Absolute Net Lease Properties Offer Low-Risk, High-Yield Investment Opportunities
Colliers International Presents $216.4M Industrial Portfolio with Significant Scale and Mass
ATLANTA, April 5, 2011 /PRNewswire/ -- Shell-shocked investors recovering from the global recession are increasingly turning to the net lease sector for stable and predictable cash flow. Colliers International, on behalf of AIC Ventures, is offering a 25-asset portfolio of single-tenant, absolute net leased industrial properties that will generate more than $18.6 million in year-one rent.
The 100-percent-occupied portfolio can be acquired in total or within one or more Investment Pools. The assets represent 4.5 million square feet spread across 25 locations in 18 states and 23 MSAs, providing excellent geographic diversification and limited regional exposure. On average, the tenants have been in business for more than 55 years and their properties are considered mission-critical to their operations. Details are available at aicportfolio.com.
After a roller coaster ride in the stock market and low yields on stocks and bonds, commercial real estate offers stability and reliability. Real Capital Analytics recently reported that high-net-worth individuals invested $2.1 billion in commercial real estate in 2010, up from $579 million in 2009. And according to Investment Property Databank (IPD), U.S. commercial real estate investments returned 14.2% in 2010, the third largest return for that asset class over the past decade.
"This portfolio fills a niche for risk-adverse investors," said Colin Cavill, Senior Vice President of Colliers International. "It offers a critical mass of industrial properties with a high rate of return and appreciation."
In all but three of the 25 assets, the tenant has executed an absolute net lease and is responsible for all operating costs, including structural and capital repairs and maintenance. This limited exposure to capital risk provides even greater incentive for investors. Other features of the portfolio include:
- Average remaining term of 14.5 Years
- Average annual rent increases of 2.1%
- Staggered maturities through November 2028
- Attractive, secure yields
- Substantial security deposits
- 25 properties, 22 tenants, 15 corporate headquarters, 18 states
"The tenants in this portfolio were hand-selected and acquired through leaseback transactions," said Peter Carlsen, president of AIC Ventures. "This ownership opportunity gives investors a source of uninterrupted, steady cash flow and tenants get the capital needed for continued growth. It's a win-win for all sides."
SOURCE Colliers International
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