NAI Earle Furman, LLC Spring 2012 Newsletter

Transcription

1 NAI Earle Furman, LLC Spring 2012 Newsletter In this Issue Client Appreciation Event p 2-3 Industrial Division News p 4 In Manufacturing Showing Signs of a Revival? p 5-6 Office Division News p 7 Retail Division News p 8 Investment Division News p 9 Multifamily Division News p 10 Company News & Community Involvement p 11 About Us p 12 ACQUISITION OF NAI GLOBAL BY C-III CAPITAL PARTNERS IS COMPLETE NAI Global, the largest network of independent commercial real estate firms worldwide, announced recently that its previously reported acquisition by C-III Capital Partners (C-III) is complete. The transaction will create a leading fully integrated commercial property services company that will operate in markets around the world. NAI Earle Furman is the NAI affiliate for the Upstate of South Carolina. C-III is a leading commercial real estate services company, engaged in a broad range of activities, including primary and special loan servicing, loan origination, fund management, CDO management, principal investment, title services and multifamily property management. C-III is led by CEO Andrew L. Farkas, who founded and was Chairman and CEO of Insignia Financial Group, Inc. (NYSE:IFS). C-III is the special servicer for approximately 14,000 loans with an aggregate balance in excess of $152 billion, of which approximately $20 billion is currently in special servicing. In January of this year, C-III Capital Partners was named the number one company to watch in Real Estate Forum Magazine s Top 10 Companies to Watch in 2012 list. C-III s principal place of business is located in Irving, Texas, and it has additional offices in New York, New York; Greenville, South Carolina; McLean, Virginia; Chicago, Illinois; Dallas, Texas and Nashville, Tennessee. NAI Global will continue to operate as a separate company under its current management. C-III will accelerate NAI Global s growth by exploring business development opportunities in strategic locations, including New York, London, Singapore and other primary global business centers. It will also invest in the growth of the corporate solutions and capital markets offering, expanding asset/property management, project/facilities management and valuation services worldwide. The completion of this transaction represents a significant step forward in our strategy to build a fully diversified commercial real estate services company, said Mr. Farkas. With the NAI Global acquisition, we are gaining the world s leading commercial real estate network and a tremendous foundation for future growth. As we begin a new year, we look forward to partnering with the NAI team to provide enhanced services to the commercial and institutional real estate markets they serve as well as continuing to take advantage of other opportunities to grow and expand our platform. We are thrilled to be joining forces with C-III and excited about the opportunity to deliver an even broader range of services to our members and add greater value to our collective corporate and investment clients. We look forward to tapping into their extensive resources and expertise to assist all of our clients in strategically optimizing their commercial real estate assets, said Jeffrey M. Finn, President and CEO of NAI Global. 1

2 Client Appreciation Event In March, NAI Earle Furman hosted our clients and colleagues at an annual event. Earle Furman took the opportunity to thank everyone for their continued support as we grow and further serve the Upstate community! 2

