California firm sells 2 local properties to REIT it sponsors

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Foz85
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California firm sells 2 local properties to REIT it sponsors

Post by Foz85 » Mon Jun 14, 2010 11:42 am

This might be of interest to members. A report of what seems to be a questionable sale of assets by a Griffin Capital Corp.,(http://www.griffincapital.com/about/) a sponsor of Non-Traded REITs. Appears the sponsor sold assets to its own REIT at a 5 CAP Rate when the market is yielding a 9 CAP Rate. How can they be profiting from such a sharp increase in value when asset prices in general are so depressed? Doesn't appear to be a good deal for sharholders who are footing the bill. Perhaps others more knowledgeable can weigh in. http://www.chicagorealestatedaily.com/cgi-bin/news.pl?id=38541

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REIT Wrecks
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Re: California firm sells 2 local properties to REIT it sponsors

Post by REIT Wrecks » Wed Jun 16, 2010 1:54 am

I will eventually figure out how to merge topics, but in the meantime please refer to the following thread. It covers the same report in much greater detail:

http://www.reitwrecks.com/forum/viewtopic.php?f=2&t=38

angleblue63
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Re: California firm sells 2 local properties to REIT it spon

Post by angleblue63 » Wed Nov 14, 2012 10:00 pm

REBO also said that the purchase price equated to an 8.09 percent capitalization rate, but it was not clear whether the 8.09% cap rate was a going forward "pro-forma" cap rate, or an 8.09% cap rate on in place numbers. If the 8.09% cap rate was on in place numbers, and if the purchase price included all of TNP's acquisition costs and fees, then this would clearly be an accretive acquisition for the REIT. If not, then more of the same...

Alec20
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Re: California firm sells 2 local properties to REIT it spon

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fawn66
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Re: California firm sells 2 local properties to REIT it spon

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Alec20
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Re: California firm sells 2 local properties to REIT it spon

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