I hope everyone had a great week and Mother’s Day weekend! A rather cold one here in Minnesota and Wisconsin; but as always, we make the most of it!
In Reflection: We had an action-packed week at Brisky Net Lease. The team continued to diligently assist with helping manage our existing/pending sales. In general, vendors are doing a good job of keeping pace. Lenders, title companies, 3rd party vendors, etc…. Some extra patience and flexibility have been required on most of our deals; but generally speaking; I have been pleased.
Buyers: We saw an uptick in institutional buyers back looking again. Selective and careful; but a nice trend forward in my opinion. Many groups have a lot of capital they could deploy but are carefully assessing credit profiles to pursue and at what pricing.
Listings:
Industrial / Warehouse
We rolled out a very nice industrial asset to the market late in the week. It’s an owner-user opportunity owned by a REIT client. It was under long term lease, but the company didn’t need as much space in the market. It now makes for an excellent opportunity (at a fair price) in our home market. Built in 2006 with 55,665 SF in Elk River, MN. Call Cam (at 952-594-5616) or myself for more info.
Scheels
We reintroduced our large ground lease opportunity in Eden Prairie MN. Such an exciting concept with over 250k SF of retail store, ferris wheel and saltwater aquarium. We understand, Scheels opened their new north Dallas location on May 1st., so a July opening here should be in sight. Please call me for more information.
CVS/Walgreens
We are working several on/off market national drug store deals. Good buyer activity and fair pricing. Contact Cam or myself for additional information.
1031 Extensions: I’ve witnessed a few problems with the IRS extension program. I think it has good intentions. Having extra time for PROCESSES is absolutely a good thing. However, with arguably more inventory available right now and slightly softer pricing; it has prompted some buyers to write more offers, lack commitment and cause added stress to sellers.
On “essential“ NNN product; we have seen this strategy backfire for some, with multiple offers and units going under contract in days, instead of weeks. Plus, we do not believe the IRS will extend the “180 day to close” provision. So, giving buyers a lot longer to identify; closes the gap on the backend. I can see a few problems looming for NNN new construction. Oh well, we will adapt!
Marketing: We have some new initiatives in the works that will be rolling out over the next few weeks. Stay-tuned. Will coincide with an influx of new inventory.
Retail – Open for Business: Undoubtedly a major story in upcoming days and weeks. We watch and observe businesses start to reopen and will report back as it relates to our net-lease universe. Cheering for America to support them; while being safe, diligent and responsible. We don’t need to start this all over again!
Wishing you all another safe, healthy and productive week!!
Brian