3 Client Appreciation Event To view more photos from the event visit 3

4 Industrial Division News NAI EARLE FURMAN BROKERS TWO MAJOR INDUSTRIAL TRANSACTIONS Grice Hunt and Ford Borders, SIOR of NAI Earle Furman, LLC recently represented Bridgeport Properties National, LLC in selling a 400,000 SF distribution facility located at 160 National Avenue in Spartanburg. The property consists of four 100,000 SF buildings on +/-25 acres and is currently leased to Louis Dreyfus Cotton. Bridgeport Properties National, LLC acquired the property in The property was purchased by Stag Industrial Inc. for $9 million. Hunt and Borders also recently represented Perrigo Company in leasing approximately 300,000 SF industrial space located at 110 Hidden Lake Circle in Duncan. The company is relocating and expanding from a location at the SC Technology and Aviation Center (SC-TAC) in Greenville. Perrigo Company is a leading global healthcare supplier headquartered in Michigan, with additional U.S. operations in South Carolina, New Jersey and New York. The industrial sector of the market continues to build momentum as we enter the second quarter of the year. These transactions are great examples of how companies are regaining strength and confidence in a steadily recovering economy. We are optimistic about the industrial market remaining stable as the strengthening economy continues to drive demand for industrial space, Grice Hunt commented. Hunt and Borders focus exclusively on the industrial sector throughout the Upstate. Since 2010, the Industrial Division of NAI Earle Furman has completed over $50 million in leasing volume. Contact Information: John Baldwin tel: jbaldwin@naiearlefurman.com Sale Price: $1,995,000 Reduced: $1,591,000 RECENT TRANSACTIONS 1750 MARTIN ROAD SPARTANBURG, SC Property Details Former Somet Building located just off Business I-85 Frontage Road ±43,000 SF Industrial Facility on 8.96 Acres Masonry Construction Elevator Ceiling Height: Finished Warehouse Warehouse High & 19 Low 2 Ton Gib Crane 10 x 16 Drive-In Door 2, 8 x 10 Dock High Doors Pit & Edge Leveler Excellent Multi-Level Executive Offices Frontage on Martin Road All Utilities on Site Greenville, South Carolina: Glenn Batson of NAI Earle Furman represented the owner in selling a 10,000 SF industrial buiding located at 523 W. Washington Street, as well as 1.5 acres. Both were purchased by the Commissioners of Public Works of the City of Greenville, SC. Batson also represented Southern First Bank in selling 12 acres on Elmshorn Drive in Greer to The Townes at Thornblade, LLC. 4

5 Is Manufacturing Showing Signs of a Revival? By: Ford H. Borders In the last two decades, we have experienced the closing of manufacturing plants in our area forcing more people into the ranks of the unemployed. According to the Appalachian Council of Government statistics, manufacturing jobs as a percentage of total employment in the U.S. have gone from 17.9 percent in 1990 to 9 percent in During the same period, South Carolina dropped from 24.8 percent to 11.8 percent; Greenville County fared somewhat better but still dropped almost 50 percent (i.e. from 25.2 percent to 12.4 percent). In the past 20 years, it has appeared that the days of manufacturing in this country were pretty much over as we witnessed more and more plants closing and relocating to China, Mexico, and other countries. This movement is often referred to in manufacturing circles as off-shoring. The primary reason for this happening is that companies are continually striving to be more competitive by finding lower-cost labor. Most of us have heard about the low cost of wages in China and many other countries compared to those in the US.. Many of us who believe that manufacturing, or the making of things, is an important part of a healthy economy saw our fears realized as companies moved all or a portion of their operations elsewhere. According to the South Carolina Manufacturing Association, the average salary for a manufacturing job in South Carolina is $47,192 per year as opposed to an average salary of $35,620 for other jobs in the state. This points out all too well how important it is not only to keep our state s population employed but to maintain and promote more jobs in the manufacturing sector which will help improve our state s overall standard of living. This past year those of us in industrial real estate and economic development have seen this off-shoring trend begin to slow and a growing trend for companies to remain and expand. It appears companies that thought there were greener pastures offshore have often found, among other things, such problems as labor cost increases and political instability along with a high cost for transportation and time-delays in shipments back to the U.S. market. We have also recently seen more foreign companies expanding as well as opening new operations in the U.S. Many of these moves are motivated by some of the same reasons U.S. companies are staying. Is it possible the exit trend we have experienced in the past 20 years is beginning to reverse itself? The latest growth in manufacturing could indicate that it is a possibility. It has been especially encouraging this past year to see our state announce more than $3.9 billion in investments as well as the announcement of over 12,000 new jobs in the manufacturing sector. While this is encouraging, it is far from establishing a sustainable upward trend. Recent announcements of manufacturing companies moving to the state, or of companies already here expanding, have been encouraging, but we need to look at what caused this recent positive movement and try to figure out what we can do to keep it going. article continued on next page... 5

