November 7, 2012
CPA®:17 - Global, one of the W. P. Carey Inc. (NYSE: WPC) publicly held non-traded REIT affiliates, has acquired a 163,000 square foot manufacturing and office facility in Sterling, Virginia.
The property will be leased to Cuisine Solutions, Inc. under a 20 year net lease. The purchase price was approximately $26 million.
Cuisine Solutions produces and markets fully cooked, frozen, and prepared foods to foodservice, on board services, retail, military, and national restaurant chain businesses in the United States and Europe. Cuisine Solutions currently maintains over 400 SKUs (unique product identifier codes) and sells approximately 30 products through its retail arm.
Cuisine Solutions offers its products under its own label at retail locations but derives the majority of its business from national retail chains. Cuisine Solutions' differentiator is the process in which it prepares its food. "Sous-vide," French for "under vacuum," is the technology, science, method, and art of slow cooking food and sauces at low temperatures under vacuum seal (usually immersed in water). This style of cooking was pioneered by Dr. Bruno Goussault, Chief Scientist for Cuisine Solutions.
CPA®:17 - Global has also acquired a 274,000 square foot industrial and office facility in Elk Grove Village, Illinois. Approximately 239,000 square feet is leased to Shale-Inland Holdings LLC under a 15-year net lease, with the balance of the property leased to Material Sciences Corporation. The purchase price for this asset was $17 million.
Shale-Inland is the leading industrial supplier of products used in the transportation of water, food, energy, and information to its end use, specializing in the surface quality of stainless steel, aluminum, and carbon steel. Through 47 locations in North America, Shale-Inland delivers a broad spectrum of metal, pipes, valves, or finished parts to its customers.
Material Sciences (NASDAQ: MASC) is a leading provider of material-based solutions for acoustical and coated applications. Material Sciences uses its expertise in materials, which it leverages through relationships and a network of partners, to solve customer-specific problems.
April 11, 2013
CALABASAS, CA-"As tenant demand increases for well-located junior box space, landlords will not be as motivated to keep a struggling tenant or offer concessions." So says Alvin Mansour, senior vice president of investments and senior director of the national retail group and net leased properties group at Marcus & Millichap Real Estate Investment Services, who recently chatted with GlobeSt.com west coast editor, Natalie Dolce on where retail is headed, who the players are, and where the opportunity lies. Mansour was recently named one of the firm's top investment specialists of Marcus & Millichap nationwide.
GlobeSt.com: In the spring of 2009, the retail sector was in the center of a perfect storm caused by a number of factors including the housing crash, overbuilding and frozen credit markets, not to mention massive job loss and a lack of consumer confidence. Where do things stand today and where are they headed? How is inventory?
Mansour: The retail market has been slowly rising over the past couple years and is in full force for 2013. With the lack of development post-recession, we have seen the market catch up with good absorption and tenant expansion requiring new retail. Although much more conservative, our developers pipelines are slowly growing and we are seeing some tenants ramp up expansions.
With the lack of inventory for sale, the record low 10-year treasury, and the deficiency of better investment choices, we expect 2013 to finish very strong. Since financing is currently available at such low rates, traditional investments such as CD's, mutual funds and others do not offer the rate of return that they used to.
GlobeSt.com: What is the single biggest factor impacting the retail business right now?
Mansour: E-Commerce is one of the biggest factors impacting the retail business. Its reach can be seen with big box anchor tenants attributing high percentages of their revenue to online sales and forcing them to rethink their company mentality. Increases in these areas impact what locations they keep open and/or downsize.
GlobeSt.com: Due to e-commerce, are you seeing that any retail design is changing as a result of that, to maybe highlight items that can be purchased online vs. in-store? Is the use of store displays changing to reflect this?
Mansour: The retail market is extremely competitive and ever changing. Retailers are adapting the products that they offer and taking advantage of the real time data that they receive from their online stores. They have to keep up with the pace of the digital era so they have no choice but to stay relevant. They are being more selective with the items that they highlight in their stores and are changing the design to make it easier to find product. There has been a definite shift with some companies offering more options to their clients online.
GlobeSt.com: What buyers are out there? Private? REITs? Foreign money? Who are the players?
Mansour: We have seen a large increase in private buyers exiting the stock and bond markets that are targeting retail opportunities. Many private buyers are also shifting away from management intensive investments like apartments and moving towards passive single tenant investments.
