ISSUE 04 S ep te m b er, 2 0 1 1 A Weekly Publication by Bryan Cole of NAI Keystone Commercial & Industrial, LLC Berks this issue Commercial Real Estate Impact of CRE Front Review 1031 Exchange Activity Front A Week in Berks: Bryan’s IPhone Front PCA opens new plant 1031 Activity continued Back Packaging Corporation of Ameri- ca (PCA) opens new manufac- Assignment of the Week Back turing plant in Muhlenberg Town- ship Berks County. The facility Assignment of the week - See Back is a 220,000 sf. Former distribu- tion center. The building was 1031 Exchange Activity Picks Up expanded from 208,500 sf. to allow for a new rail spur. The Between 2002 and 2007, real estate investors and develop- property was marketed by NAI ers built tremendous wealth and preserved significant equity Keystone and owned by Brasler by using tax-deferred exchanges under Section 1031 of the Properties and Endurance. IRS Code. During the economic downturn, exchanges were used less frequently for preserving equity from the apprecia- Don’t Forget to Subscribe See Monthly Newsletter or blog tion of real estate—mainly due to offsetting losses from other for full details. transactions or a general erosion of equity altogether. More often, over the past few years taxpayers Fiesta Mexicana Restaurant *NEW* used exchanges as Opening strategy for defer- & Improved Lower Alsace Township will be ring potential tax home to the Fiesta Mexicana liability from short Restaurant. A 2,200 sf. building sales and foreclo- Subscribe to: which will have seating for ap- sures. Bcole@naikeystone.com proximately 75-80 people., and a However, taxpayers are again relying on exchanges now bar for 12-14 people. that some real estate assets are selling at a gain. Exchange Trends Two more properties off the market!!! In August 2010, the volume of exchange transactions began to increase significantly. This trend started with developers Next Edition: Continued on Back Capital Management Tools Information obtained from various for any Economic Climate sources. Bryan Cole of NAI Keystone Commercial & Industrial, LLC | 610.779.1400 | 3970 Perkiomen Ave. Suite 200, Reading PA 19606 and investors selling singular assets and asset portfolios to large REITS and private equity funds that were looking to purchase assets with cash. Class A and B multifamily assets and single-tenant NNN assets were their typical targets. These purchases fueled the start of new construction ex- changes by many of the selling developers, especially in the single-tenant NNN industry. The exchange trend has spread to larger, more institutional assets in the office and retail sectors. Grocery-anchored retail centers have also been at the center of exchange activity. The common underlying characteristic of the assets being sold in these exchanges has been the stability of the asset, often stemming from strong credit tenants. Contact Info: - Article obtained from North East Real Estate Business Journal. Due to the limited room in our weekly updates, Please visit http://bryanecole.wordpress.com for Bryan Cole, Sr. Associate the remainder of the article. 610.370.8502 (direct) 117,000 sf. NNN deal with 10 year initial lease term. Featured NNN Deals 610.370.8503 (fax) 610.209.9624 (mobile) (these properties are being marketed by NAI Keystone’s Bryan Cole and Bcole@naikeystone.com John Buccinno) www.Bryan-Cole.com Medical Facility 147,000 sf. Industrial If Interested in NNN properties 15 Year NNN Deal 14 Year Lease Term or the properties listed. Please give us a call or email me at Bcole@naikeystone.com Assignment of the Week $2,000,000 Sale or 101 S. Centre Ave, Leesport PA 19533 Lease (Neg.) Sale or Lease Fronts Route 61 24,000 sf. w/ additional 6,000 sf. Mezz. Flex Facility with High Traffic Volume Class A Facility 2 Acre Lot Call For More Information Information concerning any of the material and offerings come from sources deemed reliable, but no warranty is made as to the accuracy thereof, and they are submitted sub- ject to errors, omissions, change of price or other conditions, prior sale or lease, or withdrawal without notice. All sizes approximate.
"September 2011 Weekly Review - Volume 4"