers, and created a competitive bidding atmosphere. The Buyer ultimately closed at $2,9 M (within 16 basis points of the ask price), demonstrating how Capital Pacific's accurate pricing strategy generates offers and puts Sellers in a better negotiating position.

The deal was not without obstacles: the property was on a 26,000 square foot lot and had environmental issues, but with dogged problem-solving during the escrow process, these challenges were overcome.

The Buyer was an international partnership of two individuals based in the UK and South Dakota that came out of a $25M exchange and bought multiple assets across the country.

Leaving Las Vegas: ICSC Wrap Up

2009-05-26T10:55:00.001-07:00

ICSC Las Vegas is the largest real estate conference in the US, and Capital Pacific again had a booth and a strong presence at the show (May 18-20). Twelve of our agents attended, and had around 150 meetings with buyers, owners and developers from across the US. While there were a few things that haven’t changed (100 degree heat, blisters, and non-stop breath mint consumption), there were some striking differences from years past. First, the number of attendees was down to around 30,000 (from a high of 50,000 a few years ago). This actually translated into higher quality meetings, since only true dealmakers were in attendance.

Meetings held at the conference provided valuable insight into the current real estate market from local, regional and national perspectives. In the past year, the market has shifted faster than anyone expected, and as always, the industry is responding with new strategies for the current climate. Additionally, owners are beginning to accept the shift in exit values, and as a result more opportunistic buyers are entering the market. New and existing equity funds are beginning to show their appetite for debt distressed assets and core centers as well. Financing still remains challenging, but signs of a credit thaw are now beginning to manifest as well.

Overall, this year’s ICSC conference signaled a shift from uncertainty towards cautious optimism about what lies ahead (and an acknowledgement that every transaction is going to take a lot of creativity and hard work).

Meet with Capital Pacific, ICSC Las Vegas: May 18-20

2009-05-01T14:50:00.000-07:00

You can't know the game if you're sitting in the bleachers...

The playing field has changed, and our team's daily presence in the market means we possess the real-time data to help you create a gameplan.

We will once again have a booth at ICSC Las Vegas, May 18-20. Contact us to set up a meeting to discuss:

Accurate pricing and specific cap rates for your properties
Trends in creative marketing to get your properties sold
Specific buy-side requirements we have to fulfill
A first look at new properties coming to market

Creative Dealmaking Seals Walgreens Deal

2009-04-29T10:04:00.000-07:00

Capital Pacific just closed a 14,820 SF Walgreens property located in an established middle class suburb of Cincinnati, OH. The seller was a long-time Capital Pacific client who was set on achieving a cap rate that was aggressive for today’s market.

They buyer (also represented by Capital Pacific) was a West Coast based couple who sought an investment opportunity that would provide for their family in the future. They viewed the newly constructed Cincinnati Walgreens as an attractive alternative to similar properties on the West Coast. But there was one challenge: the group had $2.5M in equity. With some creativity, Capital Pacific agents negotiated for them to carry a note with the seller, who was able to achieve cap rate expectations. The property was sold for $5,857,000.

This is once just one more successful execution of a proven strategy for Capital Pacific: accessing the “invisible” West Coast investor and connecting them with high-quality investment opportunities in markets across the US.

Off-Market Closing: Macaroni Grill

2009-04-14T15:10:00.000-07:00

Capital Pacific recently represented both buyer and seller in the off-market sale of a 7,042 SF Macaroni Grill, located on 1.53 acres in Folsom, CA.

The property features a 20-year lease with 2% annual escalations and was sold for $2.36M (7.6% Cap). Financing was secured at 6%.

The buyer was a California-based 1031 exchange investor coming out of a management-intensive shopping center. This down-leg transaction was also handled by a Capital Pacific agent, and was marketed extensively for 60 days. Thanks in part to the seller’s willingness to meet the market at the time, the shopping center closed at an 8.5% Cap in December 2008 to an out-of-area buyer who assumed the existing loan.

These transactions demonstrate that with enough creativity, mettle, and willingness to act upon shifting market conditions, deals can still be made in today's challenging market.

March Madness: Slight Uptick in Activity

2009-03-30T13:47:00.000-07:00

In spite of economic uncertainty, the month of March heralded a slight increase in activity on Capital Pacific properties. The boost in activity resulted in multiple offers, with a handful of properties moving into contract.

Was it the gradual thawing of the finance markets, or additional detail on bank bailout plans from the federal government? The warming spring weather...?