Foreign buyers have also come into play considering the instability in the global markets, we have recently sold some shopping centers, single tenant retail and office buildings to oversees buyers. We have also seen an uptick in interest from Latin American buyers targeting the US for real estate investment.
Most of the major players in the current marketplace have been large REIT's, Pension Funds, Institutions and private funds. Although the majority of transactions under $20 million are dominated by the private buyer with the highest percentage being based in California. We have successfully transacted with several unique buyer pools including, Doctors, Lawyers, Agricultural Farmers, Sports Athletes, and high profile entertainment industry individuals.
GlobeSt.com-With every challenge there's usually an equal or larger opportunity. Where do you see the opportunity in the retail business?
Mansour: We see great opportunity investing in secondary/tertiary markets. There is opportunity to purchase quality credit anchored well located dominant centers at spreads 200bps higher than major markets. With rates where they are, this allows investors to achieve a strong double digit cash on cash return. We are seeing CMBS lenders enter this market more aggressively due to the lack of major market deals. They have no choice so expect to see great opportunity in this area.
GlobeSt.com: On another note, are you seeing many landlords renegotiating deals with tenants to keep them in place or has that slowed down at all?
Mansour: The pace of renegotiations has slowed down drastically from years past. We're still seeing landlords renegotiating leases with junior box tenants who have been struggling throughout the recession and looking to reduce square footage. In many cases this has been mutually beneficial for both the tenant and the landlord. However, as tenant demand increases for well-located junior box space, landlords will not be as motivated to keep a struggling tenant or offer concessions.
GlobeSt.com: Is there any overbuilding happening or is that no longer a concern?
Mansour: Overbuilding has not been a concern in retail due to the lack of development we have seen over the past couple years. Although absorption has picked overall in the last two quarters, employment growth has not reached the level most retailers need to get back into expansion mode on a large scale. There exceptions but overall we aren't concerned about over building at this point in the cycle. From a brokerage stand point, we are seeing a continued supply issue and need more product to deliver with the amount of liquidity looking for deals.
GlobeSt.com: How are retailers doing in Southern California and what is your perspective on SoCal's viability relative to the rest of the country?
Mansour: Southern California remains a stand out market along with other major metropolitan areas. It remains a source of investment capital with the ever changing market. Retail remains strong and the constant redevelopment to keep up with the completive market is intact.
The San Diego real estate broker was recognized in the 30 Under 30 Real Estate section.
SAN DIEGO, Jan. 5, 2012 - Alvin Mansour of Marcus & Millichap Real Estate Investment Services, the nation's largest real estate investment services firm, has been recognized by Forbes magazine for his achievements in the commercial real estate industry at the age of 29.
Mansour, a senior vice president investments and senior director of Marcus & Millichap's National Retail Group (NRG) was recognized for closing more than $1 billion in real estate transactions in the past eight years. Forbes also recognized Mansour as the firm's top listing agent in 2010. Mansour specializes in the sale of single- and multi-tenant retail properties throughout California and nationwide.
"This recognition was very deserving," says John Vorsheck, regional manager of the San Diego office of Marcus & Millichap. "Alvin is one of the most dedicated, hard-working brokers in Southern California and his commitment to providing superb service to our investor clients is unparalleled. When he's not working hard to close transactions along with his team, Alvin is either out performing community service or spending time with his family."
Mansour has received numerous awards from Marcus & Millichap for his investment sales achievements. Last year, he was recognized as one of the company's top three agents nationwide among a field of more than 1,200 brokers. Mansour is consistently ranked as the top agent in the San Diego office, having garnered the award the past five consecutive years: 2006, 2007, 2008, 2009 and 2010. Mansour also earned the Rookie of the Year Award from the San Diego office shortly after joining the firm in 2003.
Several real estate trade magazines, including Real Estate Forum, Real Estate Southern California and the California Real Estate Journal have recognized Mansour for his accomplishments as a leading investment broker under the age of 30.
Mansour is dedicated to assisting both the local San Diego County community and the international refugee community. "During these challenging times when so many people face adversity because of their economic situation, ethnicity and religious beliefs, it's more important than ever to give back to those in need," says Mansour.
Recently, Mansour funded the construction of a Catholic church in Nicaragua under Mother Theresa's Order. He also serves as the chairman of the fundraising committee for CMSS - Refugee Social Services, which is dedicated to providing mental health and other services to immigrants from Middle Eastern refugee camps. In Iraq, Mansour's donations through the St. Dominican Order were used to improve local schools and aid the residents of the town of Tel Keppe outside of the village of Mosul.
