PHILIPSON BUSINESS PROPERTIES | INDUSTRIAL
Cooperating SIOR Members:
Transaction Type & Details:
Transaction Date: March 29, 2013
Transaction Type: Investment
Building Type: Industrial
Building Size: 20,900 sq ft on 4. 17 Acres
Aggregate Rent or Sales Price: $4,550,000
Having recently represented Philipson Business Properties
(PBP) in the disposition of their property located in the
City of Industry, CA to Macy's Logistics, Inc., Jon Reno,
Tom Holland and Paul Perkins embarked on a nationwide
search identifying numerous opportunities to analyze.
Utilizing the SIOR network, the team was able to identify five suitable replacement properties that increased
PBP's cash flow by leveraging the sale proceeds from the
City of Industry asset.
The team traveled to San Antonio, TX; Reno, NV and
throughout Southern California with members of PBP to
tour prospective investment properties. A property in
Reno, NV was selected.
• Identify three suitable replacement properties under 1031X guidelines.
• Preferred single tenant with 5+ years remaining on a NNN Lease.
• Each property had to exceed the cash flow of their down leg property.
845 North Hills Blvd, Reno, NV was a 5-year old built-to-suit property constructed by Panattoni Development for H&E Equipment Services, Inc. H&E is
one of the largest integrated equipment services companies in the US.
• Purchase price $4,550,000.
• Going in cap rate was 9. 2 percent.
• Lease term had ten years remaining with 3-five year options to extend.
• Escalations every thirty months at 5 percent.
Paul Perkins was instrumental to the successful outcome of this transaction. As a local expert, he was able to:
1. Make recommendations for venders who could assist with the required due diligence.
2. Assist with coordinating venders with the client.
3. Provide sale and lease comps and other market intelligence so the team was able to accurately underwrite the deal for the client.
Paul Perkins, SIOR, CCIM
Perkins Company Nevada
Jon Reno, SIOR, CCIM
Los Angeles, CA