Invreport Aug 2010
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$81 $- $- $- $- $- $0 $0 $0 $0 $1 $1 $1 $1 $1 $1 $- $10 $20 $30 $40 $50 $60 $70 $80 $90 Price Per Unit Price Per SF Office Retail Industrial STNL Apartment Cleveland Investment Report | August 2010 OVERVIEW: 23240 Chagrin Blvd., Suite 250 | Cleveland, Ohio | 216 831 3310 | www.naidaus.com TRANSACTIONS: Market Statistics Month % Change YTD Sales Volume (All) $46.5m 285.9% $185.9m # Properties (All) 1 -50.0% 18 Sales Volume ($5m+) $46.5m 342.8% $169.0m # Properties ($5m+) 1 no change 10 10-yr Treasury 2.907% -1.46% - Rolling 18 Month Volume Average Sale Price PSF The investment market in August 2010 is a perfect illustration of the pitfalls of just focusing on overall sales volume. The volume of $46.5 million would lead one to believe that the market had a good month. However, a quick peek behind the numbers shows otherwise, as this volume is comprised of just a single transaction. That’s right, there was only a single investment transaction that closed in August. This tells me two things – first, despite much hope, the investment market is still a long way from recovery. And second, capital is becoming increasingly impatient. Investors continue to amass their war chest of equity, waiting for an onrush of bargains that have yet to materialize. Penton Media Building – This 575,000 square foot CBD office tower transferred for $46.5 million or $82 psf. The building was 93 percent occupied at sale and tenants include its namesake Penton Media. The property also includes a 630-car parking garage. The buyer was Miami-based Optima Ventures and seller was California-based KBS Realty Advisors. This represents Optima’s fourth CBD office acquisition in the past 3 years. 0 1 2 3 4 5 6 7 8 9 10 $- $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 $70,000,000 $80,000,000 $90,000,000 $100,000,000 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Number of Deals Sales Volume Volume < $5m Volume > $5m # Deals < $5m # Deals > $5m Office 100% Retail 0% Industrial 0% Apartment 0% STNL 0% Other 0% Sales by Sector
Transcript of Invreport Aug 2010
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Office Retail Industrial STNL Apartment
Cleveland Investment Report | August 2010
OVERVIEW:
23240 Chagrin Blvd., Suite 250 | Cleveland, Ohio | 216 831 3310 | www.naidaus.com
TRANSACTIONS:
Market StatisticsMonth % Change YTD
Sales Volume (All) $46.5m 285.9% $185.9m# Properties (All) 1 -50.0% 18Sales Volume ($5m+) $46.5m 342.8% $169.0m# Properties ($5m+) 1 no change 1010-yr Treasury 2.907% -1.46% -
Rolling 18 Month Volume
Average Sale Price PSF
The investment market in August 2010 is a perfect illustration of the pitfalls of just focusing on overall sales volume. The volume of $46.5 million would lead one to believe that the market had a good month. However, a quick peek behind the numbers shows otherwise, as this volume is comprised of just a single transaction. That’s right, there was only a single investment transaction that closed in August. This tells me two things – first, despite much hope, the investment market is still a long way from recovery. And second, capital is becoming increasingly impatient. Investors continue to amass their war chest of equity, waiting for an onrush of bargains that have yet to materialize.
Penton Media Building – This 575,000 square foot CBD office tower transferred for $46.5 million or $82 psf. The building was 93 percent occupied at sale and tenants include its namesake Penton Media. The property also includes a 630-car parking garage. The buyer was Miami-based Optima Ventures and seller was California-based KBS Realty Advisors. This represents Optima’s fourth CBD office acquisition in the past 3 years.
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Sales by Sector