The uptick is more likely due to a slight increase in investor confidence. Cap rates have begun to move, and buyer and seller expectations are slowly aligning. Average closing cap rates were approximately 7.3% at the end of February, compared to 6.25% at the beginning of 2008, according to data from Real Capital Analytics.

Capital Pacific 2.0

2009-03-17T08:40:00.000-07:00

Capital Pacific has always been an early adopter of new technology, so it's fitting that we've embraced some Web 2.0 platforms. If there is currently not enough Capital Pacific in your life, consider linking up with us on Linkedin or Facebook.

We're also now sending updates about the market and our listings on Twitter. We look forward to connecting with you soon, either in person, by phone, or online.

Bi-Coastal ICSC Update

2009-03-09T17:02:00.000-07:00

Last week Capital Pacific was busy pounding the carpeted aisles of convention centers in Charlotte, NC and Monterey, CA for annual ICSC conventions in these two cities.

The conferences gave Capital Pacific agents a chance to meet with buyers, sellers, developers and other brokers on both coasts. The mood at both conventions? Surprisingly upbeat, given the current market. Attendance was also relatively strong.

But what has changed at ICSC conferences in 2009 is that the fluff is gone. Today, the the tchotchkes and the dinner parties are irrelevant. Attendees are extremely focused, and interested in one thing: dealmaking. From our perspective this is a positive development, because each meeting is more focused, and ultimately more productive.

The next major conference that Capital Pacific will attend is ICSC Las Vegas, May 17-20. Please contact us to set up a meeting if you are planning to attend.

Just Closed: Jack in the Box in Gonzales, LA

2009-03-03T12:11:00.000-08:00

While other companies were home for the holidays, Capital Pacific was hard at work putting properties on the market. A seasoned, freestanding NNN Jack in the Box in Gonzales, LA hit the market on the morning of December 24. By early January there was an offer, and by January 16, the property was under contract with an all-cash buyer based out of Beverly Hills, CA. The property went on to close in late February after a seamless escrow.

This closing is indicative of the “flight to quality” mentality that prevails in today’s market. It also underscores the appeal of real estate investments, which combine residual value, cash flow, and appreciation potential, compared to other “paper” assets.

Capital Pacific Ranked as Top Broker

2009-02-12T08:47:00.000-08:00

Real Capital Analytics ranked Capital Pacific as a Top Broker for 2008, in terms of sales volume and transaction volume. Capital Pacific has just 13 sales agents, and was ranked against companies with as many as 1,000+ agents.

So how can a relatively small company achieve these results?

Quality inventory: properties with long-term real estate intrinsics

Candid pricing: realistic understanding of where properties will sell

Relationships with outside brokers: access to today’s elusive buyers

Proven strategy of sourcing California 1031 exchange investors

Just Two Days in Escrow - Taco John's in Kennewick, WA

2009-02-09T13:35:00.000-08:00

Capital Pacific is pleased to announce completion of the disposition of a free-standing Taco John’s restaurant in Kennewick, Washington. Capital Pacific was able to source a buyer within 42 days of bringing the property to market. All parties worked closely together with quickness and accuracy to negotiate amendments to the lease and close the property after only two days in escrow. The closing represents Capital Pacific’s 4th single tenant closing in the first 30 days of 2009.

A Closing to Bank On

2009-02-03T10:49:00.000-08:00

Capital Pacific is pleased to announce its first buy-side closing of 2009. The property is a Wells Fargo bank, located in Grand Prairie, TX. Wells Fargo is on a 20-year ground lease and located in a secondary market. The property closed in just 45 days…at a 5.75% cap.

The buyer of this asset was a California-based financial services executive who was very sensitive and knowledgeable about credit ratings, which is why he chose this asset. This is indicative of the “flight to quality” strategy that is flourishing in the current market.

Another interesting deal point is that the buyer obtained a 20-year fully amortizing loan at 7.5%. You may want to “bank” on Capital Pacific to get things done in today's market!

Country Club Office Park Closes in Just 43 Days

2009-01-22T09:13:00.000-08:00

With a lightening fast 43 day close from start to finish, Capital Pacific has again demonstrated its ability to set accurate pricing, source motivated capital and collaborate with outside brokers. These variables increased transaction velocity within a quickly changing market, resulting in the closing of the Country Club Office Park in Eugene, Oregon.