6 Is Manufacturing Showing Signs of a Revival? South Carolina in particular is becoming better-known throughout the world for its pro-business climate and its cooperative and trainable labor force. This did not happen accidentally. We have been fortunate, both in the past and presently, to have strong leadership at the state and local levels to whom we owe a debt of gratitude. One would have to be naive not to recognize that we are a right-to-work state and have one of the lowest numbers of unionized workers in the nation. There are many factors that are important to a company looking at moving to a new state, but my experience indicates union activity would be in the top 5 on most companies lists when comparing states. Our technical schools have been recognized throughout the country and, in many cases, used as a model for other states schools to follow. This is no small asset when companies are looking at states, and they know that if the highly skilled workers needed are not available they will have to be trained. South Carolina is making great strides in this area, but to remain competitive going forward, we must have more and better skilled workers readily available. Companies that only need less-skilled labor will probably continue to relocate to countries with cheaper labor costs. However, with companies becoming more efficient and needing fewer workers to produce the same goods, we must continue bringing in more and more companies and expanding those already here. Our pro-business climate combined with a more highly skilled work force should keep South Carolina manufacturing healthy for a long time to come. Ford H. Borders specializes in industrial real estate sales and leasing at NAI Earle Furman, LLC, a full service real estate brokerage company. He can be reached at fborders@naiearlefurman.com. Ford s article was featured in The Greenville News in January

7 Office Group Division News FOR SALE OR LEASE S. PLEASANTBURG DRIVE, GREENVILLE Property Details: ±17,457 SF Building (1st Floor - ±7,000 SF 2nd Floor - ±10,457 SF) Elevator Granite Exterior 70 Parking Spaces (4 per 1,000) Overlooking Greenville Country Club Could be Subdivided Sale Price: $1,700,000 Lease Rate: $8.00/SF NNN Contact Information: Scott Jones, SIOR & Keith Jones tel: or sjones@naiearlefurman.com keith@naiearlefurman.com THE OLD COTTON WAREHOUSE 511 RHETT STREET, DOWNTOWN GREENVILLE Property Details: 2 Suites Available Downstairs Suite 1A: ±2168 RSF Suite 2: ±3945 RSF Excellent West End Location in a Completely Renovated Former Cotton Warehouse Massive Heart Pine Beams and Columns, Exposed Brick, High Ceilings and Interior Glass On-Site Free Parking Landlord Pays Taxes, Insurance, Water & Gas - Tenant Pays Power Lease Rate: $16.50/SF Modified Gross Contact Information: David Feild, CCIM & Tyson Smoak tel: or davidf@naiearlefurman.com RECENT TRANSACTIONS Greenville, South Carolina: Jake Van Gieson and Bill Sims of NAI Earle Furman represented GlucoTec Inc. in leasing a 9,036 SF office space located at 770 Pelham Road in Greenville. Greenville, South Carolina: Stuart Wyeth of NAI Earle Furman represented OZRE Greenville in leasing a 4,756 SF office space located at Park East Office Park. The space was leased to the South Carolina Youth Advocate Program. 7

8 Retail Division News ROB SCHMIDT JOINS THE NAI EARLE FURMAN RETAIL DIVISION NAI Earle Furman recently welcomed Robert Schmidt to the Retail Division. Robert is a Hawaii Pacific University graduate with a bachelor s degree in International Business. Prior to becoming a commercial broker, Rob worked extensively in service, sales, and leadership with Hilton Hotels, and as a hospitality manager for The Grand Wailea Resort and Spa on the island of Maui. Upon moving back to Greenville in 2012, he began work at NAI Earle Furman, focusing on the growing commercial retail market in Spartanburg. Robert s unique sales perspective and customer service oriented approach will be an asset to the NAI Earle Furman team. ANDERSON STATION Anderson, South Carolina: Tim Roller of NAI Earle Furman represented the landlord of Anderson Station Shopping Center in the renewal of three major tenants: Ross Dress for Less, Bed Bath and Beyond and Old Navy. Anderson Station offers over 200,000 SF of retail space. For more information on Anderson Station contact Tim Roller: tim@naiearlefurman.com LAND SOLD FOR FUTURE QUIKTRIP LOCATION John Baldwin of NAI Earle Furman recently represented QuikTrip Corporation in purchasing 1.09 acres at the corner of Woodruff Road and Verdae Boulevard for a future location. SHOPPING CENTER FOR SALE CROSSPOINTE PLAZA WOODS CROSSING ROAD GREENVILLE, SC Property Details: 73,000 SF Shopping Center Next to Haywood Mall; (SC s Largest Mall with >1.25 Million SF) Adjacent to Toys R Us Neighboring Uses Include: Greenville Hospital System, St. Francis Hospital, Fluor Daniel, Patewood Office Park Excellent Visibility & Easy Access Existing Income with Client Tenants Good Upside for Vacant Circuit City Priced at $68.50/SF Sales Price: $5,000,000 Contact Information: Jimmy Wright & Ted Lyerly, CCIM tel: jwright@naiearlefurman.com or tlyerly@naiearlefurman.com 8