Locally, Mansour is a member of Trinitarians of Mary, the Catholic World Mission, the Leukemia & Lymphoma Society, St. Madeleine Sophie's Center, St. Peter's Chaldean Catholic Cathedral, Intercessors of the Lambs and Knights of Columbus.
A graduate of St. Augustine High School in San Diego, Mansour earned his bachelor's degree from the University of San Diego where he studied Business with an emphasis in real estate. Mansour remains actively involved in the work of his alma mater through the Burnham-Moors Center for Real Estate at the University of San Diego.
CALABASAS, CA – March 15, 2013
Marcus & Millichap Real Estate Investment Services, the nation's largest real estate investment services firm, has announced its top investment specialists for 2012. Alvin Mansour of Marcus & Millichap's San Diego office received the firm's top multi-tenant award out of more than 1,000 investment specialists nationwide. He also received Marcus & Millichap's top listing agent award for the third consecutive year.
"We are proud to recognize Alvin as one of the firm's top agents, as our top multi-tenant retail agent and as our top listing agent nationwide for the third year in a row," says John J. Kerin, president and chief executive officer of Marcus & Millichap. "Alvin's achievements on behalf of clients and his consistently high rankings demonstrate superior knowledge of the retail and net-leased properties markets and an exemplary commitment to client service."
Mansour began his career as an agent in Marcus & Millichap's San Diego office in 2003. He earned the firm's Rookie of the Year award that year and went on to become one of the most successful young agents in the history of the firm. Mansour has completed commercial real estate investment transactions valued in excess of $1 billion.
He has been recognized by Forbes magazine for his accomplishments in commercial real estate. Several real estate trade magazines, including Real Estate Forum, Real Estate Southern California and the California Real Estate Journal have also recognized Mansour for his accomplishments as a top investment broker nationally.
January 4, 2013
Setting out to lease and sell properties in the huge expanse of real estate known as Southern California is a daunting task. From the industrial buildings of the Inland Empire, to the high-rises in the Los Angeles CBD, the region presents a multitasking challenge to any broker that wants to work this territory. Recently, the editors of Real Estate Forum collected deal information from leasing and investment brokers across the metro area who have met that challenge. We've come up with a roster of the most prolific brokers in the market, featuring the top 16 individual agents or teams who handle landlord and tenant representation, followed by the top 15 most active investment sales brokers or teams, presented in alphabetical order.
METHODOLOGY: Deal information is for commissionable transactions closed in the Southern California region between October 1, 2011 and September 30, 2012, and all data shown has been supplied and verified by the companies themselves. Leasing brokers were given scores based on the total number of leasing transactions they closed, the total square footage of all leasing transactions and their total value. The final score was based on the average of the three fields. The investment sales brokers were scored on total number of sales transactions closed and total sales volume, with the final score based on the average of those two figures.
To see who made the list, please visit the December issue of Real Estate Forum online
By Michael Klam, Special to The Daily Transcript – San Diego, CA
Thursday, March 28, 2013
Alvin Mansour was born and bred for business. Working in the family market at an early age and watching the business diversify into real estate sparked his passion for building teams and making deals.
A go-getter from the start, he earned his bachelor's degree from the University of San Diego and promptly landed a lucrative position atMarcus & Millichap. He won Rookie of the Year in his first year at the firm, and within three years he was a Top 10 Broker nationwide.
With more than $1 billion in closed investment transactions, at 30 years old Mansour has been Marcus & Millichap's No. 1 multi-tenant agent nationwide, a top five single-tenant retail agent, a top five agent, and the company's No. 1 retail agent nationwide.
Mansour is senior director of the National Retail Group and senior vice president of investments.
"In 2012 we did over 80 transactions totaling over $400 million dollars," Mansour detailed. "In 2013, we are expecting sustained growth in both the single and multi-tenant sectors. We currently have a couple major transactions under contract," he added.
In 2012, Mansour and his team facilitated the sale of Uptown District Shopping Center off University Avenue for approximately $81.1 million. This was the largest retail sale of the year in the county of San Diego, according to Mansour.
"It was a crowning achievement of mine and a proud moment for me because it happened in a city that is so near and dear to me," he said.
Another standout in 2012 for Mansour's team was the ViaSat Digital Communications office building in Carlsbad. It closed in July of 2012, and the sale transacted at a record-breaking $341 per square foot.
Mansour credits his team for the success. "We are a group of nine driven individuals that work to streamline the process of our clients' investment experience," he said.