This multi-tenant 106,368 square foot office center received multiple offers and closed within 95% of the initial offering price. Capital Pacific’s ability to anticipate objections and focus on the intrinsics of the Property, helped overcome multiple hurdles such as short term lease rollover, new bank financing, older building systems and obtaining over 20 estoppels to be in position to close by year end.

With superior client service, problem solving abilities and accurate pricing set for today’s rapidly fluctuating market conditions, Capital Pacific has risen to the occasion to successfully complete the transaction within the desired timeframe. Since 2004 Capital Pacific has closed 44 office properties, representing over $280M in sales.

Two Recent Closings: $13M - $15M

2009-01-16T11:08:00.000-08:00

In the current market, smaller, more easily financed deals are dominating. However, never afraid of a challenge, Capital Pacific has recently closed some larger property sales as well.

The first was the SAIC Office Building, a Class A single-tenant, trophy office building in Huntsville, AL that sold for $15.85M. The buyer was in a 1031 trade, having sold an office building in San Diego, CA. They were attracted to the Huntsville market, as well as the cap rate (especially compared to similar investments in California). Capital Pacific worked through the challenges of the financing market with an outside broker to complete the sale.

The second closing was a Super Stop & Shop grocery store, located in Seekonk, MA which sold for $13.2M. A New York-based investor who was relocating to the area (and had significant 1031 exchange funds to place) submitted an all cash offer. Again, Capital Pacific cooperated with an outside broker to get the deal done at a sub 7% cap rate.

Capital Pacific Starts '09 With Walgreens Closing

2009-01-12T10:11:00.000-08:00

Capital Pacific is off to a great start in 2009 with the recent disposition of a Walgreens located in Hillsboro, Oregon. The Property was recently constructed with Walgreens taking occupancy in November. Capital Pacific assisted both the buyer and seller as they worked through development related issues including:

A partition plat plus recording documents that the county/city needed to place restrictions on the property.

Amendments to the lease.

Completion of punch list items.

Historically viewed as the gold standard of net leases due to their relatively strong sales and credit, today’s reality is a surplus of Walgreens actively listed on the market and a limited supply of buyers. The imbalance of supply versus demand has put upward pressure on cap rates. However, Capital Pacific’s ability to find an all cash buyer focused on the intrinsics of the real estate and long term viability of the area enabled Capital Pacific to set a new “benchmark” price within these changing market conditions.

Rounding out 2008 with Closings

2008-12-19T15:57:00.000-08:00

Capital Pacific is pleased to announce some year-end closings: a Fed-Ex Kinkos in Tallahassee, FL and a Wendy’s in Midlothian, VA.

The Fed-Ex was sold for a TX-based developer (in cooperation with an outside broker) to an East Coast buyer. The sales price was $1.2M (8.37% Cap). The buyer liked the tenant and was ultimately able to get comfortable with a relatively short primary term. The Wendy’s property in Midlothian, VA was sold for $1.47M (a 7.15% Cap). The buyer was based in CA and Capital Pacific worked with an outside broker to execute the sale.

Giving Thanks: Bay Area Shopping Center Closing

2008-11-25T14:20:00.000-08:00

Pass the stuffing… Capital Pacific is thankful for the closing of Mountain Shadows Plaza, a 77,751 square foot grocery-anchored center in Rohnert Park, CA (the third largest city in Sonoma County).

The neighborhood center is attractive, well maintained, and conveniently located near Highway 101, and featured attractive assumable CMBS debt. Even so, Capital Pacific’s valiant escrow team had to navigate through the financial uncertainty of the past few months, which made the loan assumption particularly challenging.

Proven Formula: California Trade Buyer Sourced for TX Medical Center

2008-11-11T13:40:00.000-08:00

Working with an outside broker, Capital Pacific recently closed Cleburne Medical Center, a newly constructed, 25,850 square foot medical office and surgery center located in a Dallas Fort Worth suburb. The California-based buyer was attracted to the the strength of the TX economy, the medical office investment niche, as well as the cap rate that could be achieved outside of California.

Sales Volume Earns Capital Pacific Ranking on “Commendable Retail Players” List

2008-10-27T16:55:00.001-07:00

Real Capital Analytics has ranked Capital Pacific as a Commendable Retail Player for the third quarter of ‘08, saying that: “Typically, our Top Buyers, Sellers and Brokers lists are all about size: dollar volumes, numbers of properties. This time, they tell stories of ingenuity, perseverance and risk taking. Under market conditions where every deal is super-scrutinized, over-committed and under-capitalized until the last minute and beyond, these dealmakers on all sides of the deal have shown their mettle in being able to bring things to a close. Buyers have taken a risk that values will fall; sellers have had the courage to take what is offered; and brokers have had the rare ability in this environment to bring the parties together.”