9 Investment Division News FOR SALE S PLEASANTBURG DRIVE GREENVILLE, SC Contact Information: Peter Couchell, CCIM tel: couchell@naiearlefurman.com Property Details Net Leased Advance Auto Parts (NYSE: AAP) Investment Grade Credit: S&P Rated BBB $5.87 Billion Market Capitalization 8 Years Remain on Lease Term (Original 15 Year Lease) Price: $1,140,000 CAP RATE (CURRENT) 8.17% CAP RATE (AS OF 6/1/15) 8.99% WEIGHTED CAP RATE 8.68% RENT BUMPS 10% on 6/1/15 OPTION PERIODS 3-5 Year (5% Bump each Option Period) TWO SINGLE TENANT NNN INVESTMENT PROPERTIES FOR SALE Each ±9,014 SF property has the initial 10 year lease and no existing financing in place. Perfect 1031 Exchange Properties Tenant: Dollar General Six Mile, SC location - $620,000 Greer, SC location - $640,000 Contact Information: Hunter Garrett, CCIM, SIOR tel: hgarrett@naiearlefurman.com RECENT TRANSACTIONS Peter Couchell, CCIM of NAI Earle Furman recently sold Garlington Pointe, a 17,500 SF office property located along Garlington Road in Greenville. Couchell also recently sold Sunset Plaza, a 7,275 SF retail center located at 1815 East Greenville Street in Anderson. In addition, Peter Couchell and Bills Sims sold Hartsville Crossing, a 70,000 SF Wal-Mart shadow anchored shopping center located in Hartsville, South Carolina. Greenville, South Carolina: Harry Croxton and John D. Gray, CCIM of NAI Earle Furman represented the seller in the sale of Orchard Village shopping center located at 21 Orchard Park Drive in Greenville. The center was sold to South Coast Commercial. Tenants at the center include Outback Steakhouse, Super Tan and Brashier Polk Cleaners. Orchard Village 9

10 Multifamily Division News NAI EARLE FURMAN BROKERS $6.4 MILLION SALE OF WILDEWOOD APARTMENT COMPLEX A 369 unit apartment complex in Spartanburg, South Carolina has been acquired by Florida based, Bowman Investments for $6,400,000. Tony Bonitati, John Gray, CCIM and Kay Hill of the NAI Earle Furman Multifamily Division represented the seller in the transaction. The Wildewood Apartment complex is positioned on 31 acres and consists of 23 buildings. The purchaser plans a $1,000,000 renovation to the property including rebranding to become the Woodland Park Apartments. The transaction was completed on April 20, The NAI Earle Furman Multifamily Division provides a broad array of specialized services to multifamily/ apartment property owners, developers & investors locally and around the state. NAI EARLE FURMAN WELCOMES KAY HILL TO THE MULTIFAMILY DIVISION Earleir this year, Kay Hill joined NAI Earle Furman s Multifamily Division. After six years of marketing and sales in Charleston, South Carolina, Kay moved to Charlotte, North Carolina and made a career change into the commercial real estate industry. She has since gained a wide variety of experience after holding positions at the City of Charlotte, Cardinal Real Estate Partners, LLC and Duke Energy in their Real Estate Services division. Kay also worked at Jones Lang LaSalle as the Research Analyst for the Carolina markets. Upon moving back to her hometown of Greenville, South Carolina, Kay moved into brokerage and into the Multifamily & Investment Division at NAI Earle Furman. Kay now handles multifamily sales and development projects successfully by applying her finance and business acumen to the Carolinas commercial real estate landscape. Kay graduated cum laude with a Bachelor of Science degree in merchandising from The Florida State University. She also graduated magna cum laude with a Masters degree in business administration with a real estate finance and development concentration from The University of North Carolina at Charlotte. Currently, she is a member of CREW Upstate, Urban Land Institute, and GGAR. 10