Each member has a specialized segment of the brokerage continuum, he explained, and each has specific responsibilities ranging from marketing, analysis and research, to transaction coordination.
"We work like a well-oiled machine to make sure our clients are provided with the best possible service," Mansour said.
He has his brother with him on the team, keeping family close. And his team members support him in full.
"Alvin employs a large team of people, which he genuinely cares for, and is an all-around thoughtful guy, despite his great success thus far," Operations Manager Jamie Newland said.
Mansour's outlook for the industry is generally positive, and he expects it to remain relatively stable over the next 18 months, "provided interest rates don't spike," he said.
At a young age, Mansour has already achieved in his field what many spend their lives pursuing, and he has done it not just for himself but also for his family, his team and his community.
As a philanthropist, Mansour has funded the construction of a Catholic church in Nicaragua through Mother Teresa's Order. Also, with more than half of The Mansour Group as graduates of the Burnham-Moores Center for Real Estate at USD, the team remains involved in the activities of the organization and participates as a large donor.
"Alvin makes impossible deals happen, and contributes greatly to the San Diego economy, both economically as well as in his personal efforts," Newland said.
Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has brokered the sale of a 41,516-square foot office building triple-net leased by ViaSat Digital Communications. The sales price of $14,150,000 million represents $341 per square foot.
Alvin Mansour, a senior vice president investments in Marcus & Millichap’s San Diego office, represented the seller, a California limited partnership. The buyer was a private California limited liability company.
“Our marketing efforts required a unique and customized approach tailored towards both private and institutional buyers,” says Mansour. “Due to the shorter lease term, many institutional-based buyers were not a fit, but we were able to leverage our exclusive buyer pool to produce the deal.”
“The sale reflects the growing confidence investors have in San Diego’s County’s office sector recovery and the increased demand we are seeing for high-quality net-leased assets,” adds Mansour.
“The price per square foot that Alvin was able to create for this asset is a true testament to our national platform and to his marketing ability,” says John Vorsheck, regional manager of Marcus & Millichap’s San Diego office.
The building is located at 2530 Campbell Place at the intersection of Palomar Airport Road and El Camino Real in Carlsbad, across the street from ViaSat Digital Communications’ 300,000-square foot corporate headquarters. The location is adjacent to the 175-acre master-planned community Bressi Ranch, which is home to more than 600 housing units and 2.5 million square feet of commercial space.
ViaSat Digital Communications signed a 10-year triple-net lease for the building in May 2009. The lease provides for five percent rent increases every two years. The company is one of more than 60 communications businesses located in Carlsbad and one of over 850 communications firms located in the San Diego region. The communications industry generates $12.3 billion in annual economic impact for the region and employs more than 25,000 people; the highest concentration of wireless employment in the United States.
ViaSat Digital Communications is publicly traded on the National Association of Securities Dealers Automated Quotations under the ticker symbol VSAT and is currently rated B by Standard & Poor’s.
Carlsbad is located on the southern coast of California approximately 35 miles north of San Diego and 87 miles south of Los Angeles.
SAN DIEGO, CA - Alvin Mansour of Marcus & Millichap Real Estate Investment Services, the nation's largest real estate investment services firm, has negotiated the sale of 13 single-tenant property transactions in locations across the country during the third quarter.
In all, Mansour represented various entities in the disposition of approximately $46.7 million in investment real estate.
"A large majority of Class A inventory in primary markets has already been acquired by investors since the Great Recession ended," says Mansour. "As a result of limited inventory, investors are now targeting second-tier markets, which will support deal flow heading into 2012.
"The combined influence of low interest rates and a steady stream of investors cycling capital back into net-leased properties have steadily compressed cap rates since mid-year 2010," he says.
"A greater number of foreign investors and foreign-based funds - in addition to domestic buyers - are fleeing to the safety of investment real estate as the European debt crisis continues to unfold," Mansour adds. "In addition, ongoing instability in the stock market has prompted more investors to seek hard, tangible assets with stabilized returns, which commercial real estate continues to offer."
Among Mansour's largest sales in the third quarter were three Walgreens net-leased drugstores, all of which closed in separate transactions:
- In Naperville, Ill., he arranged the $7,050,000 sale of a Walgreens;
- In Edinburg, Texas, he arranged the $6,906,475 sale of a Walgreens;
- In Leitchfield, Ky., he arranged the $4,830,000 sale of a Walgreens.