This accolade is an honor, particularly since Capital Pacific has just 13 sales agents, and some of the companies we are ranked against have hundreds of agents. To read more about this, as well as our ranking as a top broker based on number of sales, please click here.

Accurate Pricing Gives Capital Pacific The Edge to Close REI Flagship Store

2008-10-20T09:13:00.000-07:00

Capital Pacific has completed the disposition of REI’s flagship store, located in Portland’s Pearl District. The Property, a LEED certified, institutional quality mixed use asset consists of two retail tenants, REI and Countrywide Financial and a four story parking component containing 225 stalls. The commercial tenants and parking also compliment 123 residential condominium units above, comprising what is called the Edge.

Capital Pacific was able to source the most qualified and motivated investor after an unsuccessful effort by a national brokerage firm. Capital Pacific was able to:

Quickly source a qualified buyer within two weeks of going to market at premium pricing when time was of the essence.

Accurately assess the value of the asset and close within 1% of the initial asking price.

Perform efficiently throughout the sales process assisting both parties with a conduit loan assumption that took only 85 days.

Set a new “benchmark” price within the market at a significantly low cap rate for a transaction over $20,000,000.

The disposition of the REI demonstrates Capital Pacific’s ability to source capital, properly price property and deliver results even with the current market constraints.

Aw Schucks: NNN Auto Parts Store Closes

2008-10-14T15:23:00.000-07:00

Like a well-oiled machine, Capital Pacific was able to quickly and efficiently close on a freestanding Schuck's Auto Supply located in Springfield, OR. The property was in escrow for less than 60 days.

Representing a San Diego-based seller, Capital Pacific fully cooperated with the (local) buyer's broker in the sale.

Capital Pacific Sources Private Investors for NNN BlueWave Express Carwashes

2008-10-01T09:40:00.000-07:00

Four BlueWave Express car washes in Texas have recently been sold by Capital Pacific, with an additional location on Jones Road currently being marketed and additional stores in the developmental stage. Capital Pacific's proven escrow processes allowed us to close one of the stores in just 36 days. The marketing and sale of these BlueWave Carwashes are another example of Capital Pacific's ability to effectively target the right investors in challenging market conditions and successfully close transactions.

Capital Pacific Closes West Park Plaza Twice in Two Years

2008-09-25T13:38:00.000-07:00

For the second time in two years Capital Pacific has closed West Park Plaza, a 200,000 sq.ft. valued added enclosed mall located in Billings, Montana. The Property is anchored by Hastings, CVS Drugstore, OZ Fitness and shadow anchored by Sears.

Through a focused marketing program, this asset was presented to the most qualified buyers nationwide producing numerous qualified offers from a wide array of investors. Capital Pacific’s ability to provide comprehensive due diligence materials upfront allowed investors to submit educated offers, reduce timeframes, with the eventual buyer coming from Washington.

All parties worked closely to overcome multiple obstacles during the transaction, including the following:

A large existing tenant was in the process of negotiating a lease renewal. Ultimately, after difficult discussions, a lease favorable to all parties was executed and necessary for the lender to fund.

Sears held the first option to purchase a portion of the center. A waiver of their first right was necessary to close and was obtained within the timeframes.

The buyer planned to reposition the asset and had to work diligently with the city on plans and permits, all of which were done in short order.

The lender repeatedly reduced the buyer’s funds requiring Capital Pacific to conceive a creative structure involving Seller financing.

Capital Pacific’s extensive track record facilitated a valuable transaction for both parties even with multiple obstacles.

Role Reversal: Importing East Coast Capital to sell CA Office Park

2008-09-17T09:52:00.000-07:00

Capital Pacific recently closed on a single tenant office park with office, manufacturing, distribution/warehouse, and research & development space totaling 150,360 square feet on 60 acres. The property is located in Nevada City, CA, sometimes referred to as the Silicon Valley of the Sierras.

While Capital Pacific typically sources aggressive West Coast investors for retail properties in tertiary markets, this property actually went to a Florida-based group in a 1031 exchange.

The brokerage team was able to weather market shifts throughout the sale, putting the property back into contract a few times (ultimately with the right buyer) and mitigating all issues that arose during escrow.