11 Company News and Community Involvement NAI EARLE FURMAN SUPPORTS THE MARCH OF DIMES 2012 is NAI Earle Furman s third year supporting the March of Dimes. Through company competitions, incentives, and activities with individual online fundraising by employees, the firm raised over $1,650 to support the research and programs that the March of Dimes funds to help all babies begin healthy lives. The March of Dimes provides funding for programs that help moms have healthy, full-term pregnancies; help researchers find answers to problems that threaten babies; help the over 500,000 premature babies that are born each year. Brent Illingworth Promoted to Vice President of Property Management NAI Earle Furman proudly announces that Brent Illingworth has been promoted to Vice President of Property Management. In his new role, Illingworth will continue to manage a diverse management portfolio and will assume a management role in the division overseeing the property managers. Brent has two B.S. degrees from St. Louis University, over four years of experience in non-profit management and over five years of real estate experience. His management portfolio includes the Palmetto Bank real estate portfolio and several additional large office and industrial assets in Greenville. Brent joined the company in 2007 as a property manager and in 2009 was promoted to Assistant Vice President of Property Management. He also holds the esteemed Certified Property Manager designation. NAI Earle Furman, LLC offers a full service property management program that encompasses a unique handson approach to real estate management. They manage over five million square feet throughout the Carolinas. JAKE VAN GIESON NAMED TO TWO NON-PROFIT BOARDS Jake Van Gieson of NAI Earle Furman was recently named to the board of Greenville Family Partnership and the YP20 s (The United Way s board for Young Philanthropists in the 20 s). Jake is also active in the Big Brother program and coaches the Christ Church Varsity Baseball team. He is a broker in the Retail Division of NAI Earle Furman. STUART WYETH TO SERVE AS THE GLOBAL CHAIRMAN OF THE NAI GLOBAL OFFICE COUNCIL NAI Earle Furman Principal, Stuart Wyeth was recently been elected to serve as the Global chairman of the NAI Global Office Council. In his role, Wyeth will collaborate with offices throughout the country on ways to increase business generation and educational opportunities. He will also drive the programming of panel discussions and education at the Global convention. In addition, he will serve as a member of the Council Leadership Executive Committee. 11

12 About About Us Us Founded by J. Earle Furman in 1986, NAI Earle Furman, LLC has become a leading full service commercial real estate brokerage firm in the Upstate of South Carolina specializing in the office, industrial, investment and retail sectors. NAI Earle Furman, LLC offers a wide range of services through brokerage and property management groups. A partnership with NAI Global allows NAI Earle Furman, LLC to access a network of worldwide real estate connections and offer international commercial real estate services to Upstate clients, while retaining local personality and knowledge. In 2011, the firm completed over 550 transactions. The property management team has grown exponentially in recent years and manages over 5 million square feet of commercial space in North and South Carolina. BROKERAGE SERVICES Tenant Representation Landlord Representation Market Analysis Site Selection Lease Versus Own Analysis Due Diligence Consulting Lease Review and Renewal Services Tax Deferred Exchanges Development Land Acquisition and Disposition PROPERTY MANAGEMENT SERVICES Formal property inspections each month with a copy of the inspection report included in the monthly report Face-to-face monthly meetings with each tenant to identify and address tenant needs Fast and effective response to tenant needs, repairs and maintenance requests Continual evaluation of vendor contracts and services to ensure the best results and fair pricing Thorough review of all operational invoices prior to payment Annual budget submission with periodic reports which provide monthly and year-to-date tracking of operational expenses After-hour emergency response to urgent problems In-house maintenance services with a team of technicians that is second to none as it relates to customer service, skilled maintenance care, fair pricing and trust Stay Connected Find Us, Friend Us, Follow Us JOIN OUR LIST! Visit the home page of naiearlefurman.com and click opportunity mailing list to receive investment opportunities and quarterly market reports. 101 East Washington Street Suite 400 Greenville, South Carolina tel fax