Monthly Insight into the Capital Markets
SRS Real Estate Partners is pleased to distribute it's monthly investment sales newsletter presented by the Atlanta Investment Sales Team, composed of Kyle Stonis, Pierce Mayson and David Holcombe.
A Means to a Gains: the Election's Effect on the Close of 2012
Politicians are locked in a battle that will determine who will pay higher taxes, but many real estate owners aren't waiting to find out the answer. Now that the result of the election is final, the prospect of rising taxes on capital gains is prompting owners to make definitive moves toward unloading certain assets which they may have had reservations about before November 6th. The potential rise in the capital gains tax is part of a plethora of potential year-end tax increases and spending cuts, aptly known as the fiscal cliff. Leaders in Washington are likely to spend weeks disputing which taxes get increased, and many investors begrudgingly anticipate capital gains will be one of them. That being a strong probability, many sellers are measuring their expectations, willing to take a more aggressive position on getting their asset sold before year-end. This translates to ample opportunity for active investors, funds, REITs, 1031 Exchange buyers etc., many of which have an excess of remaining capital to deploy by the end of December. With an apparent mutual understanding amongst active buyers and sellers, it is safe to anticipate that more deals will be getting done leading up to the holidays rather than the usual winding down of activity which typically accompanies late November and December. With the threat of capital gains forcing hands, the market could very well see obvious incentivizing by both sides, including the use of all cash offers and quick end of year closings to facilitate the acceptance of discounted pricing by sellers at slightly higher cap rates, which may have not been in play until now.
Source: Pierce Mayson
Big Lots' Big Moves
Big Lots is making moves- both inside and outside its stores. The retailer will debut coolers and freezers inside its stores this spring in an effort to drive more traffic and keep up with discounters like Target, Walmart and Dollar General which continue to expand their refrigerator and freezer sections. Additionally, Big Lots will start accepting food stamps next year in an effort to accommodate all of its customers. The company also plans to build on its 1,468 store portfolio by opening 90 additional locations this year in strip and neighborhood shopping centers, with a targeted size of 25,000-35,000 square feet.
Source: Crittenden’s Retail Space
3Q- Volume & Pricing Trends
On the Market
Hickory Commons Shopping Center
185,550+/- SF
Burlington Coat Factory and Superlo Foods
For additional information
Call for Offers
Washington Square Shopping Center
63,361+/- SF
Planet Fitness and
Dollar Tree
For additional information
contact Kyle Stonis