In a separate prominent transaction, Mansour arranged the sale of a 75,378-square foot FedEx Ground facility, for $6,395,000 in Evansville, IN. The buyer, also represented by Mansour, was an all-cash buyer from California. Additional property sales closed by Mansour included banks, medical office buildings, restaurants and other drugstores.
By Natalie Dolce
SAN DIEGO-Marcus & Millichap Real Estate Investment Services has negotiated the sale of seven Walgreens located throughout the US since the first quarter. The properties, located in Virginia, Indiana, Missouri, North Carolina, West Virginia, Mississippi and Texas, traded for approximately $36.4 million.
Alvin Mansour, a senior vice president of investments and senior director of Marcus & Millichap's national retail group, represented the sellers in the seven separate transactions. The sellers were developers and the buyers were comprised of private investors and institutions.
"Drugstores remain high on investors' list of purchase targets, especially for conservative buyers focused on wealth preservation and predictable income streams," says Mansour. "Private investors from across the country expressed interest in these properties. Several of the buyers were first-time retail investors and had money to place from large 1031 exchanges where they had traded out of more management-intensive properties. Due to our relationships with these private buyers, we were able to obtain top dollar for our sellers' properties."
Alvin Mansour, senior vice president investments and senior director, National Retail Group of Marcus & Millichap in San Diego
1. What are the biggest trends you currently see in the retail market?
We are continuing to see high demand for investment-grade, single-tenant assets, but have witnessed increased demand over the past 18 months for higher-price-point, multi-tenant retail centers.
Developers have been targeting the San Diego-Mexico border to take advantage of the world's busiest border crossing. More than 21 million people come north annually from the border, spending about $6 billion in shopping each year. This figure is rising rapidly in conjunction with the increasing value of the peso. With $600 million dedicated toward border expansion, improvements are already in process to increase the accessibility of the 50,000 vehicles and 25,000 pedestrians that enter the United States daily through the San Ysidro Land Port of Entry. The Shamrock Group, for instance, is in prime position to capitalize on these trends with their Plaza at the Border development, a 98,000-square-foot retail center positioned adjacent to the Las Americas Premium Outlets.
2. Which retail product types are currently performing the best in your region?
Neighborhood centers, which have accounted for 40 percent of multi-tenant retail transactions over the past 24 months, are attracting the most demand in the San Diego region. Specifically, grocery-anchored centers are creating extremely competitive bidding environments, resulting in transactions that are closing at or above listing price.
3. How are big boxes performing in your market? What about mom-and-pop retailers?
The city's ban on big-box retailers has pushed these companies to consider new ways of entering the San Diego market. Walmart has announced it will open its first local Neighborhood Market in the Logan Heights area this fall. It will be leasing the Farmers Market Building at the corner of Commercial and 22nd streets, an area that's traditionally been plagued with vacancy issues. The company has been aggressively expanding its small grocery store format, and has plans to open 11 new Neighborhood Market locations in California. This smaller format is very flexible, which allows it to conform with local communities and encourages increased economic activity.
With the uncertainty created by the European Debt Crisis and the subsequent reduced interest rates, we've seen a sustained flight to investment-grade credit assets at all price points. Investors are willing to take a small amount of risk with mom-and-pop retailers as part of a multi-tenant center as long as the center is anchored by a credit tenant with strong sales to offset the associated risks.
4. What kinds of retailers are performing the best in San Diego?
While service stations have seen the largest year-over-year change, an increase of more than 17 percent in transaction volume, drugstores and banks continue to lead investor demand. Convenience store 7-Eleven has been aggressively expanding throughout the market, and has recently opened more than 600 new locations nationwide.
The county has also seen an increasing number of discount retailers. There are 18 new Dollar Tree stores, 17 new 99 Cents Only stores and numerous new mom-and-pops. These retailers' smaller, more convenient locations allow them to compete directly with larger powerhouses like Target and Wal-Mart. Trends are showing that middle-class shoppers are opting for deep discounting in lieu of department stores. Ross Stores is cashing in on this craze by introducing their dd's Discount concept into the San Diego market. The company plans to open 20 additional locations nationwide this year, many of which will take place in mature shopping centers. This is in addition to the more than 80 dd's Discount locations that are currently in operation.
5. How are local mixed-use properties performing?
Mixed-use projects in the San Diego region have been performing well, sparking the emergence of new mixed-use projects like Pacific Station in Encinitas and the $1-billion renovation project of the Westfield UTC Mall in La Jolla. With rising gas prices, renters are looking to reside closer to their workplace and retail centers.