More Net Lease Deals Ahead in Tough Credit Times?

CRIC Capital, a joint venture of Boston-based Corporate Realty Investment Co. and Prudential Real Estate Investors, has closed on a net lease deal involving a 72,000-square-foot to-be-built office and research facility for Amcol Corp. in Hoffman Estates, Ill., a northwest suburb of Chicago.The transaction features a 20-year base lease term. Mortgage financing for the deal was provided by RBS Greenwich Capital.Though this particular deal was fairly modest–$33.5 million–W. Kyle Gore, managing director of RBS Greenwich Capital’s real estate net lease group, told CPN this morning that it augers more net leases deals in the coming months. The state of the credit market is creating the right conditions for such deals, he explained.”We view the current credit market dislocation as fomenting significant new net lease debt and equity investment opportunities for our group,” Gore said. “We have expanded our efforts to include equity and mezzanine-level financing, as well as first mortgage financing.”Given the virtual freeze in the CMBS market, he continued, “our growing first mortgage debt efforts are focused on long-term credit tenant loan financing.”  This sort of deal is nothing new to the company, however. According to Gore, his group has closed over $9 billion in credit tenant loan transactions over the past 17 years.The Hoffman Estates deal comes on the heels of a much larger net lease deal in Chicago for RBS Greenwich Capital in December 2007. In that transaction, telecommunications giant AT&T sold a Downtown office building for $292 million and leased it back. An affiliate of RBS Greenwich Capital was the initial contract purchaser in the deal, and arranged the first mortgage, mezzanine and third-party equity tax-deferred exchange capital.